IMAGINE THE FUTURELeveraging innovative business models

ContextNew online media services are expanding advertising access to smaller business accounts. Spot Runner, for example, enables local businesses to manage their commercial production (video ad spot), media planning and media buying through an innovative online platform. This full package allows small businesses to run a small-scale campaign for as low as $1,500

Innovative business model (example of Spot Runner for a TV ad)

Business opportunities

• Leveraging the ad spend potential of small businesses with: - Tremendous potential market of small businesses (11M in the United States) - Overseas expansion opportunity in Europe through Digital TV development (with significant potential unsold airtime)• Revenue growth especially for: - Media companies (TV, websites, radio, newspapers) - Ad agencies• Besides these initiatives, this emerging market needs to be organized

Key Highlights

• TV advertising has long been reserved to large companies

• Digital TV development in Europe and the large number of local channels in the US are now making airtime affordable for small businesses

• New media services companies such as Spot Runner are enabling small businesses to advertise on TV by providing a full package offer (from spot production to media buying)

• Pre-produced TV spots can be easily customized online by the client

• This innovative business offer has been replicated in other media (radio, online, print and out-of-home) and could be expanded to other countries

• While the advertising revenues of traditional media are stagnating or declining, this opportunity could be considered as a new growth opportunity

Media advertising for small businesses- November 2008 -

Full package offer

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LOCAL BUSINESSES

RESTAURANT REAL ESTATE CLOTHING STORE PHARMACY

online process

Spot Runner profile

• Launched in 2006

• Employees: over 300

• Founders : Nick Grouf & David Waxman (founders of Firefly network sold to Microsoft in 1998)

• Funding: $111M

• Source of revenue: online B2B (fees on spot production & commissions on sold airtime)

• Launched in 2007• A online platform enabling small and medium businesses to create and place video ads on local websites, premium local TV and newspaper

About A.T. Kearney

A.T. Kearney is a global strategic management consulting firm known for helping clients gain leading results through a unique combination of strategic insight and collaborative working style. We serve the largest global clients in all major industries from our offices located in 34 countries. We have developed a leading Communications and Media practice with more than 600 dedicated professionals worldwide, focusing on addressing strategic and operational issues of the Telecom, Media and High Technology industryFor further information about the A.T.Kearney CHT practice please visit: www.atkearney.com

• Launched in May 2008• A flexible, all-digital system for buying "more accountable and measurable" TV advertising with the possibility to be connected to online TV ad producers

• Launched in May 2008• A self-service online platform for local businesses to create and publish video ads on the Internet

Website

Key words from Spot Runner’s Vice President of Corporate Communications

• “We see huge potential for growth in the market we’re addressing. The ad industry is undergoing a tectonic shift due to an increasingly fragmented media environment”

• “The traditional infrastructures that dictate the way advertising is created, planned, targeted, bought and sold are quickly becoming outmoded. In order to do this efficiently and keep up with the fast-pace today’s consumers expect, new technology solutions are required to automate aspects of creative production, information sharing, and the media buying and selling process”

• “Advertisers can – and now must – utilize multiple channels to reach audiences with highly targeted messages”

• “In addition to television, Spot Runner can help local businesses create and execute campaigns in other media, including online, radio, print and out-of-home”

• “Spot Runner’s clients encompass a range of advertisers – from small and local businesses to national brands”

• “We work closely with many agencies as an extension of their team, oftentimes focusing on areas of the business they are not set up to serve – such as hyper targeting and localized advertising”

• “In May we received additional funding, among other things, we plan on using this funding to investigate opportunities abroad as well as continue to build new technology”

Example of alternative offers

Jivox Google TV ads SpotMixer

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