Presentation given in Israel to http://www.adtechsummit.com/ on Feb 11 2014. Suggesting there is a huge opportunity for startups and founders like we've never seen.
Focus here is on how we are 1) living in the Age of Innovation, 2) Marketing & Media industries are in Chaos, & 3) Mobile is where the opportunities exist.
2. There have been a few great
moments in history.
Genghis Khan begins
creation of largest land
empire in history
Marty Cooper
Invents the Cell
Phone
Columbus reaches the
New World
Industrial Revolution
begins in England
1/1/1492
1/1/1206
1970’s
1/1/1760
1066
1197
1328
1459
Norman Conquest of
Britain
1721
1852
Apple releases the
iPhone
Renaissance begins in
Italy
1/1/1066
1590
1/1/1300
6/29/1970
Darwin's On the Origin of
Species; Lenoir builds first
practical internalcombustion engine
1/1/1859
Newton's theory of
universal gravitation
1/1/1664
Watt patents
first practical
steam engine
1/1/1769
3. Impact of Three Major Trends Today
① We are in the Age of Innovation
② Marketing & Media is in
Chaos/Massive Evolution
③ Proliferation of Mobile
3
12. Also, Innovation is Alive & Well in
Israel - Rightly called “Startup Nation”
No. 1 in number of startups per capita: ~1 startup per 1,800
Israelis
No. 2 in absolute number of startups. (U.S.) is No.1.
No. 3 in number of companies traded on NASDAQ after U.S.
and Canada.
No. 1 in R&D spending per capita and is also Israel is world
leader in patents per capita
Venture capital investment per capital in Israel is 2.5 times
over the U.S. and 30 times than Europe.
Source: Reinhold Cohn Group 2013
12
13. Steady Rise in # Startups in Israel
Too
5,000
Number of Startups in Israel, 1990 - 2012
4,500
4,444
4,000
3,500
3,000
2,500
2,500
2,000
2,000
1,500
1,000
500
400
1990
13
2000
2005
2012
Source: 1990 – 2005 data from Invest in Israel, Ministry of Economic State of Israel; 2012 Data is based on report from Reinhold Cohn Group
- 1 Start-up/1800 Israelis and total population of Israel is 8million
18. 2008
General
Motors is getting ready to shift fully half of its
“The country’s third-largest advertiser,
into digital and one-to-one
marketing within the next 3 years.”
$3 billion budget
Advertising Age
March 17, 2008
18
19. CMO’s Should be Chief Innovation Officers
From Stephen Quinn, CMO of Wal-mart & Chairperson of ANA opening
keynote presentation at this year’s ANA Masters of Marketing
19
25. More Tech Spend by CMOs than CIOs
By 2017, CMO will spend more on IT than CIO
2011 B2B and B2C marketing budgets as a percentage of
revenue were almost three times as high (10 percent) as
IT budgets (3.6 percent).
2012 IT budgets are expected to grow 4.7 percent, while
all marketing budgets are predicted to grow 9 percent
On average, nearly one-third of named marketing-related
technology and services is bought by marketing already.
25
Source: Gartner 2013
26. Google is single largest advertising brand
there has ever been
And they got there in 15 years
$60.0
$50.0
Revenue for Top Media Companies, 2012
In billions
$50.2
$40.0
$29.0
$30.0
$21.0
$20.0
$10.0
$15.0
$10.0
$BSKYB
Viacom
Bertelsmaann Time Wartner
Google
Source: Google, TW, Bertelsmann, ViaCom, SKYB Annual reports
26
27. And The Access to Consumers is
Astonishing – Like Nothing Ever Seen
Monthly Unique Users for Major Media Companies
In million
945.0
1,000.0
800.0
600.0
400.0
200.0
54.6 49.0 55.0 80.0
191.0
-
Source: FB, Google, Viacom, Time Warner, Bertelsmann, Gannett Annual reports
27
30. 1 In Every 5 People In The World Own A
Smartphone: 1 In Every 17 Own A Tablet
Installed Base Of Devices As A % Of Global
Population
25%
Will be 10 Billion
Mobile Subs this
year!
PC
Smartphones
Tablets
20%
18%
15%
15%
22%
19%
20%
20%
16%
16%
14%
11%
10%
10%
8%
7%
7%
5%
3%
4%
5%
3%
2%
1%
0%
2004
2005
2006
2007
Source: BII estimates, Gartner, IDC, Strategy Analytics, company filings, World Bank 2013
6%
2008
2009
2010
2011
30
2012 2013E
31. Smartphone Penetration is Worldwide
Smartphone Penetration By Country, 2012
Singapore
87%
Hong Kong
87%
UK
72%
USA
64%
Germany
62%
Israel
57%
Africa
20%
0%
20%
40%
60%
80%
100%
Source: Nielsen Report 2013; Note: Africa stats is from African telecommunications market and Israel Data is from Google and Ipsos MediaCT survey
31
32. Apps Make Smartphones also a Medium
180
U.S Web vs. Mobile App vs. TV Consumption , Minutes
per day
168
162
160
168
140
127
120
94
100
80
70
66
72
70
60
40
20
0
Dec 2010.
Web Browsing
Dec 2011.
Dec 2012.
Mobile Applications
Television
32
Sources: comScore, Alexa, Flurry Analytics
Greg Stuart, CEO; greg@mmaglobal.com +1 631.702.0682
33. Apps Are Revolutionizing How We Get Access To
Content, Community And Commerce And Entertainment
90
80
Mobile App Store
Revenue, Worldwide, 2011 -2017 (Billions
of Dollars)
70
60
Mobile App Use Grew 115% in
2013, Propelled by
Messaging Apps (1)
50
40
30
20
10
0
2011 2012 2013 2014 2015 2016 2017
Paid For
In-app Purchases
Advertising
Total Revenue
Source: Gartner (Sep 2013)
57 billion apps were
downloaded in 2012
82 billion apps will be
downloaded worldwide in
2013
and by 2017 there will be
more than 200 billion
downloads per year. (2)
Source: (2) Gartner September, 2013; (1) Flurry
33
34. Apollo 11 was the spaceflight that landed the first humans on the Moon, Americans Neil
34
Armstrong and Buzz Aldrin, on July 20, 1969
41. % of Total Media Consumption Time or
Advertising Spending
% of Time Spent in Media vs. % of
Advertising Spending, USA 2012
Time Spent
Ad Spend
50%
45%
40%
43%
42%
Internet Ad
Mobile Ad
=$37B*
=$4B*
35%
30%
25%
~$20 B
opportunity
in USA
26%
23%
20%
22%
15%
14%
10%
12%
10%
5%
6%
3%
0%
Print
Radio
TV
Internet
Mobile
Note: Note: *Internet advertising reached $37B in USA in 2012 per IAB, Mobile advertising reached $4B per eMarketer. Print includes newspaper and magazine. $20B opportunity calculated
assuming Internet and Mobile ad spend share equal their respective time spent share. Source: Time spent and ad spend share data based on eMarketer (adjusted to exclude outdoors /
classified media spend), 12/12.
41
42. “There is a lot of
talent, but not a lot
of opportunity.”
Rye Barcott
42
43. Lastly, Mobile Has Doubled its Share of VC Dollars
Mobile VC as Percentage of Overall Tech VC
43
Source: Rutberg & Co. Aug 2012
44. The True Power of Mobile
MMA’s Positioning on Mobile:
Nothing gets a marketer
closer to consumers
than mobile.
Nothing!
45. But What is Mobiles’ USP–Unique Selling
Proposition!
It is…
1.
2.
3.
Personal
Pervasive
Proximity
50. Join the Community - MMA Events
2014 are great networking, education and leadership
MMA Events
opportunities:
MMA Forums
NY Forum – May 6-7, 2014
Singapore Forum – May 22, 2014
Brazil Forum – August 26-27, 2014
India Forum – September 2014
London Forum – November 2014
Vietnam Forum – November 2014
Global Events
CEO & CMO Summit – July 13-15, 2014 (Hilton Head, U.S.)
SM2 Innovations – September 30+, 2014 (New York)
Cannes Lions – Jun 16-22, 2014
Smarties Awards New York – October 1, 2014
More coming http://www.mmaglobal.com/events/forums
50
52. MMA is Global – Branches in 15+ Countries
Growth of Local Councils Continues Worldwide:
APAC
China
India
Philippines
Vietnam
52
EMEA
Austria
France
Hungary
Portugal
South Africa
UK
East Africa
Germany
Italy
Spain
Turkey
Middle East
LATAM
Argentina
Brazil
Columbia
Mexico City
52
53. MMA’s Purpose
(new clarity of mission 11/13)
To accelerate the transformation
and innovation of marketing
through mobile, driving business
growth with closer and stronger
consumer engagement.
53
53
How many of you are working on a start up now?How many or you are in marketing and advertising?How many or either in-between start ups, or thinking of starting one, or would really like to do it?How many of you are sitting next to your boss or colleague and don’t want to admit to that?
In 1946 the first two venture capital firms American Research and Development Corporation (ARDR) and J.H. Whitney & Company were founded. One of the first steps toward a professionally-managed venture capital industry was the passage of the Small Business Investment Act of 1958.A second notable early West Coast venture capital company was Draper, Gaither & Anderson (officially the first venture firm in the West Coast in 1959).
As of March 2011, there are an average of 320 new businesses launched every month, for every 100,000 U.S. adults. That equates to 543,000 new U.S. companies every month.(1)The number of small businesses in the United States has increased 49% since 1982. (2)Since 1990, as big business eliminated 4 million jobs, small businesses added 8 million new jobs. (2)
1472: The first printed English advertisement, William Caxton printed a poster and tacked it onto church doors announcing the sale of a book.1662. London Gazette offers first advertising supplement1650: First newspaper ad offers reward for stolen horses1704, the very first advertisement in America, an advertisement for Oyster Bay, Long Island (real estate), was published by the Boston News-Letter.1729. Ben Franklin is first to use “white space” and illustration in ads
1472: The first printed English advertisement, William Caxton printed a poster and tacked it onto church doors announcing the sale of a book.1662. London Gazette offers first advertising supplement1650: First newspaper ad offers reward for stolen horses1704, the very first advertisement in America, an advertisement for Oyster Bay, Long Island (real estate), was published by the Boston News-Letter.1729. Ben Franklin is first to use “white space” and illustration in ads
Creative RevolutionThink Small, campaign, launched in 1959 by ad agency Doyle Dane Bernbach, one of the most legendary advertising agencies in history.“Think small” according to Advertising Age, was the No. 1 campaign of the 20th century.
Creative RevolutionThink Small, campaign, launched in 1959 by ad agency Doyle Dane Bernbach, one of the most legendary advertising agencies in history.“Think small” according to Advertising Age, was the No. 1 campaign of the 20th century.
In 1946 the first two venture capital firms American Research and Development Corporation (ARDR) and J.H. Whitney & Company were founded. One of the first steps toward a professionally-managed venture capital industry was the passage of the Small Business Investment Act of 1958.A second notable early West Coast venture capital company was Draper, Gaither & Anderson (officially the first venture firm in the West Coast in 1959).
Daily time spent in mobile apps has now surpassed web consumption. The average user now spends 9% more time using mobile apps than the Internet. In June users spent an average of 81 minutes daily on mobile apps, compared to 74 minutes on the web.Flurry says that that growth is a result of more sessions during the day per user, as opposed to an increase in session length. Users are checking Twitter and Foursquare more often as opposed to spending more time in the apps in any given session.Flurry tracked 85,000 apps; Games and Social Networking categories dominate, capturing 47 percent and 32 percent on consumer time spent daily, respectively. Combined, these two categories control 79 percent of consumers’ total app time. Time spent on news apps follows with 9 percent share, with entertainment capturing a 7 percent share.
A typical smart phone has more computing power than Apollo 11 when it landed a man on the moon in 1969
The average consumer looks at their phone 150 x a day.365 days a year (1)68% Americans place their mobile next to their bed while sleeping at night(2) 29% Americans look at phone first and last thing in the day(2)82% never leave home without it.(3)36% of people across the world (42% of Americans) say they 'cannot live without' their cell phone.(3)
Nothing gets a marketer closer to a consumer than mobile, nothing!!With permission, we can know:Any time of day? So whatMacDonald's’Where you are (have been, going)WazeBuild loyaltyProvide better serviceUberIt’s what I call the 3 P.sPersonal Pervasive Proximity