The Market Entry Strategy: The Spotlight Campaign 1 Executive - - PowerPoint PPT Presentation

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The Market Entry Strategy: The Spotlight Campaign 1 Executive - - PowerPoint PPT Presentation

Feb 22, 2023 507 likes •918 views

The Market Entry Strategy: The Spotlight Campaign 1 Executive Summary The Market Opportunity Content is becoming the new spam Lack of targeting creates unrealized value The Solution The ability to target is the key to adoption

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The Market Entry Strategy: The Spotlight Campaign

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(1) Cisco SPL Marketing Campaign

Results

  • Eos will become the standard platform
  • Deliver annual revenue of 1.7B in 5 years

The Market Opportunity

  • Content is becoming the new spam
  • Lack of targeting creates unrealized value

The Solution

  • The ability to target is the key to adoption
  • Acquiring a Data Analytics is needed

Three Part Marketing and Sale sApproach

  • Sell Directly to Large Targets
  • Develop New partnerships
  • Leverage Cisco divisions e.g. Scientific Atlanta

Executive Summary

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WEB 2.0: Large market opportunity and many needs The Market

  • World-wide Web Reach = 1.3 billion users and growing
  • Aggregate Ad Market Ad = 1.8 trillion dollars
  • Content Growth = 56%per year (281 exabytes in 2011=1018)

The Problem

  • How to get them what they

want and filter the noise The Solution

  • Provide information not data
  • Recognize the individual by a
  • ne-to-one experience
  • Appeal to their needs

The Consumer

  • Power of Me
  • Wants Connections

not Sites

  • Spam-phobic
  • Rely on Friends
  • Embrace new media
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Site Publishers

  • Need new ways to

increase site traffic

  • Want something to

sell and need relevant and timely ads and content Advertisers

  • Viewers on

traditional social sites non- responsive to content

  • Needs to identify

specific consumer segments Content Owners

  • Lack targeted

distribution methods to get content out to consumers

  • Lost in the

increasingly crowded web 2.0

Spam Phobia: Their Pain Is Your Gain

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Strengths

  • Global and Respected Brand
  • B2B Solution Focus
  • Acquisition integration Excellence
  • Established Network Capabilities
  • Senior Level Industry Relationship

Opportunities

  • Web 2.0 technologies are relatively new

and growing

  • Large market for intelligent content

delivery the creates for need for

  • rganization
  • Growing migration of traditional content

providers on the internet.

Leveraging Capabilities: Cisco is well positioned

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Site Publishers √ √ √ √ √ √ The Product: Functionality is the key to delivering on the vision Eos Functions White Label Solution Social Networking Social Media Content Management Content Ingest Content Syndication Analytics Engine Discovery Engine Content Owners √ √ √ √ Advertisers √ √ √ √ Analysis and the ability to target is the key to differentiation

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High Efficiency

  • Aggregate Knowledge reports a top Click

Through Rate of over 20% Large User Base

  • A Technology Company serving over 50

million people per month Turn Key Solution

  • Pique Discovery Engine Tracks User

Behavior and Delivers Relevant Content Purchase Strategy

  • Target 150% of valuation

Recommendation: Acquire Aggregate Knowledge

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  • Leverage Existing Partners

and Business Units to penetrate broadcasters

  • Develop New Partnerships

with Web Hosts

  • Sell directly to major targets

Recommendation: A Three Part Approach

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Site Publishers Content Owners Advertisers

  • Build Brand Equity

Recognition

  • Adoption of Eos will

create a trickle down effect

  • With increased

adoption, content

  • wners and

advertisers will come.

  • Try to Buy
  • Increase adoption

Part 1: Sell Directly to Major Targets

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Web Host Value

  • White Label Social

Network

  • Advanced Analytics

Data Consumer

  • Increased loyalty by the

Consumer

  • Richer user experience

Site Publisher Value

  • More Hosting Features for

Customers

  • Suitable Business

Features for Business Customers

Part 2: New Partnerships with Web Hosts

  • Hosts become channels
  • Take advantagedvantage of Long Tail
  • Site Publishers Crave Turn Key Solutions
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  • Build/Extend Eos brand to broadcasting

Part 3: Leverage partners to penetrate TV broadcasting

  • Utilize relationships with CIO and distribution

channels

  • Target Time Warner to provide content
  • Leverage Scientific Atlanta to introduce functionality

into broadcasting

  • One-to-one targeting
  • Strong distribution partners
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Licensing Revenue

Site Publishers

Advertising Revenue

Advertisers

Content Syndication Costs

Content Owners

Ad Placement Costs Content Revenue

Revenue: Getting to the Money through the Long Tail

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Tier 1 - Enterprise

  • $10k - 100k/year

Tier 2 - SMB Sites

  • $360 -1200/year

http://www.kickdeveloper.com/api/

Music

  • $0.99 ($0.05 to Eos)

Shows

  • $1.99+ ($0.05 to Eos)

Pay Per Click

  • $0.30 ($0.15 to Eos)

Benchmark Pricing: Selling it in Three Tiers

  • License Pricing
  • Content Pricing
  • Ad Pricing
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Estimating Revenues – 5 Year Projection

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2008 2009 2010 2011 2012

Total Potential Site 3.9M 5M 6.6M 8.5M 11M Market Share 1% 2% 4% 6% 8% Tier 1 Licensing Revenue $0.3M $0.6M $0.9M $1.2M $1.5M Tier 2 Licensing Revenue $14M $37M $95M $185M $321M Content Revenue $2M $5M $13M $26M $45M Ad Revenue $59M $152M $396M $772M $1,339M Total Estimated Revenue $75M %195M $505M $985M $1,706M ROIC (38%) (6%) 69% 168% 298%

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Month 1- 2

  • Expand

Partnerships

  • Buy

Aggregate Knowledge

  • Integration

Month 2- 4

  • Try to Buy

Month 4 - 8

  • Spotlight Marketing

Month 8-12 Month 12 + Phasing in EOS Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

  • Expansion
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  • Webex extends to the

average web user

  • The entry point to bring

Web 2.0 to the Enterprise Going Forward: The EOS Vision for the Future

  • Eos™ broadcaster

installations bring Web 2.0 functionality to the TV masses

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Spotlight Campaign

  • Leverage senior relationships to establish Eos™
  • Includes a top-down, bottom-up, and extension to

related market to accelerate adoption

The Market

  • Information explosion = spam phobia
  • Opportunities lost due to unrealized connections

The Solution

  • Eos™ is a vertically integrated platform that closes

the chasm between stakeholders and consumers

Results

  • Establish Eos™ as the defacto standard
  • Value delivered to Cisco exceeds $1.7B at year 5

Summary: Paving the way…

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Q & A

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Table of Contents

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Executive Summary Web 2.0 Spam Phobia Power to Focus Leveraging Capabilities The Product Aggregate Knowledge Three Part Approach Sell Directly New Partnerships Leverage Partners ROIC Worse Case Ad Revenue Comparison Market Analysis Internet Usage Statistics Profit Growth Competitive Pricing Situation Analysis Value from Purchase Social Network Advertising Social Advertising Growth Social Networking Growth Annotated Bibliography The Long Tail Tiered Pricing Revenue Projection Phasing in Eos The Eos Vision Summary Revenue Best Case ROIC Best Case Revenue Base Case ROIC Base Case Revenue Worse Case

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Revenue Best Case

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ROIC Best Case

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Revenue Base Case

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ROIC Base Case

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Revenue Worst Case

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ROIC Worst Case

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Ad Revenue Comparison

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  • Minimum Entry Fee
  • Cost Per Click
  • Cost Per View
  • Relevancy?
  • Engaged Audience?
  • Varied Locations?
  • Quality of Target?

1 2 3

Eos

$30 $5 $0 $40 $5.00 $0.42 $0.43 $0.45 $0 $0.42/k $0.30/k $0.50 Search Search Partial Total Yes Yes No Yes No No No Yes Med Med Low High

1) Yahoo! Advertiser Page 2) Google Adwords Page 3) Facebook Advertiser Page

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Market Analysis

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What kind of markets are we talking about?

1) Generation MySpace is getting Fed UP 2) Smiles, Everyone 3 ) Web 2.0: Cisco’s Dan Scheinman unveils EOS, Entertainment Operating System 4) China’s very Different Internet Use

Myspace/Facebook Social site advertising at $1.2 billion1 Sponsored Content Single episode can bring $60 per 1k visitors2 Aggregate Market $1.8 Trillion Dollars Worldwide3 Digital Content 44% of Chinese, 18% US view content online4

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Internet Usage Statistics

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Profit Growth

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Embryonic Growth Shakeout Maturity Decline 7% increase

  • Web 2.0 Technologies experienced 7 % growth in profit from 2006-2007
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Competitive Pricing

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Platform

Price Features

Cisco EOS

Enterprise: $10k – 100k per year SMB Sites: $360 – 1200 per year Ad Pricing: $0.30 per click Analytics Engine, Content Syndication, Discovery Engine, Content Ingestion, Social Networking

Intel Enterprise 2.0

$175-200 for single user license for

  • ne yr.

Social networking, Collaboration Tools

Ning

$240 per yr for ads and $60 per yr for URL’s Social networking, Content Management, Content Ingestion

KickApps

Platform is free. $2-5 for every 1,000 views on pages (for advertisement control) Content Syndication, Content Ingestion, Content Management

Brightcove

Platform is free. Content Management, Content Ingestion, Content Syndication

Facebook

Platform is free. Social Networking, Content Management

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Situation Analysis

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Achieving Value from Purchase

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  • Creates distinctive competences

Value Creation Differentiation Customer Satisfaction Competitive Price Brand Name

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Social Network Advertising

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Social Network Advertising Growth

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Social Networking Growth

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Annotated Bibliography

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http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/64544

  • Breakdown of internet advertising revenues in the Q3 of 2007

http://www.iab.net/insights_research/iab_research/1675/112992

  • Projected social network ad revenues from Nov 2007

http://www.techcrunch.com/2007/10/24/social-site-rankings-september-2007/

  • Rankings for different social networking websites

http://bwnt.businessweek.com/brand/2005/

  • The top 100 global brands valued at over 1B

Cisco/Deloitte’s Cisco Case PDF

  • Cisco Case Study

http://investor.cisco.com/financialStatements.cfm

  • Cisco’s annual financial statements

http://www.iab.net/media/file/resources_adrevenue_pdf_IAB_PwC_2006_Final.pdf

  • 2006 Global Internet Ad Revenue Report

http://ir.timewarner.com/results.cfm

  • Financial reports for Time Warner

http://www.imediaconnection.com/content/10656.asp

  • Projected growth rates on advertising in social networks

http://www.reuters.com/article/companyNewsAndPR/idUSN1333533920070613

  • Juniper releases new router to compete with Cisco

Yoffe, D.B. and B.J. Mack. (2005) Apple Computer, 2005. Harvard Business School Press.

  • Apple Itunes cost structure

Ante, Specer E., Holahan, Catherine. Generation MySpace Is Getting Fed Up. Business Week; 2/18/2008, Issue 4071, p54-55, 2p, 1c. Brow, Erika. Smiles, Everyone. Forbes; 12/10/2007, Vol. 180, Issue 12, p66-70, 3p, 1 chart, 3 graphs, 2c. Gens, F. (2008). IDC Predictions 2008: The Post-Disruption Marketplace Takes Shape. IDC.

  • Source for world data predictions for 2011

Worthen, Ben. China’s Very Different Internet Use. Wall Street Journal Online, February 13, 2008, from Business Technology section http://www.internetworldstats.com/stats2.htm