mediamath - mad men to math men

CONFIDENTIALITY NOTICE: This document contains proprietary company informa>on which may not be disclosed to any third party without the express wriCen permission of MediaMath, Inc.

Mad Men to

Math Men

OMMA Performance

© 2009 MediaMath, Inc. All rights reserved. Confidential

2 © 2010 MediaMath, Inc. All rights reserved. Confidential

“In the past, one could get by on intuition and experience. Times have changed. Today, the name of the game is data.”

- Steven D. Levitt, co-author of Freakonomics (for Super Crunchers)

The Quant Revolution has begun

THE QUANT REVOLUTION

Liquidity Automation Data Optimization



Liquidity



Today: Over 85% of trades

conducted electronically

Automation

Then: The floor brokers rule



Data

"There was 5 exabytes of information created between the dawn of civilization through 2003, but that much information is now created every 2 days, and

the pace is increasing” - Eric Schmidt, Google

Business Insider: “How To Create Your Own

Bloomberg Killer for Under $1,000”



Optimization



Other Markets

QUANTS IN …

Product Design Military Medicine



Liquidity in Marketing



Automation in Marketing



VISUALIZATION INPUTS MANAGEMENT

Data in Marketing



Optimization in Marketing

“[MediaMath’s] traders spend their days in front of two computer screens, feeding their systems with data and trying to perfect their trading algorithms

… But they are not analyzing stocks. They are analyzing advertising.” - Stephanie Clifford, The New York Times



ACXIOM #1:

The bell will not be unrung.



ACXIOM #1:

The bell will not be unrung.

10X ROI =



ACXIOM #2:

The Kawaja Chart = Same Inputs; Different Conclusion



Agencies Media Buying Platforms

“DSPs”

Creative Optimization

Data Optimization

Ad Exchanges

Ad Networks Horizontal

Vertical

Targeted/Audience

Performance

Mobile

Yield Optimization

Publisher Tools

Ad Servers

Ad Servers

Ad Ops / Infrastructure

Sharing Data /

Social Tools

DMPs and Data

Aggregators

Data Suppliers

Analytics Verification / Attribution

2005 2006 2007 2008 2009 2010

2005 2006 2007 2008 2009 2010

SEA

RC

H

DIS

PLAY

Agencies SEM Tools

SEO Tools



PREDICTION #1:

General contractors will pitch; theories tested



The Media Company

The Holding Company

The Operating Agency

The DIY Advertiser

The Others

PREDICTION #1:

General contractors will pitch; theories tested



PREDICTION #2:

Performance will out



PREDICTION #2:

Performance will out

Index = 100

-20%

Index = 10

-10%

Old Model

RTB & Buy-Side Opto

Creative (Dynamic,

Rich Media, etc.)

-10%

1st, 2nd and 3rd party data

-10%

Attribution

-10%

Other

-20%

Publisher Integration & Participation

-10% Cost-

Efficiencies



PREDICTION #2:

An ESPN/Budweiser in 2012 will signal the end��of BAU.



One Fortune 50 advertiser will demand “all quant, all digital” in 2012

Ecosystem will adapt in order to support budget

PREDICTION #3:

An ESPN/Budweiser in 2012 will signal the end of BAU

It will work, renewing in 2013 Performance, insights, simplicity and control will out

Others will emulate @ scale in 2014 Mad to Math transformation in marketing will be complete



RECOMMENDATION #1:

Lead, or be ready to fast follow.

CONFIDENTIALITY NOTICE: This document contains proprietary company informa>on which may not be disclosed to any third party without the express wriCen permission of MediaMath, Inc.

Mad Men to

Math Men