selastürkiye digital media advertising report by richard p. wong
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8/8/2019 SelasTrkiye Digital Media Advertising Report by Richard P. Wong
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Accel Confidential and Proprietary
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A Venture Perspective:Future of Advertising inDigital Media
Richard P. WongMay 16, 2007
Michigan Growth Capital Symposium
rwong@accel.com
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Todays Discussion
Backdrop: High Level VC Trends
Digital Media & Advertising
Sector Discussion: Mobile & Wireless
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N um b
er
of D
e a l s
2007 Investment On Track Deal Flow and Equity into Venture-Backed Companies
Source: Dow Jones VentureOne/Ernst &Young
$13.1$17.9
$49.5
$36.4
$22.2 $19.7 $22.5 $24.0$26.7
$94.8
$7.0
22112547
4590
6351
3311
2429 2221 2338 24542527
584
$0
$25
$50
$75
$100
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1Q070
1,000
2,000
3,000
4,000
5,000
6,000
Amount Invested ($B) Number of Deals
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Todays Discussion
Backdrop: High Level VC Trends
Digital Media & Advertising
Sector Discussion: Mobile & Wireless
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Media Consumption vs. Ad Spend
0
5
10
15
20
25
30
35
40
T el evi si on
Onl i n e
R a di o
N ew s p a p er
M a g azi n e s
% of MediaConsumption% of 2005Ad Spend
Source: Universal McCann (Dec 05); eMarketer (May 05); Outdoor Advertising Association (Mar 05), IAB/PwC (Aprl 06), Jupiter Research (Feb 06)
The average US consumer spends14 hours per week watchingtelevision and 14 hours per weekonline. Other media types trail far behind: radio (5), newspapers (2),magazines (1).
Gap between consumption and spend shows large potential for online ad growth
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Less Time on Traditional Media
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Newspaper Readership
Steady decline in newspaper readershipOnline classifieds further exacerbating revenue model
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Where are the $$?Revenue and Growth By Offline Media Type
Source: Universal McCann (December 2005); eMarketer (May 2005); IAB/PwC (April 2006)
Revenue (2005)
+3.3% +7.3%+7.1%+6.1%+5.7%Growth (2005 vs. 2004)
$14.5B $13.0B$22.6B$21.0B$49.6B
YellowPgs
Approx $250B ad market across all mediums Online still a relatively small part of overall but Online growth rate of 30% CAGR is 4x the growth rate of
median
+9.5%
$57.2B
News-paperDirectMail CableTVRadio
+1.4%
$46.7B
TV OnlineMagazine
+30%
$12.5B
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Fragmentation of Time Spent Online
Source: Goldman Sachs Research estimates & Synovate (May 2006)
but fragmentation of time spent online will drive thechannelization of the Internet, opening up newopportunities much like cable TV.
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New Players Entering Top 20
New entrants:
Fox: mainlymyspace
Facebook
Social networkingsites
Is communitainment whats next?
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Accels Digital Media Investments
Social & VerticalMedia Networks
Aggregate content,audience & community
Community DrivenMedia Networks
Destination sites for grass-roots creation,
programming, &sharing
Off-Deck MobileNetworks
Develop globalcommunities outside
walled garden
Online GamingNetworks
Grass-roots creation &programming; viral
consumption
Analytics & Targeting Platforms
Cross-platform analytics & asset management
Delivery & Infrastructure Platforms
Application-specific media delivery systems
Monetization Platforms
Cross-platform advertising solutions
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Mobile Content is about to explode
By 2009, millions/billions of will be accessed via mobile
Amountofmobile-accessiblecontent
2007 2008 20092006
WE ARE HERE
mobile-designed web sites / pagesadvertisers / campaigns
downloadablesringtones & music tracks
images / wallpaper hours of video and television
news stories
mobile social networksmobile blogs
mobile commerce transactionsmicropayments
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Mobile 2007 is Similar to Web 2005
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Emergence of Mobile Advertising
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Mobile Advertising Opportunity (NA)
US Internet Ad Market 203 million users (Nielsen) $16 billion (IAB)
US Mobile Ad Market 204 million subscribers (CTIA) $100 million (WSJ)
Informa projects mobileadvertising at $11.35billion by 2011
US TV Ad Market (broadcast, syndicated and cable) 280 million viewers (Nielsen) $73 billion (IAB)
Source: Medio
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Mobile Advertising Models
Text Ads
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21Major Brand Adoption Beginning(Adidas World Cup)
Source: Admob
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Consumer Feedback: Ad Support
Up to 40% of users respond Yes, and up to 70% respond Dont Know or Yes to ad-subsidy for data service
Not surprisingly 18-24 and 25-34 youth demographics aremost open to ad-supported model
Source: Jupiter Research
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Accel Partners Overview
Be First: Back companies with category-defining, breakout potential Active, lead investors in early stage technology companies for over 25 years Global footprint: US (9 partners), Europe/Israel (7 partners), China IDG-Accel
(11 partners) Manage over $3B, created over $150B of market value
Sample of Accel companies include:
http://images.google.com/imgres?imgurl=http://www.mobilecomplete.com/images/internal/clients_logos/medio.jpg&imgrefurl=http://www.mobilecomplete.com/customers/customers.htm&h=50&w=115&sz=3&hl=en&start=0&um=1&tbnid=0TORQ4D8DhrNlM:&tbnh=38&tbnw=87&prev=/images%3Fq%3DMEDIO%2BSYSTEMS%26svnum%3D10%26um%3D1%26hl%3Den%26rlz%3D1T4IBMA_en___US217
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