Download to read offline
Uploaded byVera Kovaleva
Lumaup
The document discusses the evolution of television and digital video, emphasizing the rise of convergent TV through platforms like OTT and CTV. It highlights shifting advertising dynamics, with increasing investments in digital video and the challenges of supply and demand in the market. With significant trends such as mobile-first advertising and the merging of traditional and digital media, the future points towards a more integrated approach to content and advertising strategies.
More Related Content
Lumaup
- 1. Terence Kawaja LUMApartners TheFuture of TV
- 2. The First Halfof My Career Was in TV
- 3. The Second HalfWas in Digital
- 4. The Third Half?Convergent TV
- 5. The Third Half?Convergent TV Too Early! January 2001 merged with
- 6. LUMA is aLeading Authority on Convergent TV Over 600,000 Views
- 7. The State of DIGITALVIDEO
- 8. Hours 28% Source:eMarketer, comScore Video Metrix December 2015 U.S. Digital Video Proper5es Ranked by Unique Video Viewers Average Time Spent per Day with Digital Video by Device in U.S. YouTube Has Dominated the Rise of Digital Video 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 2011 2012 2013 2014 2015 Tablet Smartphone Desktop Other
- 9. But Now It’sNot the Only Game in Town
- 10. Facebook Auto-Play Videosare Ubiquitous 75%From Mobile 8 Billion Daily Views
- 11. Mobile Apps BringLive Content to Your Fingertips
- 12. Snapchat Has BuiltMobile-First Advertising
- 13. Publishers of AllKinds Are Investing in Video
- 14. There Just isn’tEnough Supply! Display Ad CPM $1.90 Video Ad CPM $24.60 Source: ZenithOptimedia, Note: Average CPM
- 15. $4.2 $5.2 $7.5 $9.6 $11.4 $0 $2 $4 $6 $8 $10 $12 2013 2014 2015 2016 2017 Source: eMarketer $ billions CAGR: 28% Digital Video Digital Video Spend Continues to Rise CAGR: 150% ProgrammaDc Video
- 16. Source: eMarketer $ billions Digital Video But is Still Only a Fraction of the TV Market TV $66.4 $68.5 $69.6 $72.7 $74.1 $0 $10 $20 $30 $40 $50 $60 $70 $80 2013 2014 2015 2016 2017 $0 $10 $20 $30 $40 $50 $60 $70 $80 2013 2014 2015 2016 2017 ProgrammaDc Video
- 18.
- 19.
- 20. 100 : 1 19 Buckets 36 ~ 100 Companies ~ 400 $150 Billion Total Spend $6 Billion $1.5 Billion $ / Company $15 Million Traditional TV vs. Digital Video Players
- 21. 100 : 15x Cash NewEntrants Have Plenty of Money to Build or Buy Market Cap: $2 Trillion Cash: $400+ Billion Source: Needham & Co. estimates the TV ecosystem to be ~$400 Billion
- 22. Screens Delivery Content 2008 Was SoSimple: Traditional & Digital Silos
- 23. Delivery Screens Content Second Screen Chromecast /Airplay Partnerships “Netflix+ Disney” Convergence Begins with Device Proliferation
- 24.
- 25. Final Late Night Episode Evolutionof Top Rated Show Most Viewed Episode 1993 1990 1992 80MM 52MM 38MM TraditionalTV ContentModel
- 26. Final Late Night Episode Evolutionof Top Rated Show Most Viewed Episode 1993 2007 1990 2013 1992 2009 80MM 30MM 52MM 8MM 4MM 38MM Crosschanneldevices killedthetelevisionstar!
- 27. Big $$$ A18-49 Reach Incremental Budget A25-54 Reach Paying30-50% more for .5-1% more reach?! TRP Source: Needham & Co. , Nielsen Incremental Cost Per Reach Point Incremental is Increasingly Expensive on TV!
- 28. Slack in Demandfor Upfront Buys
- 29. Selling Points Reversedin 2015 Upfronts NewFronts Selling Premium Content Selling Data-‐Driven Approach
- 30. Selling Points Reversedin 2015 Selling Data-‐Driven Approach Selling Premium Content Upfronts NewFronts
- 31. Now TV isBeing Aggressive with Data Credit Card Data Subscriber Data Target Audience Yogurt Buyers Frozen Snack Buyers Wireless Data Users Inspired by WSJ
- 32. Digital is IncreasingInvestment in Original Content Everyone is gePng in on the game ?
- 33. OTT/CTV Delivery Screens Content Partnerships “Netflix +Disney” Convergent TV Through OTT Distribution
- 34. OTT Options AreGrowing $50-‐$70 $8 $9 $20 $99/year $15 $6 Average Basic Cable Packages ~$120 Source: NPD Group $15 Stream
- 35. -‐60% -‐50% -‐40% -‐30% -‐20% -‐10% 0% 10% 20% 30% TV’s Year of Doom Note: Market Data as of 1/27/16 (2%) 12% (23%) (24%) (14%) (45%) (28%)
- 36. Perception vs. Realityin Addressable TV Linear TV Programma5c TV Percep5on Reality Linear TV Addressable Linear TV Video On Demand (VOD) Over The Top (OTT) Digital Video Programma5c TV
- 37. Total US TV & Video Market: 100% Digital Video: 10% RTB: 1% Ø The winners will provide tools that help the TV AND Digital stakeholders Focus on the 100% Opportunity Ø RTB is a`racDng a small fracDon of the Video Market
- 38. Marketer Agency MVPD Network Ø Premium supply / content on digital Ø Consistent raDngs across plaaorms Ø Accurate ROI analysis Ø Strategic planning Ø One plaaorm for campaigns on TV and digital Ø ProgrammaDc workflow and RTB capabiliDes Ø Cross device matching Ø Audience extension Ø ProgrammaDc capabiliDes for TV supply Ø Yield management for TV and Digital content Ø A`ract TV quality adverDsing spend for digital content What TV Stakeholders Want
- 39. Programmatic Platforms Targeting Technology Attribution/ Analytics Low-Cost Production Integrated Workflow Premium Content Brand Relationships Convergence of Two Worlds
- 40. 33 Video Dealsin the Last 2 Years
- 41. 33 Video Dealsin the Last 2 Years ~$700 Million
- 42. Convergent TV viaM&A CONTENT DISTRIBUTION MONETIZATION Media
- 43. Major Strategics NowFocused on Convergent TV
- 44. A Reflection ofa Growing Buyer Pool MARKETING TECH CRM SOFTWARE INTERNET ORIGINALS TELCO MARKETING MEDIA DATA CONSUMER INTERNET TECH SERVICES COMMERCE Right Time Decisioning of Consumer Data (Ad Tech and MarTech)
- 45. Potential TV GameChangers Regulation Technology Content
- 46. LUMA’s Commitment toLA Over 170 Exits in past 2 years
- 47. LUMA’s Commitment toLA Over 170 Exits in past 2 years December 2011 December 2015 has been acquired by The undersigned acted as co-financial advisor to MarketShare Partners. December 2011 December 2015 has been acquired by The undersigned acted as co-financial advisor to MarketShare Partners. December 2011 July 2014 The undersigned acted as exclusive financial advisor to Adconion Media Group Limited has been acquired by a subsidiary of December 2011 December 2015 The undersigned acted as co-financial advisor to MarketShare Partners. December 2011 April 2014 LUMA Securi=es, a wholly-owned broker-dealer of the undersigned, acted as underwri=ng co-manager to The Rubicon Project, Inc. Ini4al Public Offering $116,799,660 December 2011 September 2015 has been acquired by Principals currently at the undersigned acted as exclusive financial advisor to Looksery, Inc.
- 48. New York |San Francisco | Palo Alto Access. Insights. Execution. LUMApartners Thank you! @tkawaja