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Pitch

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Pitch

  1. 1. LynotechEmpowering Publishers
  2. 2. LynotechLynotech is a multiplatform audience knowledge system for premium publishers whichallows them to deliver targeted audiences directly to advertisers, provides useful userinsights to content creators and sales teams, and allows to build better services for users,driving superior digital revenues for publishers. Lynotech does what Google would do if it was a Premium Publisher.
  3. 3. 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.
  4. 4. 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.
  5. 5. 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.
  6. 6. Market Size USA 2011 Europe 2010* Spain 2011PremiumPublishers Internet Ad Revenue (m$) 31.896,55 22.713,15 1.141,24Internet Total Available Market 11.100,00 7.495,34 550,44 Display Ad Revenue (m$) (34,8%) (33%) (48,23%)Displays Last Years Display AdAdvertising 15% 21,10% 12,60% Revenue Growth (%)Market Size in 9.102,00 523,75millions of Premium Publishers (m$) Not available (Top 50: 90%) (Top 30: 95%)dollars, Newspapers (m$) 3.249,40 Not available 148,40**according tothe Interactive Sources: IAB USA – Internet Advertising Revenue Report Full Year 2011: http://www.slideshare.net/pmereles/iab-internet-advertising-revenue-report-full-year-2011Advertising IAB Europe – European Online Advertising Expenditure 2010 (2011 Report not available yet*): http://www.slideshare.net/pmereles/iab- europe-2010Bureau (IAB) IAB Spain – Estudio sobre Inversión Publicitaria en Medios Digitales: http://www.slideshare.net/IAB_Spain/estudio-de-inversin-en-publicidad-digital-total- ao-2011-iab-spainpwcdata Newspaper Association of America **Deloitte–AEDE March 2012 Newspapers Digital Editions Ad Revenue x 12
  7. 7. Business ModelLynotech charges Premium Additionally, Lynotech chargesPublishers a monthly fee Premium Publishers a percentageaccording to the size of their of the advertisement revenuesaudience. achieved thanks to the user’s knowledge provided.
  8. 8. CompetitionApparently, there are many competitors, but… ¨  They all fight to keep control of their piece of cake and increase market’s opacity. ¨  They all keep user’s knowledge for themselves in order to monetize it elsewhere. ¨  None of them really helps Publishers build better audiences. ¨  None of them maximize advertising revenues for Publishers, they maximize their own revenues. …none of them meets fully Premium Publishers needs.
  9. 9. Lynotech’s AdvantageNone of the players in the market addresses this matter from a Premium Publisherspoint of view: no agent meets fully their needs.Publishers need to own their user’s knowledge in order to drive growth in the onlinemarket: ¨  Delivering better contents to increase their online audiences. ¨  Delivering personalized services to increase user’s engagement. ¨  Delivering higher value products to advertisers (targeted audiences vs. spaces) to increase their revenues per user. ¨  Disintermediating the current value chain to capture more market value. ¨  Developing new commercial strategies to maximize in-site audiences monetization.
  10. 10. Go To Market ¤  Lynotech already has an agreement with a premium local newspaper publisher to develop and enhance it’s user’s knowledge technology: months 1-6.Trojan Horse ¤  Lynotech will silently develop and polish the sales and editorial interfaces that Strategy will help publishers enhance their incomes and audiences: months 6-9. ¤  Lynotech will start testing targeted campaigns without advance: months 6-9. ¤  With results in it’s hands, Lynotech will try to impulse a wide agreement with the Spanish Premium Publishers to add as many Editorial Groups as possible Silent to it’s initiative, in order to avoid other online advertising agentsConcentration countermeasures: months 9-12. ¤  At the same time, Lynotech will start to impulse similar editorial agreements in different European markets and in the US.
  11. 11. 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 Experienced IT/engineering professional Development Management with five years of focused on Real Time System developments for experience developing communication the Aerospace Industry. systems and air navigation aids.¤  Key Hire: ¤  Key Hire: One Artificial Intelligence Specialist to help Two experienced coders in systems polish the user’s knowledge system. Already integration to connect the user’s knowledge Identified. system with the rest of Lynotech’s tools.
  12. 12. First StepsLynotech has applied to Wayra, Telefonica’s startup accelerator program, which offers:¤  Funding: Up to EUR 50,000 and alternative ways of funding, such as external VCs and internal funds from other Telefonica’s ventures.¤  Advisory: technical and specific advisors in topics like marketing, taxes, patents and intellectual property, legal frameworks, business regulations and financial issues.¤  Infrastructure and working space: world-class co-working space.¤  Mentoring & Networking: a good opportunity to benefit from synergies and access to valuable knowledge.¤  Training: from top universities, technical and business schools¤  Technical Development: regular talks and consultancy from Telefonica I+D engineers.
  13. 13. LynotechEmpowering Publishers

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