AN IV SF LifeStreet Media - 10 Good Minutes with Mitchell Weisman

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AN IV SF LifeStreet Media - 10 Good Minutes with Mitchell Weisman

  1. 1. 10 GOOD MINUTES WITH MITCHELL WEISMAN Founder & CEO, LifeStreet Media UNLEASHING THE POTENTIAL OF THE APP ECONOMYAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  2. 2. 10 Good Minutes: Where to Begin?... Answer: break the problem into smaller & smaller pieces:APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  3. 3. Start here: 10 Good Seconds… (…only 9 ¼ minutes left to go.)APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  4. 4. Next, 10 ‘Pretty Good’ Seconds… Mitchell’s Kid Mitchell Mitchell’s Kid’s FishAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  5. 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 investmentAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  6. 6. Today’s discussion:3 Big Things for the App Economy Each of which requires… …getting very small.APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  7. 7. First, a word about data and charts…APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  8. 8. Example: a ‘have to sneeze’ chartAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  9. 9. Example: a ‘have to pee’ chartAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  10. 10. Example: Data MiningAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  11. 11. Example: Data Mining InsightAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  12. 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 IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  13. 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 IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  14. 14. Thing#1: Averages Lie… StatisticianAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  15. 15. Thing#1: Averages Lie… StatisticianAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  16. 16. Thing #1: Averages Lie… User group #2, avg. value = $10.00User group #1, avg. value = $1.00APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  17. 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 IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  18. 18. But first, 10 More Good Seconds… (…several minutes down, a few left to go.)APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  19. 19. Thing #2: Real Time Biddingis 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 inventoryAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  20. 20. Before Real Time Bidding, you could only buy big groupsof 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 typesAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  21. 21. What do you bid for this big group of impressions with so manydifferent variables?APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  22. 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 typesAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  23. 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 IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  24. 24. Static, Manual Testing is No Longer Acceptable…APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  25. 25. Automated, Perpetual High VelocityTesting is Required to Win in Today’s App Economy APPNATION IV SAN FRANCISCO, CA DECEMBER 11-12, 2012
  26. 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 IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  27. 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 IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  28. 28. Common thread = granularity = getting small Sometimes you have to “break it down” to release the full potentialAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  29. 29. In closing, 10 Last Good Seconds…APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
  30. 30. Oops, wrong 10 seconds. Here it is. {Thank you for you kind attention.} {Enjoy the rest of your day.}APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012

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