TSX.V: VID

Corporate Presentation- Winter 2015 -

TSX.V: VID 2

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SOMEDIA NETWORKS INC. DISCLAIMER

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BUSINESS DEMAND FOR VIDEO INCREASING

VIDEO DELIVERS RESULTS

The Relevancy Group, “The ROI of Video in Email Marketing”

BUDGETS & VOLUME OF PRODUCTION INCREASING

2014 Online Video Production Trends Report - May 2014

• Video is the best performing marketing tool available to marketers and budgets are increasing rapidly

• Mobile is driving massive growth in the use of video

• Video ads receive 3X the clicks that other ads do. Video ad views are growing 100% year over year

• Cisco projects that 84% of web traffic will be video by 2018

• YouTube is the #2 search engine

Growth in the Use of Online

Video by Business

ABOUT SOMEDIA

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INVESTMENT HIGHLIGHTS

• SoMedia is positioned at the nexus of several powerful growth trends

• Online Video Marketing

• Cloud Based Marketing & Analytics

• The Evolution of Crowd Sourcing

• Targeting a very large addressable market that has been unable to embrace the clear benefits

of video marketing due to issues of cost, complexity and lack of scale

• SoMedia’s video production solutions remove these barriers through the use of an innovative

cloud based front end and advanced crowdsourced workforce management platform

• The video production space is extremely fragmented, without scale and with no market leader

able to serve customers nationally

• Q3/Q4 ‘14 integrations with 20 cloud based marketing platforms (Salesforce, Marketo, Eloqua,

Act-On, Sharepoint etc) a key catalyst for near-term growth

• Google partnership offers significant 2015 upside potential.

• Shares remain well under the radar and do not reflect near term momentum or opportunity

for sector ownership

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WHAT WE DO

Cloud Based Video Production & Marketing - VaaS

• Scalable B2B and News video production : Available on demand, anywhere, in unlimited volume, at 50%> savings

• Video as a Service (VaaS). Cloud based production platform is integrated with project management, video players and advanced analytics systems

• VaaS production platforms control a unique Crowdsourced Workforce Management system that harnesses a specialized workforce of 3500+

• Turnkey reseller & corporate solutions : 4000+ internet marketing resellers signed to date

• VaaS production and marketing solutions for cloud based marketing platforms: Salesforce/Exact Target, Google, Oracle/Eloqua, Marketo, Microsoft

Scale: manage an unlimited number of simultaneous projects

Reach: order professional video in any location in North America

Volume: order any number of videos anywhere, on demand

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• Video production companies are typically low

tech small businesses managed by creatives

• Expensive

• Producing video content in volume or in

numerous locations is extremely difficult

• Outcomes are variable and dependant on the

skills of individuals

• Quality control is a key problem

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THE PROBLEM WITH VIDEO

2014 Online Video Production Trends Report - Web Video Marketing Council

BIGGEST VIDEO PRODUCTION CHALLENGES

ABILITY TO EXECUTE IS A PROBLEM

Analyzing the ROI of Video Marketing - the Aberdeen Group

COST & DIFFICULTY

2013 Video Marketing Survey and Business Trends Report – Web Video Marketing Council

THE TWO BIGGEST FACTORS HOLDING

BACK MORE VIDEO MARKETING

The Pain Points of Video

Production

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VaaS = Crowdsourcing + Process Control

RE-ENGINEERING VIDEO PRODUCTION

Crowdsourcing leverages both the explosion in trained video production talent and the dramatic

decline in the cost of video production equipment

Front end VaaS (Video as a Service) platform manages creative development, task planning and

production management

Network of 3,500+ video production specialists throughout North America managed by cloud based

process and QC platform

Turnkey solutions offer scalability, reach and volume

Result is significant reduction

in cost (40-50%) and turnaround

time (14 days)

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RESELLER SOLUTIONS

Integrated Reseller Platform: Turnkey Custom Video

Production Anywhere in North America

Sell and deliver video - no video expertise required RESELLER SIGNUPS

Fast, 14-Day Guarantee

On-Demand

Lowest Cost

50 to 100% Markup

Consistent Quality

Standardized Formats

Anywhere in North America

Free Players + Analytics

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THE RESELLER CHANNEL

7,000+ONLINE MARKETING

COMPANIES IN CANADA

76,000+ONLINE MARKETING COMPANIES

IN THE UNITED STATES

27 million SMBs

2 million SMBs

4000+ Resellers signed to date

• Web Design & Development Services

• SEO & SEM Specialists

• Digital Agencies

• Advertising Agencies

• Marketing Consultants

A large fragmented market providing:

internet marketing services to:

27 MILLION SMBS 2 MILLION SMBS

Q3 Reseller Growth:

• Sales to resellers increased 112 %

• 162% increase in sales to existing customers

• 43% growth in sales to new customers

• Production backlog increased to $843,107

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HIGHER VALUE RESELLER CASE STUDY

Largest private healthcare practice

marketing agency in US.

Marketing agency serving financial advisors

and financial planning firms.

WHY THEY CHOSE

SOMEDIA

Needed a solution to replace their in-house

video offering.

Had been unsuccessful in offering a reliable

video product to their customer base. Required a

turnkey out sourced solution to enable scale up

of the new service to their client base.

COMPANY 50 employees 15 employees

CLIENTS 15,000+ independent healthcare practitioners Hundreds of independent advisors

+ TD Ameritrade as a corporate partner

TOTAL VIDEOS

PRODUCED TO-DATE10 30

AVERAGE VIDEO

PURCHASE PRICE

$1000

(Sold to end clients with 80-100% markup)

$675

(Sold to end clients with 80-100% markup)

EXPECTED 2015 REVENUE $40-80k $25-50k

WHY THEY CHOSE

SOMEDIA

Looking for a solution to replace

their in-house video offering.

Required turnkey outsourced solution

to enable scale up of new services to

their client base.

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REPEAT RESELLERS & SALES BACKLOG

Higher Value Reseller Projections

Annual Sales Value

Current Partner

Current Pipeline

Total Current

2015 New Acquisition

TotalResellers

2015

$50k + 6 5 11 11 22

$25-50k 12 10 12 55 67

$10-25k 29 31 60 53 113

$5-10k 110 27 137 22 159

• Inside sales higher value client close ratios have been 55% since Q3

• Qualification and targeting processes have been focused on high value partners since Q2

Orders received from resellers but not yet produced or Sales Backlog reached $1+ million by the end of Q4.

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Ability to provide turnkey, high quality, affordable video

ad content filmed anywhere in North America

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GOOGLE PARTNERSHIP

SMBs who advertise on Google do not use video ads on YouTube due to cost

Goal to convert text and banner advertisers to grow video ad revenue

Require a trusted video production solution to serve the 5,000+ certified agency

partners who manage advertising program for Google clients

Challenge / Opportunity

Why Google Chose SoMedia

Success to Date

Google Promotion of Scalable Video to all 5000+ agency partners (Q1 2015), then directly to SMB’s

Proposed International Expansion of SoMedia’s services with Google as lead partner

What’s Next:

Become official go-to provider of affordable video ads for YouTube. Work with Google agency

partners who become high value repeat resellers for SoMedia. Build out Video Ad production

solutions with Google as lead partner - expand video ad production services to other partners.

Opportunity for SoMedia:

In August 2014, Google launched test promotion with a select

handful of agency partners. SoMedia completed production of video

ads, received referrals, repeat orders and recommendations from

agency partners

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CORPORATE & ENTERPRISE PLATFORM

Scalable Video Production for Corporations & Agencies

Volume and National Reach are Corporate

Marketing Pain Points

Solutions for multi location corporations

in large volume.

On Demand Video Production Department

Corporate Platform includes project, team and

campaign management, tracking, reporting,

players & advanced integrated analytics

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CORPORATE CASE STUDY

Global enterprise software company National auto care franchise with 800+ locations

WHY THEY CHOSE

SOMEDIA

communications. They were previously

accustomed to paying $20-25k per video and

AAMCO wants to create custom video content

for each of their 800+ franchise locations and

SoMedia is the only company able to provide the

geographic reach and scale to deliver.

COMPANY 68,000 employees 201-500 employees

CLIENTS 263,000 in 130 countries 800+ locations

AVERAGE VIDEO

PURCHASE PRICE$2500 $550

EXPECTED 2015 REVENUE $25-50k $150-$250k

WHY THEY CHOSE

SOMEDIA

SoMedia produced a series of client

videos for internal and external

communications at a fraction of the cost

of their previous provider - a savings of

more than 80% .

SoMedia is the only company able to

provide the geographic reach and scale to

deliver custom video content for each of

their 800+ franchise locations.

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MARKETING PLATFORMS

Scalable Video Production Integrations

for Platforms

Current and In Progress Integrations, Tests and App Developments

Apps and direct integrations of scalable, on demand video production services with video players and advanced analytics

SoMedia is the first mover. Only video production solution able to deliver required scale & reach

Introduction of content marketing and demand generation programs will broaden overall market awareness and reduce cost of client acquisition

Rapid rollout started Q3: 20 integrations so far

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DIRECT INTEGRATIONS & APPS

Adobe Marketing Cloud MAP

Alfresco CMS

Bigcommerce App Marketplace

CallidusCloud MAP

Constant Contact Email Mtkg

CrownPeak CMS

Ektron CMS

GetApp App Marketplace

Hootsuite SMM

Hubspot MAP

InfusionSoft CRM

Ion Interactive Landing Pages

Kapost Content Marketing

Leadpages Landing Pages

Limelight Content Syndication

MailChimp Email Mktg

Microsoft Dynamics CRM

Newscred Content Syndication

OneSpot CMS

OpenText CMS

Salesforce CRM

Salesfusion MAP

Silverpop MAP

Sitecore CMS

SnapApp Content Marketing

Wix.com Website Creator

IN PROGRESS, PLANNED & POTENTIAL

COMPLETED

Act-On MAP

AppDirect App Marketplace

Campaign Monitor Email Mktg

Captera App Marketplace

Eloqua MAP

ExactTarget MAP/Email

Google Chrome Marketplace App Marketplace

Marketo MAP

Microsoft Sharepoint CMS

Moz CMS

Serchen App Marketplace

Unbounce Landing Pages

Web.com Website Creator

WordPress Website Creator

Yahoo! App Marketplace

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Scalable Video is the only video production solution capable of providing the

North American wide reach, volume and scale required to service the Marketo

platform.

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PLATFORM PARTNER STUDY

Marketo ecosystem enables clients to access everything needed to run

successful marketing campaigns, but had no video production solution

Challenge

Why They Chose SoMedia

Success to Date

Content marketing, events, promotional programs. Marketo is very excited about the potential for

increased use of video; SoMedia to attend and present at the Marketing Nation Summit in 2015.

What’s Next:

Work with Marketo customers (Fortune 1000) to roll out video campaigns that require scale

and volume production.

Opportunity for SoMedia:

Strong early traffic to SoMedia Launchpoint page

Leads and enquiries being generated

Based on initial success, Marketo invited SoMedia to become expert content contributor for their corporate marketing blog

Marketing Automation Platform

3000+ customers

Market Cap: $1.1 billion

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SALES MODEL EVOLUTION & COST OF AQUISITION

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THE COMPETITION

Opportunity for Category Ownership in a Global Market

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PROGRESSIVE LEADERSHIP

Rick Schultz CGA - CFO

George Fleming - Founder & Co-CEO

15 years experience as an Internet business founder or co-founder. CEO & founder of One Person Health

(HealthPricer.com), Co-founder of eCharge Corp. Prior to that at Canaccord Capital.

12 years accounting management experience; involved in the preparation of two IPOs.

Tactical Corporation, Taleo Corporation, Pivotal Corporation.

Amir Mirhosseini - CTO & Co-Founder

Highly innovative technology architect & programmer. Graduated with a BSc and Masters

(incomplete) in Computer Science from UBC.

Colin Osing - Vice President, Marketing

Former head of marketing at Canpages Inc. (IYP) with 15 years experience selling digital

marketing solutions to SMBs and agencies.

Ben Pickering - President & Co-CEO

15 years experience in the online media and software industries. CEO of Strutta, senior roles at Yahoo. Named a

Top 40 Digital Strategist by the Online Marketing Institute. MBA from Stanford University.

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VALUATION & MARKET CAP

Current Nominal Valuation Leaves Room

for Upside Based on Comparables

• Company founded in 2006

• $20+ million raised to date

• 22 employees

• Net burn rate is ≈ $125,000/month

• Current market cap of $6.1M compares to C$20+M invested in the company

• Competitor Studio Now raised $5 million in venture financing in 2014, start up competitor Vidyard raised $6M in venture financing in 2013

• Comps across the online advertising, video production, and web advertising sectors suggest robust valuation metrics are achievable

Stock Price (1/6/15) $0.145

52 Week Low - High $0.09 - $0.90

Avg. Daily Vol. (3 mo) 114,374

Shares Outstanding 41.5M

Insider* Holdings (est.) ~28%

Market Cap $6.1M

Enterprise Value (mrq) $9.1M

TSX.V: VID 22

KEY TAKEAWAYS

Suite of Technologies are Built and Proven$20M+ already spent on development. Company is now focused on sales and marketing.

Disruption Story + Opportunity for Category Ownership Only video production solution focused on scale, reach and volume. Only video production

reseller solution in the market. Only turnkey video production solution available to large

SaaS platforms like Salesforce, Marketo, etc.

TimingBuilt a base of over 4,000 resellers, sold over 2,500 videos to date. Completed 20

platform integrations. Sales began ramping in 2014 and poised for rapid growth in 2015.

Focus on ExecutionTargeted inside sales effort, strategic business development, and implementation of

demand generation marketing programs to support sales development

Five Key Areas of Focus are:

1. Increase repeat sales from existing pool of resellers and add more

2. Continue platform integrations

3. Leverage scale, reach and volume advantages to close corporate and agency accounts

4. Launch content marketing and demand generation programs

5. Expand VaaS platform capabilities and add self serve reseller signup

TSX.V: VID 23

George Fleming - Founder & Co-CEO

Tel: 604.683.5510

Email: gfleming@somedia.net

CONTACT US

SoMedia Networks, Inc.

221 E 10th Ave, Suite 201

Vancouver, BC Canada V5T 4V1

US Investor Relations Contact

Michael Koehler

Liolios Group, Inc.

Tel: 949.574.3860

Email: VID@liolios.com

SoMedia Investor Relations Contact

Tel: 604.683.5510 x 570

Email: investors@somedia.net

TSX.V: VID 24

Appendix

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NEWS & BRANDED CONTENT PRODUCTION

SaaS based crowdsourced news production platform offers on demand

or manage yourself “marketplace” option.

Unique front end Saas platform includes creative development processes,

marketplaces, task planning and production management – controls

crowdsourced workforce

Leverages network of 3,500+ video production specialists throughout

North America

Targeting a very large addressable online media and corporate market

underserved by traditional news production services

Launching Jan 2015

PRODUCED

CONTENT FOR:

• Video Players, Hosting and Analytics

included

• Anywhere in North America

• SaaS & Services Revenue Model

TSX.V: VID 26

SCALABLE VIDEO PRICING & MARGINS

$599 – 1499+

Mostly standard Custom or

premium Custom videos

Mostly standardized 30 & 60 second Ad,

Testimonial and Profile formats

Typical partner markup is 50% to 100%

Mostly standardized 30 & 60 second Ad,

Testimonial and Profile formats plus Custom

Margins: 41% – 70%

Wholesale from

$699 – 1499+Margins: 48% – 70%

Direct Sale from

$899Margins: 40% – 70%

Custom Video from

Reseller Model

Agency and Content Model

SaaS Platform Direct & Corporate Model

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Set a player’s color to

match your brand

(and add your logo).

Add a map to

your location.

Enable sharing to

Facebook, Twitter and

other social networks.

Leads sent directly to your

email.

Promote offers or

services, and drive traffic

back to your website.

Promote coupons, giving

viewers the ability to print

out and redeem.

Integrate videos into any

website or blog.

Auto-generated video

sitemaps and meta data

for enhanced SEO.

Target videos based on

location, device, or time of day

CUSTOM VIDEO PLAYERS

BRANDING

GOOGLE MAPS

SOCIAL MEDIA

LEAD CAPTURE

CALLS TO ACTION

COUPONS

EMBED CODE

VIDEO SEO

CONTENT TARGETING

Customizable video player with enhanced campaign and targeting features.

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Viewer EngagementHow many viewers watch the entire video?

At what point do they drop off ?

Understanding engagement data will help

improve your next video.

Conversion RatesHow many viewers are clicking on your

calls-to-action? How many leads are you

generating? The only way to optimize is

by tracking your CTRs.

.

Viewer GeographyTrack the geographic location of all your

viewers - filtered by country, region,

or city.

.

Social EngagementMonitor how many times your video is

shared and which social networks are

most popular with viewers.

.

Performance by Embed LocationFilter your data by embed location and

compare how each is performing.

Video’s Impact on Your

Website or Blog

We’ve integrated with Google Analytics

to understand how your video is

impacting your website.

.

Track performance with integrated real-time analytics

ADVANCED VIDEO ANALYTICS

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“Video is booming in the hotel space. Partnering with

SoMedia gives us the ability to seamlessly integrate

video offerings into our service mix. We’re now able

to offer hotel clients like Marriott, Hilton and others

high quality video content, on-demand, at any

location across North America.”

John McAuliffe - President, Leonardo

Scalable Video gives Leonardo the ability to sell and

deliver high quality video content to their clients,

on-demand, anywhere in North America, at any volume.

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RESELLER TESTIMONIAL

Leonardo provides solutions to

e-marketers at 6,000+ hotels, 150+ hotel chains

and over 120 travel websites.

Leonardo was looking for a single video production solution

to provide video content for their national hotel chain clients

in multiple locations in multiple states.

Challenge

Solution

Testimonial

TSX.V: VID 30

OPERATIONAL RESULTS

SALES & BACKLOG

GROWTH

Q3 Results

$306,653 in sales which was a 22%

increase in sales over the previous

quarter or 136% growth over the

same period last year

$843,107 in Sales Backlog which was

an increase of 38% over the previous

quarter

Growth in New Partner Sales of 150%

over the prior quarter

Reseller sales of $251,834 increased

20% over the previous quarter

Corporate Sales increased 30% over

the prior quarter

VALUE OF SALES

MONTHLY YTD

NEW SALES VS EXISTING