AN IV SF Keynote Roundtable: Re-inventing IT – Meet the Upstarts
AN IV SF LifeStreet Media - 10 Good Minutes with Mitchell Weisman
1. 10 GOOD MINUTES WITH
MITCHELL WEISMAN
Founder & CEO, LifeStreet Media
UNLEASHING THE POTENTIAL
OF THE APP ECONOMY
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
2. 10 Good Minutes: Where to Begin?...
Answer: break the problem into smaller & smaller pieces:
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
3. Start here: 10 Good Seconds…
(…only 9 ¼ minutes left to go.)
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
4. Next, 10 ‘Pretty Good’ Seconds…
Mitchell’s
Kid Mitchell
Mitchell’s
Kid’s Fish
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SAN FRANCISCO, CA
DECEMBER 11-12, 2012
5. Next, 10 ‘Pretty Good’ Seconds…
About me
• Founder / CEO LifeStreet Media
• 13 years ad tech executive
• 7 years VC/private equity
LifeStreet Media at a glance
• Display advertising platform
• Social and mobile in-app markets
• Customer acquisition: > 225 million installs
• Inventory monetization: > $125 million paid out
• Recent $66 investment
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
6. Today’s discussion:
3 Big Things for the App Economy
Each of which requires…
…getting very small.
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SAN FRANCISCO, CA
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7. First, a word about data and charts…
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SAN FRANCISCO, CA
DECEMBER 11-12, 2012
8. Example: a ‘have to sneeze’ chart
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SAN FRANCISCO, CA
DECEMBER 11-12, 2012
9. Example: a ‘have to pee’ chart
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SAN FRANCISCO, CA
DECEMBER 11-12, 2012
11. Example: Data Mining Insight
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SAN FRANCISCO, CA
DECEMBER 11-12, 2012
12. 3 Big Things
• Thing #1: Averages Lie
• Think smaller!
• Thing #2: Real Time Bidding
(RTB) is Huge
• Because it’s small!
• Thing #3: High Velocity Testing
has Come of Age
• Allowing us to think small!
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
13. 3 Big Things
• Thing #1: Averages Lie
• Think smaller!
• Thing #2: Real Time Bidding
(RTB) is Huge
• Because it’s small!
• Thing #3: High Velocity Testing
has Come of Age
• Allowing us to think small!
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
16. Thing #1: Averages Lie…
User group #2, avg. value = $10.00
User group #1, avg. value = $1.00
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
17. 3 Big Things
• Thing #1: Averages Lie
• Think smaller!
• Thing #2: Real Time Bidding
(RTB) is Huge
• Because it’s small!
• Thing #3: High Velocity Testing
has Come of Age
• Allowing us to think small!
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
18. But first, 10 More Good Seconds…
(…several minutes down, a few left to go.)
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
19. Thing #2: Real Time Bidding
is really, really BIG…
• $2B RTB ad spend in 2012
• $13.9B expected in 2016
• 88% YOY growth in RTB inventory (Q3
2012 vs. Q3 2011)
• Fastest growing segment of digital
advertising
• Mobile represents 15% of total RTB
inventory
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
20. Before Real Time Bidding, you could only buy big groups
of impressions.
Non-RTB = ‘Buying Big’
Pricing = $.65 CPM
for a ‘Big’ group of
impressions
1 price for MANY DIFFERENT:
• Apps
• Countries
• Devices
• OS versions
• Connection types
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
21. What do you bid for this big group of impressions with so many
different variables?
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
22. RTB: the ultimate de-averaging tool
Non-RTB = ‘Buying Big’ RTB Pricing = ‘Buying Small’
$.79 $.32 $.24 $1.90
Pricing = $.65 CPM $.16 $.87 $.96 $.54
for a ‘Big’ group of
$2.59 $.64 $3.37 $.11
impressions
$1.54 $.48 $1.09 $2.88
1 price for MANY DIFFERENT: Different prices for EACH
• Apps impression!
• Countries
• Devices
• OS versions
• Connection types
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
23. 3 Big Things
• Thing #1: Averages Lie
• Think smaller!
• Thing #2: Real Time Bidding
(RTB) is Huge
• Because it’s small!
• Thing #3: High Velocity Testing
has Come of Age
• Allowing us to think small!
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
24. Static, Manual Testing is No Longer Acceptable…
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SAN FRANCISCO, CA
DECEMBER 11-12, 2012
25. Automated, Perpetual High Velocity
Testing is Required to Win in Today’s App Economy
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SAN FRANCISCO, CA
DECEMBER 11-12, 2012
26. Example: 23 Rounds of Testing,
Yield Lift > 1,000%
Testing Period # Test Rounds Total Ads Tested Compound Yield Lift
45 Days 23 67 1800% Lift
80% 2000%
Yield Lifts
70% 1800%
1600%
60%
1400%
50%
1200%
Compound Yield Lift
Yield per Test
40% 1000%
30% 800%
600%
20%
400%
10%
200%
Layout
0% 0%
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
27. Recap: 3 Big Things…
…That Require Going Small.
• Thing #1: Averages Lie
• Think smaller!
• Thing #2: Real Time Bidding
(RTB) is Huge
• Because it’s small!
• Thing #3: High Velocity Testing
has Come of Age
• Allowing us to think small!
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
28. Common thread = granularity = getting small
Sometimes you have to “break it down” to
release the full potential
APPNATION IV
SAN FRANCISCO, CA
DECEMBER 11-12, 2012
29. In closing, 10 Last Good Seconds…
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SAN FRANCISCO, CA
DECEMBER 11-12, 2012
30. Oops, wrong 10 seconds. Here it is.
{Thank you for you kind attention.}
{Enjoy the rest of your day.}
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SAN FRANCISCO, CA
DECEMBER 11-12, 2012
Hinweis der Redaktion
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Really fast -- 40 seconds
$2B ad spend in 2012 – that’s an 85% increase from 2011$13.9B expected in 2016 is a 59% compounded annual growth rate88% growth in RTB ad inventory in Q3: it’s up 29% vs Q2 2012 – in only one quarter
Show “analog” testing – MadMen lipstick testinghttp://thechive.com/2012/11/14/back-in-the-day-this-was-the-greatest-job-on-the-planet-7-photos/