Key details for Data Plus Math: 1) Founded in 2016 2) 20 employees 3)≈ $5M in annual revenue 4) 24-30X revenue multiple on the purchase price 5) $7.5M in capital raised over 2 funding rounds 6) The companies share 10 customers
Quote from Allison Metcalfe — GM of TV @ LiveRamp: “In the new world you can say, ‘I’m going to pay you to get this many people to come to my website, or I’m going to pay you based on this sale metric that I care about.’ These are becoming secondary guarantees”
Quote from Bob Greenblatt – Chair @ WarnerMedia: “Just because you increase the volume [of shows], you can’t increase the number of really talented people in the world that can produce these shows, so when they come along as a J.J. Abrams does once in every generation, you want to hold on to them…We hope to keep him in the family.
There’s a very competitive situation out there because the other great companies and streaming services also would like to have him,”
How it works: Bettors are dropped into the final 90 seconds of a “game” between two actual teams (Lakers vs. Celtics, etc.). The rest of the game is a combination of other highlights from past Lakes/Celtics games. This allows for an unlimited supply of games and betting 24/7/365.
Quote from Jim Lanzone – CEO @ CBS Interactive: “The floodgates are starting to open, not only for more gambling-focused content, but entirely new data products that appeal to people trying to gain an edge,”
What this means: Advertisers will now be able to use OpenAP segments and then execute locally with NCC Media.
Big news #2: Comcast, Charter, and Cox will work together to offer addressable advertising against the network’s share (88% of total) of the ad inventory.
What this means: In the short term, this appears to be a competitor to other initiatives (Project OAR, etc.). We previously wrote about the race to offer addressable advertising to both national and local inventory.
The players in Project OAR: 1) AMC Networks 2) AT&T 3) CBS 4) Comcast NBCUniversal 5) Dentsu Aegis (new) 6) Discovery 7) Disney 8) Fox (new) 9) Freewheel 10) GroupM (new) 11) Havas (new) 12) Hearst 13) Horizon Media (new) 14) Inscape 15) IPG’s Magna Global (new) 16) Omnicom Media Group (new) 17) Publicis Media (new) 18) Turner 19) Xandr 20) Vizio
Reminder: It is early in the game for advanced/addressable advertising.
National TV ad spend share by targeting type according to eMarketer: 1) Age/Gender — 95% 2) Advanced TV/Audience — ≈ 3% 3) Addressable — 2%
Adoption for addressable TV: 1) Fully using — 15% 2) Experimenting or not using — 85%
Adoption for advanced TV: 1) Fully using — 17% 2) Experimenting or not using — 83%
Wow: Walmart accounts for close to 50% of all TVs sold in the United States!
Retail → Advertising: Amazon, Target, and Walmart are all making major moves into the advertising space. In addition to a potential streaming service, Walmart is pursuing “shoppable ads” and extending its audience/customer data to the Vudu streaming platform.
The challenge: Getting Warner Brothers, Turner and HBO to work together.
Quote from John Stankey — CEO @ WarnerMedia: “Media has moved into an environment where scale is essential… Somebody in the legacy media space will build a platform of scale and get to 70 million to 80 million subscribers. We’d like it to be us. If you keep the cultures separate, you’ll never get the benefits the three together bring.”
Projected pricing for WarnerMedia streaming service vs. current price for HBO Now: 1) WarnerMedia — $15–18 2) HBO Now — $15
Quote from Steven Marks — EVP @ Sinclair Broadcast Group: “Every other day there is somebody joining the race. It really bodes well for local broadcasters. There is going to be quite a robust fourth quarter [this year] and in 2020 we are not going to be able to get out of the way of the money. It’s going to be literally hand over fist.”
Compound annual growth rate between 2014–18: 1) Political advertising — 15.50% 2) All advertising — 6.25%
Quote from Kyle Roberts — CEO @ Advertising Analytics: “Fundraising on the internet is bigger than ever, and candidates have more reach into low dollars than ever before, and it results in more cash in the system… Election campaigns increasingly are able to amass considerable sums from small donations made online by supporters.”