paypersocial 2014 - equity crowdfunding preparation
DESCRIPTION
Paypersocial is will be a Social AdExchange where the publisher network is composed from Social networks users. The social user (Facebook, twitter, etc.) is a Advertising INFLUENCER for their social friends. Payypersocial represent one very good investment opportunity for all type of investors with one secure exit strategy.TRANSCRIPT
Paypersocial 2014
Social AdExchange
Start-‐up
Paypersocial 2014
• What is Paypersocial • Mission & Strategy • Who uses it (Market Actors) • How it works (Online PlaAorm) • Future Features (Social AdExchange) • OrganizaEon & MarkeEng Strategy • Business Plan (2014/2016) • StartUp Funding (Equity CrowdFunding)
What is Perpersocial An online pla*orm to distribute adver3sing contents on social networks. Adver3sers can render promo3onal contents available for sharing on social walls and feeds (Facebook, Twi?er, etc.), while Facebook users can generate an addi3onal revenue stream as social influencers of their own friends’ networks.
Mission and Strategy
• Social Influencer – We offer revenues to social users to share on and influence their social network;
• Buzz Marke2ng – Each user can take part to one or more chosen brands’ promoEon and success;
• Social AdExchange – We connect Paypersocial to the main online AdExchange plaAorms;
• Big-‐Data Provder – We represent and extraordinary source of social data for adverEsing contextualizaEon.
Paypersocial aims at becoming the main relevant Advers3ng Network able to interact on social networks, offering each social network user to become an INFLUENCER on chosen promo3onal contents
Who’s Paypersocial for
ENGAGEMENT PARTNERS
SOCIAL PUBLISHERS
WEB ADVERTISERS
ADMIN TRAFFIC MANAGERS
The Paypersocial pla*orm provides tools to effec3vely allow 3+1 types of market actors to interact: • Administrators – Teams managing the service process • Adver2sers – Direct AdverEsing Agents (Brands, Agencies, etc.) • Social Publishers – Social Network Users (as influencers and sharers) • Engagement Partners – Social Publishers engagement partners
Social Publishers Types
“Basic” Social Publisher
• Facebook, Twi`er users willing to earn extra cash with a few minutes work a day;
• They choose the contents to share with their social friends and followers;
• They become INFLUENCERS commenEng and sEmulaEng their friends to share contents;
• They earn based on acEons their friends perform on shared contents.
“Partner” Social Publisher
• In addiEon to being “Basic” Social Publishers the contribute to and earn from recruiEng new publishers;
• Earn a percentage of their recruited publishers’ earnings;
• They can create their own network of publishers INFLUENCERS and manage it as Traffic Manager;
• They have access to the Partner plaAorm to manage their networks and their publishers’ earnings.
Advertisers
Self Managed Adver2ser
• AdverEsing and CommunicaEon Agencies launching campaigns directly on Paypersocial’s network;
• Access to self-‐managed plaAorm area: campaign creaEon and management; publishers network management.
Direct Adver2ser (managed)
• Paypersocial Special Customers, manages directly;
• High-‐volume Ads campaigns generaEon;
• Traffic Arbitrage
How it works
A 2-‐year development & tesEng
of a MulEfuncEonal plaAorm
PUB - Web Dashboard CONSOLE MENU
ACCOUNT OVERVIEW
ACCOUNT
POSTS PREVIEW CAMPAIGN INFO ACTION BOTTON
PUB – Facebook Posts
PUB – Payout Model
Post
Like Comment Share with Friends or on Pages
CLICK
Lead
Sales
CPC
CPA
PAY
OU
T M
OD
ELS
Personal Message Hey: I’ll go there with my kiddos next year. Wanna come?
Each social network user who shares and influences can earn on different friends’ ac3ons on a post
ADR - Campaigns
CAMPAIGN CONTROL
Edit Campaign Pause, acEve
campaign
CAMPAIGN DEFINITION Name Total Budget ($) Click Value ($) Max Clicks per day
CAMPAIGN CONFIGURATION Start/end Dates Chosen Market
ADR - Advertisments
Ads/Content Setup Linked URL Title SubTitle DescripEon Image Link
Ads Control Edit Ads
Delete Ads
Ads Stats
Ads Configura2on Link to Campaign Ad Categories Publisher Type (audience) Start/end Dates
ADR - Reports
Campaign Stats
PAR - Tracking URL Each Partner has one or more URLs. When Publishers are engaged with those URLs, the system links them to the Partner and allows Revenue Share monitoring and processing
TRACKING URL Used in banners or directly for Publisher Engagement -‐ Paypersocial Web registraEon page -‐ Paypersocial Facebook RegistraEon Page
ENGAGEMENT STATS -‐ Acceptance of Terms &
CondiEons -‐ FB App Engagement (y/n) -‐ AcEve Publisher (not idle)
TRAFFIC STATS
Valid number of Clicks
PAR - Traffic Report
PUBLISHER INFO List of publishers and engagement informaEon
CAMPAIGN INFO List of consolidated campaigns with publisher traffic for RS. -‐ Total Clicks -‐ Non Valid Clicks -‐ Payable Clicks
RS INFO Revenue earned by single publisher and value earned by RS partner
With the traffic report any partner can control the revenue earned by each engaged publisher, on closed campaigns.
ADMIN - Publishers
Direct access to Publisher Cockpit Publisher Cockpit DeacEvaEon
Edit Publisher InformaEon
PUBLISHER INFO Name – Show Publisher Details eMail contacts Facebook Account Link
PUBLISHER STATUS -‐ Level of Engagement -‐ RS partner relaEon -‐ Friends/Fans in network
Traffic Managers use this page to validate Publishers
ADMIN – Payment Requests
PUBLISHERS WITH ACTIVE PAYMENT REQUESTS
PAYMENT REQUESTS -‐ Amount requested -‐ Date of request TRAFFIC DETAILS
PAYMENT CONFIRMATION • Aier payment of
Publisher • Transfer requested
amount to paid amount
ADMIN - Advertisers
SELF ADVERTISER ACTIVATION -‐ Analyze the new adverEser informaEon -‐ AcEvaEon of new AdverEser
ADVERTISER AUTO LOGIN -‐ AutomaEc login on the AdverEser console
ADVERTISERS -‐ Contact InformaEon -‐ Company and contact info
NEW ADVERTISER FORM
ADMIN - Budget Validation AUer the Adver3ser has paid the Package he/she wants, and the money is received on Paypersocial bank accounts, the Package is authorized and the available budget is released.
CREDIT TRANSACTIONS -‐ Credit: Budget requested -‐ Debit: Budget autorized
REJECT -‐ Payment is not received
CONFIRM -‐ Aier payment received on bank
TRANSACTION DETAILS -‐ With budget infomaEon
ADMIN - Ads/Content Validation
CLICK VERIFICATION Opens the desEnaEon page of click URL of the ad
AD Edit/Canc Modify/Delete the Ad configuraEon REJECT
With comments for AdverEser
AD APPROVAL Necessary before publicaEon of Ad is possible (aier that , Ads are ready for posEng)
Payperosocial Account Manager can check and autorize the Adver3ser’s Ads.
ADMIN – Quality and Fraud Control Single click control and
valida3on FILTER List of some AcEvated Filters
ACTION Change status of selected clicks
PUBLISHER Date of Click From Publisher Post U
SER CLICK IP
CLICK STATUS Aier applicaEon of heurisEc rules or Traffic manager judgement
CLICK TECH INFO Referers: Paypersocial accepts only clicks from authorized Referers User Agent: Paypersocial does not accept clicks from black-‐listed Agents HTTP Headers: header informaEon for refined analysis of single click’s quality
ADMIN – Promotional Coupons The coupon is a code the publisher can use during registra3on in order to receive a credit balance to start using Paypersocial. Each Coupon is associated with a specific tracking code.
PUBLISHER COUPON INPUT
COUPON STATS • Total Budget available for
coupons • Used Budget • Coupon Amount
TECH RELATIONS • Partner • Tracking Code
COUPON INFO • Code to use by new publisher • Total budget for coupons • Single Coupon amount
COUPON VALIDATION • Date from/end
ADMIN - Traffic Report
NOW
NEXT RELEASE
Evolu3on of cockpit of Admin Area. Monthly performance of past and current adver3sing periods. Monitoring in terms of Clicks: Overall, Rejected, Valid; Monthly Publishers: New and ac3ve
New Features
2014/2016 Development
SAX - Social AdExchange Paypersocial Social AdExchange (SAX) is the implementa3on of a Real-‐Time Bidding market conducted in partnership with other Adver3sing Networks in order to buy and sell ads for social networks. Adver3sers will have a new market specifically designed to manage adver3sing and promo3ons des3ned to Social Networks.
SAX AdExchange
API DSP
Other AdExchange
AdverEser Agency
RealTime Bidding
Social Publisher
BigData Contextualizer
Facebook Twi`er Other
Social User (Friend)
RetargeEng Tag
SAX – Real-Time Bidding Bid Model
Set Target Criteria
Target Criteria Matched
Bid CompeEEon
Bid Wins
• Paypersocial Category • BigData ContextualizaEon • ReTargeEng Match • Device: PC, Mobile • Other Target Criteria
• AdverEser Offer (CPM bid) • PPS Autopost Algorithm • PPS Arbitrage (mulE
Publisher Payout) • Other Criteria
Accounting Automation
• Clearbooks integraEon
• AutomaEc Self-‐Invoice
• AutomaEc Paypal payment
• ReducEon of human intervenEon and error
The Paypersocial-‐to-‐Publisher economic rela3onship will be automated, trasforming Paypersocial in a 100% “Self Service Pla*orm”, thus reducing costs and 3me to payout
Publisher Support System
• ClickDesk IntegraEon • Traffic Manager Teams (RO) • Home working for well
seasoned publishers managing own network of publishers (as Traffic Managers)
Paypersocial can represent a dedicated community of Social Publishers that gain loyalty and experience over 3me. For that reason the management of this set of rela3onships is fundamental for long-‐3me community performance
International Company
• UK Financial Base – Corporate operaEons in London – Financial and Tax base
• US Rela2onship Base – MarkeEng and Commercial operaEon in San Francisco – Partners management
• RO Development & Support – Soiware Development in Romania – Traffic Management Teams (Publishers’ Support)
Publishers Engagement
• One-‐direcEonal markeEng investment
• Online campaigns to inform and sEmulate subscripEon
• Online campaigns to influence acEve publishers into becoming Traffic Managers
• ParEcipaEon to internaEonal events
• Strategic partnerships with CPS (cost per subscripEon) players
Engage 100,000+ Social Publishers in the world with own specific market scope and geography
Investment Opportunity
Equity Crowdfunding
and Venture Capital
Equity CrowdFunding
Crowdcube is the world’s leading equity crowdfunding site, enabling investors to help entrepreneurs raise the finance they need to grow
h`p://www.crowdcube.com
Favorable Investor Scheme How Enterprise Investment Schemes Save Investors in the UK Tax and Reduce their Investment Risk
h`p://www.seiswindow.org.uk/
Strategic Milestones
2011 2012
2014 -‐ 07
2014 -‐ 09
2015 -‐ 01
2016 -‐ 01
SEED -‐ Market Test -‐ Conversion Rates
DEVELOPMENT -‐ Release 0 (01-‐2011) -‐ Release 1 (03-‐2013)
RE-‐FUNDING -‐ Equity CrowdFunding Pitch -‐ New Investors
START-‐UP PREPARATION -‐ Office LocalizaEon -‐ Release 2.0 Dev. -‐ Pre-‐Engagement
START-‐UP -‐ Publisher Engagement -‐ Social AdExchange Dev. -‐ BreakEven
CONSOLIDATION -‐ Market ConsolidaEon -‐ Return On Investment -‐ Investor Exit Opportunity
Conversion Rates (test time) During Market Test period encouraging conversion rates have been measured and provide benchmark for startup business plan
0
5000
10000
15000
20000
25000
0
50000
100000
150000
1 2 3 4 5 6 7 8 9 10 11 12
# Posts
# Click-‐out
# Payable Click Partner
# Payable Click PPS
$-‐
$5.000,00
$10.000,00
$15.000,00
$20.000,00
$25.000,00
1 2 3 4 5 6 7 8 9 10 11 12
Accrued Cost ($) Accrued Revenue ($)
(*) Average Revenue Per Ac2ve Publisher
Alpha release Test Beta release Test
ARPAP (*)
• MarkeEng drives revenues • For every $1 spent on publishers, exp.
$6.5 revenues/year • Small Eme lag in investment • Need for constant markeEng investment
Draft Business Plan
ID ITEM 1 2 3 4 5 6 7 8 9 10 11 12 2015
TRAFFIC Total Publisher 80,000 100,000 120,000 200,000 300,000 380,000 490,000 600,000 650,000 690,000 700,000 750,000 421,667 -‐ (%) acEve publisher 2.00 2.50 3.00 3.80 4.00 5.00 6.60 8.30 10.00 11.00 12.00 14.00 7 Ac2ve Publisher 1,600 2,500 3,600 7,600 12,000 19,000 32,340 49,800 65,000 75,900 84,000 105,000 38,195 Post for Publihser (month) 200 195 180 170 160 155 150 130 115 100 90 75 143 CR (click for Post) 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.2 Total Month Posts 320,000 487,500 648,000 1,292,000 1,920,000 2,945,000 4,851,000 6,474,000 7,475,000 7,590,000 7,560,000 7,875,000 4,119,792
Click for Month 416,000 633,750 842,400 1,550,400 2,304,000 3,534,000 5,821,200 7,768,800 8,970,000 8,349,000 8,316,000 8,662,500 4,764,004 REVENUES
ADV-‐P Campaigns (%) 60 60 60 60 60 60 60 60 60 60 60 60 ADV-‐A Campaigns (%) 40 40 40 40 40 40 40 40 40 40 40 40 Adv-‐P Payout (CPC) 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 Adv-‐A Payout (CPC) 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20
Adv-‐P Revenue $12,480 $19,013 $25,272 $46,512 $69,120 $106,020 $174,636 $233,064 $269,100 $250,470 $249,480 $259,875 $1,715,042 Adv-‐A Revenue $33,280 $50,700 $67,392 $124,032 $184,320 $282,720 $465,696 $621,504 $717,600 $667,920 $665,280 $693,000 $4,573,444
TOTAL REVENUE $45,760 $69,713 $92,664 $170,544 $253,440 $388,740 $640,332 $854,568 $986,700 $918,390 $914,760 $952,875 $6,288,486
Publisher Ravenueshare -‐-‐ Adv-‐P traffic $4,992 $7,605 $10,109 $18,605 $27,648 $42,408 $69,854 $93,226 $107,640 $100,188 $99,792 $103,950 $686,017 -‐-‐ Adv-‐A Traffic $19,968 $30,420 $40,435 $74,419 $110,592 $169,632 $279,418 $372,902 $430,560 $400,752 $399,168 $415,800 $2,744,066
Total Publisher RS $24,960 $38,025 $50,544 $93,024 $138,240 $212,040 $349,272 $466,128 $538,200 $500,940 $498,960 $519,750 $3,430,083 Partner Revenue Share
Eng-‐P Revenue Share $539 $821 $1,092 $2,009 $2,986 $4,580 $7,544 $10,068 $11,625 $10,820 $10,778 $11,227 $74,090 Pub-‐P Revenue Share $472 $719 $956 $1,760 $2,616 $4,012 $6,608 $8,819 $10,183 $9,478 $9,440 $9,834 $64,897
Total Partner RS $1,011 $1,541 $2,048 $3,769 $5,601 $8,592 $14,153 $18,888 $21,808 $20,298 $20,218 $21,060 $138,987 TOTAL COSTS $25,971 $39,566 $52,592 $96,793 $143,841 $220,632 $363,425 $485,016 $560,008 $521,238 $519,178 $540,810 $3,569,070
GROSS MARGIN (USD) $19,789 $30,147 $40,072 $73,751 $109,599 $168,108 $276,907 $369,552 $426,692 $397,152 $395,582 $412,065 $2,719,416
GROSS MARGIN (EUR) €15,831 €24,117 €32,058 €59,001 €87,679 €134,487 €221,526 €295,642 €341,354 €317,722 €316,466 €329,652 €2,175,532
Gross margin forecast for STARTUP (2015)
• 12 Months Eme span • Confirms 840k engagement costs vs. EUR5M revenues (x6)
Investment Cost Composition
42%
6% 3% 3%
36%
8% 2%
Management+Exec. Secretary
Development
IncorporaEon& AccounEng
LogisEc & Office
MarkEng & Sales
Tech Costs
Financial
• 12 Months Eme span • MarkeEng and Sales up to 35 part-‐Eme traffic, support, junior, students • Four operaEons office: London, Bologna, Washington, Cluj-‐Napoca • 16 pex Full-‐Eme Management
Organization schema De
velopm
ent
• Project C
oordinaE
on
• Senior/Jun
ior D
evelop
men
t
Helpdesk Support Operators
Publisher & Traffic QualificaEon ADV-‐P Ads CreaEon
Traffic Managers Publishers 1-‐2-‐1 Management
Management General Management and MarkeEng Finance, Tax, Investor RelaEons Sales Management AdverEsers Campaign RepresentaEon with Traffic
Traffic Management Traffic Manager coordinaEon Traffic Mgr. with Key Accounts
R&D (University)
Coun
try Offices
• USA
(NY -‐ SF) -‐ Others
• Co
untry Ke
y Accoun
t(s)
• Co
untry Traffi
c Manager(s)
UK (London)
RO (Cluj)
Investors’ Exit An online adver3sing business with own pla*orm and own loyal community of publishers is interes3ng for large ’Internet Businesses’ such as Google, Facebook, etc..
Provide strategic advice to digital media companies in a manner that reflects how corporate development is actually done. This more strategic approach produces bener outcomes for acquirers and target companies alike.
www.lumapartners.com
Thank you
Gabriele Taviani