LUMA's 2014 MMA Summit Keynote
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The document discusses the evolving mobile advertising landscape. It notes that mobile is becoming a greater part of everyday life and the greatest advertising opportunity. While mobile ad spend and M&A deals are increasing, funding for mobile ad tech is decreasing. It also discusses the rise of native mobile ad formats and the importance of content in branding. Looking ahead, it outlines the large total addressable market opportunity across various mobile-related sectors such as marketing, advertising, and commerce.
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LUMA's 2014 MMA Summit Keynote
- 1. SURVIVING MOBILE’S ROLLER COASTER FUTURE Terence Kawaja
- 2. Why Are You Listening to an Investment Banker?
- 3. Unlearning What They Teach You on Wall Street THE ! RED SUIT RULE!
- 4. Mobile Becomes a Greater Part of Everyday Life Source: KPCB
- 5. Greatest Advertising Opportunity is Mobile… Source: KPCB Dollars vs. Time Spent in US Mobile Opportunity 5% 12% 38% 25% 20%19% 10% 45% 22% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Print Radio TV Internet Mobile Time Spent Ad Spend
- 6. …And Spend Continues to Increase Source: KPCB $8.8 $17.8 $32.7 $49.7 $69.1 $88.6 $108.9 2012 2013 2014 2015 2016 2017 2018 CAGR: 52% Global Mobile Ad Spend ($BN)
- 7. This is going to be awesome!
- 8. 10 9 19 22 19 22 18 - 5 10 15 20 25 2008 2009 2010 2011 2012 2013 2014* Mobile M&A Deals Are Up
- 9. 10 9 19 22 19 22 18 - 5 10 15 20 25 2008 2009 2010 2011 2012 2013 2014* Mobile M&A Deals Are Up, But Few Scaled Exits $100MM $230MM $350MM $240MM $321MM $275MM $675MM 7 of 110 DEALS
- 10. $190 $287 $170 $628 $342 $218 $0 $100 $200 $300 $400 $500 $600 $700 2008 2009 2010 2011 2012 2013 Mobile Ad Tech Funding Continues to Decrease Source: BI Intelligence. Mobile AdverFsing Financings ($ millions)
- 11. Layer Not a Channel
- 12. Digital Marketing Channels Search Display Social Video Mobile ?
- 13. Mobile is a Layer, Not a Channel Search Display Social Video
- 14. Data Collection
- 15. The Cookie-less World of Mobile No Cookies?! DEVICE ID
- 16. Cross-Screen is Now a Marketing Imperative Logged in individuals Direct match of devices to people Algorithmic match Perfect Knowledge DeterminisFc Matching ProbabilisFc Matching Types of Device Matching
- 17. Creates“Walled Gardens”of First Party Data…
- 18. …Continue Expansion Through 3rd-Party Networks
- 19. 259% Growth 2014 $32.7 Billion Other 22% 47% Mobile Advertising is Concentrating Source: eMarketer 2012 $8.8 Billion Other 5% 53%
- 20. Marketers The “Ad Tech Squeeze” Publishers Commerce Large Digital Players Are In-Sourcing Ad Tech
- 22. CPI for LTV App on App The Two Worlds of Mobile Advertising CPM / CPA General Marketers
- 23. Apps Continue To Dominate Time and Revenue $2 $3 $6 $14 $24 $38 $0 $10 $20 $30 $40 2008 2009 2010 2011 2012 2013 Mobile Web Apps ($ in billions) Mobile Revenue Source: BI Intelligence 86% OF TIME SPENT ON MOBILE APPS ACCOUNT FOR
- 24. Increasingly More Expensive to Acquire Loyal Users Fiksu Cost Per Install Index $0.82 $1.28 $1.01 $1.31 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Jan-13 Jan-14 iOS Android Source: BI Intelligence, FIiksu 34% INCREASE IN COST PER LOYAL USER OVER LAST YEAR
- 25. Freemium Apps Continue to Gain Traction Source: KPCB 88% 90% 91% 92% 93% 94% 94% 12% 10% 9% 8% 7% 6% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014F 2015F 2016F 2017F Free Paid
- 26. CPI for LTV App on App The Two Worlds of Mobile Advertising Cost per Re-‐engagement CPM / CPA General Marketers
- 27. CPI for LTV App on App The Two Worlds of Mobile Advertising CPM / CPA General Marketers
- 29. CPI for LTV App on App The Two Worlds of Mobile Advertising CPM / CPA General Marketers
- 30. Source: Garnter, IDC, Strategy Analytics, Company Filings, BI Intelligence estimates, eMarkter US Mobile Video Viewers MillionsofViewers Mobile Video Explosion
- 31. ConnecFvity Entertainment ProducFvity PASSIVE ACTIVE ATTENTIVE Consumer Modality Matters
- 33. …and disruptive ads annoy the consumer FACILITATIVE INTERRUPTIVE InformaFve Intolerable
- 34. Mobile-first native formats are better for marketer and consumer Consumer in control – unobtrusive ad Experience within page; Engages the consumer Leverages data to effectively target Connects through various touch points
- 35. Content Is Critical to Branding
- 37. Bridges Physical and Digital Worlds
- 38. CPI for LTV App on App The Two Worlds of Mobile Advertising CPM / CPA General Marketers
- 39. Mobile Bridges the Physical & Digital Worlds
- 40. …and Facilitates the Path to Purchase Source: BIA/Kelsey LocaFon PersonalizaFon FacilitaFon
- 41. Search 90% Take AcFon 70% Connect 66% Visit 36% Purchase 23% Review ONLINE OFFLINE Connect online (Maps/Direc=ons, etc.) Call Visit Website Visit Store Online In-‐store Online-‐Review WOM 52% 50% 26% 13% 50% 48% 21% 15% Mobile Flattens the Purchase Funnel
- 43. Advertising $180bn Digital Advertising $51bn Sources: eMarketer, Forrester, Gartner, The Nilson Report, LUMA estimates Programmatic $10bn Reorienting the TAM Opportunity
- 44. Communications $1,2000bn Commerce $4,430bn eCommerce $305bn mCommerce $58bn Marketing $432bn MarTech $181bn Advertising $180bn Digital Advertising $51bn Programmatic $10bn SaaS $17bn Sources: eMarketer, Forrester, Gartner, The Nilson Report, LUMA estimates Reorienting the TAM Opportunity Payments $88bn
- 46. Significant Recent Digital M&A Activity
- 47. LUMA’s Content Strategy: Substance and Fun! Over 300,000 views!
- 48. Investment Banking. Evolved. New York – Palo Alto lumapartners.com Thank you.