Remaking the “traditional” media company
How the traditional media company can (and must)
compete on customer intelligence
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Summary
1. The traditional media company must compete in the emerging
media marketplace to deliver acceptable value to its
shareholders…and to survive
2. The emerging marketplace most values the “intelligent”
Remaking the “traditional” media company
2. The emerging marketplace most values the “intelligent”
delivery of the most relevant content and the most effective
offers to consumers
3. “Intelligence” (and therefore relevance and effectiveness) will
continue to increase over time
4. Increases in intelligence will be supported by the growth of
both addressable technology & customer intelligent data
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Summary
5. Traditional, large-scale media companies must compete (and
win) on “customer intelligence”…as their technology partners /
rivals will win on “addressability”
6. The traditional media company must “refuse to lose” on
Remaking the “traditional” media company
6. The traditional media company must “refuse to lose” on
customer relationships and intelligence.
7. Ceding the customer relationship will result in the media
company’s disintermediation from the “marketer”, who
contributes to over 75% of the media company’s revenue
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Summary
8. The companies that succeed in developing proprietary
customer relationships & intelligence will create significant LTV
for their shareholders
– These companies will enjoy a more equitable “balance of power” (and
Remaking the “traditional” media company
– These companies will enjoy a more equitable “balance of power” (and
revenue) with their technology / distribution partners
– These companies will “trade” access to their intelligence in return for
ongoing access to the intelligence generated by their technology
partners’ addressable platforms
9. A roadmap exists for the traditional media company to engage
their customer TODAY via the on-line environment
– The customer-intelligent media company will “earn” insight into its
customer’s “affinity” by engaging each individual in enhanced
experiences with their most trusted & beloved brands
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Summary
10. The time is now
– Traditional media companies still have control and/or access to the most
engaging, trusted and relevant content (and offers)
– The technology / delivery companies are still struggling with
Remaking the “traditional” media company
– The technology / delivery companies are still struggling with
addressability and have not yet focused their full attention on customer
intelligent data
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Questions for further exploration
� A consumer-centric view of the media landscape may begin with “my TV”, “my PC”, “my smartphone”, etc. As a result, we must explore the potential role of “my channel”…a consumer designed, multi-stream, content experience that is platform agnostic� What are the capabilities that will empower “my channel”? Who will emerge to service these
capabilities? How will the roles of the current “players” evolve to support, or thwart, these services?
Remaking the “traditional” media company
capabilities? How will the roles of the current “players” evolve to support, or thwart, these services?
� An “Open Market” model of the media landscape exists, where “choice” and “transparency” rule the functional and economic value-chains. In this model, consumers will be able to choose their content and offers (independently), with “revenue” and “expense” as part of their decision making process� For what consumers and for what content experiences will the “Open Market” model initially
emerge? Will the “financial exchange” be a literal financial exchange, or a virtual exchange akin to those currently operating in social gaming?
� What are the hybrid models that are most likely to create scale in this model? How will growth of the “Open Market” model effect new and existing “players”?
� What are the many dimensions of “customer intelligent data” and what interactions will inspire consumers to confidently engage in the sharing of this data…in an environment of appropriateness and trust?
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Increase shareholder value
Shareholder Equity
$7B
Revenue
$10B
Re-making the traditional media company: Business objective
Typical shareholder
economics for the
Current F P/S for the large-scale media company is unacceptable in today’s market
Shareholder value = <$1, per. $1 revenue
Opportunity is the multiple, not the top-line!
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
economics for the
large-scale media
company
Cu
sto
me
r in
tel.
/ d
ata
/ r
ela
tio
nsh
ip
high
Value = Multiple = Level of customer intelligence, data & relationship
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Forward looking P/S$1 $10
Cu
sto
me
r in
tel.
/ d
ata
/ r
ela
tio
nsh
ip
low
“Forward looking P/S” = current price per. share / forward looking sales per. share (actual Q1 thru Q3 sales + trended Q4 sales). P/S for VNU, IRI
and WPP-GY are not public and are estimated based on comparables.
“Old” media value chain (functional)
Consumers
“Programming”
Nielsen
Arbitron
Net Ratings
Scarborough
MarketersContent
providers
Media Network
“Programming”
$The
“Aggregator”
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Consumers
“Old” media value chain (economic)
Predominantly “free”
Marketers
Media NetworkThe
“Exchange”
Content
providers
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Predominantly “free”
Consumers
5% $s
Traditional “diversification” strategy: Content production
MarketersContent
providers
Media NetworkThe
“Exchange”
5% $s
Content
providers
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
% corporate
revenue.
Traditional
media company
Emerging diversification strategies: New marketing services
5%
Consumers
Content
providers
5%
MarketersContent
providers
Media NetworkThe
“Exchange”
Content
providers
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Sell direct the
customer
Expand marketing
solutions
Fundamental “emerging” value chain for media
ConsumersMost
relevant
Content & offersOther
Intelligent
Intelligent MediaThe
“Optimizer”
Most
effectiveContent
providers
Content
providersContent
providersMarketers
Content & offersIntelligent
marketing
solutions
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Missing link: Customer intelligent data
Consumers
Most
relevant
experiences
given
earned
Offers Relevant
Content Trusted
Data Customer Intelligent
Technology Addressable
espied
given
As addressability grows, Customer Intelligent Data is still the “lagging” ingredient in the emerging media value chain.
Although technology can espy some behavior, it cannot earn the trust of consumers to learn about affinity, intent, etc.
The companies that deliver trusted content and relevant offers have the most to offer customers in exchange for intelligent data.
Customer intelligent data: Example
EACH CUSTOMER’S Examples
Affinity for…
Content
Offers
Products
Services, etc.Services, etc.
Addressability via…
MSO
Telco
On-Line
Address
Phone #s
Name, DOB
etc.
Transaction tools… Credit card
Motivators…
Age
Gender
Family composition
Income
Ethnicity
Psychographic, etc.
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Vision
Mission
Re-making the traditional media company: Guiding principals
Make the media company fundamental to the delivery
of the most relevant content & offers to consumers
Make the media company the most intelligent about the
wants and needs of its individual customers
Values
1. Engage customers in an ongoing relationship with their most beloved (and trusted) media properties
2. Incent each customer to share their affinity for their most desired content, offers, and products
3. Reward customers for sharing the information required to best address them across delivery platforms
4. Grow (and manage) each customer relationship (and data) across time, properties, and platforms
5. Cultivate a customer-centric culture and refuse to lose on customer relationship & intelligence
6. Partner with the best delivery platforms, for meeting the needs of our customers to experience
relevant content (& offers)…when and where it matters
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Imminent risk for the traditional media company:
Disintermediation from the customer relationship
Consumers
MSOs, Telcos, ISPs, etc.
Content
providersMarketers
Content
providers
Media Network
“Programming”
MSOs, Telcos, ISPs, etc.
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
If technology /
delivery companies
become the most
intelligent about
consumers, they will
also become the
first touch-point for
marketers and
content providers
Today, on-line platforms are the best conduit for
engaging customers in a proprietary relationships
MSOs, Telcos, ISPs, etc.
Customer
On
-line
On
-line On-line can bi-pass
the delivery
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Content
providers
Media Network
Content
providers
Content
providersMarketers
the delivery
company allowing
the media company
to engage
customers with their
most “beloved”
content, “trusted”
information, and
“valued” offers
Network of Customer Relationships
Properties
Watch
Win
Save
Sample
Learn
Share
Connect
Support
Customer
Customer
Experience
Customer
Engagement
Organizing the transformation process
Customer
Insight & Management
Partner
Engagement
People
Business parameters / KPIs
Mission & vision
Client Internal 3rd party
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Vision
Mission
CULTURE: Critical to the transformation
Make the media company fundamental to the delivery
of the most relevant content & offers to consumers
Make the media company the most intelligent about the
wants and needs of its individual customers
Values
1. Engage customers in an ongoing relationship with their most beloved (and trusted) media properties
2. Incent each customer to share their affinity for their most desired content, offers, and products
3. Reward customers for sharing the information required to best address them across delivery platforms
4. Grow (and manage) each customer relationship (and data) across time, properties, and platforms
5. Cultivate a customer-centric culture & refuse to lose on customer relationship & intelligence
6. Partner with the best delivery platforms, for meeting the needs of our customers to experience
relevant content (& offers)…when and where it matters
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Moderately disruptive scenario: Choice
ConsumerMost
preferred
Choice
Content & offers
Scenarios that
introduce choice (ex.
Intelligence
Most
selectedContent
providers
Content
providersContent
providersMarketers
Choice
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
introduce choice (ex.
Hulu), will modify
the value chain.
Intelligence will still
be fundamental so
long as content and
offers are combined
via “the network”.
ConsumerMost
reasoned
($) + $
virtual economy
Highly disruptive scenario: Choice + transparency
The role of intelligence
diminishes, if offers
and content are
“chosen” separately.
This also requires the
deconstruction of the
current economic
exchange. “Which
Choice
The open
market
Most
consideredContent
providers
Content
providersContent
providersMarketers
virtual economy exchange. “Which
consumers will engage
in a truly open market
scenario (and for what
experiences)?” is a
critical question for
scenario planning.
Now, buying ads based on the data about visitors, rather than content
published on the site, , could drastically change how media companies
do business.
”The data is becoming the most important component for marketersThe data is becoming the most important component for marketers
and web sites,” says Omar Tawakol, CEO at Blue Kai.
“If we sell that data, it allows other sales teams to compete against
All scenarios need (and value) customer intelligence
“If we sell that data, it allows other sales teams to compete against
us,” says Greg Stevens, president IAC advertising. “But if it is worth if it is worth
million and millions of dollars, then hey, million and millions of dollars, then hey, maybe the paradigm has maybe the paradigm has
turned upside downturned upside down.”
Thursday, November 5, 2009
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
“Data will be the most ownable, transportable and insoluble expression of
intelligence” MICHAEL S. QUINNMICHAEL S. QUINN
Marketers will always reward those who make them “smarter”
I take care of those
who take care of me
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Closing questions
� How many companies have greater contact with their customers than
the traditional media company?
� How many companies know more about their customers than the
traditional media company?
Remaking the “traditional” media company
traditional media company?
� What happens when addressable technology companies (MSOs,
Telcos, etc.) are most intelligent about the customer?
� Are the answers to these questions acceptable to the traditional
media company?
� What are the implications for LTV?
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Closing questions
� Assuming: Consumers become more addressable over time
� What data will “the media company” collect to be the most intelligent
about the needs of its customers?
� How will the media company manage this data, this intelligence and
Remaking the “traditional” media company
� How will the media company manage this data, this intelligence and
this relationship?
� How will the media company incent its customers to share?
� How will the technology / delivery companies value this intelligence?
� How will this valuation impact the long-term balance of power
between media and technology partners?
� What could be the impact be on shareholder equity?
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Closing questions
� What are we going to do about it? Today.
Remaking the “traditional” media company
� What are we going to do about it? Today.
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
Just for fun
Huh?
About
A history of building businesses wherever he goes. His
approach to each challenge is the key to his success – Mike
has an instinctive ability to find the basic truth of any
business opportunity and to formulate an effective plan
around that understanding.
- Mark Laceky, VP North American Practice, NielsenOne of the most innovative, imaginative and dedicated
professionals in media. His ability to develop strategic
approaches that unify and serve the needs of multiple
stakeholders is remarkable.
- Mark Mitchell, Chief Customer Officer, Canoe Ventures
A fresh thinker who possesses a valued ability, as all good
leaders do, to rally constituents toward a common vision.
Mike is a leader who earns respect through creativity and a
Michael is one of the sharpest, most insightful strategists I
have had the pleasure to work with.
- Greg Warren, Starcom MediaVest
- Mark Mitchell, Chief Customer Officer, Canoe Ventures
Michael is one of the industry's high energy marketing and
innovation experts and transformed a fragmented business
into the leading retail network in the US.
- Gwen Morrison, President the Americas WPP / The Store
Michael brings out some of the best qualities in those that
work with him and is a trustworthy and insightful confidant.
Michael looks at every situation as an opportunity and is an
excited leader, who engenders respect and trust from his
team.
- Jonathan Rosenbaum, Managing Director, Rayclff Capital
Mike is a leader who earns respect through creativity and a
contagious enthusiasm that consistently lead to delivering
results.
- Ken Willis, Vice President, Pepsico (retired)
Created by and for Michael S. Quinn. Please do not distribute without prior approval.
From the Boardroom to the boiler room, Michael quickly
navigates a group to the heart of the matter and then leads
to execution. His success at building a vision and strategy
for PRN speaks for itself, as does his his ability to see into a
new media landscape.
- Kim Norris, EVP Digital Strategy & Advertising, Cablevision