Adaptive Medias Inc (fka ADTM)

[newelong]

The following is a good presentation ...

on just how Adaptive differentiates itself from some of the more well known companies in the digital advertising environment, where it is headed in 2014 and how it plans on getting there:

Launching in 2014, the Adaptive Media marketplace will enable publishers a seemingly simple marriage of quality content, users and monetization opportunities side-by-side with advertising partners who drive demand. We’ll do this through a complex set of discovery technology solutions, driven by patents, and efficient algorithmic data that cohesively interact in any digital marketing environment where advertising, audience and content must come together.

Competition

There are many fractional players in this space. There are those who provide video players like Ooyala, BrightCove and Kaltura. Others provide advertising network services like BrightRoll, Grab and TubeMogul. Then there is a final group who provide ad serving and demand services like RocketFuel, LiveRail or FreeWheel. These providers only complicate the landscape that we participate in. AOL is the only other company who can claim to provide an end-to-end solution. They have a video player and ad serving capabilities through Adap.tv, CMS and CDN capabilities through 5min Media and a wealth of inventory and demand through legacy AOL properties and exchange integration.

Despite AOL’s size, we have several significant advantages that give us confidence to compete in this space. The first main area of competitive advantage pertains to AOL’s legacy inventory source. While they benefit from many domains under their control, they are also hampered by the responsibility to fill advertising through these domains first. Our advantage is that we are inventory agnostic. If advertisers want and can benefit from our direct publisher inventory, we are happy to provide it. If advertisers want to take advantage of efficiencies through RTB exchange inventory, we can provide that as well. Adaptive Media is less restricted and can provide better optimization choices than AOL.

The second area of competitive advantage is in pricing. AOL’s legacy properties have high floor inventory costs. While they address this issue by explaining that their inventory is “premium”, the statement often falls on deaf ears as advertisers are hearing the same argument from all inventory sources. Our inventory flexibility and existing monetization contracts allow us to deliver advertising with the same quality as AOL at a lower cost per impression. This allows us an edge in negotiating onto advertising campaigns where we don’t have an existing track record.

Business Development

Our business development efforts are focused on three main areas. The first is signing content providers to syndication and monetization deals. The second is signing publishers onto our platform. The third area of focus is driving advertising demand or fulfillment through our platform. 2013 saw us add approximately 50 publishers as well as OpenX and RMX (now Yahoo Ad Exchange) exchanges. Our overall content contracted in 2013 as we began to remove underperforming partners and categories. We expect all categories to grow in 2014 as we move toward stabilization of our platform and expansion of our technical capabilities.

Today our demand is consistently fulfilling at sustainable rates for our publishers. We have over 350,000 rights cleared pieces of video content across all interest categories. We have recently signed a contract with Beanstock Media which increases our publisher base with some high profile publishers including Ask.com, ChristianMingle, Dictionary.com, MeetMe, Slacker, TheDailyBeast, and ZipRealty.

In 2014, we are making a major push to penetrate the comScore top 1000 publisher accounts. Engaging these publishers will increase our platform utilization and SaaS income. It will increase the consumption and utilization of our content partners resulting in higher income. It will also allow for greater reach for our demand partners and advertising agencies leading to higher advertising revenues.

In addition to traditional digital publishers, we are making a push to penetrate select top TV properties and engage them in bridging the gap between legacy TV consumption and video advertising in digital. This will be enabled by our proprietary technology that is currently developing with the support of our adviser.

http://www.sec.gov/Archives/edgar/data/1428397/000114420414022306/v373942_10k.htm -- Pages 2-3

February 20, 2014

"Demand partners already using the [Ember] platform include several well-respected companies including industry heavyweights MobileFuse, Nexage and Smaato"

http://finance.yahoo.com/news/adaptive-media-announces-launch-mobile-112400985.html

February 25, 2014

Adaptive Media's Platform Will Power Beanstock's Mobile Ad Supply to Increase Monetization, Optimization, and Scalability in Accelerating Mobile Advertising Market

http://finance.yahoo.com/news/beanstock-media-leverages-adaptive-medias-114500986.html

[See above for some of Beanstock's high profile publishers]

Finally, the current quarter will include the full effect of Ember's Ad-Serving Platform including Adaptive's partnerships with MobileFuse, Nexage and Smaato, plus its relationship with Beanstock and their high profile publishers. I have no idea what kind of revenue could be generated if the Company is successful in penetrating comScore's top 1000 publisher accounts, but I suspect it could be substantial.

The Company is already utilizing the OpenX and Yahoo Ad exchanges.

OpenX latest news ...

OpenX and Digiday Research Projects Significant Programmatic Growth for Native and Video on Mobile Devices

http://www.adoperationsonline.com/2014/04/14/openx-and-digiday-research-projects-significant-programmatic-growth-for-native-and-video-on-mobile-devices/

Yahoo Ad Exchange ...

https://advertising.yahoo.com/Publishers/

ADTM