George Karantonis

CONFIDENTIAL & PROPRIETARY CONFIDENTIAL & PROPRIETARY CONFIDENTIAL & PROPRIETARY

Velti Case Study

e-Commerce & e-Governance: entrepreneurship areas

for young computer scientists

Samos, April 2011

CONFIDENTIAL & PROPRIETARY CONFIDENTIAL & PROPRIETARY

Table of Contents

I. Company history 2

II. Velti today 12

III. What we do 20

IV. Key lessons learnt 56


I. Company History

CONFIDENTIAL & PROPRIETARY

Velti is a leading global provider of mobile

marketing and advertising technology and

solutions that enable brands, advertising

agencies, mobile operators, and media to

implement highly targeted, interactive and

measurable campaigns by communicating

with and engaging consumers via their

mobile devices.


11 exciting years

Velti was founded in 2001 in Athens, Greece, by Alex Moukas and Chris Kaskavelis

The same year, Nicholas Negroponte, then the laboratory chairman of Massachusetts Institute of Technology's Media Lab, joined the company as a non-executive director.

In 2002, Velti secured its first SMS alerts project with Vodafone; by the end of that year, the company had reached 35 employees.

Velti launched its expansion into the United States in 2003 with the creation of a U.S. sales team based in a new office in Boston, Massachusetts.

Over the following three years, the company created text messaging applications for Sony Ericsson and Odeon, won its first contract with Telecom Italia (TIM).

In 2005 Velti Center of Innovation was founded

After a 2006 initial public offering on the London Stock Exchange's AIM Market, Velti further expanded its U.S. operations with the opening of an office in New York.

In 2007 a San Francisco office was created.


Velti grows with partnerships & acquisitions

In 2007 Velti partnered with the Interpublic Group to create Ansible, a mobile marketing joint venture.

2008 saw the opening of a new office in Beijing and an investment in CASEE, the largest mobile advertising exchange in China.

In India, Velti partnered with HT Media Limited, India’s second-largest media group, on a mobile marketing joint venture called HT Mobile Solutions, operating in New Delhi and Mumbai.

In 2009, Velti announced the acquisition of Ad Infuse, a provider of personalized mobile advertising in the U.S.

In 2010, Velti launched its current flagship solution, Velti mGageTM mobile marketing platform, which by the end of the year had run over 2,700 campaigns for more than 800 customers.

Also in 2010, the company announced the acquisition of Media Cannon, a developer of mobile advertising tools and technology.

5


In Q4 2010, Velti acquired Mobclix, a leading public mobile exchange that optimizes publisher yield by matching them with global ad networks: • 5,000,000,000+ monthly ads served • 15,000+ mobile application developers • 20+ global ad networks • 4 Targeting Methods – Audience, Geo-Targeting, Content Category, Behavioral • 3 Device Platforms – iPhone/iPad, Android, Microsoft 7 • Pricing – CPM and Performance • Media Types – Interactive Rich Media and Banners • Inventory Types – Apps and Mobile Web • 1 industry leading SDK


Velti Hits NASDAQ!

Jan 28, 2011 Velti announced

it’s public offering on the NASDAQ

First sole Mobile Marketing

company to list on NASDAQ in

history!

https://portal.velti.com/OurPeople/Photo of the Day/Stock_outside.jpg


II. Velti today


The Company: A Global Leader 10-year history of strong profitable growth

Leading technology

Customers include 8 of the top 10 and 13 of the top 20 mobile carriers

500+ employees (250+ engineers)

The Opportunity: A Booming Market Mobile Marketing and Advertising market is growing 40% annually (will

reach $29 billion by 2014*)

Velti’s platform can reach 2.75 billion consumers

The Platform: Velti mGage ™ In the first 9 months of 2010, executed 1,500 campaigns for 600

customers on five continents

First complete, end-to-end mobile marketing platform

Media Inventory reaches 5+ billion monthly impressions

*ABI Research, 2009

Velti is a Profitable, Rapidly-growing Software Company,

Providing SaaS Solutions for Mobile Marketing and Advertising

9


A Global Leader in Mobile Marketing

Size and Capabilities Organic revenue, earnings growth

2010 revenue $116.3m / adj. EBITDA $27.2m

Profitable, solid margin expansion in 2009

Revenue growth of 70%+ in past 5 years

90% revenue contribution from software as a service (SaaS) and performance-based

Existing customers growing @ 130% YoY

Key Joint Ventures in China and India

Strategic acquisitions AdInfuse, DigitalRum, Media Cannon

Joint venture with IPG, working closely with all major agencies globally

500 employees

250+ engineers

Over 2,000 campaigns in 2009

825 global brand, agency and mobile operator customers

Operations in 35 countries

2.5 billion consumers reachable through Velti’s mGage platform

HQs in London; offices in San Francisco, New York, Boston, Madrid, Athens, Sofia, Nicosia, Moscow, New Delhi, Mumbai, Dubai, Beijing, Shanghai


Blue Chip Customer Base in 31 Countries

11

http://upload.wikimedia.org/wikipedia/en/6/6f/Megavision_wordmark.svg


Operators

Agencies & Brands Media Groups

Integrated Mobile Marketing and Advertising (TV, Print, Interactive)

Content Delivery through Mobile

Customer Base Monetization through Mobile

Velti simplifies complexity and addresses the unique needs of multiple groups, allowing them to manage the mobile marketing and advertising process from start to finish.

How We Are Positioned in the Mobile Ecosystem

Mobile Marketing Solutions

Mobile Advertising Solutions

Scalable Planning, Management, and Monitoring of Mobile Campaigns

Mobile Marketing, Advertising and Brand Loyalty

Content Management and Rendering Platforms

Customer Acquisition and Self Service Solutions


Velti is allied with major international technology

partners


Non-Executive Directors Executive Directors

David Mann, Non-Executive Chairman Former Group CEO of LogicaCMG plc. Past President of the British Computer Society

Nicholas Negroponte, Non-Executive Director Non-Executive Director of Motorola, Inc. MIT professor and founder of Media Lab; One Laptop Per Child founder

David Hobley, Non-Executive Director Non-Executive Director of Orange. 35 years of investment banking experience with UBS Warburg

Jerry Goldstein, Non-Executive Director Former Executive Director and Board Member of Citicorp Investment Bank in London. 32 years of investment banking experience

Alexandros Moukas, CEO Co-founder of Velti. Previously co-founder of FCI M.S. MIT Media Lab & Sloan School of Management Chris Kaskavelis, COO Co-founder of Velti. Previously at TCA Software Ph.D. Boston U.; B.Sc. Brown University Menelaos Scouloudis, Chief Commercial Officer Previously at McKinsey, NY. MBA, Harvard Business School. MS, MIT. Wilson Cheung, CFO Previously at AXT, Inc., and Yahoo! B.A. degree in Economics/Business from University of California, LA. A certified director of corporate governance from UCLA’s Anderson Graduate School of Management Sally Rau, Chief Admin. Officer and General Counsel Previously partner at DLA Piper. Over 25 years of experience as a corporate and securities lawyer. J.D., University of Oregon; A.B., Univ. of California, Berkeley.

Executive Officers


III. What We Do


What is Mobile Marketing?

Mobile Marketing

Traditional Advertising Mobile Advertising Click Here

Locate a Store Join Loyalty

Club

Download

Mobile Content

Mobile Internet

Site

Enter

Competition

On Pack

Promotion


What We Do

MOBILE CRM MOBILE MARKETING CREATIVE & MOBILE

INTERNET

MEDIA PLANNING

BUYING & DELIVERY

End-to-End Mobile Advertising and Marketing Platform Solutions

• Mobile • SMS • MMS • Mobile Internet • Mobile video • Mobile TV • Mobile media research • Traditional media plan

convergence with mobile • Purchase mobile ad inventory • Mobile ad serving & ad routing

• Mobile web sites • Mobile portals • Mobile blogs • Branded mobile content • iPhone applications • Downloadable applications • Branded games • Mobile widgets

• Mobile clubs • Couponing • Mobile content • Contests • Alerts and tips • Photo / text to screen • Green screens • Image remix applications

• Mobile communities • Mobile broadcasts • Member management • Segment management • Member rewards • Multichannel registration • Advanced profiling

ANALYTICS

ADVERTISING MARKETING


Mobile: 24/7, ubiquitous, engaging, measurable

ABI research predicts that the market for mobile marketing and advertising will reach $19 billion by 2011

(1) Visiongain, 2006


Analysts expect solid growth in mobile advertising

Source: Zenith Optimedia, PriceWaterHouse Coopers, ABIresearch

2006 2007 2008 2009 2010 2011

1.6

27

36

3

45

5

52

8

61

12.7

73

18.6

Global Online Advertising Spending Global Mobile Marketing and Advertising Spending

Mobile Devices

PCs

4.0

1.0

Devices

Mobile Users

Internet Users

Users

3.3

1.45

CONFIDENTIAL & PROPRIETARY 20

Reach

The Velti mGageTM Platform

Advertising Marketing Results

Engage Convert

Campaign dashboards

Conversion Tracking

Mobile Media

Marketplace

Ad Server/Ad

Router Site and App Builder Analytics

Ad Exchanges

Media research

Media planning

Traditional media

Ad Serving

Mediation Router

Mobile sites

Landing Pages

Mobile Apps

Mobile Marketing CRM

Mobile coupons

Mobile commerce

Mobile social media

70 templates

Profiling, Segmentation

Loyalty

Cross-sell, Up-sell

Analyze Remarket

mGage software platform enables operators, brands, agencies and

media companies to execute mobile marketing and ad campaigns

Campaign planning and optimization

End-to-end campaign management

Optimization across full-scale of mobile media

20

Global execution


Mobile Marketing

Strong Mobile Marketing and Advertising Proposition

LSC

• The most powerful and effective mobile marketing activity

• Reaches all the Operator’s customers

• Directly impacts ARPU • Builds opt-in databases • Creates profiles and

customer segments

Opt-in

• Utilizes and further segments customer profiling, acquired through the LSC campaign

• Segmented customer base can be targeted separately for 3rd party personalized offerings

Loyalty

Through Velti Top Code and Mobile Communities program, we enable customer rewards and reduce churn

CONFIDENTIAL & PROPRIETARY © 2010 Velti. All rights reserved

With an innovation layer to help our customers differentiate

Virtual worlds

Mobile applications

Interactive screens

Augmented reality Smart codes

22


Orange Spain: ‘MIO’ Permission Based Advertising

Solution Objectives Results

Over 67,000 customers

opted in and advertising

campaigns launching

5,000 customers register

week over week

Invitation tool highly

successful in terms of

recruitment, accounting for

more than 35% of joiners

MIO customers guaranteed to

receive free offers and promos

directly to their phone

„Invite a Friend‟ tool provided

a quick and easy way for

subscribers to invite their

friends and family to opt-in to

the program

Seamless integration with social

networking sites

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Increase ARPU

Reduce churn

Competitive Differentiation

Increase VAS revenues thru

use of 3rd parties


Vodafone Greece 1+1: 3rd Partnership Loyalty Marketing

Solution Objectives

Entire customer base

Customers text a key word to a

short code to receive mobile

coupon

Deploy coupons through mobile

phone based promotion

Analytically driven and aligned

with brands = Next best model!

Location based and social

networking

24

Increase ARPU

Reduce churn

Understand customer preferences

Stimulate usage

Customer satisfaction/NPS

Brand alignment and competitive

differentiation = customer

exclusivity

http://www.google.co.uk/aclk?sa=l&ai=CTiHJy7TzTJSpFIichQf7tu3sDZPW8eYBg7Hv7Ra4xusICAAQASCTrPsFUK3czZH7_____wFgu-6Xg9AKoAG7xL_tA8gBAakCpPmpCgItuj6qBBhP0KjFgrCphtYmvzvU-LrccvLhgwHu5gA&sig=AGiWqtylgOyy4C7fJFlvfzwZRO3bEhwY9Q&adurl=http://ad-emea.doubleclick.net/clk;231422920;51922367;z?http://shop.vodafone.co.uk/?WT.srch=1&cid=ppc-goo-cbu-c23-2647-ex


ODEON and Cineworld – Large Scale Campaign


Promoted via digital big-screen

ads, 6-sheets, washroom and

standees the campaign was a

great success engaging almost 3%

of digital screen viewers,

distributing over 500 prizes,

building an opt-in database of

over 25,000 users, and averaging

a play per user average of over 4

SMS each

Using Velti‟s LSC model, we

established a TEXT2WIN

campaign offering cinema-

goers the chance to win

hourly cinema tickets, a daily

iPod Touch and a grand prize

of £10,000 at the end of the

6 week campaign

25

Establish customer

engagement

Create an mCRM

programme

Generate a new revenue

stream from house

advertising spots, across

their 200 UK cinema sites

From: 80210 Welcome to Text2Win... Keep playing to increase your chance of winning great prizes. Good luck!

£1/SMS


A&N Media Mobile CRM & Premium Rate SMS


Circa 500 campaigns executed per

month

Circa 50,000 unique users

reached per month

A&N Media forecasts a multi-

million pound revenue stream, via

mobile over the next few years

A&N Media selected Velti as

their Group provider of

mCRM and Premium Rate SMS

services

The Velti mCRM platform

manages and tracks their

500+ monthly campaigns

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Increase activity levels

Develop a mobile services

strategy to help monetize

their data and strengthen

their mCRM and Opt In

Advertising programmes

Manage the SMS traffic driven

from their many promotions,

puzzles and comments pages

From: 65100 Thank you. We will call you within 7 days if you win. Join Metro’s loyalty club for great offers? Reply Yes.


SKY Banner Ad Serving, iPhone Apps


The Ad Server is currently serving

an average of 30 simultaneous

campaigns and ~60M impressions

per month. Over 80% of those

impressions are delivered through

the iPhone applications. Their

average CPM is 4.5 GBP and their

Impressions increase is about

20%/month

The solution follows the ASP

model and SKY has full control

of the platform for creating

campaigns. The ad servers are

located in our London data

center.

Velti‟s Ad Server Platform is

currently serving:

WAP 4 dimension ads

iPhone Application Ads

27

SKY integrated the Velti

mGage Ad Server with its

iPhone apps in September

2009. The integration was

based on our standard APIs.

Currently over 80% of SKY‟s

in-app ad impressions come

from these apps, in less than

three months.


Argos Case Study

Solution Objectives Typical Results

>100 million SMS messages deployed

in „09 of reservations and

notifications

Reservation to purchase rate of >60%

SMS reminders increased the

reservations to purchase rate by a

further 18%

Total active and unique mobile

community users – 6.25M

Users who used the system mroe

than twice >40%

Argos Text and Take Home

service enables customers to

query and reserve a product

from the Argos catalogue by

sending an SMS to a short or

long code

Customers are further

rewarded through mobile

promotions and discount

coupons sent directly to

their mobile phones

28

Give customers a quick &

instant medium to interact

with the brand

Provide a valuable service

that allows them to learn

the price, availability &

nearest location of any

catalogue item

Build brand loyalty

Retain customers when

their desired item is out of

stock


Johnson & Johnson Case Study

Solution Objectives Typical Results

Launched in August 2007 and is still

active alerts average growth per

month: 263%

94% of users that registered for

alerts remained registered after one

year

93% of users that registered for

mobile club remain registered

Mobile communities through

which “BabyCenter” visitors

can receive news and updates

on J&J products

Two Sponsored alerts services

with relevant “BabyCenter”

information

WAP site

Service is available in English

and Spanish

29

To further strengthen its

brand awareness and

engage its customers, J&J

created a comprehensive

“BabyCenter” mobile

promotional package


Ford Focus: Effective brand interaction on mobile

Banners targeted to 18-34

year olds

Landing page interaction

where users could customize

their dream car

Sweepstakes – users who

customized the cars entered

to win their model


12% CTR

30k users customized their own

car to enter the sweepstakes

95% increase in Brand

Familiarity

29% increase in Brand

Favorability

30

Ford Focus sought to drive

awareness of the new 2008 car

model among adults 18-34

Create a viral buzz and peer-to

peer promotion

Encourage consumers to

customize their own car

Overall Brand Metrics

16.2%

60.8%

31.6%

78.7%

0%

20%

40%

60%

80%

100%

Brand Familiarity Brand Favorability


Coca Cola Growing Product Sales While Engaging

Customers Exploring The Mobile Channel – ‘Happiness

Factory’

The campaign was promoted via

On-pack SMS promotion in

which participants voted for

their favorite character from

the Happiness Factory

By sending a message with the

number of the chosen

character and a unique code

printed on each Coca-Cola

bottle, users were entered to

win various prizes including

30 pallets of Coca-Cola, 20

tickets for Madonna concerts

and 10 Sony Ericsson mobiles

Every correctly registered

participant received free ring

tones or wallpapers just by

entering the promotion


The campaign proved a

successful means to engage

users, with entrants to the

competition sending an average

of five SMS messages during the

two months

Furthermore, the campaign

resulted in the largest customer

database for a brand to date,

providing a great community of

users for future mobile

marketing and advertising

offerings

31

Coca-Cola needed a new

interactive way to increase

sales and build brand loyalty

To do this, it sought to engage

customers exploring the mobile

channel, while integrating,

measuring and comparing

online and mobile

participations

80800

CONGRATULATIONS !!! YOU JUST WON 2 TICKETS FOR MADONNA’S CONCERT


III. Key lessons learnt


6 take away points

Strong team

Focused business strategy

Think global

Think big

Be ready to share & collaborate

Dare when others hesitate

33


Thank you,

George Karantonis

Sales VP, e-Government & Alliances

CEO, Velti Center of Innovation

[email protected]

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Documents

George Karantonis