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 4. Next, 10
Pretty Good Seconds Mitchells Kid Mitchell Mitchells Kids
FishAPPNATION 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
14. Thing#1: Averages Lie StatisticianAPPNATION IVSAN FRANCISCO,
CADECEMBER 11-12, 2012 15. Thing#1: Averages Lie
StatisticianAPPNATION 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
