SelasTürkiye Digital Media Advertising Report by Richard P. Wong

8/8/2019 SelasTrkiye Digital Media Advertising Report by Richard P. Wong

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Accel Confidential and Proprietary

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A Venture Perspective:Future of Advertising inDigital Media

Richard P. WongMay 16, 2007

Michigan Growth Capital Symposium

[email protected]


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Todays Discussion

Backdrop: High Level VC Trends

Digital Media & Advertising

Sector Discussion: Mobile & Wireless


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N um b

er

of D

e a l s

2007 Investment On Track Deal Flow and Equity into Venture-Backed Companies

Source: Dow Jones VentureOne/Ernst &Young

$13.1$17.9

$49.5

$36.4

$22.2 $19.7 $22.5 $24.0$26.7

$94.8

$7.0

22112547

4590

6351

3311

2429 2221 2338 24542527

584

$0

$25

$50

$75

$100

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1Q070

1,000

2,000

3,000

4,000

5,000

6,000

Amount Invested ($B) Number of Deals


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Todays Discussion

Backdrop: High Level VC Trends

Digital Media & Advertising

Sector Discussion: Mobile & Wireless


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Media Consumption vs. Ad Spend

0

5

10

15

20

25

30

35

40

T el evi si on

Onl i n e

R a di o

N ew s p a p er

M a g azi n e s

% of MediaConsumption% of 2005Ad Spend

Source: Universal McCann (Dec 05); eMarketer (May 05); Outdoor Advertising Association (Mar 05), IAB/PwC (Aprl 06), Jupiter Research (Feb 06)

The average US consumer spends14 hours per week watchingtelevision and 14 hours per weekonline. Other media types trail far behind: radio (5), newspapers (2),magazines (1).

Gap between consumption and spend shows large potential for online ad growth


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Less Time on Traditional Media


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Newspaper Readership

Steady decline in newspaper readershipOnline classifieds further exacerbating revenue model


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Where are the $$?Revenue and Growth By Offline Media Type

Source: Universal McCann (December 2005); eMarketer (May 2005); IAB/PwC (April 2006)

Revenue (2005)

+3.3% +7.3%+7.1%+6.1%+5.7%Growth (2005 vs. 2004)

$14.5B $13.0B$22.6B$21.0B$49.6B

YellowPgs

Approx $250B ad market across all mediums Online still a relatively small part of overall but Online growth rate of 30% CAGR is 4x the growth rate of

median

+9.5%

$57.2B

News-paperDirectMail CableTVRadio

+1.4%

$46.7B

TV OnlineMagazine

+30%

$12.5B


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Fragmentation of Time Spent Online

Source: Goldman Sachs Research estimates & Synovate (May 2006)

but fragmentation of time spent online will drive thechannelization of the Internet, opening up newopportunities much like cable TV.


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New Players Entering Top 20

New entrants:

Fox: mainlymyspace

Facebook

Social networkingsites

Is communitainment whats next?


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Accels Digital Media Investments

Social & VerticalMedia Networks

Aggregate content,audience & community

Community DrivenMedia Networks

Destination sites for grass-roots creation,

programming, &sharing

Off-Deck MobileNetworks

Develop globalcommunities outside

walled garden

Online GamingNetworks

Grass-roots creation &programming; viral

consumption

Analytics & Targeting Platforms

Cross-platform analytics & asset management

Delivery & Infrastructure Platforms

Application-specific media delivery systems

Monetization Platforms

Cross-platform advertising solutions


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Mobile Content is about to explode

By 2009, millions/billions of will be accessed via mobile

Amountofmobile-accessiblecontent

2007 2008 20092006

WE ARE HERE

mobile-designed web sites / pagesadvertisers / campaigns

downloadablesringtones & music tracks

images / wallpaper hours of video and television

news stories

mobile social networksmobile blogs

mobile commerce transactionsmicropayments


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Mobile 2007 is Similar to Web 2005


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Emergence of Mobile Advertising


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Mobile Advertising Opportunity (NA)

US Internet Ad Market 203 million users (Nielsen) $16 billion (IAB)

US Mobile Ad Market 204 million subscribers (CTIA) $100 million (WSJ)

Informa projects mobileadvertising at $11.35billion by 2011

US TV Ad Market (broadcast, syndicated and cable) 280 million viewers (Nielsen) $73 billion (IAB)

Source: Medio


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Mobile Advertising Models

Text Ads


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21Major Brand Adoption Beginning(Adidas World Cup)

Source: Admob


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Consumer Feedback: Ad Support

Up to 40% of users respond Yes, and up to 70% respond Dont Know or Yes to ad-subsidy for data service

Not surprisingly 18-24 and 25-34 youth demographics aremost open to ad-supported model

Source: Jupiter Research


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Accel Partners Overview

Be First: Back companies with category-defining, breakout potential Active, lead investors in early stage technology companies for over 25 years Global footprint: US (9 partners), Europe/Israel (7 partners), China IDG-Accel

(11 partners) Manage over $3B, created over $150B of market value

Sample of Accel companies include:
http://images.google.com/imgres?imgurl=http://www.mobilecomplete.com/images/internal/clients_logos/medio.jpg&imgrefurl=http://www.mobilecomplete.com/customers/customers.htm&h=50&w=115&sz=3&hl=en&start=0&um=1&tbnid=0TORQ4D8DhrNlM:&tbnh=38&tbnw=87&prev=/images%3Fq%3DMEDIO%2BSYSTEMS%26svnum%3D10%26um%3D1%26hl%3Den%26rlz%3D1T4IBMA_en___US217

SelasTürkiye Digital Media Advertising Report by Richard P. Wong

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