APPNATION IV SAN FRANCISCO, CA DECEMBER 11-12, 2012 10 GOOD MINUTES WITH MITCHELL WEISMAN Founder & CEO, LifeStreet Media UNLEASHING THE POTENTIAL OF THE APP ECONOMY APPNATION IV SAN FRANCISCO, CA DECEMBER 11-12, 2012
Transcript
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. 10 Good Minutes: Where to Begin?... Answer: break the
problem into smaller & smaller pieces:APPNATION IVSAN
FRANCISCO, CADECEMBER 11-12, 2012
3. Start here: 10 Good Seconds (only 9 minutes left to
go.)APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
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. Todays discussion:3 Big Things for the App Economy Each of
which requires getting very small.APPNATION IVSAN FRANCISCO,
CADECEMBER 11-12, 2012
7. First, a word about data and chartsAPPNATION IVSAN
FRANCISCO, CADECEMBER 11-12, 2012
8. Example: a have to sneeze chartAPPNATION IVSAN FRANCISCO,
CADECEMBER 11-12, 2012
9. Example: a have to pee chartAPPNATION IVSAN FRANCISCO,
CADECEMBER 11-12, 2012
10. Example: Data MiningAPPNATION IVSAN FRANCISCO, CADECEMBER
11-12, 2012
11. Example: Data Mining InsightAPPNATION IVSAN FRANCISCO,
CADECEMBER 11-12, 2012
12. 3 Big Things Thing #1: Averages Lie Think smaller! Thing
#2: Real Time Bidding (RTB) is Huge Because its small! Thing #3:
High Velocity Testing has Come of Age Allowing us to think
small!APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
13. 3 Big Things Thing #1: Averages Lie Think smaller! Thing
#2: Real Time Bidding (RTB) is Huge Because its small! Thing #3:
High Velocity Testing has Come of Age Allowing us to think
small!APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
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. 3 Big Things Thing #1: Averages Lie Think smaller! Thing
#2: Real Time Bidding (RTB) is Huge Because its small! Thing #3:
High Velocity Testing has Come of Age Allowing us to think
small!APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
18. But first, 10 More Good Seconds (several minutes down, a
few left to go.)APPNATION IVSAN FRANCISCO, CADECEMBER 11-12,
2012
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. 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. What do you bid for this big group of impressions with so
manydifferent variables?APPNATION IVSAN FRANCISCO, CADECEMBER
11-12, 2012
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. 3 Big Things Thing #1: Averages Lie Think smaller! Thing
#2: Real Time Bidding (RTB) is Huge Because its small! Thing #3:
High Velocity Testing has Come of Age Allowing us to think
small!APPNATION IVSAN FRANCISCO, CADECEMBER 11-12, 2012
24. Static, Manual Testing is No Longer AcceptableAPPNATION
IVSAN FRANCISCO, CADECEMBER 11-12, 2012
25. Automated, Perpetual High VelocityTesting is Required to
Win in Todays App Economy APPNATION IV SAN FRANCISCO, CA DECEMBER
11-12, 2012
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. Recap: 3 Big Things That Require Going Small. Thing #1:
Averages Lie Think smaller! Thing #2: Real Time Bidding (RTB) is
Huge Because its small! Thing #3: High Velocity Testing has Come of
Age Allowing us to think small!APPNATION IVSAN FRANCISCO,
CADECEMBER 11-12, 2012
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. In closing, 10 Last Good SecondsAPPNATION IVSAN FRANCISCO,
CADECEMBER 11-12, 2012
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