The SCIENCE-ification of Media
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MATH MEN THE SCIENCE-IFICATION OF MEDIA Terence Kawaja
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This presentation discusses the opportunity posed by the "science-ification of media" where large quantities of consumer data are utilized to target and optimize everything from advertising to content which I posit will have broad and profound implications.
Transcript of The SCIENCE-ification of Media
MATH MEN
THE SCIENCE-IFICATION OF MEDIA
Terence Kawaja
SCIENCE-IFICATION
What the hell does that mean?
Digital is just now finding its true value as a media channel
Display media is at a cri8cal inflec8on point
I see the boys in Mountainview agree
© LUMA Partners LLC 2010
Media From Evolu8on to Revolu8on
Phase Tradi8onal “New” Online Science-‐ified
Time Period Prior to 1990 1990 to present 1995 to present 2008 to present
Gauge Broadcast Narrowcast Targeted Personalized
Channels TV, Radio, Print Cable, Satellite Radio, Specialty Magazines
Internet Social, Mobile, Local, Real Time
Example Companies
Business Model SubscripHon, Brand AdverHsing
SubscripHon ROI-‐based AdverHsing
Data Driven Adver8sing -‐ Ecommerce
Content Delivery Push Push Pull Real Time Push
Consumer Choice Few Many Infinite Personalized
Pace of Growth Slow Accelerated Rapid Very Rapid
Capital Required $$$$$$$$ $$$$$$ $$$ $
Like science-ified media, my drinking could be described as - SOCIAL - MOBILE - LOCAL - REAL TIME
© LUMA Partners LLC 2010
Most traditional media companies are managing decline curves and are challenged to convert to the digital platforms
Time
$
Cable TV
Broadcast TV
Radio
Newspapers
Directories
?
Management Cycle
Decline Curves and the Innovator’s Dilemma
© LUMA Partners LLC 2010
There’s No Going Back
Data makes it all possible
Good idea
What a mess! I need a drink
© LUMA Partners LLC 2010
The Display Adver8sing Technology Landscape
© LUMA Partners LLC 2010
SSP
DMP
INF
DSP
Moving Away From Point Solu8ons
© LUMA Partners LLC 2010
SSP
DMP
INF
DSP WHICH COMPANY WILL ANCHOR A CREDIBLE # 2?
Ecosystem-‐Wide Players
© LUMA Partners LLC 2010
SSP
DMP
INF
DSP WHICH COMPANY WILL ANCHOR A CREDIBLE # 2?
Dark Horse Candidates
© LUMA Partners LLC 2010
Consolida8on Has Already Begun
i
© LUMA Partners LLC 2010
The Ad Market Opportunity is Much Bigger
Digital
Display
Search
Television Print OOH Radio
The advertiser needs to solve for: 1. Allocation 2. Optimization 3. Attribution
© LUMA Partners LLC 2010
Media is becoming personal
But will privacy concerns kill the opportunity?
The Journal is doing an investigative series on advertising and privacy……I need a drink.
© LUMA Partners LLC 2010
Implica8ons for the Purchase Funnel…
Purchase Funnel Metric Example Companies
CPM
CPC
CPL
CPA
Transac8on
Customer
Search
Lead
Impression
Sale
Data
Art
Science
Display
© LUMA Partners LLC 2010
…Include a Collapse of the Funnel
CPM
CPC
CPL
CPA
Transac8on
Customer
Search
Lead
Impression
Sale
Data
Display
Customer
Search
Lead
Sale
Purchase Funnel Metric Example Companies
Art
Science
© LUMA Partners LLC 2010
Think Big: More Than Just Media
SEARCH
DESIGN CRM
CONTENT
ECOMMERCE
DISPLAY
© LUMA Partners LLC 2010
Science-‐ified Content Discovery: Publisher Nirvana?
Publisher
Real Time Web Tradi8onal
Off-‐ramp: Traffic Acquisi8on
On-‐ramp: Content Distribu8on
© LUMA Partners LLC 2010
Perhaps we should buy one of these media technology companies…
I’ll plan the party
© LUMA Partners LLC 2010
Outlier M&A Interest in Media
© LUMA Partners LLC 2010
Who knew?
© LUMA Partners LLC 2010
Digital Compe88on: Clash of the Titans
© LUMA Partners LLC 2010
A winning strategy
