Adslot Ltd · ASX:ADS
Adslot — Investor Presentation (October 2018)
44 slides from Adslot's investor presentation, Oct 30, 2018
Slide 1: Investor Presentation
INVESTOR PRESENTATION 30 OCTOBER 2018 Adslot.
Slide 2: Contents
CONTENTS. • Company Background & Capability Overview • Progress Update • The Problem Adslot Solves • The Adslot Solution • Adslot’s Strategic Market Position • Summary • Background Information • Important Notice & Disclaimer
Slide 3: Company Background & Capability Overview
COMPANY BACKGROUND & CAPABILITY OVERVIEW.
Slide 4: Company Background
COMPANY BACKGROUND. Adslot is a leading global provider of workflow and trading automation technology for digital advertising Founded in 2010 & publicly traded (ASX: ADJ) Global: HQ in Australia with operations in the US, UK, Vietnam, Germany and China Customer base comprises ad agency holding compa
Slide 5: Capability Overview
CAPABILITY OVERVIEW. Symphony - workflow automation platform for media agencies • Cloud-based enterprise SaaS business with high renewal rates • Global contract with GroupM, world’s largest media buying group: • Deployed in 13 countries, roll-outs for next 5 countries in progress • Deployment into a
Slide 6: Business Units and Revenue
BUSINESS UNITS AND REVENUE. Core Primary Revenue Model A global enterprise SaaS platform, Licence Fees – recurring subscription revenue, providing digital media buying workflow with guaranteed minimums (fixed licence fees) solutions to the world’s largest and variable licence fees for each market ba
Slide 7: Progress Update
PROGRESS UPDATE.
Slide 8: Adslot Media
ADSLOT MEDIA.
Slide 9: Trading Activity Increased Significantly in the September Quarter
TRADING ACTIVITY INCREASED SIGNIFICANTLY IN THE SEPTEMBER QUARTER. • Activity increased across all geographies (US, UK, Europe and Australia) • Good representation of small and large agencies in each market • Individual orders ranged in size from $845 (smallest) to $722,472 (largest) • Average order
Slide 10: A Sample of Active Agencies and the Brands They Purchased Media For
A SAMPLE OF ACTIVE AGENCIES AND THE BRANDS* THEY PURCHASED MEDIA FOR IN THE SEPT QTR. Agencies Brands* *IMPORTANT NOTE: Brands are not direct clients of Adslot, but clients of the agencies who buy advertising on their clients’ behalf via Adslot Media
Slide 11: An Ever Growing Number of Publishers Signing Up to the Platform
AND AN EVER GROWING NUMBER OF PUBLISHERS SIGNING UP TO THE PLATFORM TO SELL THEIR INVENTORY. Note: publisher contracts are non-exclusive and do not have guaranteed volume, expenditure or revenue conditions. Publisher logos emphasized by red border have the capacity to target advertising based on adv
Slide 12: Driving Record $ Value of Media Traded on the Adslot Media Platform
DRIVING RECORD $ VALUE OF MEDIA TRADED ON THE ADSLOT MEDIA PLATFORM. • Gross value of media traded on the platform in the September quarter was $5.64M • An almost four-fold increase on the June quarter’s $1.38M • And more than the previous six quarters combined • US Pipeline remains strong on both t
Slide 13: Driving Strong Growth in $ Value of Media Traded from All Sources
DRIVING STRONG GROWTH IN $ VALUE OF MEDIA TRADED FROM ALL SOURCES IN SEPTEMBER QTR. • Gross value of media traded from both Adslot & Symphony platforms in the September quarter was $8.66M • September quarter represented 219% of value of the June quarter
Slide 14: Symphony
SYMPHONY.
Slide 15: Symphony Has Returned to Growth
SYMPHONY HAS RETURNED TO GROWTH. • Contracted Symphony Licence Fee revenue forecast to grow by 38.7% to $5.5m in FY19 • Symphony Licence Fees ahead of forecast in September quarter, mostly due to FX gains in USD/AUD • A series of updated terms to Adslot’s global Symphony agreement with GroupM were a
Slide 16: Causing Overall Licence Fees to Grow in FY19
CAUSING OVERALL LICENCE FEES TO GROW IN FY19. • Following the recent renewal of an important Adslot license agreement, the Company now has greater certainty on its forecasted non-Symphony License Fees for 2019 financial year. • Based upon this contract renewal, the Company believes that total Licenc
Slide 17: Continued Development of the Symphony Platform
CONTINUED DEVELOPMENT OF THE SYMPHONY PLATFORM • Market deployments continue: • 1 x APAC market: pre-deployment activities complete and awaiting imminent deployment this quarter; • 2 x APAC market: pre-deployment to be completed by December 31, with deployment scheduled to occur in Q3 FY19; and • 1
Slide 18: The Problem Adslot Solves
THE PROBLEM ADSLOT SOLVES.
Slide 19: The $38B forward guaranteed display ad market has traditionally been traded manually
The $38B* forward guaranteed display ad market has traditionally been traded manually via spreadsheets and purchase orders. Adslot provides media workflow automation (Symphony) and media trading automation (Adslot Media) to large buyers and sellers of forward guaranteed display advertising. * Source
Slide 20: Why Symphony? Efficiency Improvement
WHY SYMPHONY? 1. Improves operational 2. Provides a consistent, centralised EFFICIENCY efficiency through systems data asset that enables data-driven integration. insights and decision-making across IMPROVEMENT... the group. 35% * * Note: Management estimate based on efficiency improvement measured
Slide 21: Why Adslot Media?
WHY ADSLOT MEDIA? ‘TROD PARTY CONDE NAST AUDIENCE TARGED » ¢ ay + 1 Eat >
Slide 22: The Online Display Ad Market Breaks Down into Two Primary Segments
THE ONLINE DISPLAY AD MARKET BREAKS DOWN INTO TWO PRIMARY SEGMENTS… * • Programmatic (RTB) • Remnant (unsold) inventory only • Traded via purpose built platforms • Traded impression by impression in real time (hence ‘real-time bidding’ or ‘RTB’) • Is audience targeted – ‘addressable’ • Non-Programma
Slide 23: Why hasn't the $38B forward guaranteed segment transitioned to programmatic automation?
Why hasn’t the $38B forward guaranteed segment transitioned to programmatic (RTB) automation..?
Slide 24: Because the RTB Ecosystem Wasn't Built to Service Forward Guaranteed Deals
BECAUSE THE RTB ECOSYSTEM WASN’T BUILT TO SERVICE FORWARD GUARANTEED DEALS. Programmatic wasn’t built for the forward guaranteed market… • Largest Audience Highest priority – • Best Ad Formats FORWARD GUARANTEED Premium Position sponsorship buys • • No forward reservations • Large Audience • No guar
Slide 25: RTB Technology Is Complicated, with Multiple Interdependent Platforms
RTB TECHNOLOGY IS COMPLICATED, WITH MULTIPLE INTERDEPENDENT PLATFORMS SITTING BETWEEN BUYER AND SELLER… Note: Please see Glossary section at the end of this presentation for acronym definitions.
Slide 26: Making RTB Automation Hugely Inefficient
…MAKING RTB AUTOMATION HUGELY INEFFICIENT. Source: LabMatik Industry Report: ‘Unlocking Shareholder Value in Programmatic’ May 2018
Slide 27: The Adslot Solution
THE ADSLOT SOLUTION.
Slide 28: Adslot Media Is a Simple, Scalable Technology Solution That By-Passes RTB
ADSLOT MEDIA IS A SIMPLE, SCALABLE TECHNOLOGY SOLUTION THAT COMPLETELY BY-PASSES RTB, REMOVING COST, RISK AND COMPLEXITY…
Slide 29: Adslot Now Supports All Forms of Audience Targeting
AND ADSLOT NOW SUPPORTS ALL FORMS OF AUDIENCE TARGETING…
Slide 30: Which Can Directly Benefit Advertisers and Publishers
…WHICH CAN DIRECTLY BENEFIT ADVERTISERS AND PUBLISHERS… Adslot shifts the structural economics from this… …to this…
Slide 31: Which Also Grows the Market Opportunity
Global Display Ad Spend (USD $B’s)* …which also grows the market opportunity to Facebook & Google Programmatic include non Forward Guaranteed (non programmatic) FB/Google spend…to c.$55B * Source: eMarketer, Net Display Ad Revenue Share Worldwide, by Company, 2016-2019 and Google and Facebook public
Slide 32: The Benefits of Adslot Are Many, Material and Shared Across Stakeholders
THE BENEFITS OF ADSLOT ARE MANY, MATERIAL AND SHARED ACROSS STAKEHOLDERS. Automation – operational efficiency for buyer & seller, Reservation based/certainty – advertisers know what inventory reduces complexity/human error, speed to market and audiences are available and can plan/reserve them in adv
Slide 33: Adslot's Strategic Market Position
ADSLOT’S STRATEGIC MARKET POSITION.
Slide 34: Adslot Has Established a Strategic Position
ADSLOT HAS ESTABLISHED A STRATEGIC POSITION… 1. Market leading technology that has been validated by leading agencies and advertisers 2. Signed hundreds of premium publishers 3. Future leverage from over $3B (targeting $6B+ by 2020) of Symphony demand 4. Global sales and customer footprint in key ma
Slide 35: Creating a Significant Market Opportunity
…CREATING A SIGNIFICANT MARKET OPPORTUNITY. • Online display advertising is a $110B global • Adslot has established a strategic position market growing at circa 20% CAGR* from which to capitalise: • Seeing initial adoption from some of the • The highest growth segment representing world’s largest ad
Slide 36: Summary
SUMMARY.
Slide 37: Summary
SUMMARY. • The opportunity to automate a $38B • In Adslot Media, the company has a product industry is large and growing that should it achieve sufficient scale, will become a high margin, high profit business based on a transactional revenue model • Adslot’s two-product strategy is well placed to t
Slide 38: Background Information
BACKGROUND INFORMATION
Slide 39: Adslot Business Unit, Product & Revenue Matrix
ADSLOT BUSINESS UNIT, PRODUCT & REVENUE MATRIX CORE NON-CORE Business Model Enterprise SaaS business Media Trading Platform Marketing Services Business Product/Service Workflow solution for agencies Digital Media trading platform, Website design, hosting, enabling direct buys of search engine optimi
Slide 40: Cont. Business Unit, Product & Revenue Matrix
CONT. BUSINESS UNIT, PRODUCT & REVENUE MATRIX CORE NON-CORE Value Proposition For Agencies: For Agencies and Brands: Build online presence, drive traffic Simplifies digital media buying Direct access to highly and generate leads workflow. targeted, forward guaranteed, premium ads on brand-safe For H
Slide 41: Cont. Business Unit, Product & Revenue Matrix
CONT. BUSINESS UNIT, PRODUCT & REVENUE MATRIX CORE NON-CORE Secondary Revenue Trading Fees Licence Fees Setup and monthly fees for hosting, Model (small % of media spend on (from legacy product custom- SEO and social media platform in AU only) built for REA) Marginal Cost of Low marginal cost Upfron
Slide 42: Glossary
GLOSSARY. Automated Guaranteed – Also DSP – “Demand-Side Platform” RTB – “Real-Time Bidding”, otherwise described as ”Programmatic – a technology platform used by media known as “programmatic” refers to Guaranteed” is media with buyers to buy ad impressions in real- digital display advertising that
Slide 43: Disclaimer
Disclaimer This Presentation contains summary information about Adslot Limited ABN 70 001 287 510 (ADJ or the Company) and its activities as at Monday, 29 October 2018. The information contained in this presentation is given in good faith and has been prepared from information believed to be accurat
Slide 44: Thank You
THANK YOU.