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Cautionary Note Regarding Forward Looking Statements
Certain statements in this presentation and responses to various questions include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained herein are forward-looking statements, including statements regarding mobile growth, revenue and monetization, opportunities for traditional display advertising, and potential growth in incentivized video advertising. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include users will be willingness to purchase virtual currency for our various offerings, the effectiveness of the mobile software on smartphones and tablets, and the risk that we are unable to monetize our mobile users. Further information on our risk factors is contained in our filings with the SEC, including the Form 10-K for the year ended December 31, 2011. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Overview
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Public market leader for social discovery
#1 most visited social network for meeting new people in the US.1
3.1+ billion page views per month.2 Comparable web page views to Twitter in the US.
Fast-growing mobile applications – now 60% of daily logins. #1 Top-Grossing Social App on Android.3
Robust product pipeline focused on continued growth in mobile, virtual currency, and international
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1 comscore US, Feb. 2012: myYearbook vs. Tagged and Badoo.2 Google Analytics, combined myYearbook + Quepasa Q1 2012 web and mobile page views.3 Google Play Top Grossing Social Apps on 5/18/12.
MeetMe Reimagines the Bar
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It’s a place where members can go meet new people, play games, or just hang out
Source: MeetMe Survey. June 2012. 6,754 responses.
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Four Categories of Social Networking
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Mobile is the Bridge to the Offline WorldMobile now accounts for over 60% of all logins, up from virtually 0 in the first half of 2010.
1 Rankings based on Google Play (formerly Android Market) rankings of Apps->Social->Top-Grossing on 3/26/2012.
Mobile Revenue Growing Strong Off Small Base
1 Mobile revenue refers to mobile advertising and mobile virtual currency revenue
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The MeetMe User is Addicted to Mobile
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Mobile Users Are Even More EngagedAndroid and iPhone users visit for shorter periods of time, but much more often,
resulting in more daily time spent per user than on the web – over 20 years’ worth of minutes on Android alone, every day!
Source: Flurry/Google Analytics
Mobile as a New User Acquisition Stream
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1 out of every 4 MeetMe registrations comes via mobile apps– And mobile signups are significantly less likely to churn!
In the end, about 1 out of every 3 newly engaged users found us via the App Store or Google Play
We expect this proportion to continue growing as smartphone and tablet penetration increases in our target demographic
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Mobile Display Ad Market Isn’t There YetAdvertisers Are Spending Like It’s 1997
Source: eMarketer
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Plenty of Smart People Trying to Crack the NutMobile described as a “revenue challenge,” a “conundrum,” even a
“gaping hole” in the IPO buildup
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So How Are Mobile Publishers Making Money?In-App Purchases, Paid Apps, Advertising
$12.8 million last quarter
Up to $17.8 million last quarter
$70 million last quarter
$25.5 million last quarter
$10.1 million last quarter
Source: http://www.insidemobileapps.com/2012/02/22/a-review-of-annual-quarterly-earnings-for-android-ios-gaming-companies//
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Mobile App Revenue Exploding
Sourcehttp://allthingsd.com/20120530/mary-meekers-internet-trends-live-at-d10-slides/
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In-App Purchases Increasingly Outperforming Paid AppsMore than 65% of iOS app revenue attributed to Freemium games
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The Formula: One-Tap PurchaseVirtually every iPhone user has a credit card on file with iTunes,
enabling a frictionless one-tap purchase flow
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Android In-App Billing Getting EasierExpect Google to encourage users to create a billing profile on
activation of a new phone or download of the first app
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Both Platforms Must Improve InternationallyBoth iOS and Android are overly reliant on a faulty expectation that everyone
has a credit card – need to support popular local payment methods, especially in countries with much smaller advertising markets
Konbini
New Players Emerge – But Will They Matter?
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• Flurry: Amazon Appstore monetizing 90% as well as iTunes, per user• The original innovator in frictionless payments• Ability to strike large deals with handset makers and market their own
tablets
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Mobile Offer Walls Help Drive Monetization
Incentivized Mobile Video Ads Poised for Growth
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Premium placements command premium CPMs
Avoids screen size constraints
Guaranteed eyeballs
Plugs into social app ecosystem:– Facebook– Twitter– SMS
Available on all platforms
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MeetMe’s Social Theater Is Mobile in 2012
Still a Huge Opportunity for “Traditional” Display Ads
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Only 3% of consumers are spending their money on in-app purchases
Advertising can monetize the other 97%-- at a lower rate, but one that will improve with time
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Mobile Potential% of Time Spent in Media vs. % of Advertising Spending, USA 2011
Source: http://allthingsd.com/20120530/mary-meekers-internet-trends-live-at-d10-slides/
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Translation: Be Mobile or Be Irrelevant
Advertisers Should Be Excited About Mobile
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More Reach– Users are always on, always plugged in – now advertisers can reach them more
often than they ever could before
More Context– Mobile is a higher-quality touch point– Target based on interests, social graph, location– Point-of-sale capabilities developing
More Expectations– Increasingly, users expect their web experience to transition seamlessly onto their
mobile phones– No patience for apps and brands that aren’t available everywhere
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Smartphone Penetration to Increase
Source: MeetMe Survey. June 2012. 6,754 responses.
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Further Innovation Around Ad Units
In-Game Branding Premium ExpandableAd Units
The Nut Will Be Cracked
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Smart phone proliferation continues
Mobile advertising growth explodes
Mobile payments become frictionless on all leading platforms
Location promise is realized
Marketers key in on social and location context to drive people to point of sale
Confidential – Not For Distribution
Confidential – Not For Distribution
Follow: @geoffcook and @meetmeBlog: valleyoutsider.com