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
2M
4M
6M
10M
12M 12M
15M
0M
4M
8M
12M
16M
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Wetpaint Entertainment Audience (monthly unique users, quarterly peak)
Introduction to Wetpaint
3 ©2013 Wetpaint confidential and proprietary. All rights reserved.
Source: Google Analytics
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
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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
©2013 Wetpaint confidential and proprietary. All rights reserved.
8 ©2013 Wetpaint confidential and proprietary. All rights reserved.
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
Step 2: Get In The Feed
Step 3: Drive Results
9 ©2013 Wetpaint confidential and proprietary. All rights reserved.
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
Step 2: Get In The Feed
Step 3: Drive Results
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
©2013 Wetpaint confidential and proprietary. All rights reserved.
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
Step 2: Get In The Feed
Step 3: Drive Results
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0M
1M
2M
3M
4M
Facebook Fans (Cumulative)
0M
65M
130M
195M
260M
Facebook Impressions (Monthly)
0M
5M
9M
14M
18M
Facebook Transfers (Monthly)
Source: Facebook Insights & Google Analytics for Wetpaint Entertainment (www.wetpaint.com)
©2013 Wetpaint confidential and proprietary. All rights reserved.
Step 1: Get Fans
Step 2: Get In The Feed
Step 3: Drive Results
Groundbreaking Social Publishing Platform is “secret weapon” in driving value from social.
Wetpaint Platform Drives Unprecedented Results
12 ©2013 Wetpaint confidential and proprietary. All rights reserved.
2M
4M
6M
10M
12M 12M
15M
0M
4M
8M
12M
16M
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Wetpaint Entertainment Audience (monthly unique users, quarterly peak)
Source: Google Analytics
One of the fastest growing premium media destinations on the web.
Social
55% Search
35%
Other
10%
Sources of Traffic (February 2013)
13 ©2013 Wetpaint confidential and proprietary. All rights reserved.
Exploiting Facebook to Earn Audience
Source: Google Analytics
0M
3M
6M
9M
12M
15M
18M
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
14 ©2013 Wetpaint confidential and proprietary. All rights reserved.
Wetpaint’s technology acts as a “Trojan horse” into mobile through Facebook.
Source: Google Analytics
WETPAINT MOBILE PAGEVIEWS
Cross-platform audience
acquisition and engagement
0M
15M
30M
45M
Aug-11 Feb-12 Aug-12 Feb-13
#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
©2013 Wetpaint confidential and proprietary. All rights reserved.
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
K
BREA
K.CO
M
HUFF
INGT
ON
POST
.CO
M
MSN
.CO
M
BLEA
CHER
REPO
RT.C
OM
16 ©2013 Wetpaint confidential and proprietary. All rights reserved.
Platform Also Drives Audience Growth in Search
Source: Wetpaint analysis
3M
16M
6M
10M
0M
6M
12M
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)
17 ©2013 Wetpaint confidential and proprietary. All rights reserved.
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
18 ©2013 Wetpaint confidential and proprietary. All rights reserved.
Massive Social Engagement
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• 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
©2013 Wetpaint confidential and proprietary. All rights reserved.
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
21 ©2013 Wetpaint confidential and proprietary. All rights reserved.
0k
100k
200k
300k
1 2 3 4 5 6 7Months from Wetpaint launch
Cumulative New Fans
Focus Online
0k
300k
600k
900k
1 2 3 4 5 6 7Months from Wetpaint launch
Monthly Transfers
Focus Online
0M
11M
22M
33M
1 2 3 4 5 6 7Months from Wetpaint launch
Monthly Newsfeed Impressions
Focus Online
Focus Online, Burda’s CNN-style diversified news site, has grown Facebook traffic 600% in just 7 months.
Proof Point: Hubert Burda Media Case Study
22 ©2013 Wetpaint confidential and proprietary. All rights reserved.
0k
15k
30k
45k
1 2 3 4 5 6 7Months from Wetpaint launch
Cumulative New Fans
Lifestyle Politics
Health Finance
0k
35k
70k
105k
1 2 3 4 5 6 7Months from Wetpaint launch
Monthly Transfers
Lifestyle Politics
Health Finance
0M
1M
2M
3M
1 2 3 4 5 6 7Months from Wetpaint launch
Monthly Newsfeed Impressions
Lifestyle Politics
Health Finance
Wetpaint’s platform is demonstrating efficacy across multiple content types, geographies, languages and demographic profiles.
23 ©2013 Wetpaint confidential and proprietary. All rights reserved.
Proof Point: Hubert Burda Media Case Study
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)
Proof Point: Hubert Burda Media Case Study
24 ©2013 Wetpaint confidential and proprietary. All rights reserved.
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
25 ©2013 Wetpaint confidential and proprietary. All rights reserved.
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
©2013 Wetpaint confidential and proprietary. All rights reserved. 26
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
©2013 Wetpaint confidential and proprietary. All rights reserved. 27
…all powered by the Wetpaint Social Distribution System
Conclusion
28 ©2013 Wetpaint confidential and proprietary. All rights reserved.
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
Appendix
30 ©2013 Wetpaint confidential and proprietary. All rights reserved.
Company Fact Sheet
31 ©2013 Wetpaint confidential and proprietary. All rights reserved.
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:
32 ©2013 Wetpaint confidential and proprietary. All rights reserved.
Social Audience / Brand Management Social Publishers
CMS Tools
Reputation Management
Drive audience growth & monetization Monitor and administer social activity
Social Content Ecosystem
33 ©2013 Wetpaint confidential and proprietary. All rights reserved.
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
34 ©2013 Wetpaint confidential and proprietary. All rights reserved.
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.