dooh ads_final_eng
TRANSCRIPT
DOOH AdsDOOH AdsReal Time Bidding for Digital Out of Home Advertising Networks
Unlimited servicescalability
$3 billion spent on DOOH Ads in US
New look at enestablished market
DOOH ADS
DOOH ADS
COMPANY GOALS
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To provide access to any monitor company-owner to global or local advertising budgets, regardless of its size and geographical location
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To make DOOH ads market as transparent and competitive
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To make the latest innovative technology in offine-ads accessible
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To provide no ads space, but a profle of it, such as location, target audience, traffc, number of ads viewed, direct links to the website of goods or
services directly from the phone interested
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DOOH ADS
CURRENT ISSUES AT DOOH MARKET
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Advertising budgets are split up among variety of agencies, advertising and local networks. To have access to the Agency, it’s crucial to have huge number of monitors and only in high traffc areas regardless of advertiser’s request specifcs
Many of monitors do not generate revenue for it’s owners, such as big retailers and gas stations
High barriers to enter monitor advertising market , which lead to low market competition and high pricing
Badly targeted advertising with high campaign budgets – as a result, advertising banners are loaded to all monitors of the Agency regardless of its location
Lack of fexibility of advertising campaigns – banners are uploaded to monitors using physical media once in a while, usually once a month
A need of physical presence at foreign sites to run ads banners
IssuesSolution
DOOH ADS
DOOH MARKET SOLUTIONS
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Issues
Solutions
All engaged in DOOH-ads agencies are in one place. Consolidation of all advertising campaign budgets from around the world.
Run banner ads on the monitor in just a few clicks, generating revenue for each ad impression
Even one monitor will generate money, there creates an opportunity for small and medium business to have low barriers for entry
Precise ad targeting with available analytics on number of views, traffc, location and income level of targeted audience
Upload of banners every 10 minutes, capability of on-line campaign adjustments
Banners are uploaded from the cloud to any location of the world
Advertising budgets are split up among variety of agencies, advertising and local networks. To have access to the Agency, it’s crucial to have huge number of monitors and only in high traffc areas regardless of advertiser’s request specifcs
Badly targeted advertising with high campaign budgets – as a result, advertising banners are loaded to all monitors of the Agency regardless of its location
Lack of fexibility of advertising campaigns – banners are uploaded to monitors using physical media once in a while, usually once a month
A need of physical presence at foreign sites to run ads banners
Many of monitors do not generate revenue for it’s owners, such as big retailers and gas stations
High barriers to enter monitor advertising market , which lead to low market competition and high pricing
Soft integration of consumers personal devices into specifc advertising campaign
Due to the emergence and development of analytic tools for offine advertising campaigns, the “carpet bombing" advertising of all consumers are being replaced by “localized strikes" of specifc groups of consumers at a particular time and in a special place
Simplifcation and “Uberization” of services
More then 50% of all mobile searches have local intent, and 17% of search happens while consumer are on-the-go
DOOH ADS
TRENDS
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Onrush of technology offers more accurate targeted advertising for off-line media
According to Google, 23% of consumers search for more info after seeing outdoor banners or monitor advertising, compared to 16% for other media
Availability, development of protocols for Bluetooth transmitters (iBeacon, Eddystone, AltBeacon), development of IoT
Development of Android TV incredibly expands new opportunities for monitors and television
Falling cost and dynamic development of hardware and software to assess location traffc and number of offine ads viewed
The cross-paths of current market trends and technology capabilities allow a full transformation
of DOOH-ads market.
Our technologies allow to make it already now. In couple of years someone else will do that.
Key market trends: Key technology trends:
DOOH ADS
MARKET OVERVIEW
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Source: ZenithOptimedia
$514M
Russian Market1
Expansion to other markets (USA, European Union, Latin America)2
40%
$514 million - Russian market volume of indoor and outdoor ads (out-of-home,
OOH)
40% or $205,7 million - DOOH ad market in Russia
Sources: Tadviser, ZenithOptimedia, ScreenMedia daily
Russian DOOH ad Market has dropped in 2015 ~ by 20%. This has caused the necessity to optimize the relationships between market players
$3B
$4B
In 2015 US spent on DOOH ads nearly $3 billion.
Analytics forecast growth of DOOH in US up to $4 billion by 2018
DOOH in US is considered as the fastest growing segments of ad market
DOOH ADS
COMPETITIVE MARKET
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Existing alternative solution to DOOH ads as of today is the uploading of banners from fash-card to
all monitors of agency once a month
Such solution dramatically limits potential of advertising campaign and increases the cost
There are no DOOH ads sites that do open auctions neither in Russia or abroad
DOOH ADS
PARTICIPANTS AND USERS
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Advertisers pay for real number of ad impressions the cost set by open auction for each of the monitor. And have the possibility to control expenses themselves.
Advertiser
Advertisers themselves create the terms of their ad campaign at the convenient interface.
Agent, that registers a monitor in the DOOH Ads system, receives a right to have a certain % paid, calculated based on the ad loading of this monitor.
Agents
Monitor owners
All data, such as ad view time tracking, other calculation can be accessed and controlled via online account by each monitor owner.
Any monitor owner connected to DOOH ads (independently or via an agent) becomes a party to the DOOH advertising market and receives money for each ad impression.
Google Cloud Platform
Database
DOOH ADS
PARTICIPANT’S BENEFITS
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Advertiser
Agents
Monitor owners
No expenses involved in advertiser search
Maximum utilization of resources
Maximum price for ad impression set during open auction
No expenses for technical support of the system
Scaling business without increasing of operating expenses
No strict obligations when working with advertisers
Post-payment based on number of ad impressions
Convenient analytical system for each of the advertising platforms
A choice of best time and location for ad placement
Determination/limitation of daily advertising budget
On-line adjustments of advertising campaign
Constant income without capital expenditures
Any monitor connection worldwide
Progressive commissioning system
DOOH ADS
SOLUTION STRUCTURE
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Google Cloud Platform
Database
Auction for each monitor
Monitor
Monitor
Monitor
Advertising site/platform
Agent
Agent
Agent
Site
Registration of advertising platforms and monitors
Development of ads and uploading banners
Advertising agency
Advertising agent
Site
Advertising agent
Advertising agent
Advertiser
Advertiser
Site
DOOH ADS
BUSINESS MODEL
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Advertisers
Agents
DOOH ADS
Advertising agencies
Monitor owners
Ad placement cost minus DOOHADS and Agent
commissionsAd placement cost set
during auction
Commission for registration of monitor
DOOH ADS charges commission from Advertisers for advertising placed on registered monitors
ad impressions on selected monitors
New monitors searching and registration
ad impressions on the monitors
Application/program setting
DOOH ADS
BUSINESS MODEL TAKING AN EXAMPLE OF 100 REGISTERED MONITORS
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Advertisers
Агенты
DOOH ADS
Advertising Agencies
100 Monitor Owners0.67 million/year$1.5 million/year
$28.5K/year
Scenario conditions:
-Average time of monitor working a day: 10 hours
-Price of ad impression (view): $0,01
-Monitor owners fee: 45%
-Agent commission: 2%
Monitor registration
DOOH ads setting
ad impressions on selected monitors
ad impressions on the monitors
DOOH ADS
STRUCTURE OF ADVERTISING CAMPAIGN
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Easy-to-use digital banners
Diversity of ad view locations
Unique designer to create conditions for advertising campaigns
Convenient planning of advertising budgets
Ad placement on the best advertising platforms
Pay for actual ad impressions
On-line management of advertising campaign via online account or mobile application
Quality control of digital banners
Up-to-date information on working advertising sites/platforms
What is special?
What are the benefits?
Where is the convenience?
DOOH ADS
TECHNOLOGY
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Internet of Things (IoT)
Google Proximity Beacon API
Google Cloud Vision API
Google Cloud Speech API beta
DBMS Quik Table
Real Time Bidding (RTB)
DooH ADS app (Google play)
Online account https://ads.dooh.xyz
Web-site https://dooh.xyz
Emulation beacons
Physical Web
Face detection
Speech recognition
DOOH ADS
TEAM
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Andrey Bogdanov. A graduate of MIPT, Department of Theoretical Physics, there became fan of computer technology. An experienced entrepreneur, founder of several successful projects in the international markets,
including the advertising agency.
Core competencies : AdWords, AdSense, Google Cloud Platform, Bitrix CMS, CRM, Microsoft Azure, SEO, SMM, IoT, Google Proximity Beacon, Google map maker, Google analytics, R&D
Core competencies: programming, Android, Google Cloud Platform, FireBase, Google Cloud Vision, Google Cloud Speech, IoT, Bitrix CMS,
DBMS, Microsoft Azure, System administration
Development Sales / marketing
Development, testing, support and administration team consists of 5 highly-skilled professionals . Under Andrey’s leadership this team
has been successfully working on this project for the past few years.
Core competencies: new monitor search and registration, cooperation with agents, advertisers
and advertising agencies
TestingSupport and
administration
Project author, CEO/CTO
Monitor search and registration will me maintained by the third party agents. to ensure appropriate collaboration
with agents, advertisers and advertising agencies, there is a need to put together a team of marketers and run
advertising campaign
Current competenciesRequired competenciesTeam
DOOH ADS
FINANCIAL MODEL (PILOT STAGE – MOSCOW)
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Optimistic Scenario (OS)
Pessimistic scenario (PS) Baseline Scenario (BS)
The advantage of DOOH ADS is that in any scenario the project immediately starts generating money
1Q17 2Q17 3 Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
PS 50 73 106 154 224 325 473 688 1 000
BS 50 79 126 199 316 501 795 1 261 2 000
OS 50 83 139 232 387 646 1 078 1 798 3 000
Number of monitors connected
DOOH ADS
ROAD MAP
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Pilot project Roll out Expansion1 2 3
Year 2017 – 2019 Year 2020 - 2022 Year 2022 and further
Moscow
$128.6mln
$428.6mln
$5bln
DOOH ADS
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KEY PROJECT PERFORMANCE FIGURES (PILOT STAGE – MOSCOW)
In the baseline scenario every 250 monitors increase the value of the company at $2.06 million
With entry to new markets and increase of number of available monitors to 50 000 units (achievable in 10 years), company value will go up to $288 million.
$2.06M
$288M
Key project performance figures
Number of monitors by the end of 2018, units.
Cost of view, $/view
Monitor owner fee, % of view cost
Pessimistic scenario
Baseline scenario
Optimistic scenario
1 000 2 000 3 000
0.007 0.011 0.014
50% 45% 40%
Quarterly growth rate of number of monitors, %
45% 59% 67%
Appraisal ratio
Company value (for 5 years), $mln
Pessimistic scenario
Baseline scenario
Optimistic scenario
Company value in post-forecasted period, $mln
Investments, $mln
IRR, %
Discounted payback period (DPP), years
Revenue 2019, $mln
Net proft 2019, $mln
Net profit margin, %
5.6 25.1 53.7
2.89 11.4 24.1
1 1 193% 248% 405%
2.31 1.56 1.23
5.6 17.93 33.6
1.76 6.96 14.71
31% 39% 44%%
DOOH ADS
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INVESTMENT FIGURES
Pessimistic scenario
Baseline scenario
Optimistic scenario
1.13Share value as of today, $mln (in 10 years after achieving maximum number of monitors)
Return of investments in 4 years, %
Annual proft investment ratio, %
1 million US$ – investments required for a successful start of the project
10% - Share in the company for investment
$1М
10%
13%
3%
5.01
401%
50%
10.74
97 4%
81%
DOOH ADS
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STRATEGIC SCENARIO (EXPANSION TO INTERNATIONAL MARKETS)
Company value (for 10 years), mln
Share value in current price (in 10 years after achieving maximum number of
monitors)
Number of monitors by 2027, units Return on investments
for 10 yearsAnnual proft investment
ratio
₽18 748M
$268M
₽3 750M 50 000 5 257% 49%
$54M
