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MySpace.com:Structuring The Network
Presented By: Brian DennettPrepared by: Antony Abara, Brian Dennett, Wayne Marcy, and Vivek Patel
Structuring the Network
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Overview of MySpace
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MySpace.com is the largest social networking site
130 million users growing at 250k a day
Accounts for 17% of the all Internet ad impressions
Projected 250 million in revenue for 2006
Content is Largely Unstructured and Unclassified Only members can be targeted Targeting capabilities are limited to information provided by members
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Opportunity
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MySpace.com CPM rates are low by industry standards
MySpace.com has the potential to have dramatically higher CPM rates
To realize higher CPM rates, knowledge must be collected about MySpace.com traffic
The REULE Targeting Engine will allow MySpace.com to obtain more than 2 Billion dollars total revenue by 2011 an increase of 500 Million.
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Potential Customer List GM
2007 Internet budget up to 3.5% to 150 Million
Wal-Mart 2007 Internet budget 35 Million
Circuit City 50 Million 2005 spending
Absolut Vodka 2007 20% of Marketing budget online
Limited Brands VictoriaSecret.com, Bed Bath and Body Works, Limited Clothing Store 14 Million online 2005
Vonage 275K Internet spending in 2005
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Ad Type BANNERMEDIUM
RECTANGLELEADER BOARD
HALF PAGE
SKYSCRAPERGROUP
SECTIONMUSIC
SECTIONVIDEO CLIPS
FEATURED PROFILE
Size 468x60 300x300 728x90 430x600 160x600
Current Price CPM
$5.00 $5.00 $4.00 $6.00 $4.00 $3.00 $7.00 $20.00 $50,000.00
Projected Price after 12% CPM increase
$5.60 $5.60 $4.48 $6.72 $4.48 $3.36 $7.84 $22.40 $56,000.00
Financial DetailsProposed Pricing Model
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Revenue (Flat) Projected Revenue Increase From Reule Targeting2006 $250,000,000.00 $250,000,000.00 $0.002007 $250,000,000.00 $280,000,000.00 $30,000,000.002008 $250,000,000.00 $313,600,000.00 $63,600,000.002009 $250,000,000.00 $351,232,000.00 $101,232,000.002010 $250,000,000.00 $393,379,840.00 $143,379,840.002011 $250,000,000.00 $440,585,420.80 $190,585,420.80
Accumulated Total Revenue $1,500,000,000.00 $2,028,797,260.80 $528,797,260.80
Financial Details (continued) Projected Revenue based on annual increase of 12%
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Hardware
Development Environment (Web server, Core and DB)
QA Environment (Web server, Core and DB)
Stage Environment (Web server, Core and DB)
Production Environment (Total)
*High-Availability half-terabyte DB *Data miner
*Reporting server Total
Quantity 1 1 1 1 2 2 1Cost $33,000.00 $33,000.00 $33,000.00 $103,000.00 $70,000.00 $22,000.00 $11,000.00 $202,000.00
ContractsOutsource QA to India QuantCast Total
Quantity 1 1
Cost $100,000.00 $0.00 $100,000.00
Total Start-Up costs: $1,532,000.00Note: * - Part of Production Environment
StaffProject Manager
Senior Engineer DBA
Lead Developer Developer Data steward
MySpace Superstar Total
Quantity 1 1 1 1 4 2 2Cost $130,000.00 $110,000.00 $130,000.00 $120,000.00 $400,000.00 $180,000.00 $160,000.00 $1,230,000.00
Financial Details (continued) Costs
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Structuring the Network
Year cost revenue Increase Net IncreaseFixed 1-time
3% Royalty Staff2006 -$302,000.00 $0.00 -$1,230,000.00 $250,000,000.00 $0.00 -$1,532,000.002007 -$900,000.00 -$1,230,000.00 $280,000,000.00 $30,000,000.00 $27,870,000.002008 -$1,908,000.00 -$1,230,000.00 $313,600,000.00 $63,600,000.00 $60,462,000.002009 -$3,036,960.00 -$1,230,000.00 $351,232,000.00 $101,232,000.00 $96,965,040.002010 -$4,301,395.20 -$1,230,000.00 $393,379,840.00 $143,379,840.00 $137,848,444.802011 -$5,717,562.62 -$1,230,000.00 $440,585,420.80 $190,585,420.80 $183,637,858.18
Recurring
Cumulative Total -$302,000.00 -$15,863,917.82 -$7,380,000.00 $2,028,797,260.80 $528,797,260.80 $505,251,342.98
-$100,000,000.00
$0.00
$100,000,000.00
$200,000,000.00
$300,000,000.00
$400,000,000.00
$500,000,000.00
$600,000,000.00
2006 2007 2008 2009 2010 2011
cost
increase
Cummulative
Financial Details (continued)Return On Investment
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REULE Targeting Engine
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Workflow Overview
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The RUELE targeting engine will proceed under the following workflow:
MySpace.com websites are mined by the REULE Network Miners
Mined psychographic and demographic information about the website is stored in the REULE Database.
The REULE Targeting data is accessed by the data stewards and checked for accuracy
The Superstars of MySpace.com will further analyze the data and understand where Market niches can be established and targeted.
Superstar data is incorporated into the REULE reporting data to be accessed by the MySpace.com’s marketing team.
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Architectural Overview
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Target Audience
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Who? Identify our user-base Define audiences
Why? Decide who is marketable
How? Develop a way to find targeted users
Where? Track user traffic Discover hubs
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Risks Inaction
– What happens if no action is taken by FOX interactive media and MySpace.com?
Alienate Users
– What if too many untargeted solicitations de-sensitize users to MySpace.com advertising?
Competitive Advantage
– Does the REULE targeting engine offer the competitive advantage that MySpace.com will need to grow aggressively for the next five years?
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Next Steps Sign contracts Begin Work Payment Schedule
Payment 1 … $399,000.00 Payment 2 … $706,000.00 Payment 3 … $300,000.00(* See details in attached document)
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Questions and Answers
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The End
MySpace.com: Structuring the NetworkPresented By: Brian DennettPrepared by: Antony Abara, Brian Dennett, Wayne Marcy, and Vivek Patel
Structuring the Network