10 GOOD MINUTES WITH                            MITCHELL WEISMAN                         Founder & CEO, LifeStreet Media  ...
10 Good Minutes: Where to Begin?... Answer: break the problem into smaller & smaller pieces:APPNATION IVSAN FRANCISCO, CAD...
Start here: 10 Good Seconds…                       (…only 9 ¼ minutes left to go.)APPNATION IVSAN FRANCISCO, CADECEMBER 11...
Next, 10 ‘Pretty Good’ Seconds…        Mitchell’s           Kid                    Mitchell       Mitchell’s       Kid’s F...
Next, 10 ‘Pretty Good’ Seconds… About me • Founder / CEO LifeStreet Media • 13 years ad tech executive •    7 years VC/pri...
Today’s discussion:3   Big Things for the App Economy Each of which requires… …getting very small.APPNATION IVSAN FRANCISC...
First, a word about data and charts…APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
Example: a ‘have to sneeze’ chartAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
Example: a ‘have to pee’ chartAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
Example: Data MiningAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
Example: Data Mining InsightAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
3   Big Things• Thing #1: Averages Lie          •      Think smaller!• Thing #2: Real Time Bidding  (RTB) is Huge         ...
3   Big Things• Thing #1: Averages Lie          •      Think smaller!• Thing #2: Real Time Bidding  (RTB) is Huge         ...
Thing#1: Averages Lie…               StatisticianAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
Thing#1: Averages Lie…               StatisticianAPPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
Thing #1: Averages Lie…                                    User group #2, avg. value = $10.00User group #1, avg. value = $...
3   Big Things• Thing #1: Averages Lie          •      Think smaller!• Thing #2: Real Time Bidding  (RTB) is Huge         ...
But first, 10 More Good Seconds…                       (…several minutes down, a few left to go.)APPNATION IVSAN FRANCISCO...
Thing #2: Real Time Biddingis really, really      BIG…                              • $2B RTB ad spend in 2012            ...
Before Real Time Bidding, you could only buy big groupsof impressions.                       Non-RTB = ‘Buying Big’       ...
What do you bid for this big group of impressions with so manydifferent variables?APPNATION IVSAN FRANCISCO, CADECEMBER 11...
RTB: the ultimate de-averaging tool                Non-RTB = ‘Buying Big’         RTB Pricing = ‘Buying Small’            ...
3   Big Things• Thing #1: Averages Lie          •      Think smaller!• Thing #2: Real Time Bidding  (RTB) is Huge         ...
Static, Manual Testing is No Longer Acceptable…APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
Automated, Perpetual High VelocityTesting is Required to Win in Today’s App Economy APPNATION IV SAN FRANCISCO, CA DECEMBE...
Example: 23 Rounds of Testing,Yield Lift > 1,000%                        Testing Period    # Test Rounds       Total Ads T...
Recap: 3               Big Things…                          …That Require Going Small.• Thing #1: Averages Lie          • ...
Common thread = granularity = getting small                       Sometimes you have to “break it down” to                ...
In closing, 10 Last Good Seconds…APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
Oops, wrong 10 seconds. Here it is.                       {Thank you for you kind attention.}                          {En...
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APPNATION IV - Lifestree Media - Mitchell Weisman - 10 Good Minutes

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  • \\
  • Really fast -- 40 seconds
  • $2B ad spend in 2012 – that’s an 85% increase from 2011$13.9B expected in 2016 is a 59% compounded annual growth rate88% growth in RTB ad inventory in Q3: it’s up 29% vs Q2 2012 – in only one quarter
  • Show “analog” testing – MadMen lipstick testinghttp://thechive.com/2012/11/14/back-in-the-day-this-was-the-greatest-job-on-the-planet-7-photos/
  • http://www.vulture.com/2012/09/psys-k-pop-crossover.html
  • APPNATION IV - Lifestree Media - Mitchell Weisman - 10 Good Minutes

    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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