Product Screenshots
Wednesday, November 21, 2007
Expected Revenues
We expect Inoof revenues to be about 2.5 MM/month (0.25% of online advertisement spending) in 2 years after launch, as follows:
1. Advertisement revenues: With an average of 5 page views/user/day across the various channels (email/web/IM/SMS), 5 advertisement links/page, assuming 1 in 10 targeted advertisements will be clicked, and a reasonably premium rate on the hyper-targeted advertisements for the users’ lists, both for click-throughs (2 cents CPC or CPA) and impressions ($2 CPM), we expect revenues of $1.25 MM/month ($0.7/user/month).
2. Business Intelligence subscription revenue: this is expected to be another major source of revenues. We estimate this at about 0.6 MM/month. This will increase once Inoof achieves a critical mass of users that represents a significant purchasing power.
3. Sales referral commissions (across multiple channels): Based on 2 purchases / user / month via Inoof and an average referral fee of 25 cents, we expect revenues of about $0.4MM/month.
4. Service Auction and Technology license fees from the Inoof platform – This includes technology that enables businesses to sell via the multiple Inoof channels, to access the Business Intelligence data, to integrate their services into Inoof etc. About 0.25MM/month.
We expect Inoof revenues to be about 2.5 MM/month (0.25% of online advertisement spending) in 2 years after launch, as follows:
1. Advertisement revenues: With an average of 5 page views/user/day across the various channels (email/web/IM/SMS), 5 advertisement links/page, assuming 1 in 10 targeted advertisements will be clicked, and a reasonably premium rate on the hyper-targeted advertisements for the users’ lists, both for click-throughs (2 cents CPC or CPA) and impressions ($2 CPM), we expect revenues of $1.25 MM/month ($0.7/user/month).
2. Business Intelligence subscription revenue: this is expected to be another major source of revenues. We estimate this at about 0.6 MM/month. This will increase once Inoof achieves a critical mass of users that represents a significant purchasing power.
3. Sales referral commissions (across multiple channels): Based on 2 purchases / user / month via Inoof and an average referral fee of 25 cents, we expect revenues of about $0.4MM/month.
4. Service Auction and Technology license fees from the Inoof platform – This includes technology that enables businesses to sell via the multiple Inoof channels, to access the Business Intelligence data, to integrate their services into Inoof etc. About 0.25MM/month.
ADDITIONAL INFORMATION
Market Size[1]
· In 2007, 131MM people will shop online; 90MM originate their purchase process by visiting an aggregator site, 60MM use comparison shopping sites.
· 100MM read reviews, 70MM use online coupons. 100MM search product information online, 120MM do research online.
· Over 65MM spend 10-30 hours per week online. 18% of the time is spent in online commerce, 46% in consuming content.
· Online advertisement spending was $20bn in 2006 (expected $81bn by 2011).
Additionally, 65% cited convenience as the primary reason for online shopping, and 53% cited time-savings. Customer acquisition costs are about $10-20/user, and online advertisers will spend an average of $88/user in 2007.
Users
Individual Users: We expect the time-saving, convenience and lower-costs benefits of the site to attract online users in the age group 15-50. We will initially target online electronics shoppers, especially busy professionals and mobile device users. Some users could simply benefit from the sophisticated list making capabilities of the Portal too.
Expected User Growth
We expect a viral, marketing and web-advertising driven user growth rate of about 30% initially, leading to about 1.8 MM users in 24 months after launch (1.5% of the market). Because people are very comfortable with online shopping (131MM) and comparison sites (60MM), and keeping in mind the explosive growth rates of recent sites such as flickr.com, del.icio.us etc, our growth rates seem reasonable. Comparable numbers are PriceGrabber (21MM), PepperJam.com (6.5MM) and Amazon’s “WishLists” (3.5MM).
Business Customers
Online retailers and Service Providers: Businesses that sell goods or services online to the Inoof user demographic will use the Inoof channel to advertise more effectively, provide services and sell to the “ready to buy” Inoof users. These companies will also be customers of Inoof Business Intelligence (BI) data. With a critical mass of users, Inoof will be able to provide predictive demand information to the retailers.
Business Partnerships
Inoof will partner with some of the existing providers of data about consumer goods such as mysimon.com, epinions.com, fatwallet.com, cnet.com, restaurants.com, Edmunds.com etc, in addition to websites that provide localized information. Partners that provide online services include news aggregators, deep search services etc. Inoof will benefit by leveraging the information base of these partners in exchange for advertisement revenue and user traffic. Inoof will also provide co-branded capabilities for some non competing sites. Example, we can provide the Portal features to premium content provider sites.
Affiliate Partnerships
Inoof will be affiliate partners with the online retailers and also with intermediaries that broker advertisements.
Technology Partnerships
Inoof will partner with companies that provide the technology for building and extending the Inoof Platform. This includes mobile service providers, Business Intelligence technology vendors, application integrators etc.
[1] Gomez.com research (http://www.gomez.com/); Online Publishers Association (http://www.online-publishers.org/); Shop.org statistics; IT Facts (http://www.itfacts.biz/); Online publishers Association (http://www.online-publishers.org/); Neilsen Media Research
Market Size[1]
· In 2007, 131MM people will shop online; 90MM originate their purchase process by visiting an aggregator site, 60MM use comparison shopping sites.
· 100MM read reviews, 70MM use online coupons. 100MM search product information online, 120MM do research online.
· Over 65MM spend 10-30 hours per week online. 18% of the time is spent in online commerce, 46% in consuming content.
· Online advertisement spending was $20bn in 2006 (expected $81bn by 2011).
Additionally, 65% cited convenience as the primary reason for online shopping, and 53% cited time-savings. Customer acquisition costs are about $10-20/user, and online advertisers will spend an average of $88/user in 2007.
Users
Individual Users: We expect the time-saving, convenience and lower-costs benefits of the site to attract online users in the age group 15-50. We will initially target online electronics shoppers, especially busy professionals and mobile device users. Some users could simply benefit from the sophisticated list making capabilities of the Portal too.
Expected User Growth
We expect a viral, marketing and web-advertising driven user growth rate of about 30% initially, leading to about 1.8 MM users in 24 months after launch (1.5% of the market). Because people are very comfortable with online shopping (131MM) and comparison sites (60MM), and keeping in mind the explosive growth rates of recent sites such as flickr.com, del.icio.us etc, our growth rates seem reasonable. Comparable numbers are PriceGrabber (21MM), PepperJam.com (6.5MM) and Amazon’s “WishLists” (3.5MM).
Business Customers
Online retailers and Service Providers: Businesses that sell goods or services online to the Inoof user demographic will use the Inoof channel to advertise more effectively, provide services and sell to the “ready to buy” Inoof users. These companies will also be customers of Inoof Business Intelligence (BI) data. With a critical mass of users, Inoof will be able to provide predictive demand information to the retailers.
Business Partnerships
Inoof will partner with some of the existing providers of data about consumer goods such as mysimon.com, epinions.com, fatwallet.com, cnet.com, restaurants.com, Edmunds.com etc, in addition to websites that provide localized information. Partners that provide online services include news aggregators, deep search services etc. Inoof will benefit by leveraging the information base of these partners in exchange for advertisement revenue and user traffic. Inoof will also provide co-branded capabilities for some non competing sites. Example, we can provide the Portal features to premium content provider sites.
Affiliate Partnerships
Inoof will be affiliate partners with the online retailers and also with intermediaries that broker advertisements.
Technology Partnerships
Inoof will partner with companies that provide the technology for building and extending the Inoof Platform. This includes mobile service providers, Business Intelligence technology vendors, application integrators etc.
[1] Gomez.com research (http://www.gomez.com/); Online Publishers Association (http://www.online-publishers.org/); Shop.org statistics; IT Facts (http://www.itfacts.biz/); Online publishers Association (http://www.online-publishers.org/); Neilsen Media Research
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