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Marketing and Ad:Tech SummitTel Aviv February 2014
My Digital Odyssey, Lessons Learned, & the Future of Ad-Supported Streaming Media
Vickie Nauman
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Pre-Digital• 10 years in marketing & US terrestrial radio
Traditional and physical media defined by:Distinct channels into a finite potential audienceProgramming and ads for a targeted demographic
Limited by: Printing capabilitiesBroadcast signal reachRetail inventoryScarcity of content
But all that changed….
NETWORK
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My Digital Odyssey• 1999 Napster 1.0
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My Digital Odyssey• 1999 Napster 1.0
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My Digital Odyssey• 1999 Napster 1.0
The Disappearance of Scarcity
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My Digital Odyssey• 1999 Napster 1.0• 2000-2004 early legal digital services
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My Digital Odyssey• 1999 Napster 1.0• 2000-2004 early legal digital services
Legal battle lines drawn
Geographic limits lifted from media marketplace
Power shifted from distributor to the consumer
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My Digital Odyssey• 1999 Napster 1.0• 2000-2004 early legal digital services • 2004-2007 global digital landscape
Digital licensing and partnerships in Europe, Asia, US
Each country varied:Cell phone adoptionPayment methods Network standards (ie GSM)Importance of local culture on media appealIntellectual property rights
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My Digital Odyssey• 1999 Napster 1.0• 2000-2004 early legal digital services • 2004-2007 global digital landscape
“Global digital” actually patchwork of country-specific laws, standards, devices and gatekeepers
Resulting in country-specific user behavior in digital media
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My Digital Odyssey• 1999 Napster 1.0• 2000-2004 early legal digital services • 2004-2007 global digital landscape • 2007-2014 connected devices
proliferation of “smart” everything watches, glasses, phones, tablets, etcemergence of platformsexplosion of content
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My Digital Odyssey• 1999 Napster 1.0• 2000-2004 early legal digital services • 2004-2007 global digital landscape • 2007-2014 connected devices
Hardware, software, and content must integrate elegantly
…but services have still not reached sustainability
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The Future of Digital Media?• DEVICES AND PLATFORMS: will continue to evolve rapidly – table stakes
In 2009, 2.5B connected devices – 2013 10B – projected 30B by 2020(1)
• CONSUMERS: fragmented mind / wallet share in digital media “firehose”
• GLOBAL: countries’ media consumption patterns developing differently48% of Swedes streamed music in 2013; Japan only 4%(2)
• LEGAL: copyright / usage laws lag behind technological innovation
• SERVICES: emergence of new models & price points, mobile ad-supportedThe MASS MARKET model for media remains- low threshold for consumers- simple to use and understand- advertising based
(1) Gartner Oct 2013(2) IFPI 2013
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The Future of Digital Media?• Betting Big on Mobile Ad-Supported
Users want it:
70% cite terrestrial radio as top music discovery in 2013 (3)
15% of total radio listening in the top 5 US markets is now online (5)
70% of digital listening is on mobile – 30% desktop(5)
Mass consumer adoption to digital media is largely free ad-supported(3)
72% of listeners prefer ad-supported rather than subscription(5)
Advertisers are joining the party: US mobile ad spend doubled to $9.6B in 2013(4)
$35B in annual revenue in audio advertising globally, $18B is US alone(5)
API and tech-enabled ad engines launching (3) Midia Cons Dec 2013(4) eMarketer Dec 2013(5) Triton Digital 2014
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Thank you!
Vickie NaumanPresident 7digital USLos Angeles, CA