BrightRoll Exchange Overview 2012

I just want to show you this monitor so you can just see the difference and feel the difference in posture and stuff like that. So you're straight up, that's good. Chin down a little bit. Put your chin up just to see how it looks. You can see, you can notice the difference. Put your chin down a little bit. Get more definition and shadow across your chin line and all that. I don't know if you guys have good sides. You can always talk to your producer if you're on video. So we're here with Bright Roll. Thanks for coming. You're welcome.

So tell us a little bit about BrightRoll. What do you do? BrightRoll is the leading advertising— video advertising network in the United States. We serve 4 billion video ads per month today across 4 screens. Basically, that's the PC web, mobile devices, tablet devices, and connected TV devices as well. We work with 80% of the top agencies and brands in the United States. Everyone from P&G on the consumer packaged goods side to Best Buy and FedEx, all the way through on the technology side to Microsoft and Verizon on the telecommunications side. So we work with all of the top brands to help them deliver their video messages into the customers that they want to get access to. We also partner with all of the top publishers, which is really the websites where those videos are viewed, folks like Yahoo and AOL, and typically we have our 30 or 15-second video clip, we stitch that in before the content plays that the user is trying to view. We deliver the business, or we execute the business in two main forms. One is a direct network business which sells to agencies, and we have a very high level of service for those agencies, and we execute the campaigns ourselves. We also have an exchange business that allows the more sophisticated type buyers, folks like display ad networks, demand-side platforms, people that come into our interface and use it themselves and basically self-serve their video campaigns.

That's great. Who do you compete with? Who else is out there doing this?

On the network side, we primarily compete with folks like Tremor and YouMe. These are big networks that also sell direct to agencies. We feel like we differentiate ourselves from them in that we actually give those agencies post-campaign reporting so they can see exactly where their campaigns ran. We also feel like we give a much better level of service to the agencies than those other networks do, and that's why we, we beat them in the marketplace. And then on the exchange side, we compete with a company called Adapt TV, which is another broad-based exchange. We feel like we compete and win against Adapt because our our solution is much more transparent. Our buyers that buy from us can see, again, each one of the websites that they've run on, or mobile applications as it may be, after the campaign is run. And that's why we think we're more effective against somebody like an ADAPT. Wow.

So how is the company doing? I've heard that you're very successful.

The company's doing fantastic. We are about 180 people now. We've grown to where multiple offices in the United States, an office in Canada, as well as offices in the UK and Germany. We've grown 100% each of the last 2 years, including calendar year 2011, and we're looking to grow by 100% again in 2012. So this is a business which is in really hyper-growth mode right now.

That's exciting. What's driving the growth in video advertising?

Well, I think the number one thing is just the usage patterns. You know, when we first When you started, you had a couple hundred million video views per month, maybe, across the whole world. And that was '06, 6 years ago. Now we probably have 12 billion or so video views a month. So people are just watching and consuming more video on their PCs. 12 billion video views per month. So you think of snippets of video. That's just US.

And you guys are 4.

We're 4. So we're 1/3. We're 33% of the overall market today, correct. And so part of it is just the overall industry growing dramatically. And not only is that consumption happening now on PCs, but it's also happening on iPhones and Android devices, as well as iPads and Android tablets. So you have all of these new devices which are now coming online and where video is being consumed in things that are not traditionally video applications. Like Angry Birds has 500 million users today. Well, we stitch in a video ad between levels of the game. So there's new opportunities to actually have video inserted in these applications. So that's part of why the growth is really happening. But our growth—

How effective is video advertising compared to, I don't know, print or broadcast advertising?

Oh, it's much more effective than print or broadcast. I mean, you have the sight, sound, and motion of video, which is the best way to convey a brand message, as well as all of the metrics and tracking and reporting that comes within internet advertising, like how many people started watching the video, how many people watched the entire video, how many people clicked on that video, and then what did they do after they clicked on that link. Did they download the app that it was advertising? Did they go to the agency's or the brand's website? So we can track all of that sort of metrics, and we can see that it's much more effective than any of the traditional advertising mechanisms.

What does your services group do?

The services group really works with the agencies to help them through the whole campaign process from start to finish. And that's sort of planning up front, helping them to identify what's the type of message they're trying to convey, who do they think that their target audience is. And we help them by designing the site lists and the types of places where those ads will go. Then we'll launch the campaign with them and they basically will track the campaign as it's going to see if there needs to be any optimization done. Do they need to add sites? Do they need to subtract sites? Do they need to change any of the targeting parameters? And then after the campaign is run, we will show them post-campaign reporting to say, "Here's how it performed. Here's how we think you did." And we could even actually layer research on that as well and say, "Let's take a survey of this audience that saw the campaign and did it change change their view of the brand after they saw the campaign.

Do you guys make suggestions on top of that? Or do you just provide reporting?

Certainly. No, we make suggestions. So we want all of our brands to renew. And so if they run a $200,000 campaign with us today, we want them to run a $200,000 campaign with us tomorrow. So we typically say, here's what we think was effective for you, and here's what we would do to improve it next time you run the same campaign.

How do you feel that you're different from some of the other exchanges and networks?

Well, on the exchange side, we're different in that, A, we have access to far more inventory than any other exchange out there. And just in terms of number of impressions we see, the number of unique users we have on the network, we have 110 million unique users. So, and that's ComScore rated, is that gives us access to far more people than any other network out there. So people who want to get reach come to us. And then after that, once they start working with us, we feel we offer a better level of service. That's what we hear from our customers every day, why they continue to renew with us and why they continue to leave some of our competitors is our level of service. And then we also provide transparency into the exact websites and mobile applications that they ran into, which is another key differentiator.

Let's stop.

I think that was great.