Business Insider

The Path to 100M Users and Beyond

Julian Childs

Managing Director, Business Insider UK Business Insider: 0 -100M Users In Less Than A Decade

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80 Millioner

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- 2007 2016 2 Source: BI Internal 2016 The key to our success?

3 Native digital.

4 How?

5 Two key components

1. Native Storytelling 2. Distribution

6 Why?

7 Macro Trends

Generational Shifts in Consumption Desktop is Dead. Mobile for Now….

8 18-34 Age Group Are Heavily Engaged On

9 Source: ComScore @Margin…Advertisers Remain Over-Indexed to Legacy Media

Source: Advertising spend based on IAB data for full year 2015. Print includes newspaper and magazine. Internet includes desktop10 + laptop + other connected devices. ~$22B opportunity calculated assuming Mobile ad spend share equal its respective time spent share. Time spent share data based on eMarketer 4/16. Arrows denote Y/Y shift in percent share. Excludes out-of-home, video game, and cinema advertising. Publishers are over indexed on monetization of desktop Future growth will be for those that focus on winning mobile

11 A Mobile Audience

Extensive reach on mobile...! 63% 3 in 4 of BI UK traffic comes UK visitors read BI content on from mobile/tablet1 mobile devices (77% UVs)2 :5mm+ 2 in 3 users spend 5mm+ minutes 62% UK mobile users are on BI UK mobile2 millennials (A18-34)2

…with low duplication!

Only 29% of BI UK's mobile audience also visits Forbes on mobile in a given month, compared to 8% for Wall Street Journal2

12 Source: 1Google Analytics (July, 2016); 2comScore Mobile Metrix (July, 2016) Key shifts

1. Mobile 2. Distribution and Social 3. Automation of Display 4. Rejection of Non-Native Display (See Mobile)

13 Publisher Distribution Shift Traditional Model : 1 to 1 New Model : Many to Many

14 Distributed Storytelling Across Social Platforms

15 The internet is the publication

16

Launched site in May 2016

13M+ 3B+ 4th 2/5 combined video streams most popular global of engaged fans Facebook fans1 since launch1 creator on social2 are female millennials1

18 Sources: 1Facebook Analytics (May 2016); 2Tubular (January 2016) Social Storytelling

Insight: Viewers make the decision to share a video within the first 2-3 seconds of watching it. Social-First Video: Tell compelling stories that get viewers to lean in and share across social channels. Best practices: • Auto-play • Sound-optional • Hook shot • Visually stunning • Captivating on-screen text

19 Publisher Monetization Shift Traditional Model : 1 to 1 New Model : Many to Many

20 Sustained Period of Fragmented Monetization

Traffic Revenue : User Revenue : 1. Display Adv Automation: Guaranteed , PMP, Data Buying 1. Paywall’s 2. Display revenue : Mobile, Desktop, 2. Metered, Freemium, 3. Native Ad Revenue 3. Services 4. Brand / High Impact , Integrated Ads 4. Premium Content 5. Video 5. Intelligence / Research 6. In-App 6. Micropayments : e.g Blendle 7. Affiliate Deals 7. Data 8. Networks , Content Distribution, 3rd Party 8. Events 9. Email 9. Membership 10. Ecommerce 10. Lead Generation 11. Content and Sponsored 12. Social – off platform 13. New Frontier of Experimentation – ChatBots, Wearables, VR

21 Native Content (BI Studios) Videos Infographics Stories Slideshows

22 Revenue Distribution By Content

23 New World of Monetization Has 2 Heads Distributed and Owned

24 Social Monetization (Off Platform)

Editorial Sponsorship Native alignment with editorial social videos around relevant topic for brand advertiser Product Placement Native integration of a brand or product directly within editorial social videos. Branded Content Custom branded social videos produced by BI Studios.

25

Editorial Social Video Sponsorship

Presented By Johnston & Murphy

Watch the video here. 27 Screenshots demonstrate actual executions Future 2020 A continued period of experimentation (consolidation) as publishers continue to engage and build around generational shifts

o Owned and Distributed (Facebook, , others) o Deeper Engaged Audiences – Premium Payments o Native Content

28 Experimentation – New Monetization?

1. Messaging - Chatbots, 1-1 Personalized Communication 2. New Platforms – VR / AR 3. Wearables and IoT

29 Messaging Continues To Grow Rapidly…

Leaders: WhatsApp / / WeChat

Monthly Active Users on Select Social Networks and Messengers Global, 2011 – 2015

30 Source: WeChat, WhatsApp, Tercent, , . Facebook, LinkedIn, Morgan Stanley Research; Note: 2013 data for Instagram and Facebook Messenger are approximated from statements made in early 2014; Twitter users excludes SMS fast followers Messaging Platforms…

…Millions of Business Accounts Helping Facilitate Customer Service & Commerce

31 Source: WeChat, Line, Facebook Messenger, various press releases; ‘WeChat Impact: A Report on WeChat Platform Data’ by Grata (2/15) Snapchat Trifecta = Communications + Video + Platform…

Stories (Personal) Live (Personal + Pro Curation) Discover (Pro) Oct 2013 Launch! June 2014! Jan 2015!

10-20MM Snapchatters 70MM+ Snapchatters View Live Stories Each Day View Discover Each Month More Users Watched College Football and MTV Music Top Performing Channels Average 6-7 Awards on Snapchat than Watched the Events on TV minutes per Snapchatter per Day 32 Source: Snapchat Digital Storytelling Is Becoming More Personal

DESKTOP MOBILE IMMERSIVE

Articles, data visualizations, Social-optimized video, quick Virtual reality and videos infographics, and stats video (VR)

33 Future Summary More Generational Shifts More Fragmentation of Publisher Model More Opportunities for Native Storytelling

34 Thank you