TSX.V: VID

Change the Way You Think About Video

Corporate Presentation

TSX.V: VID 2

A preliminary prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in the provinces of

British Columbia, Alberta, and Ontario. A copy of the preliminary prospectus, and any amendment, is required to be delivered with this document.

The preliminary prospectus is still subject to completion. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been

issued.

This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the preliminary prospectus, the final prospectus and any

amendment for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

Certain information contained in this presentation constitutes “forward-looking information” and “forward-looking statements” (referred to as the “forward-looking statements”), which is

information regarding possible events, conditions or results of operations that is based upon assumptions about future economic conditions and courses of action. All information other

than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “seek”, “expect”,

“anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will”, and similar words or phrases

(including negative variations) suggesting future outcomes or statements regarding an outlook. SoMedia Networks Inc. (the “Corporation”) has based these forward-looking statements on

its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial

needs. In light of significant uncertainties inherent in the forward-looking statements included in this presentation, the inclusion of such information should not be regarded as a

representation by the Corporation or any other person that the Corporation’s objectives or plans will be achieved.

Forward-looking statements in this presentation include, but are not limited to, statements relating to: the Corporation’s expectations regarding its revenue, expenses and operations; the

Corporation’s plans for and timing of expansion of its products, solutions and services; the Corporation’s future growth plans; the acceptance by the Corporation’s customers and the

marketplace of new technologies and solutions; the Corporation’s ability to attract new customers and develop and maintain existing customers; the Corporation’s ability to attract and

retain personnel; the Corporation’s expectations with respect to advancement in its technologies; the Corporation’s competitive position and its expectations regarding competition;

regulatory developments and the regulatory environments in which the Corporation operates; and anticipated trends and challenges in the Corporation’s business and the markets in which

it operates.

Forward-looking statements are based on certain material assumptions and analysis made by the Corporation, and the opinions and estimates of management as of the date such

statements are made and they represent management's best judgment based on facts and assumptions that management considers reasonable in light of its experience and perception of

historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. The material assumptions

upon which such forward-looking statements are based include, among others, assumptions with respect to: growth plans and cash flows; the continuation of demand for the products and

services of the Corporation's business; the ability of the Corporation to access financing from time to time on favourable terms, a stable market and general economic conditions; the

ability of the Corporation to protect its intellectual property rights; the Corporation's ability to retain customers; the Corporation's ability to develop technologies; and the continuation of

executive and operating management, or the non-disruptive replacement of them on competitive terms. The Corporation makes no representation that reasonable business people in

possession of the same information would reach the same conclusions. Although the Corporation believes that the assumptions underlying these statements are reasonable, they may

prove to be incorrect and the Corporation cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions,

investors should not place undue reliance on these forward-looking statements. Whether actual results, performance or achievements will conform to the Corporation’s expectations and

predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, which discussed or referred to preliminary prospectus that accompanies this

presentation.

These risks, uncertainties, assumptions and other factors could cause the Corporation’s actual results, performance, achievements and experience to differ materially from the

Corporation’s expectations, future results, performances or achievements expressed or implied by the forward-looking statements. If the forward-looking statements prove to be incorrect,

actual results might vary materially from those anticipated in those forward-looking statements. You are cautioned that the above list of risks, uncertainties, assumptions and other factors

is not exhaustive, and there may be other factors that the Corporation has not identified.

The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in this presentation, and accordingly are

subject to change after such dates. Except as required by law, the Corporation undertakes no obligation to update or revise any forward looking statements included in this presentation,

whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of future events.

SoMedia Networks Inc. reserves all rights in and to this presentation.

SOMEDIA NETWORKS INC. DISCLAIMER

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BUSINESS DEMAND FOR VIDEO INCREASING

VIDEO DELIVERS RESULTS

The Relevancy Group, “The ROI of Video in Email Marketing”

BUDGETS & VOLUME OF PRODUCTION INCREASING

2014 Online Video Production Trends Report - May 2014

• Video is one of the best performing marketing tools available to marketers; budgets are increasing rapidly 1

• Mobile is driving significant growth in the use of video 2

• Google reports that video ads receive 27X the clicks that other ads do. 3 Video ad views are growing 100% year over year4

• Cisco projects that 84% of web traffic will be video by 2018 5

• YouTube is the #2 search engine 6

Growth in the Use of

Online Video by Business

SOMEDIA IS ABOUT

1. Vidyard Video Benchmark Report, August 27, 2014 2. Garnter Mobile Congress; February 5, 2015 3. Instream Media Benchmark Sept 2012

4. Business Insider 5. Cisco Visual Index, 2015 6. Youtube ads – Getting it right; Search Engine Watch December 5, 2014

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• Video production companies are typically low tech small businesses managed by creatives

• Expensive

• Producing video content in volume or in numerous locations is extremely difficult

• Outcomes are variable and dependant on the skills of individuals

• Quality control is a key problem

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THE PROBLEM WITH VIDEO

2014 Online Video Production Trends Report - Web Video Marketing Counci***

BIGGEST VIDEO PRODUCTION CHALLENGES

ABILITY TO EXECUTE IS A PROBLEM

Analyzing the ROI of Video Marketing - the Aberdeen Group*

COST & DIFFICULTY

2013 Video Marketing Survey and Business Trends Report – Web Video Marketing Council**

THE TWO BIGGEST FACTORS HOLDING

BACK MORE VIDEO MARKETING

* Aberdeen Group

** Web Video Marketing Council

*** Web Video Marketing Council

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WHAT WE DO

• Scalable marketing, advertising and news video production : On demand, anywhere, in unlimited volume. Competitors can be 3X to 5X more expensive

• Cloud based production platform integrated with project management, video players and advanced analytics systems

• Unique Crowdsourced Workforce Management system harnesses a specialized workforce of 3400+

• Turnkey reseller solutions for agencies : 4000+ resellers signed to date

• Video Ad production for Youtube/Google & Facebook advertisers

• Integrations with 20 cloud based marketing platforms: Salesforce/Exact Target, Google, Oracle/Eloqua, Marketo, Microsoft etc.

manage an unlimited number of simultaneous projects

order professional video in any location in North America

order any number of videos anywhere, on demand

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INVESTMENT HIGHLIGHTS

• SoMedia is positioned at the nexus of several powerful growth trends

• Targeting a large addressable market unable to embrace the benefits of video marketing and advertising due to issues of cost, complexity and lack of scale

• SoMedia removes these barriers through the use of an innovative cloud based front end and advanced crowdsourced workforce management platform

• The video production space is fragmented, without scale and with no market leader able to serve customers nationally

• Launch of video advertising platform a key catalyst for near term growth

• Integrations with 20 SaaS marketing platforms (Salesforce, Marketo, Eloqua, Act-On etc) a key catalyst for mid term growth

Online Video Advertising and Marketing

SaaS Based Services and Analytics

The Evolution of Crowdsourcing

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RE-ENGINEERING VIDEO PRODUCTION

Crowdsourcing leverages the

significant increase in trained video

production talent and decline in the

cost of video production equipment

Front end SaaS platform manages

creative development, task

planning and production

management

Network of 3,400+ video production

specialists throughout North

America managed by cloud based

process and QC platform

Turnkey solutions offer scalability,

reach and volume

Competitors sell equivalent

videos for 3x to 5x more

SoMedia provides 5 to 10 day

turnaround

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VIDEO PRODUCTION PLATFORMS

Optimized and locally

targeted video ads

anywhere in North

America - upload directly

to YouTube or deploy to

any video ad network.

Business video content for

online marketing, with free

customized video players

and real-time video

analytics.

Order or produce news

features, on-the-street

interviews, and event

coverage, as well as native

advertising and branded

content.

Video Ad Platform Business Video Platform News Platform

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THE RESELLER CHANNEL

7,000+

ONLINE MARKETING

COMPANIES IN CANADA

76,000+

ONLINE MARKETING COMPANIES

IN THE UNITED STATES

• Web Design & Development

Services

• SEO & SEM Specialists

• Digital Agencies

• Advertising Agencies

• Marketing Consultants

28 MILLION SMBS 1.1 MILLION SMBS

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VIDEO AD PROGRAMS & OPPORTUNITIES

SoMedia Google Partners ProgramSoMedia Ads offers the production of custom video ads

anywhere in North America in unlimited volume.

Developed for the requirements of Google Partners, the

platform offers multiple ad formats, localization and

direct integration with YouTube.

Test program ran in Q4. Google offered free video

ads to a small number of US based Google Partners

During Q1 Google US began offering free video ad

promotion to select Google Partners

During Q2 Google Canada began offering free video

ad promotion to select Google Partners

Google – SoMedia Programs to Date

1. Forrester, US Online Display Advertising Forecast, October 2014

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CORPORATE & ENTERPRISE SOLUTIONS

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SaaS PLATFORM INTEGRATIONS

Integrations of scalable, on demand video production services with video players and advanced analytics

SoMedia is the only video production solution able to deliver required turnkey scale & reach

Offers opportunity to launch content marketing and demand generation programs

20 integrations completed so far

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COMPLETED INTEGRATIONS

COMPLETEDAct-On MAP

AppDirect App Marketplace

Campaign Monitor Email Mktg

Captera App Marketplace

Eloqua MAP

ExactTarget MAP/Email

Google Chrome

Marketplace App Marketplace

Hootsuite SMM

Kapost CMS

MailChimp Email Mktg

Marketo MAP

Microsoft Office Word Processing

Microsoft Sharepoint CMS

Moz CMS

Oracle-Eloqua CMS

Salesforce Marketing

CloudCRM

Serchen App Marketplace

Unbounce Landing Pages

Web.com Website Creator

WordPress Website Creator

Youtube Video Search

Yahoo! App Marketplace

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COMPLETED INTEGRATIONS

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SALES MODEL EVOLUTION & COST OF AQUISITION

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VIDEO PRICING & MARGINS

Mostly standard Custom or

premium Custom videos

Mostly standardized 30 & 60 second Ad,

Testimonial and Profile formats

Typical partner markup is 50% to 100%

Mostly standardized 30 & 60 second Ad,

Testimonial and Profile formats plus Custom

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PROGRESSIVE LEADERSHIP

- CFO

- Founder & CEO

19 years experience as an Internet business founder or co-founder. CEO & founder of One Person Health

(HealthPricer.com), Co-founder of eCharge Corp. Prior to that at Canaccord Capital.

14 years accounting management experience; Tactical Corporation, Taleo Corporation,

Pivotal Corporation.

- CTO & Co-Founder

Highly innovative technology architect & programmer. Graduated with a BSc and Masters (incomplete) in

Computer Science from UBC.

- Vice President, Operations

20 years of experience in operations, corporate communications and business development. From 2009-

2011 held the position of VP of Marketing for the Company.

– Acting Chief Revenue Officer

15 years leading sales and marketing with expertise in advanced content marketing, demand generation and sales

automation. Former Chief Revenue Officer at Mobify and Recombo, Alter NRG, Oracle/PeopleSoft

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VALUATION & MARKET CAP

• Current market cap of $15+M compares to C$25+M invested in the company

(6/01/15)

52 Week Low - High $0.09 - $0.54

Avg. Daily Vol. (3 mo) 600,000+

Shares Outstanding 52.5M

Insider* Holdings (est.) ~28%

Enterprise Value (mrq) $17.5M

• Company founded in 2006

• $20+ million raised to date

• 28 employees

• Net burn rate is ≈ $161,000/month

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KEY TAKEAWAYS

Suite of Technologies are Built and Proven$25M+ already spent on development.

Disruption Story + Opportunity for Category Ownership Only video production solution focused on scale, reach and volume. Only video production

reseller solution in the market. Only turnkey video production solution for large SaaS

platforms like Salesforce, Marketo, etc.

TimingOver 4,000 resellers, sold aprox. 3,000 videos to date. Completed 20 platform

integrations. Video ad platform launched. Sales began increasing in 2014

Focus on ExecutionTargeted inside sales effort, implementation of content marketing & demand generation

marketing programs

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- Founder & CEO

Tel: 604.683.5510

Email: gfleming@somedia.net

CONTACT US

SoMedia Networks, Inc.

220 Cambie, Suite 401

Vancouver, BC Canada V6B 2M9

Tel: 604.683.5510 x 570

Email: investors@somedia.net

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Set a player’s color to

match your brand

(and add your logo).

Add a map to

your location.

Enable sharing to

Facebook, Twitter and

other social networks.

Leads sent directly to your

email.

Promote offers or

services, and drive traffic

back to your website.

Promote coupons, giving

viewers the ability to print

out and redeem.

Integrate videos into any

website or blog.

Auto-generated video

sitemaps and meta data

for enhanced SEO.

Target videos based on

location, device, or time of day

CUSTOM VIDEO PLAYERS

BRANDING

GOOGLE MAPS

SOCIAL MEDIA

LEAD CAPTURE

CALLS TO ACTION

COUPONS

EMBED CODE

VIDEO SEO

CONTENT TARGETING

Customizable video player with enhanced campaign and targeting features.

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Viewer EngagementHow many viewers watch the entire video?

At what point do they drop off ?

Understanding engagement data will help

improve your next video.

Conversion RatesHow many viewers are clicking on your

calls-to-action? How many leads are you

generating? The only way to optimize is

by tracking your CTRs.

.

Viewer GeographyTrack the geographic location of all your

viewers - filtered by country, region,

or city.

.

Social EngagementMonitor how many times your video is

shared and which social networks are

most popular with viewers.

.

Performance by Embed LocationFilter your data by embed location and

compare how each is performing.

Video’s Impact on Your

Website or Blog

We’ve integrated with Google Analytics

to understand how your video is

impacting your website.

.

Track performance with integrated real-time analytics

ADVANCED VIDEO ANALYTICS

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NEWS & BRANDED CONTENT PRODUCTION

SaaS based crowdsourced news production platform offers on

demand or manage yourself “marketplace” option.

Unique front end Saas platform includes creative development

processes, marketplaces, task planning and production

management – controls crowdsourced workforce

Leverages network of 3,400+ video production specialists

throughout North America

Targeting a very large addressable online media and corporate

market underserved by traditional news production services

PRODUCED

CONTENT FOR:

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