The Problem¤ Premium Publishers have lost approximately 50% of their overall advertising revenues in the American Newspapers have lost 55,6% of past ﬁve years (2006-20011). their advertising revenues in the past 5¤ They haven’t been able to increase digital years (2006-2011). revenues enough to compensate this fall. Newspaper Assosiaciation of America¤ In the ofﬂine world, advertising revenues depend on Publisher’s brands and the size of their audiences. ¤ In the online world, user’s knowledge is the key driver for revenues. Spanish newspapers have lost 51% of their¤ Premium Publishers hardly know anything advertising revenues in the past 4 years. about their users, therefore they still sell Infoadex advertisement spaces, not audiences.
The Problem ¤ Other agents present in the display advertising market value chain retain most of the ﬁnal value paid by advertisers, reducing Premium Publishers revenues, by transforming advertising spaces into online audiences and delivering it directly to the market. ¤ Publishers can’t disintermediate the value chain to increase their share of the market because they don’t have advertising products demanded by advertisers.Terence Kawaja’s 2010 IAB presentation "Parsing the Mayhem: Developments in the AdvertisingTechnology Landscape.” outlined the distribution of revenue through the ad technology chain. SinceMay 2010 the situation has gotten worse as there are more players in the game.
Lynotech’s SolutionLynotech transforms user’s data generated by Premium Publishers into knowledge through state ofthe art data processing technologies, and provides publishers with adequate interfaces to managethat knowledge in order to enhance its value.Each Publisher is owner of the user’s knowledge generated in its sites. Lynotech will help publishersto use this knowledge to:¨ Design their editorial strategies based on users insights to increase their audience and therefore their inﬂuence.¨ Create a higher value advertisement product that allows publishers to sell segmented audiences instead of advertising spaces and develop new commercial strategies.¨ Capture more market value and disintermediate the advertising selling ecosystem by creating a bridge that reaches advertisers and agencies directly with premium targeted advertising products.
Lynotech’s Team¤ Paul de Mulder ¤ Guillermo Ramos Freelance business consultant specialized in Economist with extensive experience in media groups with four years of experience Venture Capital, Private Equity, Fundraising, working in the industries transformation. Strategy, Start Ups, Valuations and Business Plans.¤ Luis Fajardo ¤ José Rizo IT Engineer specialized in Software Development Management with ﬁve years of Experienced IT/engineering professional experience developing communication focused on Real Time System developments for systems and air navigation aids. the Aerospace Industry.¤ Alex Delgado: Business Intelligence Manager at one of the biggest online retailer in the Spanish market, specialized in big data systems and data mining, with ten years of experience.
Business ModelLynotech charges Premium Additionally, Lynotech chargesPublishers a monthly fee for it’s Premium Publishers a percentageservices according to the size of of the advertisement revenuestheir audience. achieved thanks to the user’s knowledge provided.
Sales and Marketing Strategy¤ Lynotech already has an agreement with a premium local newspaper publisher to develop and enhance it’s user’s knowledge technology.¤ Having developed and validated the solution, Lynotech will start approaching Spanish media groups through it’s contacts in the industry remarking the results of their solution.¤ In order to do so, Lynotech and the premium local newspaper publisher will develop a Case Study that will be pitched together in national and international media events (such as WAN IFRA) in order to gain visibility. ¤ At the same time, Lynotech will approach as many national media groups associations as we can in order to share our experience.¤ Lynotech will try to impulse wide agreements in different international markets to add as many Editorial Groups as possible to it’s initiative.
Risks¨ Development Period: Pilot month six, Minimum Viable Product month twelve, First Incomes month eighteen, Break Even month 24.¨ Financial needs to resist at least 24 months with insufﬁcient incomes: 450.000 $¨ Media’s industry resistance to change: difﬁculty to change their online business model.¨ Advertisers lack of knowledge regarding the digital advertisement possibilities.¨ Actual advertisement ecosystem agents possible countermeasures: agencies power can affect ofﬂine incomes of our customers. …none of them meets fully Premium Publishers needs.
FundingLynotech needs 450,000 € in 24 months in order to ﬁnance it’s activity until it reaches break even.¤ Lynotech will begin it’s activity with a 50.000 € Friends, Fools and Family funding round in order to develop a pilot solution in six months.¤ Lynotech will additionally need 150,000 € in month 6 to achieve a Minimum Viable Product in month twelve, which will be raised across FFF and traditional Spanish editorial families.¤ In month twelve, actual investors will have the chance to subscribe Lynotech’s 200,000 € needs for year two. Any unsatisﬁed needs will be offered to other editorial families and groups.