Driving Behavioral Change for Information Management through Data-Driven Gree...
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adtech SF 2012 The next big idea by Jeff Crowe
1. The Next Big Idea:
VCs Weigh in on Their Big Bets
for the Future
2. The Next Big Idea
Moderator:
Jeff Crowe, General Partner, Norwest Venture Partners (NVP)
Panel:
Mark Siegel, Managing Director, Menlo Ventures
Indy Guha, Senior Associate, BainCapital Ventures
3. Key Themes
Key themes we will be covering today:
1. Big Data
2. Social / Mobile
3. Personalization + Scale
4. The Next Big Idea:
Big Data for Marketers
How machine learning is unlocking deep customer
insights and revenue for next gen marketers
Indy Guha
5. We have Big Data. Now what?
Data is the future⌠and marketers want more than ever
âBy 2017, a CMO
will spend more on
IT than the CIO.â â
Gartner Group
⌠but are unable to optimize our business around it
âDespite the large quantity of data that marketers
may acquire, 42% said it was still too difficult to tie
that data back to individual customers, and 45%
said personalizing marketing communicationsâ
closely related to linking data to customersâwas a
major challenge.â
6. Answer: Cloud Marketing Solutions
Goal â Go beyond data. Deliver revenue and profitability.
DNA â Data mining, analytics and machine learning.
Improving product search Personalized user
and discoverability reengagement & retargeting
Personalized optimization of Mobile app user acquisition
marketing & merchandising platform
7. The Solution The Tech Results
Real-time, algorithmic natural Web Relevance Engine 80% more traffic
search discoverability product 1B+ web pages crawled.
1B+ user interactions
Relevant content gets interpreted.
discovered via natural search 1K+ Hadoop jobs.
ď traffic ď revenue All daily.
Dynamic routing and Intelligent Page Router with 50% better ROI on
optimization of landing pages real-time, dynamic content advertising
creation
Increases the ratio of paid
clicks to conversions
Customers
8. The Solution The Tech Results
Transactional retargeting - In Dec 2011: 5%+ revenue growth /
using machine learning to Handled 9.5B web requests 10s of millions of $$
identify most valuable More than 10K requests per
shoppers and serve highly second at peak traffic
personalized ads / coupons
Personalization includes: Reached 23MM unique Personalized ads are
⢠Showing ads based on users an extension of the UX
userâs browse/buy history ď 10x better click
⢠Keeping inventory in sync - Received clicks from 9 out of through rates
products imported real time every 100 users
⢠Managing impression
frequency
Customers
9. The Solution The Tech Results
Turnkey marketing platform SEM-inspired algorithmic 100+ clients / 150+
for mobile app ecosystem optimization across 3 dozen apps / 140MM+
without complexity of sources for paid downloads downloads
managing multiple sources:
⢠Ad networks & exchanges Algorithm tuned over 140MM 10X+ sales growth YoY
⢠Incentivized download downloads and over 6.5B app
networks opens
⢠Email and SMS
Customers
10. The Solution The Tech
Personalized optimization of marketing Taste Cube â aggregate transaction data,
(channel, promotion) & merchandising product attributes, reviews, web logs, etc. to
drive deep modeling of customer behavior
Sample output (for each user)
⢠Top X favorite brands Evoke Modeling on 3 dimensions
⢠Price / offer sensitivity different ways
to engage the ⢠Product (attributes, feedback)
⢠Relevant merchandise user ⢠Price / value (sensitivity to promotions)
⢠Optimal media touch points ⢠Time (seasonality, trends)
11. The Next Big Idea:
Monetizing Social and Mobile
Mark Siegel, Managing Director, Menlo Ventures
Mark@menlovc.com
@msiegel11
12. Social/Mobile are fastest growing Ad segmentsâŚ
2011 U.S. Ad Spending vs. Consumer Time Spent by Media
29%
Ad Spend Per Media Time Spent per Media
Sources: VSS, Mary Meeker (KBCB), comScore, Alexa, Flurry Analytics
13. âŚbut Conventional Advertising Doesnât Work
Social Media Use Mobile Phone Use
Source: IBM Institute for Business Value analysis, CRM Study 2011 Source: Microsoft Tag
14. ⢠Mobile Analytics
⢠Audience
segmentation
⢠App promotion
⢠Targeted advertising
with broad reach
15. ⢠Look-alike targeting
in display advertising
⢠Now applied to
social graph
⢠Brand affinity with
new customers
17. Will TV Lose Share of Ad Revenue?
⢠30-40% connected
TV penetration in
2012
⢠Over-the-Top
content delivery
WILL happen
⢠A new licensing and
advertising model
18. The Next Big Idea:
Personalization + Scale
Jeff Crowe
General Partner
Norwest Venture Partners (NVP)
jcrowe@nvp.com
19. Personalization + Scale
⢠The combination of personalization and
scale together drives greater value for
consumers and consequently more
valuable companies
⢠As consumer scale grows, the
personalization becomes more
valuable, which in turn drives more
scale
⢠This applies to e-commerce, digital
couponing, online publishing, digital
advertising
20. Online Publishing
Outbrain offers publishers
the ability to deliver
personalized content to
readers on the fly and at
scale in order to increase
recirculation and generate
more revenue
Since launch, company
more than 10 X-ed
average click through
rate on the network (from
about 0.6 percent to over
six percent)
Currently serves more
than 20 billion links to
content each month
through placement on
premium content sites
21. E-commerce
Enables crowd-sourced product
conceptualization, design and
commercialization that results
in more popular consumer
products to sell online and
through retail
195k Global Community Members
1500+ Idea submissions per week
7,000: Number of retail doors Quirky
products can be found in worldwide
(Target, Bed Bath & Beyond, The
Container Store)
70 Employees (up from 27 in April
2010)
22. Digital Couponing
Whaleshark Media and its consumer
site, RetailMeNot, drive increasingly
personalized coupons and deals to
consumers at scale.
Better results lead to better deals
from merchants, which in turn leads
to more traffic and increased scale.
Monthly visits (U.S.): 30 million
# Coupons: 500,000+
# Merchants: 100,000
GMV: $1.7 billion
Revenue (2011): $80 million
23. Online Advertising
Turn, utilizes massive scale
and machine learning to target
increasingly refined audience
segmentation and personalized
brand, video and mobile
advertising
700 million uniques
500,000 decisions per second
30 billion transactions per day
1 petabyte of campaign
performance data stored
1.5 trillion customer attributes
managed