mediamath - mad men to math men
DESCRIPTION
MediaMath CEO and founder, Joe Zawadzki, presentation on how Madison Avenue has come to (or had to) embrace new technologies that are ushering the industry into a new, fully-automated way of life. These new technologies, backed by powerful algorithms similar to those used in securities trading, leverage the huge branding potential of the Internet and have spawned a new breed of marketer — one that has feet in traditional advertising as well as in advanced tech.TRANSCRIPT
CONFIDENTIALITY NOTICE: This document contains proprietary company informa>on which may not be disclosed to any third party without the express wriCen permission of MediaMath, Inc.
Mad Men to
Math Men
OMMA Performance
© 2009 MediaMath, Inc. All rights reserved. Confidential
2 © 2010 MediaMath, Inc. All rights reserved. Confidential
“In the past, one could get by on intuition and experience. Times have changed. Today, the name of the game is data.”
- Steven D. Levitt, co-author of Freakonomics (for Super Crunchers)
The Quant Revolution has begun
THE QUANT REVOLUTION
Liquidity Automation Data Optimization
© 2009 MediaMath, Inc. All rights reserved. Confidential
3 © 2010 MediaMath, Inc. All rights reserved. Confidential
Liquidity
© 2009 MediaMath, Inc. All rights reserved. Confidential
4 © 2010 MediaMath, Inc. All rights reserved. Confidential
Today: Over 85% of trades
conducted electronically
Automation
Then: The floor brokers rule
© 2009 MediaMath, Inc. All rights reserved. Confidential
5 © 2010 MediaMath, Inc. All rights reserved. Confidential
Data
"There was 5 exabytes of information created between the dawn of civilization through 2003, but that much information is now created every 2 days, and
the pace is increasing” - Eric Schmidt, Google
Business Insider: “How To Create Your Own
Bloomberg Killer for Under $1,000”
© 2009 MediaMath, Inc. All rights reserved. Confidential
6 © 2010 MediaMath, Inc. All rights reserved. Confidential
Optimization
© 2009 MediaMath, Inc. All rights reserved. Confidential
7 © 2010 MediaMath, Inc. All rights reserved. Confidential
Other Markets
QUANTS IN …
Product Design Military Medicine
© 2009 MediaMath, Inc. All rights reserved. Confidential
8 © 2010 MediaMath, Inc. All rights reserved. Confidential
Liquidity in Marketing
© 2009 MediaMath, Inc. All rights reserved. Confidential
9 © 2010 MediaMath, Inc. All rights reserved. Confidential
Automation in Marketing
© 2009 MediaMath, Inc. All rights reserved. Confidential
10 © 2010 MediaMath, Inc. All rights reserved. Confidential
VISUALIZATION INPUTS MANAGEMENT
Data in Marketing
© 2009 MediaMath, Inc. All rights reserved. Confidential
11 © 2010 MediaMath, Inc. All rights reserved. Confidential
Optimization in Marketing
“[MediaMath’s] traders spend their days in front of two computer screens, feeding their systems with data and trying to perfect their trading algorithms
… But they are not analyzing stocks. They are analyzing advertising.” - Stephanie Clifford, The New York Times
© 2009 MediaMath, Inc. All rights reserved. Confidential
12 © 2010 MediaMath, Inc. All rights reserved. Confidential
ACXIOM #1:
The bell will not be unrung.
© 2009 MediaMath, Inc. All rights reserved. Confidential
13 © 2010 MediaMath, Inc. All rights reserved. Confidential
ACXIOM #1:
The bell will not be unrung.
10X ROI =
© 2009 MediaMath, Inc. All rights reserved. Confidential
14 © 2010 MediaMath, Inc. All rights reserved. Confidential
ACXIOM #2:
The Kawaja Chart = Same Inputs; Different Conclusion
© 2009 MediaMath, Inc. All rights reserved. Confidential
15 © 2010 MediaMath, Inc. All rights reserved. Confidential
Agencies Media Buying Platforms
“DSPs”
Creative Optimization
Data Optimization
Ad Exchanges
Ad Networks Horizontal
Vertical
Targeted/Audience
Performance
Mobile
Yield Optimization
Publisher Tools
Ad Servers
Ad Servers
Ad Ops / Infrastructure
Sharing Data /
Social Tools
DMPs and Data
Aggregators
Data Suppliers
Analytics Verification / Attribution
2005 2006 2007 2008 2009 2010
2005 2006 2007 2008 2009 2010
SEA
RC
H
DIS
PLAY
Agencies SEM Tools
SEO Tools
© 2009 MediaMath, Inc. All rights reserved. Confidential
16 © 2010 MediaMath, Inc. All rights reserved. Confidential
PREDICTION #1:
General contractors will pitch; theories tested
© 2009 MediaMath, Inc. All rights reserved. Confidential
17 © 2010 MediaMath, Inc. All rights reserved. Confidential
The Media Company
The Holding Company
The Operating Agency
The DIY Advertiser
The Others
PREDICTION #1:
General contractors will pitch; theories tested
© 2009 MediaMath, Inc. All rights reserved. Confidential
18 © 2010 MediaMath, Inc. All rights reserved. Confidential
PREDICTION #2:
Performance will out
© 2009 MediaMath, Inc. All rights reserved. Confidential
19 © 2010 MediaMath, Inc. All rights reserved. Confidential
PREDICTION #2:
Performance will out
Index = 100
-20%
Index = 10
-10%
Old Model
RTB & Buy-Side Opto
Creative (Dynamic,
Rich Media, etc.)
-10%
1st, 2nd and 3rd party data
-10%
Attribution
-10%
Other
-20%
Publisher Integration & Participation
-10% Cost-
Efficiencies
© 2009 MediaMath, Inc. All rights reserved. Confidential
20 © 2010 MediaMath, Inc. All rights reserved. Confidential
PREDICTION #2:
An ESPN/Budweiser in 2012 will signal the end���of BAU.
© 2009 MediaMath, Inc. All rights reserved. Confidential
21 © 2010 MediaMath, Inc. All rights reserved. Confidential
One Fortune 50 advertiser will demand “all quant, all digital” in 2012
Ecosystem will adapt in order to support budget
PREDICTION #3:
An ESPN/Budweiser in 2012 will signal the end of BAU
It will work, renewing in 2013 Performance, insights, simplicity and control will out
Others will emulate @ scale in 2014 Mad to Math transformation in marketing will be complete
© 2009 MediaMath, Inc. All rights reserved. Confidential
22 © 2010 MediaMath, Inc. All rights reserved. Confidential
RECOMMENDATION #1:
Lead, or be ready to fast follow.
CONFIDENTIALITY NOTICE: This document contains proprietary company informa>on which may not be disclosed to any third party without the express wriCen permission of MediaMath, Inc.
Mad Men to
Math Men