Key Considerations: Getting to Top-Down Market Size•Based on the methodology for Top-Down•Advertising is the main revenue stream•The total available market is got to by looking at the total advertisingspend in the world ($600Bn) – This is then further broken down bychannel and regions•Total Serviceable Market is taken as the total digital spend, consideringthat Flowboard is a digital service on multiple-platforms•Within the Serviceable Market various channels of events have beenidentified such as Sports, Conferences, Weddings, Parties, however toprioritise there will be some beta testing that will help to choose one tofocus on for sales and marketing
Top-Down Calculation Understanding Digital Ad Spend Total Advertising Market is $600Bn Total Digital Ad Spend $85Bn North America Asia Pacific Western Europe $34.5Bn $24.8Bn $21BnSources-Group M ‘This Year, Next Year’ Report (Digital Spends)--Sky News for total annual global advertising spend
Top-Down Calculation: Flowboard Growth Potential Money moving Total Advertising from traditional Market is $600Bn to digital advertising Total Digital Ad Spend $85Bn Growing at 17% Mobile Ad spend Pegged to reach $3.3Bn $20.6Bn by 2015Sources-Group M ‘This Year, Next Year’ Report for digital spend--Sky News for total annual global advertising spend-MobiThinking for Mobile Ad spend
For Flowboard: Top Down Market Size Global advertising Total Available spend is taken as the Market is $600Bn Total Available Market as the digital share of this spend is increasing so rapidly, it may take Total Serviceable over a very large Market is $85Bn percentage of the total market. Parties, Weddings ConferencesSports Concerts and other Business Meetings personal events
Bottom Up Market Size CalculationWhile the whole market or 100% of the market is a massive $600Bn market size.We have followed Prof. Eesley’s advice to target a specific segment of this marketwhere our users have been split according to a certain interestThe sector chosen is sports. But this in itself is still a massive market worth in excessof $100Bn.For this reason we’ve chosen the sub-sector within the sports market:Football/Soccer with a focus only on the English Premiere League that enjoys aglobal audience of 600 million people!
Bottom Up Market Size While Flowboard will be used for many other sports and in fact many other events in general such as concerts, parties, conferences etc. We’ve focussed on English Premiere Bottom Up Market League to prove the potential. Size potential with the English Premiere League Sector Chosen: only is well over Sports Events (Total Market $100Bn) $1.3Bn Focus on: English Premiere League Football(Soccer)Based on methodology from Prof. Eesley video for getting tototal available market and servicable market before targetmarket http://youtu.be/3TltbMyJ2xYSource for Sports Ad Potential: PWC Report on Sports Economy
Bottom-Up Calculation Elements•Bottom up calculation based on numbers viewershipnumbers for the English Premiere League.•Just within football/soccer there are many more events andmuch higher potential as we include other sports and thenother types of events!•This means a lot of head room for more users andadvertising potential•Advertising is the main source of revenue• Potential calculated using standard advertising measure ofCost Per Thousand (CPM)
Detailed Bottom-Up Calculation Elements Figures Commentary/RemarksNo. of Viewers for English Premier League Football(soccer) 600000000Published EPL global viewership numbers We also assume that people with Smartphones will have tablets in case they choose to use itSmart Phone Penetration Developed Markets ) % 45 instead, but no incremental users from Tablets Calculated at 45% penetration and then a 20% mark up keeping in mind viewership audiencePotential Users for web/mobile Apps like Flowboard 324000000 owning white goods Calculated as 50% of potential usersProjected Users Apps like Flowboard (Market Size in considering technology adoption modelsUsers) 162000000 Innovators and early adopters Estimated at once a week for home and awayNo. of times one user logs in annually (assumed 6 games, this is a conservative est. as there aretimes) 8424000000 760 matches in total in one seasonApp equivalent of Page Views Per visit (assumed at 4) 33696000000Ad Impressions: No. of pageviews with ad serving(80%) 26956800000Cost Per Thousand Impressions (CPM) $5 (based onindustry average) 0.05 Potential Market Size ($) [Ad impressions *CPM/1000) 1347840000 = $1.3Bn