Ann: EN1 Launches Facebook Paid Social Advertising Phase 1, page-3

About Facebook Advertisingengage:BDR has had a long history with Facebook, starting in 2010. Initially,engage:BDR was a certified ad provider for Facebook app developers (Canvas Apps– publisher monetisation). Subsequently, engage:BDR became a top inventoryprovider on Facebook’s video ad exchange, LiveRail. engage:BDR did not sell Facebook’s core-advertising product until now.Facebook is one of the world’s most popular social media platforms, with over 2.3billion unique monthly users. This large pool of users allows advertisers to reachtheir most appropriate audience, no matter what the niche may be.There are five main types of Facebook advertisements - newsfeed on desktop,newsfeed on mobile, sidebar on a desktop, network on mobile and on Instagram.These advertisements can target users based on their location, age, gender,interests, connections, relationship status, languages, education and workplace.Facebook ads allow advertisers to improve brand awareness, traffic to a site, storevisits, online conversations, app installs, video views and engagement by showingads to people who are likely to pay attention to them. These online ads also allowadvertisers to reach a maximum number of people at a relatively low cost.There are two common goals that advertisers pursue through Facebook ads; leadgeneration and retargeting. Lead generation facilitates the process for people whoare interested in learning more about a product or business, by linking them directlyto the source of information. Meanwhile, retargeting focuses on promoting content tousers who have previously shown an interest in the material that is being advertised.EN1’s Paid Social StrategyAdvertisements on Facebook are a daily source of incremental revenue growth andallow EN1’s clients to target extremely niche audiences otherwise nearly impossibleto reach. With more than 1.5 billion active daily users, Facebook is a top platform forROI growth. Facebook's advertising technology helps new and emerging brands todrive awareness, while simultaneously driving traffic to the brand’s site andstorefront.Facebook’s large user pool also reflects directly in the traffic and conversation thatoccurs on the site. The Company is able to capture events at the time of conversionand record that data, to re-engage certain audiences for future campaigns. Largeamounts of conversations on Facebook can transfer to increased conversations on abrand’s website or app, if the right audiences are targeted.EN1’s technique of consistent optimizations and refreshing creative ad setsgenerates a positive ROAS and scalability for the Company’s clients. Managementplans to begin cross-selling this service immediately and is highly optimistic aboutthis method’s positive contribution to profitability. Facebook’s popularity is not likelyto decline in the near future, making it a highly viable channel to engage with.EN1’s paid social plan integrates several other social platforms, including SnapChat,Instagram, YouTube, TikTok, LinkedIn and Pinterest. Over 2019, Management expects to deploy several other paid social platforms, including proprietarytechnology to manage and integrate with the existing media channels EN1 owns.IconicReach, EN1’s influencer platform, has direct and immediate synergy with thenew paid social strategy. IconicReach clients have requested to add paid social totheir campaigns immediately. Management will announce clients on-boarding to themarket shortly.Other phases of the paid social strategy will include additional social advertisingplatforms named above, as well as customer and user interfaces and technology tomanage workflow and potentially integrate this with other elements of EN1’s digitalmedia offerings. Management will update the market, once developed, on futurephases of the strategy as well as an overall perspective on what to expectthroughout the year.Triple ThreatTop 100 marketers in the U.S. focus their budgets heavily in three main areas ofdigital media. Programmatic advertising, influencer marketing and paid social are thethree areas of growth and significant value for marketers and media companiesalike. EN1 has two of these elements and has strong expertise in these areas –programmatic advertising and influencer marketing.The third missing expertise was (paid social) planned to be integrated through apotential acquisition, initially announced to the market in late 2018. The ability tocross-sell and leverage a paid social expertise enables EN1 to tap into more of thebrands’ budgets, potentially increasing the dollars spent by customer, and attractnew customers who would start with paid social.Paid Social AcquisitionIn late 2018 (investor presentation), Management announced a potential acquisitionof a paid social company. Management had numerous discussions with companiesacross the globe with paid social expertise. Dilution was a key concern in late 2018,so Management decided to postpone this opportunity until the market cap and shareprice would support this activity.Recently, Management has been discussing an opportunity to acquire a thrivingAustralian-based paid social business. A company in Australia would provide EN1tangibility, with local clients and a team familiar with the landscape. Additionally, thiscould be a catalyst for EN1’s programmatic and influencer businesses to beintroduced to more Australian customers. Management will update the market if andwhen these opportunities become formal agreements.