Presentación Edward Montes

Introduc)on to Pla.orms, Adver)sing Exchanges & Why?

Tuesday, May 07, 2013

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What Is An Ad Exchange?

Ad Exchanges Are Really About Consumer Behavior


Consumers Are Splintering Across Unprecedented Entertainment Options

# of consumer media platforms has grown

5x over the last 50 years

20013 1 Newspapers 2 Magazines 3 Email 4 Broadcast TV 5 Radio 6 CD Player 7 Cable TV 8 Personal Computer 9 Satellite Television

10 Internet 11 Cell Phone 12 DVD Players 13 Satellite Radio 14 MP3 Players 15 Tivo/DVR 16 Slingbox 17 iPod

1986 18 Blogs 1 Newspapers 19 Online Video 2 Magazines 20 Mobile Internet 3 Cable TV 21 Console Video Games 4 Broadcast TV 22 PC Video Games 5 Radio 23 MMOG

1966 6 Cassette Tapes 24 Mobile Games 1 Newspapers 7 Walkman 25 Text Messaging 2 Broadcast TV 8 VCR 26 Mobile Video 3 Magazines 9 Personal Computer 27 Download Games 4 Broadcast Radio 10 Console Video Games 28 Podcasts 5 Eight Track 11 PC Video Games 29 Instant Messaging 6 LPs 12 LPs 30 Social Networks

Fragmentation of Media consumption

And Accordingly DistribuCon Models Have To Evolve

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Media Distribution Ecology

“Open” Convergence

Paradigm

“Closed” Convergence

Paradigm

Legacy Distribution Paradigms

Production Publishing / Aggregation

Distribution Platform

“Last Mile”��to Consumer

Studio, Publisher, Periodical,

Network

Affiliate, Exhibitor,

Retail

Professional Content

Producers & Owners

Content Networks,

Proprietary Distributors


Producers & Owners

Broadcast, Theatrical,

Physical

Independent Content

Producers, including UGC


Producers & Owners

Internet Media Portals &

Aggregators

Branded Internet

Properties

Internet

Digital MVPD

Proprietary Mobile

Distribution Mobile

Handset, iPod, etc.

Digital Cable / IPTV

Internet via Mobile, iPod,

etc.

Internet via PC, Gaming Console,

etc.

Internet via TV

“Last Mile”��to Consumer

Highly Fragm

ented “A

udiences of One”

Fragmented “N

iche” A

udience M

ass A

udience

•  There will be 1 billion websites in existence this year… Up from 700 million in 2012

•  Some forecast that this will double in 18-‐24 months •  4 billion hours of YouTube videos are watched each month •  72 hours of video are uploaded to YouTube every minute •  In 2011 YouTube had over 1 trillion videos viewed …or 140 views for every person on Earth

• We are approaching over 2 million mobile applicaCons in today’s various marketplaces

•  40 billion downloads in Apple’s marketplace alone •  Consider Facebook has nearly 1 billion monthly users alone •  Consider that 70 billion pieces of content are shared each month on Facebook

•  Instagram has over 40 million photos uploaded per month and 1000 comments per second!

Some Data Examples To Illustrate This Point

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The consumer has taken control of key elements

Not Just: • What Content – Peer recommendations & new search/ratings tools • Where – Consumers are consuming media on whichever platform

THEY choose • When – Media is increasingly OnDemand

But also: • On What Terms - Decreased Tolerance for Ads but often not willing

to pay • Demanding to Participate - They are joining in the media • Forcing Reform – There’s power in numbers and they’re not afraid

to give feedback

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Witnessing a shi> from “Mass Media” to “Personal Media”


8

There will be 1 Billion websites this year

72 hours of video are uploaded to YouTube every

70 Billion pieces of content are shared on Facebook each month


•  Media 2.0 is plastic –  …atomized media can be reshaped, remixed, tweaked, cut,

split –  …and aggregated, filtered, distributed, delivered, stored –  …almost any way/time/place consumers prefer

•  Plasticity makes Media 2.0 personal –  Reduced distinction between professional and amateur

media . . . –  . . .because all media can be unbundled/rebundled –  Media will be unbundled & rebundled at the personal (not

mass) level •  Personal media explodes media supply

–  The total quantity of media goods explodes •  . . . And atomizes it

–  The average size of media goods shrinks

9

“Personal Media” is the foundation of Media 2.0

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In an atomized environment, what becomes valuable?


•  As personal media increases supply relative to demand, equilibrium prices fall –  Production, distribution, and retail become relatively

abundant . . . –  . . .And attention becomes relatively scarce

– Where does the value go? •  To consumers, who can consume more media more cheaply •  To Brands that understand that communication with

consumer is now personal at massive scale

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What Are The Consequences Of The Personal Media Explosion?


•  Must adapt to new methods of planning, buying, delivering and measuring media

•  Accounting for millions of possible channels, many of which are

not able to be forecasted

•  New formats require new thinking challenging many of the conventional media paradigms delivered around “broadcast” formats

How Does This Impact Advertisers?


•  In a plastic or atomized media environment how do you know where your advertising is?

•  In a world of millions of impressions, many curated by the

individual consumer, how do you account for quality?

•  If a consumer now consumes an exponentially larger number of channels with less attention– what is effective frequency?

Consider The Challenges


Personal Media Has Massive Reach

1B Ads every 15 minute and growing

Each ad impression sold separately

A World Cup audience every 60 minutes

Too much to explore without technology

The Fundamental Marketing Challenge

The Marketer’s Job: Deliver the Right Message, to the Right Person, in the Right Place, at the Right Time.

Billions of Impressions Packed with Data

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Every impression is packed with criCcal informaCon including user profiles, online behavior and media context.

Within todays pla]orms you should easily take this data apart, apply it to markeCng goals, reassemble it and deliver a highly relevant ad to a consumer in milliseconds.

For more informaCon contact: [email protected] Or visit our website www.digilant.com

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Presentación Edward Montes

Technology

Transcript of Presentación Edward Montes