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
Recommended