Vickie Nauman, President- North America at 7Digital, explores the future of ad-supported media at the #MATI-Marketing & Ad:Tech Israel conference, February 11, 2014, Tel Aviv

1. My Digital Odyssey,
Lessons Learned, & the
Future of Ad-Supported
Streaming Media
Vickie Nauman
Marketing and Ad:Tech Summit
Tel Aviv
February 2014

2. Pre-Digital
• 10 years in marketing & US terrestrial radio
Traditional and physical media defined by:
Distinct channels into a finite potential audience
Programming and ads for a targeted demographic
Limited by:
Printing capabilities
Broadcast signal reach
Retail inventory
Scarcity of content
But all that changed….
NETWORK

3. My Digital Odyssey
• 1999 Napster 1.0

4. My Digital Odyssey
• 1999 Napster 1.0

5. My Digital Odyssey
• 1999 Napster 1.0
The Disappearance of Scarcity

6. My Digital Odyssey
• 1999 Napster 1.0
• 2000-2004 early legal digital services

7. My Digital Odyssey
• 1999 Napster 1.0
• 2000-2004 early legal digital services
Legal battle lines drawn
Power shifted from distributor to the
consumer
Geographic limits lifted from media
marketplace

8. My Digital Odyssey
• 1999 Napster 1.0
• 2000-2004 early legal digital services
• 2004-2007 global digital landscape
Digital licensing and partnerships in
Europe, Asia, US
Each country varied:
Cell phone adoption
Payment methods
Network standards (ie GSM)
Importance of local culture on media appeal
Intellectual property rights

9. My Digital Odyssey
• 1999 Napster 1.0
• 2000-2004 early legal digital services
• 2004-2007 global digital landscape
“Global digital” actually patchwork of
country-specific laws, standards,
devices and gatekeepers
Resulting in country-specific user
behavior in digital media

10. My Digital Odyssey
•
•
•
•
1999 Napster 1.0
2000-2004 early legal digital services
2004-2007 global digital landscape
2007-2014 connected devices
proliferation of “smart” everything
watches, glasses, phones, tablets, etc
emergence of platforms
explosion of content

11. My Digital Odyssey
•
•
•
•
1999 Napster 1.0
2000-2004 early legal digital services
2004-2007 global digital landscape
2007-2014 connected devices
Hardware, software,
and content must
integrate elegantly
…but services have
still not reached
sustainability

12. The Future of Digital Media?
• DEVICES AND PLATFORMS: will continue to evolve rapidly – table stakes
In 2009, 2.5B connected devices – 2013 10B – projected 30B by 2020(1)
• CONSUMERS: fragmented mind / wallet share in digital media “firehose”
• GLOBAL: countries’ media consumption patterns developing differently
48% of Swedes streamed music in 2013; Japan only 4%(2)
• LEGAL: copyright / usage laws lag behind technological innovation
• SERVICES: emergence of new models & price points, mobile ad-supported
The MASS MARKET model for media remains
- low threshold for consumers
- simple to use and understand
- advertising based
(1) Gartner Oct 2013
(2) IFPI 2013

13. The Future of Digital Media?
• Betting Big on Mobile Ad-Supported
Users want it:
70% cite terrestrial radio as top music discovery in 2013 (3)
15% of total radio listening in the top 5 US markets is now online (5)
70% of digital listening is on mobile – 30% desktop(5)
Mass consumer adoption to digital media is largely free ad-supported(3)
72% of listeners prefer ad-supported rather than subscription(5)
Advertisers are joining the party:
US mobile ad spend doubled to $9.6B in 2013(4)
$35B in annual revenue in audio advertising globally, $18B is US alone(5)
API and tech-enabled ad engines launching
(3) Midia Cons Dec 2013
(4) eMarketer Dec 2013
(5) Triton Digital 2014

14. Thank you!
Vickie.Nauman@7digital.com
Vickie Nauman
President 7digital US
Los Angeles, CA