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Business Insider 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! 100 ! ! 80 ! Millioner 60 ! 40 ! 20 ! - ! 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 Facebook! 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(BIStudios) Stories! Videos! ! 22 Slideshows! Infographics! 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, Snapchat, 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 / Facebook Messenger / WeChat! Monthly Active Users on Select Social Networks and Messengers! Global, 2011 – 2015 30 Source: WeChat, WhatsApp, Tercent, Instagram, Twitter. 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!.
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