Mirriad Advertising Plc · LSE:MIRI
Mirriad Advertising — H1 2021 Earnings Presentation
39 slides from Mirriad Advertising's earnings presentation, September 2021
Slide 1: Interim Results September 2021
THE WORLD'S LEADING IN-CONTENT ADVERTISING PLATFORM INTERIM RESULTS SEPTEMBER 2021
Slide 2: Speakers
SPEAKERS John Pearson, Non-Executive Chairman Stephan Beringer, Chief Executive Officer David Dorans, Chief Financial Officer .
Slide 3: Agenda
AGENDA • Mirriad introduction • Results H1 2021 • Market opportunity • Adoption progress • Growth phasing and developments • Outlook and Summary
Slide 4: Mirriad Introduction
MIRRIAD INTRODUCTION
Slide 5: Driving a new era in advertising
DRIVING A NEW ERA IN ADVERTISING • Academy Award winning technology, first used in feature films • Launching the World’s in-content advertising market >> Main advertising markets >> Most valuable content formats (TV, video, music, sports, influencer) • Accelerating into programmatic
Slide 6: A unique platform for a new format
A UNIQUE PLATFORM FOR A NEW FORMAT 29 PATENTS GLOBALLY Covering key components e.g. continuity, dynamic segment insertion, content valuation Mirriad Content/Adservers Target Audiences Broadcasters ORIGINAL CONTENT ANALYSIS Video CONTENT (CONTEXT, ATTENTION, EMOTION) platforms APPROVED & BRAND REACH/
Slide 7: Driving true value to the industry
DRIVING TRUE VALUE TO THE INDUSTRY IN-CONTENT ADVERTISING A new revenue stream for content owners and distributors A new high impact advertising solution for marketers $$$ Mirriad Content/Adservers Target Audiences Broadcasters CONTENT ANALYSIS Video platforms (CONTEXT, ATTENTION, EMOTION) APPROVED
Slide 8: Building the category
BUILDING THE CATEGORY BREADTH OF CONTENT PARTNERS Working with over 40 partners worldwide including biggest players in the industry across TV, VOD, Influencer, Sports CAMPAIGNS FOR LARGEST ADVERTISERS AND AGENCIES Delivering in-content campaigns to category leaders in Automotive, Telco, Food & Bever
Slide 9: Protected by patents
PROTECTED BY > 29 PATENT
Slide 10: Results H1 2021
RESULTS H1 2021
Slide 11: Key financial metrics 2019 to 2021
KEY FINANCIAL METRICS 2019 TO 2021 H1 Revenue H1 Cash consumption £1,137k +27% £5,511k +23% 2021 1,137 2021 5,511 2020 897 2020 4,487 2019 5,917 2019 429 H1 Net Assets £29,754k +107% H1 Operating loss £5,943k +22% 2021 29,754 2020 14,341 2021 5,943 2019 8,531 2020 4,891 2019 7,179 H1 Cash & cash equ
Slide 12: Administrative and staff costs bridges
ADMINISTRATIVE AND STAFF COSTS BRIDGES Administrative Expenses H1 2021 versus H1 2020 £000s 268 7,006 152 824 97 (63) (38) 5,766 Staff related cost Property costs IT related costs H1 2021 Administrative Expenses H1 2020 Administrative Expenses Travel & expenses Professional fees Exchange movements S
Slide 13: EBITDA & cash bridges H1 2021
EBITDA & CASH BRIDGES H1 2021 EBITDA Bridge H1 2021 £000s 183 (5,539) 221 (32) (5,911) H1 Net loss H1 Amortisation & H1 Income tax credit/ H1 Share based H1 Adjusted EBITDA loss depreciation finance income compensation Cash Bridge H1 2021 £000 35,421 44 29,764 (5,456) (55) (190) H1 Net cash from ope
Slide 14: Market opportunity
MARKET OPPORTUNITY Market Opportunity Mirriad for Lexus
Slide 15: Our ambition: disrupt the advertising market
OUR AMBITION: DISRUPT THE ADVERTISING MARKET • In-content advertising is the key solution against advertising fatigue, skipping and blocking CONTENT ADS 94% 6% • Advertisers and Content owners are realizing the power of Mirriad to increase brand awareness, affinity and consumption by up to 30% 6 hou
Slide 16: The opportunity
THE OPPORTUNITY $649 Billion Global advertising market $145 Billion Mirriad TAM / Total CONTENT Video and TV spend ADS 94% 6% $180 m Potential Mirriad revenue at 0.5% share Source: Thinkbox UK Source: Zenith, July 2021
Slide 17: Success factors
SUCCESS FACTORS Total advertising spend in top 6 markets current USD$ million • Break-through in the US 300,000 • Wide adoption across content-owners and advertisers 250,000 200,000 150,000 2021 • Integration with programmatic buying and delivery ecosystem 100,000 50,000 0 • End-to-end automation (“
Slide 18: Path to scale
PATH TO SCALE 2023 Dynamic Insertion, Ad Tracking Programmatic Enablement 2022 integration s rk flow ,Wo n 2021 D ata matio A I, t o Au 2020 Demand (Advertisers, Agencies) Supply (TV, VOD, Music, Influencer, Live, Gaming) Markets (US, China, JP, UK, Germany, France) Adoption
Slide 19: Progress H1 2021
Riki ESSH | 2021 : RDASH
Slide 20: Key objectives 2021
KEY OBJECTIVES 2021 • Grow market adoption and position with advertisers and agencies with focus on the US • Expand inventory pool with existing and new partners • Accelerate evolution of Mirriad to a cookie-less, programmatic ad-world through platform automation and integrations with media buying e
Slide 21: Adoption progress 1: Supply
ADOPTION PROGRESS 1: SUPPLY • Expanded partner roster, ability to deliver billions of impressions/year -New partners in China: Bilibili, The Paper, Xing Tu -New partners in Europe: Rakuten, Legendary Films, Major TV Studio Content Hours Gaming -New partners in the US: Crown Media (Hallmark), Up Ente
Slide 22: Sports
SPORTS • Signed contract with leading European Sports Marketing Company • Successful test of Live integrations in the US, August 2021 • High market demand, evaluating roadmap and partnership opportunities
Slide 23: Vast reach, high impact: new influencer partnership
VAST REACH, HIGH IMPACT: NEW PARTNERSHIP WITH INFLUENTIAL • Largest influencer marketing company in the world • Connects brands with audiences with AI powered platform • Access to biggest TikTokers, YouTube stars and Celebrities including Shareef and Shaqir O'Neal, Khloe Kardashian, Kris Jenner, Mil
Slide 24: Adoption progress 2: Demand
ADOPTION PROGRESS 2: DEMAND Demand Pipeline 2021 • Effective investment in sales power resulting in 200 strong pipeline: Currently 169 campaigns in 15 pitch/proposal, 15 in negotiation 150 • Building alliances and partnerships with leading 100 agency groups in key markets (2 contracts signed, 2 169
Slide 25: US demand focus: growing momentum
US DEMAND FOCUS: GROWING MOMENTUM • US comeback ahead of other markets • Average deal sizes up 300% vs Q4 2020, largest deal 360% up vs H1 2020 300,000 250,000 • Revenue up 333% versus previous H1 200,000 2010 150,000 2019 2020 • Partnerships: Leading F&B giant and leading media 100,000 2021 agency
Slide 26: Driving outstanding impact
DRIVING OUTSTANDING IMPACT +20ppt +10ppt +14ppt +9ppt +16ppt 67% 60% 58% 55% 56% 47% 50% 46% 43% 40% AD AWARENESS BRAND AFFINITY PURCHASE INTENT CONSUMPTION SPEND Exposed to Mirriad Unexposed Source: Kantar, Toluna, Tencent // 15x studies
Slide 27: On the rise: Music
ON THE RISE: MUSIC +6ppt +43ppt +8ppt 63% 56% 57% 40% 32% 13% AD AWARENESS BRAND AFFINITY PURCHASE INTENT Exposed to Mirriad Unexposed Source: Kantar // 1x study
Slide 28: Adoption progress 3: Revenue
ADOPTION PROGRESS 3: REVENUE • Post pandemic market recoveries slow, spending patterns not innovation-friendly, campaigns pushed out to Q1 2022 • Tencent delayed transition to new audience-based buying model • Integration in programmatic media ecosystem in the US starting in Q4 • Volatility is makin
Slide 29: Tencent: new contract, new model
TENCENT: NEW CONTRACT, NEW MODEL 2019/2021: Show-based model • Entirely focused on specific shows • Exposure to regulatory decisions (i.e. delays and cancellations of new shows) 2021/2023: Audience-based model • Delayed launch, now Sept 28th • World’s first: Audience and context centric, across pool
Slide 30: Integration / why programmatic
INTEGRATION / WHY PROGRAMMATIC • Ease to plan and buy inventory using global buying platforms e.g. Google, TheTradeDesk • Transparency and comparability of in-content buys, one click away from display, video, CTV • Targeting possibilities across context, devices, audiences, geography; tracking and m
Slide 31: 2021/2022
2021/2022 Mirriad for Pure Leaf
Slide 32: Growth phases
GROWTH PHASES No Phase Scale 4 Programmatic: Integrated with ecosystem Hi 3 Audience based buying and delivery Mid 2 Client and agency partnerships Low H1 2022 H2 2021 1 Singular campaigns sold Low H1 2021
Slide 33: 2021/2022: Initiating shift to scale
2021/2022: INITIATING SHIFT TO SCALE Adoption: Regain momentum following Covid hiatus • Focus on US: content, sales, brand and agency partnerships • International: Leverage key strategies with partners i.e Tencent CPM, France TV volume deals, Channel 4 + UK producers, Music Automation / Programmatic
Slide 34: Key developments
KEY DEVELOPMENTS Enabling audience-based buying • Leverages Mirriad’s leading analysis / contextual capability to identify inventory • More scale for campaigns, buying is similar to other media buys (line item) • Order- and campaign management for audience- buying released with Tencent Video
Slide 35: Key developments: 1 campaign, 5 shows
KEY DEVELOPMENTS 1 CAMPAIGN 5 SHOWS 434 SCENES
Slide 36: Key developments
KEY DEVELOPMENTS Server side ad insertion (SSAI) • Enables targeted delivery of ads • Key component of Mirriad integration in programmatic • New partnership with leading AdTech company, first campaign in Q4
Slide 37: Summary
SUMMARY • Revenue 2021: Below last guidance • Pivoting to the US, biggest advertising market in the world • Significant progress with blue-chip advertisers, agencies and content partners • Launching new solutions with focus on programmatic e.g. CPM, SSAI • Advancing integration roadmap with Adtech p
Slide 38: Slide 38
Slide 39: Interim Results September 2021
THE WORLD'S LEADING IN-CONTENT ADVERTISING PLATFORM INTERIM RESULTS SEPTEMBER 2021