August 2020
Vol 7 | Issue 333

Q&A with Nicholas Longano of Scuti.AI LLC

CEO

Principal Series:

Scuti is ‘g-commerce’, also known as commerce through video games. Scuti is the first global marketplace (patent pending) through a network of connected games, bringing brands and shoppers together through sophisticated AI models which learn, match and reward players for shopping.

Scuti provides a new channel for brands to reach this ever growing and important group of customers and provides game makers with an evergreen new revenue stream that lets them monetize all their players.

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• How big is your market? Addressable market? • What does your industry look like as a whole?

The global addressable market for eCommerce is $4.2 T, with a further $358bn global digital ad market (Source: eMarketer). In total, $4.6T and over 2.7bn game players worldwide. Today’s eCommerce business is dominated by Amazon and Walmart.com. They are destinations in that consumers need to know what they are seeking to buy, not platforms for discovery. Scuti does not compete with them - we complement them and actually funnel brands from Shopify and Amazon into our platform. gCommerce, which we have created, is a 'walled garden' and we have that market exclusive as our own.

• Who are your competitors or other alternative solutions? • What is your competitive advantage?

Scuti owns gCommerce. No one has come along to serve up both the commerce and Advertising markets through video games - in one platform.
The alternate is to see an ad in a game and either try to remember the product for purchase later, or click through and break the gameplay experience. Amazon is a destination to purchase a product you already know you need to buy, and not a platform for discovery or brand engagement. Amazon’s platform alienates brands with its fees and sea of millions of items.

In-game ads alienate players and game makers and today are a necessary evil for monetization. Social media is fraught with fraud, negativity, fake accounts, bots and politics.
Traditional brick and mortar has been decimated by the pandemic and store closings and bankruptcies are skyrocketing.

Both eCommerce and digital advertising are ripe for disruption.

Scuti’s gCommerce platform allows brands to target and sell direct to coveted game players, in a disruption-free environment with little to no waste.
Game makers can tap into newfound and significant new revenue streams, while rewarding their players with a better game experience which rewards every purchase and even provides them with game credits.
For players, it's a platform which rewards every purchase and delivers curated products that the player actually wants to buy. They can then use those credits to exchange for in-game credits or to purchase other products. The rewards system provides tremendous stickiness to the platform. After all, players can purchase those items elsewhere, but only Scuti provides them in-game credits.

Who benefits from your business and how do you make money?

Scuti sovles the challenges faced by all three constituents:

For Brands we provide a direct to player shoppable marketplace with AI-targeted matching to the right player, allowing for maximum media efficiency, the highest level of conversion, and the ability for any brand, big or small to be discovered and drive an impulse sale. With deep data, brands are no longer blind to their audiences and Scuti will provide true insights to who their customer is. All in a safe, political-free, fraud-free, fake-free environment of games.

For game makers, Scuti provides a new evergreen revenue stream which can monetize every player (after all, everyone shops), while rewarding their players to provide a better game experience. By being part of the Scuti network, game makers can use the platform as a marketing vehicle, whereby they can be discovered by players seeking to redeem the rewards they earned from shopping. Scuti also increases any existing advertising revenues they generate by converting those ads to 'stoppable ads'.

For players, Scuti offers improved game experiences where they are rewarded for every purchase made, whether that purchase comes direct from the brand or delivered by Amazon. A happier player and better game experience, without spyware, adware or cookies.

Scuti generates revenues from several diverse streams, including advertising, sales referral fees, product integration fees, rewards program (marketing development fees) and recurring monthly data sales.

Our revenues are evergreen – for as long as there are games connected to our network and Scuti is delivering ads and selling products. Vendors and brands are Scuti’s revenue source. Scuti is a B2B solution and we derive our revenues from brands who are running advertising campaigns, and vendors selling products. Scuti shares all revenues with game makers, who’s games provide us a built-in audience. Scuti does not recruit consumer, as they are already playing the games in our network. Hence, Scuti is B2B.
Conservatively, the Scuti projects that we will generate approximately $76 million in gross revenues over the next 3 years of operations. Our proforma projections are based on an assumption that only 2.0% of game players will click through to our store, and that only 2.0% of those will purchase an item. Independent research found that over 89% of players said they would likely shop Scuti, thus, we feel there is enormous upside to these numbers. These projections are U.S only, and allows tremendous upside, globally and across all game devices and even non-gaming apps.
Scuti generates revenue whether players purchase or not.


Nicholas Longano of Scuti.AI LLC

Nicholas F. Longano
For almost 3 decades, Nicholas Longano has been a marketing executive and technology entrepreneur overseeing the creation and launch of exciting new products and ventures. Nicholas was involved in several innovative ventures, including his most acclaimed entrepreneurial endeavor, Massive Incorporated, where as President he built the first video game advertising network. Massive was acquired by Microsoft in 2006.
Nicholas has served in several executive roles in the video game industry. At Vivendi Universal Games, which published such top worldwide franchises as World of Warcraft, Half Life, and Counter Strike. He publishing and developed titles for Disney, Fox and Warner Bros, and as General Manager of Universal Interactive, he was responsible for all Universal film-based franchises, including, Lord of the Rings, The Hulk, Fast & Furious, Jurassic Park, The Thing, to name a few. Prior to entering the video game industry, Nicholas held key marketing and general management positions for Fortune-500 companies.


He helmed Calvin Klein Cosmetics (Unilever) as General Manager and Vice President of Marketing. Ron Perlman hired Longano to head up marketing for Revlon, where he created and launched the ColorStay cosmetic line in 1995. Prior to that he was at L’Oreal for 4 years and marketed the top haircolor and hairstyling brands for L’Oreal USA and Australia. He commenced his career at Cadbury Schweppes in Australia where he launched Pepsi, Evian Spring Water and the Sunkist brands of beverages onto the Australian market. Contact Nicholas: nicholas@scuti.store