INTERNET WEEK NY, CM SUMMIT, MAY 2013

CEO's, CMO's & VC's Discuss the Modern Web.

A Presentation by Rick Valdez * rick@rickvaldez.com

 

The CEO's, CMO's, and VC's from Pinterest, Tumblr, Yahoo!, GoDaddy plus 35 more companies got together over two days to talk about advertising and the Web. This is what they said.

 

Standout Thoughts

 

Fred Wilson, Principal, Union Square Investors, Primary investor of Tumblr

On Twitter: Twitter did it right. The Nike Twitter ID is the same as the Fred Wilson Twitter ID. Peer equality between the individual and the brand.

On BitCoin: Union Square has invested $2.5 million in BitCoin. BitCoin is both decentralized and trusted.

 

Terrance Kawaja, Founder & CEO, LUMA Partners

DMP (Data Management Platform) is a cookie which is Anonymous. CRM (Customer Relationship Management) is the user, they are identified. Tied together for the first time through one platform: Facebook. This is a huge opportunity.

 

Neal Mohan, Google Vice President of Advertising Products

Google introduces "Alive Box", marrying live streaming with a display ad. Click on the ad, and it becomes the live stream. But it's still a display ad. Display isn't dying. Display doesn't just mean banner ads. To proclaim banner ads are dead is myopic. It's evolving.

 

Nada Stirratt, Chief Revenue Officer, Acxiom

Acxiom's "Abilitag" is the underlying data running Facebook's advertising network. A retailer's off-line data attribution being used to target Facebook users. This is still in beta, but it's the future.

 

Michael Lazerow, CMO Salesforce.com Marketing Cloud     

Consumers want to love you. But you continually break their hearts. "I just bought a new Ford truck. Why do you keeps sending me ads for a Ford Mustang?"

 

Susan Jurevics, SVP Global Retail CRM and Brand Management, Sony Corporation of America

Data is not the insight. Insight comes from the Agency. Don't leave the data to the analytics guys. Create small teams of people to mine for insights. Make it part of the marketing platform.

 

Julie Hansen, President & COO, Business Insider

Tablets is where page views is highest. Mobile is where there are lots of quick hits. Desktop is steady, and not dropping. People are reading at work.

Curt Hecht, Global Chief Revenue Officer, The Weather Channel

We are interested in the Cable TV and Digital - the flow of the audience between the two. Storms are big business. We require real time buying for ads.

 

Ann Lewnes, SVP & CMO, Adobe Systems

Adobe, which bought Omniture, has introduced the Adobe Marketing Cloud and is introducing "Tartan" which is still in Alpha. Consider it the Pinterest for Marketers. Tartan provides an interactive dashboard that can be provide high-level data or deep data details, and is fully customizable.

 

Ric von der Kooi, COO Online Services Division, Microsoft Corporation

Google WILL disintermediate anyone between them and the consumer. Third-party advertisers are being moved out.

 

Bill Wise, CEO, Mediaocean

We are faced with three issues: Lack of currency (which stalls the coalition of the willing); Lack of automation; Lack of standards. Digital will not take TV dollars until these three are resolved.

 

David Jacobs, SVP, Publisher Sales, AOL Networks

We as an industry can't allow Google to own the the plumbing.

Microsoft and Mediaocean and AOL have partnered for the new XBOX Systems. AOL Premium Content managed by Blueocean and delivered to the XBOX platform.

 

Blake Irving, CEO, GoDaddy

GoDaddy is moving into Small Business managment. To GoDaddy, a small business is 1 to 5 people. Maybe 10. A lot of small businesses WANT to stay that size. Microsoft, Intuit, Amex - they're not paying attention this group.

 

Lisa Pearson, CMO, Bazaarvoice

By 2018, Millennials will have more purchasing power than any generation in history. Owning things is "what their parents do." How do you market to a generation that doesn't want to own anything?

 

Tim Musgrove, Cognitive Scientist, Temnos

We [programmatically] use the authors own words to rewrite the headline to generate higher click through rates. 41% of test cases have better click through rates. And those click through rates are 3 times higher than non-optimized headlines. [ REALLY INTERESTING - RICK ]

 

Chris Moody, President and COO, GNIP

GNIP is the world's largest provider of Social data. 95% of the Fortune 500 use their services. If people are taking pictures inside your store, you want to see them.

Tom Phillips, CEO, Media6degrees

13% of US browsers are infected with a virus. These browsers generate 40% of impressions and 60% of conversions are fake.

 

Tim Cadogan, CEO, OpenX

There are five major digital shifts happening: One screen to multiple screens; from marketing to a general audience to a specific person; from human to automated; from Interruptive advertising to Native advertising; from Static to Real Time advertising.

 

Dr. David Kong, Ph.D, Bioengineering Systems, MIT

Angelina Jolie sequenced a part of her DNA which cost about $10,000. The price is rapidly falling. Within 5 years, we will sequence the entire DNA of every baby at birth.

 

Chet Kanjoia, CEO Aereo

TV can be watched for free over broadcast airwaves with an digital antenna, but it's a hassle to set it up. Aereo solves this problem: every subscriber has their own antenna in a giant warehouse. [ REALLY INTERESTING - RICK ]

 

Ben Silbermann, Founder and CEO, Pinterest

Make it easy for brands to share their pins.  Use Native Pin-It buttons within iOS for example. 

 

Kathy Savitt, CMO, Yahoo!

Facebook has 700 million uniques a month, with the demographic being 35 and over.

The Tumblr demographic is 13 to 34. Kids check Tumblr 7 times a day via their mobile app. With Native Advertising, how do you scale? The ad IS the Tumblog.

 

Walter Knapp, EVP, Federated Media

Big Data is mostly hype right now. Referring to the Gardner Hype Cycle, Big Data is heading into the Trough of Disillusionment.

 

Paul Berry, CEO, RebelMouse

Display Ads need to catch up to Real Time text ads. Rebel Mouse brings all content and assets together. Rebel Mouse can either be a site or a dashboard. [ REALLY INTERESTING - RICK]

 

Serkan Piantino, Site Director, Director of Engineering, Facebook

Facebook composes 20% of the pageviews of the Internet every day.

 

Amy King, VP Product Marketing, Evidon

Evidon is the maker of Ghostery. Ghostery shows all trackers, cookies and 3rd party info sent out when you visit a website. Evidon streamlines who has access to your brand's data.

 

Omar Tawakol, CEO, BlueKai

The landing page interstitial (takeover) in the short-term works, but in the long-term works as a negative against the brand. "A brand is between me and my content."

 

Eric Roza, CEO, Datalogix   

Personal data will be entered into a liquid marketplace which can be bid and sold. The USER will get rewards - like airline points or miles.

 

Dr. George John, Co-Founder and CEO, RocketFuel

Once you collect data by gender x race x income x likes x pins x location x etc, is too much noise for the signal. RocketFuel analyzes the noise using AI to bring back correct market intelligence.

 

Brian O'Kelley, CEO, AppNexus

Advertisers don't care if you have great content, or the number of visitors. They care that you have a valuable cookie that shows that you visited a car website.

 

Dr. Joran Shlain, Founder, HealthLoop

The Affordable Care Act tries to change the paradigm from "Pay for Service" to "Pay for Performance". The issue from a doctor's perspective is, "Why should I be penalized if my patient doesn't take the antibiotic I prescribe and ends up in the emergency room?"

 

Jacki Keli, CEO North America & President of Global Clients, IPG Mediabrands

Brands where the CMO partners with the CIO are most aware of opportunities. Clients have been paying agencies based on the size of teams - the FTE Equivalent. It's now shifting to the output of quality and performance.

 

Amanda Richman, President/Investment & Activation, Starcom USA

Video is now holistic. No longer is it TV View vs. Digital View. Instead, it's a "Video Neutral

Strategy."

 

The following is the complete set of notes from the Summit.  These are the actual words from the speakers and describe in detail their vision of the near future of the Web.

 

John Batelle CEO, Federated Media

http://www.federatedmedia.net

 

In regards to Display Media (banner ads, interstitials), an Impression used to be a direct sell.

Now it's programmatically traded on an exchange. See: http://cmsummit.com/behindthebanner/

 

Impression -> Direct Sold?  -> no? -> Listed on the Secondary exchange which is then auctioned for maximum optimizations. All in 120 milliseconds.

                                   

These programmatic transactions happen thousands of times per page. 1 to 1 transactions as impressions in real time. One every page of every user on the internet.

 

Soon every impression will be negotiated in this way.

Anyone can create an exchange, and sell on the exchange.

 

 

Fred Wilson, Principal, Union Square Investors

http://www.usv.com

 

Union Square Investors is the primary investor of Tumblr. The $1.1 Billion deal to Yahoo! is only 3 days old.

 

Why does it make sense for Yahoo to buy Tumblr?

Yahoo is the biggest display company but has no social platform. An important strategic part missing in it's portfolio. We're now 5 to 7 years into Social. It's easier to by Tumblr than to build it.

 

Where does Yahoo integrate?

Yahoo screwed up Flickr by forcing Yahoo login ID to use Flickr. This time, leave Tumblr alone, but integrate.

            1. Put Tumbler on Yahoo's infrastructure to help scale

            2. Tumblr - create a blog and Yahoo will help promote it.

YouTube, Facebook, Foursquare. Ugh. Too many. No one wants one more social platform. Instead Yahoo already has marketing relations.

 

Yahoo can now say, "Take $10 million from your Display business and put into Tumblr."

 

The Display business is foundering and it's threatened. It's intrusive and adds no value to the conversation. Therefore it's being ignored. The price for Display is going down year after year.  Yahoo has a massive Display advertising business. It's not going to zero tomorrow but it's in a long slow decline.  Marissa (Mayer, Yahoo CEO) will find better ways to monetize.

 

Investing: Man vs. Machine. Man: Take $350,000 and invest in what you know. Machine: Some dude at a hedge fund makes a computerized decision. Face to face is a better way to do business, do advertising.

 

Twitter did it right. The Nike Twitter ID is the same as the Fred Wilson Twitter ID. Peer equality between the individual and the brand.

 

Exchanges, Arbitrage, injected into advertising takes us to a bad place. I like models like Twitter than can defend their CPM.

 

Programmatic exchanges drops to the lowest common denominator. This vs. Tumblr, which says, "You can go back to generating great creativity." Yahoo will help.

 

Marketers are going to face limitations - Facebook, Pinterest, Twitter. All one-on-one. This is too much. A new kind of exchange model is needed.

 

Union Square has invested $2.5 million in BitCoin. BitCoin is both decentralized and trusted. I'm a math person at heart. Banks can't fuck us over any more. BitCoin is based on open protocols that no one controls.

 

There is an active place for BitCoin. The best way to send money from US Dollars to Malawi Kwacha is BitCoin. It converts the BitCoin for free and there are no transaction fees. They (Governments) will regulate BitCoin around the edges, but can't impact it's core functions.

 

There is a blurring of Publishers and Advertisers. Peer to peer is PRIMARY. Nike Twitter to Fred Wilson Twitter. Not Advertiser to person. The faster we get there, the better.

 

 

Terrance Kawaja, Founder & CEO, LUMA Partners

http://www.lumapartners.com

 

Investment bankers had the Red Suit rule. "If the client wants a red suit, sell him the red suit."

 

Unlearn this rule.

1. We're at the precipice of deep data science.

2. Fragmentation is here to stay. Get used to it.

3. In the marketing world of today, the consumer is in control.

 

In the IAB Digital Advertising Arena, BRAND is in the middle. Where is the consumer in the target?  The LUMAscape better represents the real internet.

 

There are 255 Display digital companies. They are consolidating but the market is still fractured. Let the failures take place.

 

The LUMAscape breaks down to this:

 Marketer -> Demand, Data, Supply, Infrastructure -> Consumer

 

The branding pipeline is:

Awareness -> Consolidation -> Intent -> Lead -> Website -> Sale -> Retention -> Reactivation.

 

DMP (Data Management Platform) is a cookie which is Anonymous. CRM (Customer Relationship Management) is the user. They are identified. Tied together for the first time through one platform: Facebook. This is a huge opportunity.

 

 

 

 

Top 5 Destinations according to ComScore, Desktop vs. Mobile.

Desktop:

            Google

            Facebook

            Yahoo

            Microsoft

            AOL

           

Mobile:

            Facebook

            Google

            YouTube

            Pandora

            iTunes

 

           

Interruptive Ads are Not native. Popups and Take Overs are BAD NEWS. They deliver audience on message, but there is long term negative consequences. "This brand is stopping me from reaching my destination."

 

The future of digital advertising needs to be facilitative, not interruptive. Contextually relevant + Engagement + Facilitation.

           

 

Neal Mohan, Google Vice President of Advertising Products

http://www.linkedin.com/pub/neal-mohan/0/278/520

 

Google introduces "Alive Box", marrying live streaming with a display ad. Click on the ad, and it becomes the live stream. But it's still a display ad. Display isn't dying. Display doesn't just mean banner ads. To proclaim banner ads are dead is myopic. It's evolving.

 

Neal Mohan is in charge of AdSense and the TrueView format on YouTube. (http://www.youtube.com/yt/advertise/trueview.html)

Where is Google as a brand in 2013?

Google uses technology to improve lives on a global scale. Google is going to remain consumer focused. From a brand perspective we're focused on:

            1. Richer canvases such as trueview

            2. Extending the conversation past age and gender, at scale

            3. Increasing ways to measure that are relevant for brands in both formats and efficiency.

           

For Google, what equates success for brand advertising?

Google is moving away from CPA's or Clicks to

            1. See

            2. Think

            3. Do.

           

For example:

1. Has customer seen the ad? ActiveView for one example.

2. What has changed in the consumer mindset? Both brand recall and the ability to measure recall.

3. Do - as perception changes is there off-line sales lift? Google is working on ways to measure off-line lift.

 

What is the response to Google being too big a player?

The focus is on Publishers and Users; If targeting is useful and relevant; if from a publisher view, maximizing engagement. Brands are measuring ROI. Google must do better at measurement, beyond clicks and CPM.

 

If a brand is building for mobile, they're building in the past. Think fully integrated  enhanced campaigns.

PANEL DISCUSSION

Auren Hoffman, CEO, LiveRamp

http://liveramp.com

 

Nada Stirratt, Chief Revenue Officer, Acxiom

http://www.acxiom.com

 

Acxiom has the largest databases of over half of the Fortune 500 and powers the marketing decisions for advertisers. They use these super-rich data sets for Direct Mail and email campaigns. They're now ready for personal display advertising.

 

How do they know it's me?

In the digital space, we're still transacting on cookies which still get gender wrong 50% of the time.

 

How do we get to accurate, but not creepy?

Retargeting is creepy. Display ads following you from website to website. Creepy. Today, there is the ability to have a "Safe Haven", which removes the creepy and makes better value of anonymous data.

 

Acxiom is introducing the "Abilitag" to the Facebook platform. This is mixing off-line personal data with anonymous cookie data.

 

There is a giant behavior shift now. People willing give up personal data for perceived value: The Nike Fuel Band, Google Glass, and the Disney Magic Band. But companies are expecting companies to deliver. All brands must need permission to collect data. ALL clients must be in compliance to build trust.

 

The CMO is often now the smartest person in the company today. It wasn't the case before.

 

We must get better at Targeted Television before the $78 Billion in TV dollars moves to Digital. How do I do digital at scale? It's so much easier to buy a 30-second spot. Better service is the future based on more accurate delivery.

 

Axciom's Abilitag is the underlying data running Facebook's advertising network. A retailer's off-line data attribution being used to target Facebook users. This is still in beta, but it's the future.

 

 

Michael Lazerow, CMO Salesforce.com Marketing Cloud

http://social.com

 

Susan Jurevics, SVP Global Retail CRM and Brand Management, Sony Corporation of America

http://www.linkedin.com/in/sjurevics

 

Susan: At Sony, they are now focusing on integrated data analytics with brand management. Sony is greater than the whole of it's parts. Sony knows that you buy a new TV every 7 to 8 years. But they want to analyze Playstation users to see what they play to target the right TV purchase. Sony wants to sell a 4K piece of content to the person that buys the 4K TV. But each division doesn't aggregate and share that data across business units.

 

Michael: For Cisco, they have buyers, users that open support tickets, and fans that Tweet. How do you manage and aggregate that knowledge? There is a lot of data.

 

Data is not the insight. Insight comes from the Agency.

 

Susan: Don't leave the data to the analytics guys. Create small teams of people to mine for insights. Make it part of the marketing platform.

 

Michael: Consumers want to love you. But you continually break their hearts. "I just bought a new Ford truck. Why do you keeps sending me ads for a Ford Mustang?"

 

Susan: If I could have anything, I would want a digital predictive mood ring. WE don't don't know what's going to go viral. You can't "make a viral video". I would ban that word if I could.

 

Michael: Social.com (Salesforcemarketingcloud.com) is the No.1 ad platform itemizer. How do you use YOUR data for YOUR marketing? Buzzfeed.com is a good example. Identify early on by analyzing sharing as a proxy for interests.

 

 

PANEL DISCUSSION

Julie Hansen, President & COO, Business Insider

http://www.businessinsider.com

 

Curt Hecht, Global Chief Revenue Officer, The Weather Channel

http://press.weather.com/company-info/executive-team/curt-hecht/

 

Grace Bonney, Founder, Design*Sponge

http://www.designsponge.com

 

Deanna Brown, President, Byliner

https://www.byliner.com

 

Design*Sponge: 80,000 unique visits a month.

Weather Channel: 100 million App downloads

Business Insider: 2.5 million  unique visits a month.

 

Julie: 68% of Business Insider news consumption is on mobile. Mobile is a growing percentage of traffic. Tablets is where page views is highest. Mobile is where there are lots of quick hits. Desktop is steady, and not dropping. People are reading at work.

Grace: Pinterest changed the world.

 

Curt: The new Weather App is No. 2 on iPad and No. 7 on iPhone. We are interested in the Cable TV and Digital flow of the audience between the two. Storms are big business. We require real time buying for ads.

 

The Weather Channel is coming out with new original content. 40 million people are "Weather Enthusiasts" so we are moving into a lot into video content.

 

What does the next 12 months looks like?

Curt: Connecting Weather to scale. We're not there yet.

 

Grace: Video blogging.

 

Julie: Google Glass apps.

 

 

Ann Lewnes, SVP & CMO, Adobe Systems

http://www.adobe.com/leaders/ann-lewnes.html

 

Behance is coming into focus (http://www.behance.net).

 

Adobe is a CMO-focused company. Adobe bought Omniture three years ago and we're about to see the results of that. Creative people make content that Adobe will track and optimize.

 

Creative people are no longer satisfied making pretty work. This is a pivotal time for angencies. Building digital, placing ad unites is being brought in-house because brands need to be fast and it can now be self-service. Agencies need to bring the Big Idea; helping to accelerate the shift to digital.

 

How do we turn terabytes of data into real strategic insights? We did this for Goodby (www.goodbysilverstein.com) using Adobe Analytics. For marketers IT is not the approach to Big Data. Adobe has introduced the Adobe Marketing Cloud (http://www.adobe.com/solutions/digital-marketing.html) and is introducing "Tartan" which is still in Alpha. Consider it the Pinterest for Marketers. ( http://peek.adobe.com/teams/tartan.html ) Tartan provides an interactive dashboard that can be provide high-level data or deep data details, and is fully customizable.

 

Adobe is just getting started at the deep understanding of behavioral targeting and analytics: Predictive Media. Adobe is combining the Creative World and the Data World to reach a "Single source of truth."

 

 

 

 

PANEL DISCUSSION

Ric von der Kooi, COO Online Services Division, Microsoft Corporation

http://www.linkedin.com/pub/rik-van-der-kooi/0/23b/173

 

Bill Wise, CEO, Mediaocean

http://www.mediaocean.com

 

David Jacobs, SVP, Publisher Sales, AOL Networks

http://advertising.aol.com

 

Ric: Google is too big. At such a size there is an uneven value distribution. The goal is not to scale but to differentiate. Google WILL disintermediate anyone between them and the consumer. Third-party advertisers are being moved out.

 

David: AOL is focusing on premium content. We as an industry can't allow Google to own the the plumbing. The plumbing is the full Ad-Tech stack (see LUMAscape).

 

Ric: We need a coalition of the willing. Don't BUY companies. Let companies join forces to creat an industry alternative to Google.

Bill: Mediaocean is the largest ad-tech company with $130 Billion in ad spend. We are faced with three issues:

            1. Lack of currency (which stalls the coalition of the willing).

            2. Lack of automation        

            3. Lack of standards

           

Digital will not take TV dollars until these three are resolved. Currently there is too much workflow.

 

Ric: Bing has moved from 7% to 17% of total queries on the web.

 

40% of ad revenue is delivered to content producers. 60% goes to the network, Googles, Bings.

 

Microsoft and Mediaocean and AOL have partnered for the new XBOX Systems. AOL Premium Content managed by Blueocean and delivered to the XBOX platform.

 

 

Blake Irving, CEO, GoDaddy

http://www.linkedin.com/in/blakeirving

 

Blake left Yahoo and then joined GoDaddy. GoDaddy has $1.4 billion in revenue with a staff of 3,400. Their Customer Care score is higher than Nordstroms.

 

GoDaddy is the largest platform for small business, and the focus is for GoDaddy to promote your business in the same way that that Yelp and LinkedIn help you market your business. GoDaddy is moving away from being known for domains to being a small business hub - all the way to helping you file your taxes.

 

To GoDaddy, a small business is 1 to 5 people. Maybe 10. A lot of small businesses WANT to stay that size. Microsoft, Intuit, Amex - they're not paying attention this group. For those companies, small businesses start at 50.

 

GoDaddy ads earned 20% points when they run. GoDaddy has a 60% market share in domains and hosting. The last campaign was a one/two shot. What do we do, who do we do it for?

The Pefect Match commercial and the YourBigIdea.CO ad both ran to increase market share. They received 1.6 billion impressions in two weeks.

 

YourBigIdea.CO is the focus towards "who our market is."

 

BTW, Discount Codes work.

 

GoDaddy bought M.Dot which allows the creation of a web and mobile app in 3 or 4 minutes.

 

On to GTLD's. There are 800 new GTLD's. Amazon wanted ".book". This is very controversial. The prices start at $185,000 and bid to the final auction price. The entry price alone is a barrier to entry. And GTLD's lead to full vertical integration.

 

GoDaddy sees the independent internet, the individual website, as continuing to thrive.

 

 

Lisa Pearson, CMO, Bazaarvoice

http://www.bazaarvoice.com

 

2018 - 5 years from now.

5 years from now:

You'll never get a present you don't want.

We'll all be angel investors.

You'll subscribe to a car BRAND and just check out the car you want at the time.

Your refrigerator will be connected to the school lunch API.

 

The Millennials have VERY specific wants. By 2018, Millennials will have more purchasing power than any generation in history. Millennials are very aware of their own data. What do I get in return for my data? Pandora is a good example of trading personal data to fulfill a want - free music. Data in exchange for value.

 

5 years from now, TV shows will be morphing. The same show, with different content. For example, the Big Bang Theory. Your profile will show you may have a preference for Amy Farrah Fowler over Penny. In your show, which you will watch on your own device, there will be an extra scene with Amy Farrah Fowler and less Penny.

 

Opinions matter everywhere. 55% of Millennials won't buy an electronic without reviews. 40% won't stay in a hotel without reviews from LIKE MINDED individuals. Overlays will be placed over TV commercials with truth in advertising, because Millennials already know the truth.

 

All products will be in perpetual beta; feedback will be continuously integrated into products.

 

Millennials don't care about ownership. Owning things is "what their parents do." How do you market to a generation that doesn't want to own anything?

 

 

Tim Musgrove, Cognitive Scientist, Temnos

http://www.textdigger.com

 

Temnos is platform as a service based on Textdigger. Disqus has 350 million users. It powers the discussion posts at the bottom of publisher's articles Disqus is using Temnos content intelligence.

 

How to build a perfect headline?

Temnos generates alternative headlines. A better headline generates 3 times the click through as a mediocre headline. Currently this is a manual process where a number of headlines are created and the click throughs are dynically measured where the top clicked headline becomes the winning headline. All within minutes.

 

Can Temnos generates alternative headlines using a machine algorithm?

 

1. Analyze the text of a page.

2. Score each page for impact.

3. Reword best snippets into headlines.

 

Result: We use the authors own words to rewrite the headline to generate higher click through rates. 41% of test cases have better click through rates. And those click through rates are 3 times higher than non-optimized headlines.

 

Next Step: Enable application developers such as Disqus to benefit from scalable content.

 

 

Chris Moody, President and COO, GNIP

http://gnip.com

 

GNIP is the world's largest provider of Social data. 95% of the Fortune 500 use their services. Social data has unlimited value and near limitless application.

 

Product Development:

Urban Outfitters

Source: Tumblr

Characteristics:       Unique

                                    Rapid engagement

                                    Focused demographic

Tumblr reblogs reassociate a person with an image.

 

Supply chain management: A local retailer with many locations within a city set up geo-fencing for each store. The results showed that even though there was enough inventory it wasn't distributed correctly through each store leading to frustrated customers and lost sales. A social cocktail of comments from Twitter, Flickr and YouTube included the geo-location data.

 

If people are taking pictures inside your store, you want to see them.

 

Sales: An industrial gas supplier. Using a social cocktail of Twitter and blog comments they were able to determine that a major customer was moving into the area. Users can find info deep in the data. Every local government has a website with meeting minutes and agendas. Mine this data for early detection of business opportunities.

Tom Phillips, CEO, Media6degrees

http://m6d.com

 

Fraud is rampant throughout the click-through business. In Real Time Bidding 40% of impressions on the exchanges are fake in 2013.

 

13% of US browsers are infected with a virus. These browsers generate 40% of impressions and 60% of conversions are fake. Botnets distribute traffic to fake sites. How it works is that the User Virus goes to the Botnet, on to the Dealer, and finally to the Publisher - which is not a real business. The Publishers push traffic to the marketplace exchange.

 

The BUYER, the agency, pays the price. $1.1 Billion is shared by the thieves. However, the agencies KNOW they are buying fake inventory. But the Client believes the numbers, the numbers are going up and a re-adjustment downward would look bad.

 

To battle the fraud:

1. Use a detection code.

2. Use fraud eradication code.

3. mobilize to eliminate fraud at it's source.

 

 

Joel Lunenfeld, VP of Global Brand Strategy, Twitter

http://www.linkedin.com/in/joellunenfeld

 

The accepted wisdom says "If it bleeds, it leads." Bad news gets attention. But at Twitter we've discovered that good news always trumps bad news. The opposite of propaganda. We know that most people are most positive in the morning. And we are happiest when we travel - on vacation for instance. Happiness trumps sadness. Love trump hate buy huge margins.

 

In the Boston bombings "#prayforboston" had 10 times the traffic as any other negative word like "#bombing." In the Japan Tidal Wave, or the OK Tornado, tweets were used for checking on loved ones.

 

Our global culture is more positive than the news projects.

 

 

Tim Cadogan, CEO, OpenX

http://www.openx.com

 

There are five major digital shifts happening:

 

1. One screen to multiple screens. 90% of tasks are completed across devices. We start shopping on one screen and finish shopping on another screen.

 

2. We're moving from marketing to a general audience to a specific person. On the economist.com website, there are 20,000 possible marketing overlays for ad targeting.

3. We're moving from human to automated.

 

4. We're moving from Interruptive advertising to Native advertising. The consumer comes first. Advertisers need to earn attention, not command it.

 

5. Moving from Static to Real Time advertising with real time analytics.

 

The solutions are:

 

1. Responsive Design for multiple screens.

 

2. Use precision with "soul".

 

3. Scale the human craft. As we move from human to automated, don't loose the humanity.

 

4. Use permanent Real Time marketing to flow into the Native conversation.

 

5. Integrate storytelling by using the results from real time analytics.

 

We need:

A. Unified Platforms

B. Real Time assembly of ads

C. Sequenced Advertising.

 

 

 

PANEL DISCUSSION

Abbey Klaassen, Editor, AdAge

http://adage.com/author/abbey-klaassen/303

 

Bill Demas, CEO and President, Turn

http://www.turn.com

 

Greg Coleman, Global President, Criteo

http://www.criteo.com

 

What is your advice to Yahoo?

1. Keep Yahoo separate

2. Retain Tumblr culture and still scale

 

Bill - Target the audience in real time to reach brands.

Greg - Critio is seeking to deliver ad spend better than any other.

 

GRP's (http://en.wikipedia.org/wiki/Gross_rating_point) are easier to measure in TV. Digital must catch up.

 

Dr. David Kong, Ph.D, Bioengineering Systems, MIT.

http://www.linkedin.com/in/davidsunkong

 

There is a revolution in reading and writing DNA. 9 out of 10 cells in the human body are bacteria. Humans are not one organism, but a super-organism. Mapping the human genome of 25,000 genes is the first step, but what about the other 90% - the 1.1 million genes in the bacteria?

 

Angelina Jolie sequenced a part of her DNA which cost about $10,000. The price is rapidly falling. Within 5 years, we will sequence the entire DNA of every baby at birth. The issue is how to store all this data; how to interpret all this data. Again, the insight is not the data.

 

 

Chet Kanjoia, CEO Aereo

https://aereo.com

 

Aereo is a major disruptor.

 

TV can be watched for free over broadcast airwaves with an digital antenna, but it's a hassle to set it up. Aereo solves this problem: every subscriber has their own antenna in a giant warehouse. Now the user just has a set-top box with DVR capabilities and pays $8 per month.

 

There are 90 guys in a warehouse, backed by Barry Diller and sued by the cable companies.

 

"Les Moonves is out to get Aereo by any means necessary, but he "doesn't lose sleep over it," the CBS Corp president and CEO told the Milken Institute Global Conference today. "Barry Diller has done what he likes to do, disrupt things," Moonves added. However, the CBS chief did say that if the situation couldn't be resolved in the courts, he is more than willing to take CBS to cable."

( http://www.deadline.com/2013/04/les-moonves-cbs-cable-threat-aereo-lawsuit/ )

 

 

Ben Silbermann, Founder and CEO, Pinterest

http://pinterest.com

 

Pinterest is adding more data to Pins. First, to help people discover and second to help people "Do". These pins include ratings, recipes and prices. For instance, pin a picture of a dish from Mather Stewart, and the recipe shows up in the pin.

 

Ben worked at Google and wanted to build a site around collections, being an avid collector himself. Ben didn't realize that when you put up and collection and share it, it starts a new kind of conversation.

 

Pinterest was launched in 2009, and at 6 months it had less than 10,000 people using it. Then it took off. Pinterest is one of the largest referrers to other sites. For instance it changed Design*Sponge's life. Core users had important projects in their life. Bloggers created a pin, and it forwarded.

 

What is the business model?

Pinterest is the place to go to put projects together and get input from others.

 

What advice do you have for Brands?

Check out how Anthropologie uses Pinterest. http://pinterest.com/source/anthropologie.com/

http://pinterest.com/search/pins/?q=anthropologie

 

Make it easy for brands to share their pins.  Use Native Pin-It buttons within iOS for example.

 

Last year, Pinterest was only 15 people. We're planning an API but it's hard. Limiting full access but want to ensure full stability for each part of Pinterest to expose and for maximum usability.

 

 

Kathy Savitt, CMO, Yahoo!

http://pressroom.yahoo.net/pr/ycorp/kathy-savitt.aspx

 

Tumblr is the fastest growing site. 300 million uniques a day. 120,000 new signups a day. 900 posts a second.

 

Tumblr is partner-centric. Marissa Mayer, CEO is quoted as saying "We promise not to screw it up." Yahoo is an original brand on the web and is in the beginnning/middle of a brand renaissance.

Facebook has 700 million uniques a month, with the demographic being 35 and over.

The Tumblr demographic is 13 to 34. Kids check Tumblr 7 times a day via their mobile app.

 

How is Yahoo going to integrate Tumblr with Yahoo?

David [Karp] is an amazing CEO. We are going to follow his roadmap. We've long wanted to partner with Tumblr, which has billions of pages of great content. Tumblr users want increased discovery tools. Yahoo just launched it's own Native Advertising onit.

 

With Native Advertising, how do you scale? The ad IS the Tumblog. Studios are doing great work. See the work for the Hunger Games. http://hungergames.tumblr.com

 

Org charts give me hives. Talent is what matters.

 

What does the Yahoo brand mean?

Apple is relevant because it improves the status quo. Yahoo exists to make people's daily habits more enriching and entertaining. Yahoo Search, News, and Messenger have always been part of people's daily habits. What Yahoo stopped doing was making those daily habits inspiring and entertaining.

 

We want to amplify the culture of Yahoo. A new Flickr site launched on Monday. A new Weather App, and a new Home page.

 

SnapChat is for the young. Instagram is for older users.

 

Yahoo is inventing tomorrow's daily habits.

 

How can Yahoo succeed without a social network and without an operating system? Melissa said, Yahoo will succeed specifically because it does not have a social network nor an operating system. Yahoo is free to partner. Yahoo has announced a partnership with Twitter. If you're in service to the user, then there is no "social". Generate, share content and make it seamless.

 

Is Yahoo committed to the Ad Stack and RMX?

The Ad Stack is still very important. "Genome" is an extension of Interclick. Yahoo will continue to innovate in the Ad Stack.

 

 

Walter Knapp, EVP, Federated Media

http://www.federatedmedia.net

 

Big Data is mostly hype right now. Referring to the Gardner Hype Cycle, (http://en.wikipedia.org/wiki/Hype_cycle) Big Data is heading into the Trough of Disillusionment for 12 to 18 months. As soon as you see mature companies like Oracle claim to do Big Data, you're in the Hype.

 

The first waypoint on the journey is the ability to collect, store, and segment the data. The best ideas are obvious when someone else does them. But learned behavior is hard to break.

 

Today, mobile phones are still being registered at three times the rate of smart phones. There are 200 million active websites on the internet. Yet ComScore only lists the comScore 500.

 

1. Openess requires collaborative coordinated models.

2. Transaction costs are too high.

3. What would you do if you had to start from scratch?

 

 

Paul Berry, CEO, RebelMouse (Ex. CTO, Huffington Post)

https://www.rebelmouse.com

http://mashable.com/2013/03/10/rebelmouse/

 

Display Ads need to catch up to Real Time text ads. Rebel Mouse brings all content and assets together. Rebel Mouse can either be a site or a dashboard. The splash becomes the ad on the network in real time. Rebel Mouse allows ads to be replaced in real time. Real time stats let you test and optimize. Fast Company, MTV Music Awards, VICE, Red Bull all use it. And it can be easily skinned.

 

The half-life of a Tweet is one hour. A Tweet can be integrated into the dashboard and pushed live into the ad network.

 

RebelMouse is fully turnkey. Glee and New Girl used RebelMouse. For the New Girl pilot, the site was created in the morning, and live by the afternoon for the evening pilot.

 

TechCrunch's CrunchScroll ( http://crunchscroll.com ) is powered by RebelMouse.

 

Paul@rebelmouse.com

 

 

Tom Chavez, CEO and Co-Founder, KRUX

http://www.krux.com

 

What is consumer web data worth. We need to process massive gigs of data to answer the question. And what of First Party Data vs. Third Party Data?

 

Traditional Direct Sales have the most meaningful uplift of 20%

Programmatic First Party Data has an uplift of 12%

Third Party data has uplift of only 3%

 

 

 

 

Serkan Piantino, Site Director, Director of Engineering, Facebook

http://www.linkedin.com/pub/serkan-piantino/1/282/929

 

The Newsfeed, the Composer, and the Face Pile. We are wired for authentic communication since the dawn of civilization.

We know who they are.

We have a shared context.

We don't have a goal when we communicate.

We like to listen.

 

The Facebook Composer is natural. All we need is a prompt: "What's on your mind?" No one needs further instructions.

 

Facebook composes 20% of the pageviews of the Internet every day.

 

 

Amy King, VP Product Marketing, Evidon

http://www.evidon.com

 

Evidon is the maker of Ghostery (http://www.ghostery.com). Ghostery shows all trackers, cookies and 3rd party info sent out when you visit a website. [ This is AWESOME - ed. ]

 

Who holds your audiences data? Often 3rd parties know more about your vistors than you do. Evidon humanizes the LUMAscape.

 

Ghostery has 20 millions users and is the only comprehensive tracking code library on the web. Tags are quickly evolving. Data is being horded by a few companies, including Google. 33% of all tracking on the web is coming from Google. Facebook, Amazon, DoubleClick, Twitter are all collecting more data then you are.

 

Evidon streamlines who has access to your data.

 

 

PANEL DISCUSSION

Omar Tawakol, CEO, BlueKai

http://www.bluekai.com

 

Eric Roza, CEO, Datalogix

http://www.datalogix.com

 

Conrad Feldman, CEO, Quantcast

https://www.quantcast.com

 

Fragmentation of data is the enemy. Real Time Advertising and Data Driven Marketing are in a renaissance.

The landing page interstitial (takeover) in the short-term works, but in the long-term works as a negative against the brand. "A brand is between me and my content."

 

Neilsen OCR

comScore SPX (?)

 

93% of consumer spending is offline. That data is going to be shared to increase online engagement. Personal data will be entered into a liquid marketplace which can be bid and sold. The USER will get rewards - like airline points or miles.

 

There are other ways to track beyond the cookie. IP Bridging is a new way for cookiless tracking. If they are coming from this IP, we can infer with some confidence that this is the same person.

 

 

Dr. George John, Co-Founder and CEO, RocketFuel

http://rocketfuel.com

 

RocketFuel refines data collected by cookies using AI. They create filters for relevance. Advertisers report that it's like having another planner on the team. There are less analytical reports. Projects are faster to setup and they are cheaper overall.

 

This is Artificial intelligence applied to advertising. Once you collect data by gender x race x income x likes x pins x location x etc, there are there is too much noise for the signal. RocketFuel analyzes the noise to bring back correct market intelligence.

 

 

Brian O'Kelley, CEO, AppNexus

http://www.appnexus.com

 

AppNexus builds software for Real Time ad auctions.

 

Do Not Track is not too much to be worried about. TV doesn't use cookies. But advertising is a way to make content free; for playing Angry Birds for free.

 

Every time the user clears their cookies, their value decreases. If "Do Not Track" means, "Do Not Advertise" then the internet won't be free. But it should mean "Responsible use of data."

 

Advertisers don't care if you have great content, or the number of visitors. They care that you have a valuable cookie that shows you visited  a car website.

 

Only in the U.S. do we see such a proliferation of third party data. Not in Canada, UK, the EU. It's creepy if I go to a Ford site and then have banner ads for Ford follow me around the web. Behavior profiling is creepy.

 

 Dr. Joran Shlain, Founder, HealthLoop

http://www.healthloop.com

 

In the 1920's, three events came together.

1. The AMA was created to give accreditation to country doctor and separate them from the snake oil salesmen.

2. The Baylor Hospital asked for 50 cents a month for medical care. Before that, a doctor worked for barter, and hospitals were more like hospices.

3. Kaiser Shipyards couldn't get pay their workers enough. So to lure the workers, Kaiser offered to pay the 50 cents per month to Baylor. Kaiser Shipyards eventually became Kaiser Healthcare.

 

Only 22% of each healthcare dollar goes to doctors and that number is going down. The Affordable Care Act tries to change the paradigm from "Pay for Service" to "Pay for Performance". This by tracking the number of urgent care from a patients assigned to a doctor. The issue from a doctor's perspective is, "Why should I be penalized if my patient doesn't take the antibiotic I prescribe and ends up in the emergency room?"

 

We should change that from Pay for Performance to Pay for Engagement. How many times have you seen the patient? How easy is it for you to track your patients health? Can the patient check in with their doctor and report symtoms? Market Intelligence applied to healthcare.

 

 

PANEL DISCUSSION

Jacki Keli, CEO North America & President of Global Clients, IPG Mediabrands

http://news.ipgmediabrands.com

 

Amanda Richman, President/Investment & Activation, Starcom USA

http://usa.starcomww.com

 

Brands where the CMO partners with the CIO are most aware of opportunities. The agency model is going through a shift. Acxiom is one of the largest agencies in the world, but Acxiom considers itself a data broker.

 

Clients have been paying agencies based on the size of teams - the FTE Equivalent. It's now shifting to the output of quality and performance.

 

Ad Tech places a greater need for agencies to sort through choice and navigate complexity. A lot of spend is shifting to programmatic ad tech. In 3 years, 50% of all placements will be automated. Right now, it's 10%.

 

For Coca-Cola, 10% of their advertising spend HAS TO be innovative.

 

TV is the interesting new space. Using traditional media to drive digital engagement.

 

How is the economy?

Cautious optimism. No one is going All In. More and more is going into Digital, but it's not being called Digital any longer.

 

Clients are not pulling back.

 

Be willing to "Lean In", but also be willing to "Fail In."

 

Video is now holistic. No longer is it TV View vs. Digital View. Instead, it's a "Video Neutral Strategy."

 

Nielson OCR ( Online Campaign Ratings ) and comScore VCE (Validated Campaign Essentials) are referenced.

 

In Social, too many groups in an organization are touching Social. Brands need to streamline the social organization.