Managing Change in the Dynamic Business Environment Today: Sammy Hsieh at SMECC - 20130223

  • 471 views
Uploaded on

 

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
471
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
2
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Managing Change in the dynamic business environment today Sammy Hsieh Founder and CEO Private and Confidential
  • 2. My Background • • • • • • 1997 – British American Tobacco 1999 - LVMH 2001 – Joined Yahoo! HK 2005 – Launched Overture HK 2008 – Joined Efficient Frontier 2009 – Formed iClick Interactive Private and Confidential
  • 3. Agenda • The iClick Story • Managing Change • Q&A Private and Confidential
  • 4. Company Overview Founded in 2009; backed by a number of institutions, led by Bertelsmann, Sumitomo, SSG Capital and Otto Group First in the region to introduce algorithmic optimization and programmatic media buying focusing on performance marketing inventories Over 80 clients from Fortune 100 companies, world premier brands and MNC; selected verticals include: • Finance and Banking, Hotel and Travel, E-Commerce and CPG Leading data-driven buy-side digital marketing platform in Asia • • • • Tracking: Universal tracking and attribution Technology: Robust ad-serving technology Platform: Proprietary algorithmic cross-media optimization Data: Over 100 million transactional cookies and 12 terabytes of click log data Offices in Hong Kong, Beijing, Shanghai, Shenzhen, Singapore and Taiwan; 180 employees across the region Private and Confidential
  • 5. Company Milestones Jan 2010 Jan 2011 Jan 2012 Established Beijing and Shanghai offices Key China advertiser win incl. Dangdang, M18 and Joyo Deloitte Technology Fast 500 Asia Pacific Award and Fast 50 China Award Feb 2010 Jan 2009 Established in HK and focus on local clients only 2009 1H Feb 2011 Series A Investment from Sumitomo 2009 2H Apr 2009 Operational breakeven Accumulated over 20 clients Dec 2009 Established R&D center to build new generation XMO platform 2010 1H Established TW and SG offices 90% advertisers’ migration to XMO 2010 2H Sep 2010 80% advertisers’ migration to XMO completed Accumulated over 60 clients Mar 2012 Established SZ office 2011 1H 2012 Feb 2011 Nov 2012 Series B Investment Best Interactive Agency – from Bertelsmann, SSG, Yahoo! BIC Awards 2012 Sumitomo and OTTO Oct 2010 JV with Baidu to form exclusive agency in HK, TW and SG 5 Private and Confidential
  • 6. The Changing Online Landscape Present Late 90s to early 2000 Key players led by a few dominant portals that only offered impression buy and position buy - Highly fragmented landscape - Valuable long tail traffic but difficult to target - Various charging models (e.g., CPM, CPC, CPA)  i.e., increasingly difficult for advertisers to reach out to desired audience! Private & Confidential. All Rights Reserved by Optimix. 6 Private and Confidential
  • 7. The Difficult Online Media Buying Process Advertiser s Publishers Ad Server Agency Creative Ad Network DSP Performance Agency Media Planning Ad Exchanges Data Ad Ops Measurement and Analytics Private and Confidential
  • 8. iClick Unique Solutions We facilitates the digital media buying process by helping advertisers aggregate, bid and optimize inventory across different online marketplaces Various Exchanges Advertisers/ Ad Agencies Various Publishers Online Users Search Engines Cross Market Optimizer Display Ad Exchanges Video, Mobile Ad Exchanges Customer Data Aggregator Private and Confidential
  • 9. 3.0 Buy Side Platform Media Resources Programmatic Media Planning Campaign Objectives • Maximize ROI • Increase conversions? • Lower CPA? Data Analytics Optimization Private and Confidential
  • 10. Performance Marketing is Dominating Performance-based model, which covers both search and display, currently in pole position US Internet Ad Revenues by Pricing Model, 2005 - 1H 2012 57% 59% 39% 62% 67% 65% USD 24 billion: the expected value of performance-based traded inventory in 2012 37% 51% 47% 41% 46% 48% 45% 33% 31% 31% 13% 5% 2005 4% 4% 4% 5% 4% 2% 2006 2007 2008 2009 2010 2011 1H 2012 Performance-based Impression-Based Hybrid Source: iAB, Oct 2012, eMarketer, Sep 2012 Desktop Display Market $ Share, 2010 - 2017E Indirect (long tail) Mid-tier Growing trends of performance driven display ad Premium 27% 28% 30% 31% 32% 33% 34% 34% 36% 32% 28% 25% 22% 19% 16% 14% • Reason: Premium inventory cost keeps inflating vs under monetized indirect long tail inventory • Performance-based pricing for long tail inventory: • 45% 46% 37% 44% 2010 2011E 2012E 2013E 2014E 2015E 2016E 2017E • Possible to achieve cost efficiency 52% 42% 50% 40% Share of indirect inventory display ad spending to outgrow other segments, reaching 50% by 2016 Source: Credit Suisse Estimates, Feb 2012 Private and Confidential
  • 11. Real-Time Bidding (“RTB”) on The Rise Performance-driven display ad is traded dynamically via RTB* under programmatic buying. US RTB Digital Display Ad Spending 8.0 28% 30% 7.1 Growth of % spend via RTB on DoubleClick Ad Network 25% (US$ B’) 25% 7.0 22% 6.0 5.8 20% 5.0 4.6 13% 3.0 3.4 37% Jan 11 Mar 11 May 11 39% May 10 Jul 10 10% 22% 2.0 1.9 5% 1.0 0.4 68% 48% 15% 8% 4% 66% 56% 19% 4.0 64% 8% 1.0 0.0 0% 2010 2011 2012E 2013E 2014E 2015E 2016E Jan 10 RTB digital display ad spending Source: eMarketer, Nov 2012 Mar 10 Sep 10 Nov 10 % of total digital display ad spending Source: “The Arrival of Real-time Bidding” from Google, 2011 “47% of advertisers and agencies intend to spend more on digital advertising because of the benefits of RTB” – Survey by Google and Digiday 2011 Remark: RTB allows bidding on single impression for single audience. Buying inventory based on audience request targeting based on data: geographic info, interest, demographic info and online behavior. Private and Confidential
  • 12. A billion dollar question: will China follow suit? Private and Confidential
  • 13. The Scenario in China: Massive Growth ahead Online ad spending growth in China more robust than in US albeit from low base; fueled by large headroom for online population growth, high online time spent for users, low time spend as % of online ad spend Online ad spend 2012 ad spending (RMB B’) 2015 ad spending (RMB B’) 2012 – 2015 CAGR China 79.4 187.7 33% (vs US: ~12%) Source: iResearch, May 2012 Online exceeds Print media for the first time in 2012 and is 34% greater than Print ad spend China online marketing ad spending by category 2010 1015E 187.7 RMB B' 143.1 • 79.4 79.0 64.0 37.7 32.6 • 55.4 51.3 23.8 53.7 44.2 34.9 17.6 Strong growth for display ad 111.1 107.5 Total Rapid search growth and will reach 59% of total online ad spend by 2015* • Search Display Search and display ad drive growth in China Rising trend of performance-based pricing (CPA/CPL) to reach 12.3% of total display ad spending by 2015* 23.2 12.2 2010 2011 2012E 2013E 2014E 2015E * Source: iResearch, May 2012. Search includes vertical search Source: iResearch, May 2012 Private and Confidential
  • 14. Unique Challenges in China The Chinese online market has a few key characteristics which press for needs for a more effective way of display ad placement. 1. Difficulty in reaching target audience Online Game Market highly fragmented. As of Jun 2012, over 538 million of internet users in China and 2.5 millions China-based websites* E-Commerce RSS Video Product Review Site Answers Forum Wiki 2. Increasing pressure on ROAS Rising cost for premium inventory (CPM and CPT) Weibo Chat Instant Messaging Bookmark Photo Albums Micro-blog Music Review Social Media Social Media 3. Growing efficiency issue in ad placing Relationship driven sales of inventory instead of using technology to add value An unique opportunity for a crosschannel advertising and optimization platform to thrive *Source: CNNIC, Jul 2012 Private and Confidential
  • 15. What’s Next After Ad Exchange Adoption With the rise of Ad Exchanges in China, it is likely that RTB is the next big thing US 2005 Ad Network Ad Exchange 2007 China 2007 2011 2009 RTB DSP* Up Next Remark: Demand side platforms, DSP, enable inventory buying through multiple exchanges with programmatic RTB capability. RTB based display ad in China, 2012-2016 In China, Ad Exchanges arise in response to the needs of the market to increase efficiency China RTB based display ad spending 4.50 RMB B' 4.00 3.50 3.00 2.50 2.00 3.91 1.50 2.36 1.00 0.50 0.52 1.22 2013 2014 0.13 0.00 2012 2015 2016 With number of DSPs growing in China, the environment for RTB and programmatic buying is building up rapidly. Private and Confidential Source: IDC, 2012
  • 16. Managing Change – The Vision • Lessons learned • Attractive marketplace • Create the “Blue Ocean” • Stay focus Private and Confidential
  • 17. Managing Change – The Motivation • Lessons learned • Team formation – roles and responsibility • Internal and external communication • Share your success - ESOP Private and Confidential
  • 18. Leading Industry Verticals E-Commerce (5 out of China’s TOP 10 E-Commerce players are using iClick to make better decisions) Travel & Hospitality Banking & Finance Consumer Products Others Private and Confidential
  • 19. Over 110% CAGR in Past 4 Years Reach Ad Spend of : US$120M by 2013 USD 140,000,000 120,000,000 87% 100,000,000 80,000,000 48% 60,000,000 197% 40,000,000 138% 20,000,000 Total 2009 2010 2011 2012 2013 Private and Confidential
  • 20. Managing Change – The Momentum • Lessons learned • Anchor clients • Hungry for business • Networking Private and Confidential
  • 21. Conclusion • Lessons learned • Huge and high-growth market • Market under-served and inefficiency • Unique value proposition • Financially healthy • Management team with proven track record Private and Confidential
  • 22. Thank You Q&A Sammy Hsieh sammy.hsieh@i-click.com.hk Private and Confidential