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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

MediaMath - Mad Men to Math Men

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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.

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Page 1: MediaMath - Mad Men to Math Men

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

Page 2: MediaMath - Mad Men to Math Men

© 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

Page 3: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

3 © 2010 MediaMath, Inc. All rights reserved. Confidential

Liquidity

Page 4: MediaMath - Mad Men to Math Men

© 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

Page 5: MediaMath - Mad Men to Math Men

© 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”

Page 6: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

6 © 2010 MediaMath, Inc. All rights reserved. Confidential

Optimization

Page 7: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

7 © 2010 MediaMath, Inc. All rights reserved. Confidential

Other Markets

QUANTS IN …

Product Design Military Medicine

Page 8: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

8 © 2010 MediaMath, Inc. All rights reserved. Confidential

Liquidity in Marketing

Page 9: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

9 © 2010 MediaMath, Inc. All rights reserved. Confidential

Automation in Marketing

Page 10: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

10 © 2010 MediaMath, Inc. All rights reserved. Confidential

VISUALIZATION INPUTS MANAGEMENT

Data in Marketing

Page 11: MediaMath - Mad Men to Math Men

© 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

Page 12: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

12 © 2010 MediaMath, Inc. All rights reserved. Confidential

ACXIOM #1:

The bell will not be unrung.

Page 13: MediaMath - Mad Men to Math Men

© 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 =

Page 14: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

14 © 2010 MediaMath, Inc. All rights reserved. Confidential

ACXIOM #2:

The Kawaja Chart = Same Inputs; Different Conclusion

Page 15: MediaMath - Mad Men to Math Men

© 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

Page 16: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

16 © 2010 MediaMath, Inc. All rights reserved. Confidential

PREDICTION #1:

General contractors will pitch; theories tested

Page 17: MediaMath - Mad Men to Math Men

© 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

Page 18: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

18 © 2010 MediaMath, Inc. All rights reserved. Confidential

PREDICTION #2:

Performance will out

Page 19: MediaMath - Mad Men to Math Men

© 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

Page 20: MediaMath - Mad Men to Math Men

© 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.

Page 21: MediaMath - Mad Men to Math Men

© 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

Page 22: MediaMath - Mad Men to Math Men

© 2009 MediaMath, Inc. All rights reserved. Confidential

22 © 2010 MediaMath, Inc. All rights reserved. Confidential

RECOMMENDATION #1:

Lead, or be ready to fast follow.

Page 23: MediaMath - Mad Men to Math Men

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