BMTM · 2021. 1. 28. · heading "Risk Factors" in Bright Mountain Media, Inc.’sAnnual Report on...

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Investor Presentation January 2021 BMTM :

Transcript of BMTM · 2021. 1. 28. · heading "Risk Factors" in Bright Mountain Media, Inc.’sAnnual Report on...

  • Investor PresentationJanuary 2021

    BMTM:

  • 2OTCQB: BMTM

    Forward Looking Statements

    This presentation contains certain forward-looking statements that are based upon current expectations andinvolve certain risks and uncertainties. Such forward-looking statements can be identified by the use of wordssuch as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,''''plans,'' and ''proposes, '' and similar words. These forward-looking statements are not guarantees of futureperformance and are subject to risks, uncertainties, and other factors, some of which are beyond our controland difficult to predict and could cause actual results to differ materially from those expressed or forecasted inthe forward-looking statements, including, without limitation, statements made with respect to expectations ofour ability to close any proposed acquisition and any expected benefits from such transaction if closed and theability to integrate acquisitions and the potential implications of COVID-19. You are urged to carefully reviewand consider any cautionary statements and other disclosures, including the statements made under theheading "Risk Factors" in Bright Mountain Media, Inc.’s Annual Report on Form 10-K for the fiscal year endedDecember 31, 2019 as filed with the Securities and Exchange Commission and our other filings with the SEC.Bright Mountain Media, Inc. does not undertake any duty to update any forward-looking statements except asmay be required by law.

    2OTCQB: BMTM © Bright Mountain Media, Inc.– 2020

  • 3OTCQB: BMTM

    Risk Factors

    3OTCQB: BMTM © Bright Mountain Media, Inc.– 2020

    The following factors, among others, could cause actual results to differ materially from those set forth in this presentation. "The Company," “we,” “us,” “our,” or similar terms refer to Bright Mountain Media, Inc.:

    •We have incurred significant net losses and cannot assure you that we will achieve or maintain profitable operations.•Our independent registered public accounting firm's reports for the fiscal years ended December 31, 2019 and 2018 have raised substantial doubt as to our ability to continue as a "going concern." •We have identified material weakness in our internal control over financial reporting which have, and in the future could, if not remediated, result in material misstatements in our financial statements. •The recent outbreak of COVID-19 may have a significant negative impact on our business, sales. results of operations and financial condition.•Our ability to grow and compete in the future will be adversely affected if adequate capital is not available to us or not available on terms favorable to us.•The success of our business is dependent upon our ability to maintain and expand our customer base and our ability to convince our customers to increase the use of our services and/or platform. If we are unable to expand our customer base and/or the use of our services and/or platform by our customers declines, our business will be harmed.•The market in which we operate is intensely competitive and, if we do not compete effectively, our operating results could be harmed.•We may not be able to increase the number of our strategic relationships or grow the revenues received from our current strategic relationships.

    •We may not be able to develop enhancements and new features to our existing service or acceptable new services that keep pace with technological developments.•Our ability to deliver our services is dependent on third party Internet providers.•Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.•Our success depends, in part, on the capacity, reliability, and security of our information technology hardware and software infrastructure, as well as our ability to adapt and expand our infrastructure.•We are dependent on third parties to, among other things, maintain our servers, provide the bandwidth necessary to transmit content, and utilize the content derived therefrom for the potential generation of revenues.•We may not be able to find suitable software developers at an acceptable cost.•The success of our business is highly correlated to general economic conditions.•Our failure to protect our intellectual property rights could dimmish the value of our products, weaken our competitive position and reduce our revenue, and infringement claims asserted against us or by us, could have a material adverse effect.•Natural disasters and other events beyond our control could materially adversely affect us.•Our future success depends on our key executive officers and our ability to attract, retain, and motivate qualified personnel.

    A more complete description of these risks and uncertainties can be found in the filings of the Company with the U.S. Securities and Exchange Commission (the “SEC”), including in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020. We undertake no obligation to update any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forwarding-looking statements

  • 4OTCQB: BMTM

    Company Overview

    Bright Mountain Media, Inc. (OTCQB: BMTM) is an end-to-end digital media & advertising services platform

    Connecting brands with consumers by eliminating

    multiple steps in the product-to-market process

    Optimizing Digital Media Supply Chain by Acquiring Core Technology & Data Assets

    Establishing “Walled Gardens” Around Most Desired Demographic Verticals By Acquiring a Portfolio of Owned & Operated Websites

    Management with Deep Industry Experience

  • 5OTCQB: BMTM

    2010Bright Mountain Media, Inc. Established

    September 2017 Announced acquisition of DEM Group LLC, for $1.1M

    History of Bright Mountain Media, Inc.

    2010–2013 Acquired websites which are customized to provide niche young male users in military, law enforcement & first responders

    2013–2015 Quarterly visits to websites increased 100x from approximately 51,000 in the first quarter of 2013 to in excess of 5.5 million in the fourth quarter of 2014¹

    2015Acquired four new websites

    December 2018 Discontinued & sold all non-digital media businesses

    August 2019 Acquired Oceanside (f/k/a S&W Media)

    November 2019 Closed merger with MediaHouse (f/k/a NDN)

    Acquire Digital Media CompaniesEnhance Acquired CompaniesImprove Financial Performance

    Phase II: Consolidating Supply Chain & Acquiring “Walled Gardens”

    Bright Mountain Media Strategy

    Phase I: Built Foundation On Growing Young Male Audience

    April 2013 Bright Mountain goes public via IPO & begins trading on the OTC

    June 2020Closed acquisition of Wild Sky Media

    1) Source: Form 10-K for Fiscal Year Ended 12/31/2014

    https://www.sec.gov/Archives/edgar/data/1568385/000155335015000306/bmaq_10k.htm

  • 6OTCQB: BMTM

    • Digital advertising expenditures in the U.S. alone are expected to grow 85% (pre-COVID) from $108 billion in 2018

    to $201 billion by 2023¹

    • These figures represent ~38% of global digital ad spending, expected to surpass $517 billion in 2023

    • Digital Advertising is a $130B+ Market Opportunity in 2020 (pre-COVID)

    • Mobile comprises over half of all ads

    • Largest Digital Ad Spending is Allocated to the Top 10 “Walled Gardens” (Facebook, Google, Twitter, Snap, Amazon, etc.) Because of:

    • Integrated Supply Chain Operations

    • Certainty of Ad Delivery based on Targeting

    • Verifiable Return on Investment

    Market Opportunity

    $108.6 $129.3

    $151.3 $172.3

    $187.8 $201.8

    2018 2019 2020 2021 2022 2023

    2019 U.S. Digital Ad Revenues$ Billions

    Other39.1%

    Duopoly60.9%

    Digital Ad Spending in the US$ Billions (pre-COVID)

    6

    1) Source: Statista2) Source: Statista3) Source: Statista4) Source: eMarketer

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    3

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    https://www.statista.com/statistics/242552/digital-advertising-spending-in-the-us/https://www.statista.com/statistics/237974/online-advertising-spending-worldwide/https://www.statista.com/outlook/216/digital-advertising#market-revenuehttps://www.emarketer.com/content/facebook-google-duopoly-won-t-crack-this-year

  • 7OTCQB: BMTM

    Audience Targeting & Webpage Monetization

    Much like a retail storefront, a webpage has limited products on the page which provide a revenue source for publishers.

    These include the following products:1. Display2. Video (highest value)3. eCommerce4. Content Referral (“you may also like”)

    The entire product-to-market ecosystem is designed to “stock the shelves” with these products and optimize the return for the wholesaler (ad agency/buyer) & retailer (web publisher).

    How Digital Ad Dollars are Spent? Publisher Header

    Article Title

    Photo or Video

    Automatic or Manual Placement

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  • 8OTCQB: BMTM

    Current Advertising Model

    DSP SSP Ad ServerAd Agency Trading Desk Brand

    (XYZ Corp)

    Publisher(Website)

    There are several “middlemen” in the Supply Chain who take an average of 70% on every ad dollar spent.

    Ad agency creates market

    strategy and a digital ad, collecting a

    15% fee.

    A trade desk optimizes programmatic

    advertising campaigns, collecting a

    25% fee.

    A demand-side platform (DSP) is a technology used to purchase media from

    publishers via supply-side platforms (SSPs) and ad

    exchanges. DSPs and SSPs together collect a 20%+

    fee.

    Ad servers manage online

    ad campaigns, deciding what

    ads to show on a website, taking a

    5% fee

    Buy Our Shoes

    Example: How $1.00 of Advertising is Spent in the Current Advertising Model

    Brand XZY wants to advertise its product, a new shoe, staring with $1.00 to spend

    on advertising.

    The publisher receives an average

    of 30% of the original $1.00 to advertise on

    their platform.

    Lorem ipsum dolor sit amet, quaeque maluisset ex sed, ex vim duis doming.

    Publisher Website

    Buy Our Shoes

    1

    1) Source: Forbes/Guardian

    https://www.forbes.com/sites/augustinefou/2020/08/07/marketers-and-publishers-are-making-more-money-by-using-less-adtech/?sh=e7e350958989

  • 9OTCQB: BMTM

    The Solution: Optimized “Walled Garden” Model with Integrated Supply Chain Operations

    TBD

    Optimized Supply Chain Services

    Bright Mountain Platform

    Bright Mountain Media has Commenced an Initiative to Integrate & Optimize Product-To-Market Functionality into a Single “Optimized

    Supply Chain”:

    • Fraud Prevention• Data Integration• Optimization• Verification • Data-Driven Targeting

    • Yield Management• Measurement & Analytics• Access to 3rd Party Demand• Audience Extension

    WomenYoung Male

    TBD TBD

    AdvertisingAgencies &

    Brands

    Highly-Valued Verticals

    BMTM Owned &Operated Websites

    & Syndicated Service Offering

    Walled Garden Verticals

  • 10OTCQB: BMTM

    Growth Strategy

    Acquire Companies in

    the Supply Chain

    • Focus on complementary, accretive technology, platform, and relationship acquisitions in the Digital Media Supply Chain

    • Aggregate ”Walled Gardens” focused on high-value demographics

    • Stay disciplined with financial & operational criteria

    Consolidate & Benefit

    • Capture larger ad spend

    • Enhanced margins with focus on recurring sales

    • Trusted partner of brands & publishers

    Improve Financial

    Performance

    • Increase revenue

    • Increase margin

    • Remove underperforming segments

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  • 11OTCQB: BMTM

    Recent Acquisitions

    *Historical financials not meaningful due to recent acquisitions of Oceanside, MediaHouse & Wild Sky Media

    Oceanside (f/k/a S&W Media Group) is a specialized Video Advertising services provider that integrates inventory, data, technology & brainpower to capture & manage the most profitable audiences for clients via programmatic and direct partnerships

    • Data-driven marketing solution for programmatic OTT video & mobile advertising

    • Leveraging machine learning data, Oceanside provides technology for content creators to deploy, distribute & monetize their content to a specifically targeted audience

    MediaHouse (f/k/a NDN) brings personalized content delivery & performance-based monetization to mobile & desktop advertisers & publishers, fundamentally improving digital advertising effectiveness for its partners

    • Provides data-driven technology solutions for the syndication & monetization of contextually relevant, personalized premium video content

    • Proprietary digital audience provides ad buyers with near certainty in reaching target demographics

    CL Media Holdings (d/b/a Wild Sky Media) is an interactive media company with global reach through its engaging content and niche audiences.

    • Home to parenting and lifestyle brands CafeMom, Mom.com, LittleThings, Revelist, Babynamewizard, and MamasLatinas

    • In FY2019, Wild Sky generated total gross revenues of approximately $22.6 million with gross margins of ~50%.

    Significant Projected Revenue Growth Compared to Fiscal 2019

  • 12OTCQB: BMTM

    Experienced Management Team

    Kip SpeyerChairman & CEO

    Management team with proven track record & significant insider ownership

    • CEO, President and Chairman of the Board since 2010 • CEO of Speyer Door and Window, LLC, which was sold

    to Haddon Windows, LLC (SecuraSeal, LLC, Accu Weld Corporation).

    • CEO of Intelligent Systems Software, Inc.• CEO of ICAD, Inc. (ICAD:NASDAQ) which was a

    combination of ISSI and Howtek, Inc. (HOWT:NADAQ)• CEO of Galileo Corporation (GAEO:NASDAQ). Galileo

    changed its name to NetOptix (OPTX: NASDAQ) and was merged with Corning Corporation (GLW:NYSE) in a stock purchase

    • B.S. in Business Administration from Northeastern University

    • VP Finance of Association of Certified Anti-Money Laundering Specialists, a wholly-owned subsidiary of Adtalem Global Education (NYSE: ATGE)

    • CFO of Connectivity Segment for Global Eagle Entertainment (NASDAQ: ENT)

    • Regional CFO for Laureate Education (NASDAQ: LAUR), overseeing efforts in Central and South America

    • Ernst & Young Audit, Dispute Resolution and Transaction Support Services team

    • B.S. in Public Accounting from Fordham University

    Edward CabanasCFO

  • 13OTCQB: BMTM

    Key Takeaways

    •One-Stop-Shop Platform Model: Bright Mountain Media is a platform upon which financially attractive 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-exchange platform provides incredible scalability

    • Elimination of Middleman in Product-to Market Process: Recent acquisitions provides advertisers with highly targeted audiences with an efficient ad delivery mechanism

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  • 14OTCQB: BMTM

    Selected Summary Financial Information

    14

    Amounts in '000 Dec 31, 2019 Dec 31, 2018 % change Sep 30, 2020 Sep 30, 2019 % change

    Balance sheet

    Total Assets 80,457$ 5,026$ 42,771$ 28,364$

    Total Equity 67,494 3,422 12,850 21,135

    Income statement

    Total Revenue 6,999 1,735 303% 9,439 3,915 141%

    Gross profit 1,056 357 196% 4,433 1,041 326%

    Gross profit margin 15.1% 20.6% 47.0% 26.6%

    Loss from Continuing Operations (6,813) (4,131) (63,568) (3,277)

    12 months ended Nine months ended

  • 15OTCQB: BMTM

    Contact Us

    Company

    Investor RelationsGreg Falesnik &

    Luke ZimmermanMZ North America

    Main: [email protected]

    www.mzgroup.us

    Bright Mountain Media, Inc.6400 Congress Avenue, Suite 2050Boca Raton, FL 33487

    www.brightmountainmedia.com

    BMTM:

    mailto:[email protected]://www.mzgroup.us/http://www.brightmountainmedia.com/