7. Why are advertisers so wasteful?
1 Most media are NOT WELL MEASURED in China
2 The metrics for each media type are INCOMPATIBLE – like
apples and oranges
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7
10. We’ve ALREADY BUILT and are SELLING a Waste Analytics solution.
It is kind of
C O M
P L I
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C A
T E D
but looks really cool
Click here to return to contents page 10
32. YOU MAY BE WONDERING :
Is that it?
NOT QUITE.
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THE INNOVATIONS THAT ENABLE US TO IDENTIFY MEDIA WASTE YIELD
TYPES OF PRODUCTS & SERVICES.
5
32
37. THE TROUBLE IS, ALL MEDIA
RESEARCH COMPANIES SAY
THEY’RE UNIQUE.
Don’t
(Awareness x Reputation)
they?
BRAND STRENGTH
Copyright All Media Count, 2012
AMC China’s media
research & data
market = 1.4 B Rmb
(US$215 million).
NUMBER OF MEDIA TYPES THAT CAN BE INTEGRATED
37
40. We built the tools to solve this problem because they didn’t exist before
my炒媒体 (“My Fried Media” our data collection
software )
WITH FULL CONTROL OVER THE CODE WE CAN DELIVER FASTER, CHEAPER AND
MAKE IT DO PRETTY MUCH WHATEVER WE WANT WITH MINIMAL RISK OF
DATA LEAKAGE OR THEFT
data simulation algorithms
USING A DETAILED MEDIA HABITS PROFILE FOR EACH RESPONDENT, WE
ACCURATELY SIMULATE THEIR DAILY MEDIA USAGE ACROSS THOUSANDS OF
MEDIA CONTACT POINTS.
e.p.g. crawler
A WEB ROBOT WHICH VISITS EVERY TV STATION’S WEBSITE, READS THEIR
DAILY PROGRAMMING INFORMATION AND CONSTRUCTS A UNIFIED
ELECTRONIC PROGRAM GUIDE.
My炒媒体
online activity recorder
WE CAPTURE SITES THAT A PERSON VISITS, HOW OFTEN AND HOW LONG
THEY STAY. BECAUSE IT’S FROM THE SAME RESPONDENTS, OUR ONLINE DATA
IS FULLY COMPATIBLE WITH TV DATA.
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applbox (our cross media planning software)
DEFINE YOUR TARGET, SET CAMPAIGN SCOPE, CHOOSE YOUR FORMATS.
APPLBOX HELPS YOU EVALUATE AND OPTIMIZE MORE THAN 15,000 MEDIA
VEHICLES ACROSS 13 MEDIA TYPES AND KNOW – INSTANTLY – THE CROSS
MEDIA REACH FOR ANY CAMPAIGN CONFIGURATION.
lots of other things
DATABASES OF MEDIA SPECS, OWNERS, PRICES. HOURS AND HOURS OF
VIDEO FOOTAGE. THOUSANDS OF PHOTOS OF BILLBOARDS, BUS-RIDERS,
Applbox user interface
SHOPPERS, SUBWAY RIDERS – PEOPLE USING ALL KINDS OF MEDIA.
41
41. AND WE HAVE A UNIFYING PHILOSOPHY OF HOW ALL THIS MEDIA STUFF FITS TOGETHER
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42
43. “THERE’S NOTHING THAT
EVEN COMES CLOSE TO
AMC’S SYSTEM AT ANY
OF THE AGENCIES. IT
SHOULD BE ON ALL
THEIR DESKTOPS.”
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Click here to return to contents page 44
66. So we need to talk to
ADVERTISERS
Of which there are
THOUSANDS
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And we need to get our message to them
AGAIN and AGAIN and AGAIN Click here to return to contents page 67
67. In other words, our brand needs to be much
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68
68. Not just because it means more customers. It’s also because we
RE -USE
our media data and have lower production costs. So our profitability and…
Average data collection cost per project (000 US$)
12
10
8
6
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4
2
Number of projects and YEAR
0
01 100 200 300 400 500 600
2011 2012 2013 2014
69
69. But that still leaves us with a
Copyright All Media Count, 2012
problem.
How hard can that be to solve?
70
71. SO MUCH TO DO, SO LITTLE TIME.
WE NEED HELP
WHICH BRINGS US TO
INVESTMENT
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72
72. For this ANGEL round, we are seeking
US$ 300,000 or HKD equivalent
in exchange for
10.5 %
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post money
Click here to return to contents page 73
73. WHY 1. Major R&D is finished
•
•
•
Proprietary data collection process
Proprietary data collection software
Proprietary media planning software
2. Proven market need
WHY 3. Acceptable price point
4. Product is being sold to or in trial with
leading advertisers
5. Higher profit than industry average
WHY
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6. Transformational, not incremental, to
acquirer’s business
7. Only modestly above our 2008 seed
valuation of US$1.58M
a US$2.86m valuation? 74
74. AS A GENERAL INDICATION OF
how we’ll use the money
EACH FULL BUNDLE BELOW IS 10% OF THE TOTAL SOUGHT
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SALARIES SALES & DATA ADMIN & R&D
MARKETING CAPEX
75
75. WHAT WE WILL SELL REVENUE (M US$) WHO WE WILL SELL TO
24 in 2014
8.5
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in 2013
3% 5%
Waste Adv-Large
16% 26%
Tracking 1.2 Adv-Med
in 2012
Planning Adv-Small
50% Agencies
Custom 0.05
in 2011 Owners
Aud.Stats
76
76. MID-RANGE
P&L (USD 000's)
31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14
Total Sales Revenue 54 100% 1,214 100% 8,461 100% 23,840 100%
Business Tax (3) -6% (58) -5% (403) -5% (1,135) -5%
Total Cost of Sales(10) -18% (173) -14% (869) -10% (1,613) -7%
Gross Profit 41 76% 983 81% 7,189 85% 21,092 88%
Total Sales and Marketing Expenses(285)
(18) -34% -23% (1,187) -14% (2,094) -9%
Total Research and (5) -10% Expenses -6%
Development (77) (213) -3% (233) -1%
Total General and(103) -190% Expenses -43%
Adminstrative (527) (1,939) -23% (2,786) -12%
Total Operating (127) -233%
Expenses (889) -73% (3,338) -39% (5,113) -21%
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Income from Operations -157%
(85) 94 8% 3,851 46% 15,979 67%
Income Tax - 0% (24) -2% (963) -11% (3,995) -17%
Net Profit (85) -157% 71 6% 2,888 34% 11,984 50%
77
77. [We can send more numbers if you’re interested]
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78
78. We can’t guarantee that
YOU’LL GET REALLY RICH
because this, like all investment, involves risk.
…you get something like
BUT…
IF our revenue is US$20 million at end of 2014
and IF we’re at 45% profitability
US$1.89
MILLION
and IF we do a trade sale at 6x earnings
and IF you buy 3.5% of AMC for US$100,000 in this round
and IF there’s no further dilution…
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YES, THOSE ARE BIG IFS, BUT YOU WOULDN’T BE AN ANGEL IF YOU DIDN’T HAVE THE STOMACH FOR IT, RIGHT?
79
79. For this round, we’ll issuenew shares in our parent company,
AMC HK Ltd, at a price of HK$181.50 each. Our ownership structure will change from:
this to something like THIS
Pre-Offer Post-Offer
Shares Percent Shares Percent
Mike Underhill 59,190 53.8% 59,190 48.2%
Other Founders 11,310 10.3% 11,310 9.2%
Seed investors 17,881 16.3% 17,881 14.5%
Employee Stock Options 8,325 7.6% 8,325 6.8%
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Option Pool (counted as issued) 13,294 12.1% 13,294 10.8%
New shares pursuant to this Offer ~ ~ 12,893 10.5%
Total issued 110,000 100.0% 122,893 100.0%
[Un-issued shares] 890,000 ~ 877,107 ~
80
80. ONCE THAT’S DONE, WE’LL GET ON WITH…
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81
81. Copyright All Media Count, 2012
AGGRAVATING MEDIA AGENCIES AND DELIGHTING ADVERTISERS
82
82. We are
Mike Underhill. Founder & CEO
16 years in China researching advertising, media and brands. Founded
AMC in 2007. Formerly GM China for advertising and media research
agency Ipsos-ASI. Also TNS, Research International.
BA. – Psychology, BCA. – Marketing
Black Huang. IT Development
Nine years IT development experience. Formerly qunar.com, Asiacom,
Ezcross. Architect of AMC’s cross-media planning system. Two years
working with AMC.
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BSc. – Mechanical Engineering.
Hongsheng Xu. Data Processing
Six years media panel data management experience. Formerly with CTR
home panels. Three years with AMC
BSc. – Information Systems
83
83. Email mike.underhill@allmediacount.com or call +86 138105 90017 for
investment information or to…
see a real case study
in which a client saves millions
take our revolutionary
planning software for a spin
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experience our media survey – where most
of AMC’s source data comes from
84