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The Race Sideways:Value Transfer to Reaggregators
and New Geographic Filters
Gigi JohnsonLecturer, UCLA Anderson
Executive Director, Maremel Institute
“Abundance breaks more things than scarcity.”
Clay Shirkey, SXSW 2010
Cc-2.0 johan-larsson/flickr
One Look at Ad-Based Media
Investment in Contracted Content
Geographic Audience
Geographic Matching Advertising
Trusted Filter
Ad-Based Media
The Race Sideways to New Distribution
Users/Consumers
Media
Advertisers
• Aggregators as Filters• Behavioral and Usage
Data “making up the difference”
CPM-based challenge:Value of audience vsCost of content and delivery
Friction: Opposing Forcesto “Smooth” Change
• Abundant digitized content
• Search• Plummeting Cost
of Creative Tools• Data-Based
Advertising• Mobility
• Systems based on Scarcity of Content• Bounded
Rationality• Rights Contracts
• Lack of Time• Need for Filters • REAL COST &
CPM GAP
Re-Combining Audience, Ads, & Data
•Geotargetting
•Search-driven
HyperLocal•Loc
al TV
•Print et al
Local Markets
•National TV
•National Print
National Market
•Internet-driven
Global Media
Pulling value by
unleashing geographic
market limits
Example #1: US Video on Demand:Forcing Abundance
Cable Networks• Forced to provide
programming to keep channels
Cable MSOs• Wanted it free to fight
satellite
Advertisers• Wanted data and
relevance
Audience• Glad for free content,
but not marketed well
Content Providers• Not paid
“TV Anywhere” –Brewing battle over
“Over the Top” InternetAccess to content
Example #2: Video before Ad Market
Source: Universal McCann Wave4 7/09
Myth of the $25 CPM:Hulu
Vevo/YouTubeVeoh
Vs. iTunes/iPad Splinternets
Example #3: My Abu Dhabi Class
• Abundant content (Arabic and English) around country borders: Lebanon, Saudi, US Syndication– Knew Oprah, Disney
• Online and Cable Content “filtered” by government• Global Long Tail: Connected and sold their media
content all over the world, cross culture• No material ad business for print or Internet yet –
nothing to pay for this…yet
Example #4: New Filters --“No Cost” Social Media Growth
Source: Universal McCann NextThingNow 4/08
Online Population Growth Surge: Matching Online Ad Geographies?
Source: ComScore, 9/09
Page 12
Specific Challenge for Facebook Economics
Old Social Global Spread: 2007
Global Time Spread: 2009
Social Nets Expanding Audience in Asia Pacific
Page 15
Source: ComScore 8/09
Asia Pacific Growth in Audience Share
Source: ComScore, 9/09
Example #5: Language in Aggregation
Gathering of
Local(ized) Voices
BRIC: Next 1 Billion
Source: Universal McCann Wave4 7/09
Re-Aggregating Attention: Global, Language, and HyperLocal
•Geotargetting
•Search Driven
HyperLocal•Loc
al TV
•Print et al
Local Markets
•National TV
•National Print
National Market
•Internet-driven
•Language and social
Global Media Language Aggregation?
Cross-Cultural Platforms?Advertising Challenge?
Re-AggregatingLocal?
SLOW BUT AWKWARD…AND SPEEDING UPCc-2.0 Mr. Thomas/flickr
Gigi L. JohnsonExecutive Director, Maremel Institute Technology transformation in creative, cultural, and knowledge industriesResearch, Advisory, Educational Programs, and Partnerships 1-626-603-2420 phone | 1-626-841-8972 mobile/sms | Skype: maremel5
www.maremel.com | [email protected] | Twitter: @maremel
Partner Educational Programs: UCLA Anderson School of Management UCLA Herb Alpert School of Music USC Center for Communication Technology Management Columbia College, Los Angeles Campus Universidad de Navarra, Pamplona, MCEG Higher Colleges of Technology, Abu Dhabi, MCCI
