BMTM - Investor Presentation - Bright Mountain Media
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Forward Looking Statements This presentation contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and ''proposes, '' and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to close any proposed acquisition and any expected benefits from such transaction if closed. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in Bright Mountain Media, Inc.’s Annual Report on Form 10- K for the fiscal year ended December 31, 2019 as filed with the Securities and Exchange Commission on March 30, 2020 and our other filings with the SEC. Bright Mountain Media, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. OTCQB: BMTM © Bright Mountain Media, Inc.– 2020 2
Company Overview Bright Mountain Media, Inc. (OTCQB: BMTM) is an end-to-end digital media & advertising services platform Platform Model Acquiring Financially Targeted & Efficient Proprietary Attractive Digital Media & Technology Content & Ad Delivery Technologies Companies Management with deep industry Connecting brands with Portfolio of Owned & Operated experience & significant insider Websites consumers through a ownership (+43%) proprietary ad delivery platform OTCQB: BMTM 3
History of Bright Mountain Media, Inc. 2013–2015 2010 Quarterly visits to websites Bright Mountain Media, Inc. June 2019 increased 100x from Established Announced acquisition of approximately 51,000 in the MediaHouse (f/k/a NDN) in all first quarter of 2013 to in September 2017 stock transaction of 22M shares December 2019 2010–2013 excess of 5.5 million in the Announced acquisition of DEM of BMTM Common Stock Closed transformative merger Acquired websites which are fourth quarter of 2014 Group LLC, for $1.1M with MediaHouse (f/k/a NDN) customized to provide niche users in military, law enforcement & first responders 2015 Acquired four new August 2019 June 2020 websites Acquired Oceanside (f/k/a December 2018 Closed accretive acquisition Discontinued & sold all non- S&W Media) for 13M of Wild Sky Media April 2013 digital media businesses shares of common stock Bright Mountain goes public via IPO & begins trading on the OTC Past Future Acquire Digital Media Companies Bright Mountain Media Strategy Enhance Acquired Companies Improve Financial Performance OTCQB: BMTM 4
Market Opportunity • Digital advertising expenditures in the U.S. alone are Digital Ad Spending in the US $ Billions expected to grow 85% from $108 billion in 2018 to $201 billion $201.8 by 2023 $187.8 $172.3 $151.3 • These figures represent ~38% of global digital ad spending, $108.6 $129.3 expected to surpass $517 billion in 2023 • Digital Advertising is a $150B+ Marketing Opportunity in 2020 2018 2019 2020 2021 2022 2023 • Mobile comprises nearly half of all ads • Removing the duopoly of Google and Facebook, the 2019 U.S. Digital Ad Revenues addressable market remains in excess of $50 billion $ Billions Duopoly • Strategic requirements of advertisers include: • Efficiency Duopoly Facebook $76.6 $28.5 Other • Certainty of true ad delivery $52.5 (59.3%) (37.2%) Google • Trackable return on investment (40.7%) $48.1 (62.8%) OTCQB: BMTM Source: Statista & eMarketer 5
Audience Targeting & Webpage Monetization How Digital Ad Dollars are Spent? Publisher Header Automatic or Much like a retail storefront, a webpage has limited Manual Article Title Programmed with products on the page which provide a revenue source for Placement AD related OR non- Photo or Video publishers. related content Lorem ipsum dolor sit amet, quaeque maluisset ex sed, ex vim duis doming Sliding These include the following products: commune. Zril blandit ei vim, no Launcher 1. Display laudem persius omnesque cum, ea eos virtute Contextually 2. Video (highest value) suavitate similique. Exerci petentium matched single est ne. Lorem ipsum dolor sit amet, Trending 3. eCommerce quaeque maluisset ex sed, ex vim duis doming commune. Lorem ipsum dolor sit amet, quaeque embed maluisset ex sed 4. Content Referral (“you may also like”) Related Related Stories Ex vim duis doming commune. Zril Automated blandit ei vim, • Lorem ipsum dolor sit Lorem ipsum articles amet, quaeque maluisset ex sed dolor sit amet, No laudem persius omnesque cum, ea “Trending” of quaeque eos virtute The entire product-to-market ecosystem is designed from host • Ex vim duis doming commune. Zril blandit maluisset ex sed, suavitate similique. Exerci petentium articles, videos & ei vim, ex vim duis site archive doming est ne similique photos to “stock the shelves” with these products and • No laudem persius omnesque cum, ea eos virtute suavitate commune. Zril blandit ei vim, no similique. optimize the return for the wholesaler (ad agency/buyer) & • Exerci petentium est ne similique laudem persius omnesque cum, You May Programmed with ea eos virtute retailer (web publisher). Related suavitate Also Like related OR non- similique. video related content from host site or other partner site OTCQB: BMTM 6
Current Advertising Model There are several “middlemen” that exist before a brand’s advertising campaign reaches its intended audience Brand Ad Agency Trading Desk DSP SSP Ad Server Publisher (XYZ Corp) (Website) Example: Current Advertising Model A trading A demand-side platform Ad servers The publisher Brand desk offers (DSP) is a technology used manage advertises & receives Brand XZY engages a services such as to purchase media from & run online money for showing wants to digital planning, buying, publishers via supply-side ad campaigns the ads on their advertise its marketing managing & platforms (SSPs) and ad & make decision website. product, a new agency shoe. that creates optimizing exchanges. DSPs typically buy on what ads to Publisher Website a digital ad. programmatic impressions from SSPs/ad show on a advertising exchanges via real-time bidding website, Buy Our Shoes campaigns. either on the open market or then serve Lorem ipsum dolor sit Buy Our amet, quaeque maluisset Shoes by private marketplace deals. them. ex sed, ex vim duis doming. OTCQB: BMTM 7
The Problem: Inefficient Product-To-Market Process 70% of every ad dollar is absorbed by the “middlemen” in the supply chain before reaching the publisher Brand Ad Agency Trading Desk DSP SSP Ad Server Publisher (XYZ Corp) (Website) Example: How $1.00 of Advertising is Spent Ad Agency Trading Desk The demand and supply-side The Ad Server Publisher collects a Brand starts with collects a fee of collects a fee of platforms (DSPs & SSPs) each collects a 5% fee, fee of 30%, or $0.30 $1.00 to spend 15%, or $0.15 25%, or $0.25 of collect a 10% fee, or $0.10 of or $0.05 of the of the original $1.00 on advertising of the original the original $1.00 the original $1.00 original $1.00 to advertise on their $1.00 platform OTCQB: BMTM 8
The Solution: Condensing the Supply Chain We eliminate “middleman” in the supply chain: 1. Provides higher margins for both Bright Mountain & publishers 2. Offers brands a more efficient way to reach a target audience Brand Ad Agency Trading Desk DSP SSP Ad Server Publisher (XYZ Corp) (Website) Bright Mountain Media collects margin between brand and publisher. Other benefits include: Publisher collects a fee of Brand starts • Fraud Prevention • Measurement & Analytics 50%, or $0.50 of the with $1.00 to • Data Integration • Campaign Planning & Execution original $1.00 to advertise spend on • Optimization • Access to 3rd Party Demand on their platform advertising • Verification • Inventory Forecasting & Pricing (compared to $0.30 • Data-Driven Targeting • Portfolio Level Management collected previously) • Yield Management • Audience Extension OTCQB: BMTM 9
Growth Strategy Benefits of Our Unique Acquire • Focus on complementary, accretive acquisitions “One-Stop-Shop” Model Companies in • Stay disciplined with financial & operational criteria the Supply Chain • Seek high quality technologies at attractive valuations Elimination of multiple steps in the product-to-market process to increase effectiveness and accuracy of ad spend for brands • Ability to capture larger ad spend Consolidate • Enhanced gross & operating margins Enable publishers to more & Benefit • Trusted partner of brands & publishers efficiently monetize websites & apps, while retaining larger percentage of ad spend Improve • Increase profitability & removing underperforming segments Increases profitability for Bright Financial • Organically grow revenues with focus on recurring sales Mountain by removing Performance unnecessary middlemen OTCQB: BMTM 10
Recent Acquisitions & Key Stats Bright Mountain Media, Inc. Guidance: FY 2020 revenues expected to be at least $20.0M* (OTCQB: BMTM) *Historical financials not meaningful due to recent acquisitions of Oceanside & MediaHouse in late 2019 Share Price1 $1.60 Market Cap1 $173.7M Shares Outstanding 108.6M Oceanside (f/k/a S&W Media Group) is MediaHouse (f/k/a NDN) brings CL Media Holdings (d/b/a Wild a specialized Video Advertising services personalized content delivery & Sky Media) is an interactive media provider that integrates inventory, data, performance-based monetization to company with a 360 million strong Float 65.8M technology & brainpower to capture & mobile & desktop advertisers & global reach through its engaging manage the most profitable audiences publishers, fundamentally improving content and niche audiences. for clients via programmatic and direct digital advertising effectiveness for Insider Holdings 43.4% • Home to parenting and partnerships its partners lifestyle brands CafeMom, • Data-driven marketing solution for • Provides data-driven technology Mom.com, LittleThings, Headquarters Boca Raton, FL programmatic OTT video & mobile solutions for the syndication & Revelist, Babynamewizard, advertising monetization of contextually and MamasLatinas • Leveraging machine learning data, relevant, personalized premium • In FY2019, Wild Sky generated FT Employees 133 Oceanside provides technology for video content total gross revenues of content creators to deploy, distribute • Proprietary digital audience approximately $22.6 million 1) At June 9, 2020 & monetize their content to a provides ad buyers with near with gross margins over 50%. specifically targeted audience certainty in reaching target demographics OTCQB: BMTM 11
Experienced Management Team Kip Speyer Greg Peters Alan Bergman Chairman & CEO President & COO CFO • Served as CEO, President and Chairman of • Founder, Chairman and CEO of MediaHouse • VP Finance of Greenlane Holdings the Board since 2010 (f/k/a NDN) (NASDAQ: GNLN) & Latitude Solutions • CEO of Speyer Door and Window, LLC, • CEO of Internap Network Services Corporation (OTCQB: LATI) which was sold to Haddon Windows, LLC (NASDAQ: INAP) • Controller for Boston Proper LLC & (SecuraSeal, LLC, Accu Weld Corporation). • VP of International Operations for Advanced Woodfield Distribution, LLC • CEO of Intelligent Systems Software, Inc. Fibre Communications (NASDAQ: TLAB) and • Audit Manager with Mallah Furman & • CEO of ICAD, Inc. (ICAD:NASDAQ) which Adtran (NASDAQ: ADTN). Co., which was acquired by EisnerAmper was a combination of ISSI and Howtek, • Managing Director of the Middle East and LLP in 2015 Inc. (HOWT:NADAQ) Africa, for AT&T Network Systems • Previous roles with Weinberg & • CEO of Galileo Corporation • Holds multiple issued patents focused on Company, P.A., Deloitte & Touche LLP (GAEO:NASDAQ). Galileo changed its methods of searching, sorting & displaying • Adjunct Professor at Florida Atlantic name to NetOptix (OPTX: NASDAQ) and video clips & sound files by relevance University and Millennia Atlantic was merged with Corning Corporation • Served on the National Infrastructure Advisory University (GLW:NYSE) in a stock purchase Council at the White House, under 2 presidents • B.S. in Finance from the University of • B.S. in Business Administration from • BBA from Georgia & MBA from Thunderbird Tampa and a Master of Accounting from Northeastern University (American Graduate School of International the U. of Miami Management) Management team with proven track record & significant insider ownership (43%+) OTCQB: BMTM 12
Key Takeaways Bright Mountain Media, Inc. (OTCQB: BMTM) is an end-to-end digital media & Ad Impressions advertising services platform (Millions) • Platform Model: Bright Mountain Media is a platform upon which financially attractive 2,052M digital media and technology companies can be integrated • Strong acquisition pipeline (content management, platform architecture, data, demand-side platform & ad technology) • Attractive & Highly Scalable Business Model: Capital-light advertising services & ad- 1,164M exchange platform provides incredible scalability 1,078M • Proprietary Content & Ad Delivery Platform: Recent acquisitions provides advertisers with 774M highly targeted audiences with an efficient ad delivery mechanism • Robust Asset Base: Bright Mountain’s advertising network, ad exchange platform & portfolio of owned/managed websites validate the value proposition behind our turnkey model 337M 285M • Experienced management with deep industry experience and significant insider ownership (+43%) OTCQB: BMTM 13
Contact Us Investor Relations Greg Falesnik & Luke Zimmerman MZ North America Main: 949-259-4987 BMTM@mzgroup.us www.mzgroup.us Company Bright Mountain Media, Inc. 6400 Congress Avenue, Suite 2050 Boca Raton, FL 33487 www.brightmountainmedia.com : BMTM OTCQB: BMTM 14
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