wetpaint: building massive loyal audiences overvi… · 2m 4m . 6m . 10m . 12m . 12m . 15m . 0m....

Wetpaint: Building Massive Loyal Audiences June 2013

Introduction to Wetpaint

Wetpaint is a social publishing pioneer with a transformational platform that builds loyal audiences.

Our results have been unprecedented.

2 ©2013 Wetpaint confidential and proprietary. All rights reserved.

Source: Google Analytics

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Wetpaint Entertainment Audience (monthly unique users, quarterly peak)

Introduction to Wetpaint



Wetpaint is a social publishing pioneer with a transformational platform that builds loyal audiences.

Our results have been unprecedented.

Management Team Proven entrepreneurs with track record of building disruptive businesses and consumer brands.

4

Ben Elowitz – Co-Founder, CEO Blue Nile, Fatbrain.com, eHarmony, Bain

Rob Grady – COO Starbucks, RealNetworks, P&G

Michael Howell – Co-Founder, VP Social Distribution & Analytics Lake Partners Strategy Consultants

Chris Kollas – SVP, Strategy & Business Development RealNetworks, Creative Multimedia, Central Point Software

Alex Weinstein – Senior Director Technology & Product Microsoft (Live Labs), Symantec

Mari Ghuneim – Executive Editor Bravo, AOL Living, Stylelist.com, AOL Music

©2013 Wetpaint confidential and proprietary. All rights reserved.

• #1 social publisher on the web

• 15M monthly uniques, 90M pageviews/mo

• Unique editorial voice and content specifically targeted to young millennial women F18-34 who love TV

• A single source for deep, independent coverage of their favorite shows, stars, entertainment news and fashion

• Tons of premium content – 200+ new articles, videos and galleries per day

• Socially-driven audience engagement

Wetpaint Entertainment Overview


Premier Coverage of 40+ TV Shows

The Wetpaint Social Engine

Wetpaint Social

Playbook

Activate Engage

Our Social Publishing Platform systematically captures, reengages, and activates audience from social networks (e.g. Facebook, Twitter, etc.).

©2013 Wetpaint confidential and proprietary. All rights reserved. 6

Capture

Fans

Newsfeed

Website

The Wetpaint Social Platform – 3 Simple Steps

7

Step 1: Get Fans

Via Wetpaint Fan Converter

Step 2: Get In The Feed

Via Wetpaint Social Distribution System

Step 3: Drive Results

Via New Audience & Revenue



The Wetpaint Fan Converter targets and captures audience using a deliberate call to action that turns website visitors into Facebook fans.

Step 1: Get Fans




The Wetpaint Fan Converter targets and captures audience using a deliberate call to action that turns website visitors into Facebook fans.

1-3% organic conversion rate across desktop and mobile

Step 1: Get Fans



Performance Targeting Criteria 1. Visits in the last 30 days 2. Pageviews in the current session 3. Referral source 4. Search keywords 5. Known fan relationships

Display Parameters 1. Target platform (Facebook,

Twitter) 2. Creative content (visuals) 3. Call to action 4. Exit options

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10%+ CTR from FB to website

50 Impressions per fan per month

2. Optimize Timing

3. Optimize Content

4. Optimize Merchandising

1. Audience Segmentation


Wetpaint’s patent-pending Social Distribution System makes it easy to get in front of the right people, at the right time, with the right content.

Step 1: Get Fans



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0M

1M

2M

3M

4M

Facebook Fans (Cumulative)

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65M

130M

195M

260M

Facebook Impressions (Monthly)

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5M

9M

14M

18M

Facebook Transfers (Monthly)

Source: Facebook Insights & Google Analytics for Wetpaint Entertainment (www.wetpaint.com)


Step 1: Get Fans



Groundbreaking Social Publishing Platform is “secret weapon” in driving value from social.

Wetpaint Platform Drives Unprecedented Results


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Wetpaint Entertainment Audience (monthly unique users, quarterly peak)


One of the fastest growing premium media destinations on the web.

Social

55% Search

35%

Other

10%

Sources of Traffic (February 2013)


Exploiting Facebook to Earn Audience


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Facebook Transfers to Wetpaint Entertainment (monthly fanpage transfers)

The key to success with social is driving audience from the social networks to your website.

A Cross-Platform Audience


Wetpaint’s technology acts as a “Trojan horse” into mobile through Facebook.


WETPAINT MOBILE PAGEVIEWS

Cross-platform audience

acquisition and engagement

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#1 Mobile app across all

smartphone platforms

23% of total mobile Internet time spent on Facebook

#1 Social Publisher

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Our proprietary Social Publishing Platform is the competitive advantage elevating Wetpaint above all other publishers.

Next 25 publishers average 2.5%

*Wetpaint and BuzzFeed have been added to the top 50 publisher list to highlight their social ranking

% o

f Vis

its fr

om F

aceb

ook

+ Tw

itter


Media Industry Social Leaderboard The Top 50 Web Publishers Ranked by Social Traffic Composition

(Leading 25 Shown)

Source: comScore, Compete, Wetpaint analysis (February 2013)

55%

35%

13% 11% 10%

8% 8% 7% 7% 7% 7% 6% 6% 6% 6% 5% 5% 5% 5% 5% 5% 4% 4% 4% 4% 0%

20%

40%

60%

BUZZ

FEED

.CO

M

NFL

.CO

M

PEO

PLE.

COM

MTV

.CO

M

TMZ.

COM

NBC

.CO

M

EON

LIN

E.CO

M

PATC

H.CO

M

IGN

.CO

M

MLB

.CO

M

YAHO

O.C

OM

USM

AGAZ

INE.

COM

GUAR

DIAN

.CO

.UK

AOL.

COM

FOXN

EWS.

COM

EW.C

OM

DISC

OVE

RY.C

OM

CNN

.CO

M

CBS.

COM

BBC.

CO.U

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BREA

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HUFF

INGT

ON

POST

.CO

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MSN

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BLEA

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RT.C

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Platform Also Drives Audience Growth in Search

Source: Wetpaint analysis

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16M

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10M

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18M

Jan-12 Apr-12 Jul-12 Oct-12 Jan-13

Social Search

Wetpaint Referral Traffic (Total Visits)

Social performance drives higher rankings in Google and Bing.

Entertainment News Market Leaders (F 18-34)


Rank (Feb. 2013) Property comScore F18-34 Unique Visitors F18-34 Composition

1 6.5M 104

2 6.3M 106

3 4.8M 140

4 3.6M 132

5 2.5M 108

6 2.4M 275

7 2.0M 145

8 1.9M 198

9 1.8M 123

10 1.8M 126

Median 2.5M

Wetpaint Entertainment is a leading entertainment news property in the millennial female demographic.

Source: comScore domestic multi-platform, February 2013

Big Brand Advertisers on Wetpaint Entertainment


Massive Social Engagement


• 4 million fans

• 10% click-through rate • 6 visits per fan monthly

• 50+ impressions per fan each month • 50% daily reach; 85% monthly reach

$ • 200M+ impressions / mo.

A huge social audience that’s highly engaged – with enormous monetization potential.

Source: Google Analytics, Facebook Insights

Key Insight: Social Analytics Can Be Systematized

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The Wetpaint Social Playbook allows Wetpaint to develop and systematically apply its own “secret weapon” to master social


Social media provides an unprecedented opportunity to predict, apply and optimize consumer interactions.

Wetpaint Social Playbook

Predictive analytics

Social media

Big data

Proof Point: Hubert Burda Media Case Study


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300k

1 2 3 4 5 6 7Months from Wetpaint launch

Cumulative New Fans

Focus Online

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300k

600k

900k


Monthly Transfers

Focus Online

0M

11M

22M

33M


Monthly Newsfeed Impressions

Focus Online

Focus Online, Burda’s CNN-style diversified news site, has grown Facebook traffic 600% in just 7 months.



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30k

45k


Cumulative New Fans

Lifestyle Politics

Health Finance

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35k

70k

105k


Monthly Transfers

Lifestyle Politics

Health Finance

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1M

2M

3M


Monthly Newsfeed Impressions

Lifestyle Politics

Health Finance

Wetpaint’s platform is demonstrating efficacy across multiple content types, geographies, languages and demographic profiles.



Source: Omniture, April 2013

Comparison of User Engagement – Social vs. Search (Focus Online)

Wetpaint’s platform is building a significantly more valuable audience from Social over Search, Burda’s primary audience acquisition channel.

Social +25%

Social +34%

Search +13%

Social +19% 5.0 Pageviews/Unique

3.6 Pageviews/Visit

1.5 Visits/Unique

5.5 Mins/Visit

6.3 Pageviews/Unique

3.2 Pageviews/Visit

2.0 Visits/Unique

6.5 Mins/Visit

0.0 1.5 3.0 4.5 6.0 7.5

Social Search

Visit Duration (mins/visit/mo)

Pageview Duration (pageviews/visit/mo)

Visit Frequency (visits/unique/mo)

User Value (pageviews/unique/mo)



Source: Wetpaint analysis

Burda’s social traffic engagement has increased over 40% with Wetpaint.

8.9

12.6

7.0

9.0

11.0

13.0

Pre-Wetpaint With Wetpaint

Min

utes

/ U

ser /

Mon

th

Social Traffic Engagement (Focus Online)

+7 months

Driving Desired Audience Behaviors In Social


Objective Results Brands

Drive CTR and Visits

Drive Likes

Drive E-commerce Conversions

• Achieved 6% average CTR within 6 months • Drove up to 6 visits per month per fan

• Drove over 50,000 organic likes in 30 days • Delivered 5X more likes than all of AOL

• Drove over 50,000 clicks in 6 days • Sold 528 items at average price of $14

Wetpaint’s platform tracks and optimizes multiple social engagement metrics.

Drive Video Views • Drove 8.5% average CTR to watch video • Achieved actual CTR range of 5-12.5%

With Proven Platform, Growth Opportunities Abound


O&O PROPERTY EXPANSION

SOCIAL AD PLATFORM

SOCIAL NETWORK EXPANSION

VIDEO CONTENT

• Grow entertainment and expand portfolio of O&O properties to include additional content verticals (millennial moms, style, movies, sports, lifestyle)

• Employ Social Publishing Platform at core of new social ad offering for brands • Leverages existing social expertise to provide incremental revenue stream

• Expand platform to systematize social publishing across major social networks • Twitter launched in Q1 2013

• Leverage video syndication partnerships and YouTube to provide highly engaging video content and boost CPMs

INTERNAL ADVERTISING SALES FORCE

• Drive higher sell-through rates and CPMs • Eliminate dependence on third-party partnerships for sales performance

Robust Pipeline of Premium Properties


…all powered by the Wetpaint Social Distribution System

Conclusion


Wetpaint’s patent-pending Social Publishing Platform systematically builds massive loyal audiences

Platform has driven unprecedented results across multiple content verticals and demographics

Scalable ad-driven business model with significant growth opportunities in launching new content verticals and products

Social is the most valuable source of audience for media, 3x more valuable than search

Management team are proven entrepreneurs, widely recognized as pioneers and thought leaders on the social web

Social publishing pioneer with transformational platform that builds audiences.

Ben Elowitz Co-Founder & CEO [email protected] (206) 859-6321

mailto:[email protected]

Appendix


Company Fact Sheet


Offices: Seattle (HQ) and New York

History: Founded in 2005: Consumer wikis Launched in 2010: Social publishing

Employees: 54 Full-Time

Headcount Breakdown: 13 Technical; 11 Audience Development & Partner; 20 Content; 10 Admin, Sales & Marketing

Business Model: Ad-supported social publisher and partner services

FY 2011A Gross Revenue: FY 2012A Gross Revenue: FY 2013E Gross Revenue:

$2.4M $5.5M $7.1M

Investors:


Social Audience / Brand Management Social Publishers

CMS Tools

Reputation Management

Drive audience growth & monetization Monitor and administer social activity

Social Content Ecosystem


Social Publisher Ecosystem Wetpaint is uniquely positioned to build massive loyal audiences across a broad portfolio of premium brands.

Audience Growth Approach

Prem

ium

Cont

ent Q

ualit

y

Low

-End

Editorial Content Systematic Process

0

1

2

3

4

Visitors from search Visitors from social

Social Is The Most Valuable Audience


Life

time

Cust

omer

Val

ue (I

ndex

ed)

• 200% more visits • 25% more PV’s / visit

3.5x+ Better

Average Lifetime Value

Source: Google Analytics and Wetpaint analysis on Wetpaint Entertainment audience over 72 weeks

(i.e. ) (i.e. )

Social generates more traffic, engagement and monetization than search.

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