back to the future of media: ben lerer 2015 sxsw
TRANSCRIPT
@BenjLerer#Back2Media
Let’s go back
@BenjLerer#Back2Media
Content creation was expensive
Content distribution was expensive
Media was controlled by the few
Advertisers ultimately were at the mercy of the media
Before the Internet…
@BenjLerer#Back2Media
The Good Ol’ Days
@BenjLerer#Back2Media
And then…
@BenjLerer#Back2Media
Traditional media wanted the RULES to be the
same for Digital
@BenjLerer#Back2Media
@BenjLerer#Back2Media
@BenjLerer#Back2Media
@BenjLerer#Back2Media
#YOLO
2005 U.S. Advertising Marketshare
4.7% Internet Advertising
Sources: IAB Internet Revenue Report: PriceWaterhouseCoopersLLP; Universal McCann
@BenjLerer#Back2Media
Also, in 2005…
@BenjLerer#Back2Media
There was only one way to effectively MONETIZE
digital
@BenjLerer#Back2Media
SCALE!
@BenjLerer#Back2Media
Over the last 10 years, a bunch of shit has happened
@BenjLerer#Back2Media
The Democratization of Media
@BenjLerer#Back2Media
Publishing Tools Were Created
@BenjLerer#Back2Media
The Rise of Social
@BenjLerer#Back2Media
Access to Data
@BenjLerer#Back2Media
So, how do you win in digital media today?
@BenjLerer#Back2Media
Increasing Web Users
2013 2014 2015 2016 2017 20180
0.5
1
1.5
2
2.5
3
3.5
4
Source: eMarketer, November 2014
2.69B2.89B
3.07B3.25B
3.42B3.6B
@BenjLerer#Back2Media
Increasing Online Ad Spending
2011 2012 2013 2014 2015 2016$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$32B
$39.5B$46.5B
$52.8B$57.5B
$62B
Source: eMarketer, January 2012
@BenjLerer#Back2Media
The New Media Playbook Tech-centric Social DNAData-centric
Multiplatform Distribution Personalization
Real Time Content Strong Brand Voice
Mobile First Best In Class Branded Content
@BenjLerer#Back2Media
@BenjLerer#Back2Media
Source: Altitude Digital
U.S. Ad Spending
2011
76%Nonprogrammatic
2012
62%2013
47%2014
36%2015
27%2016
21%2017
17%@BenjLerer
#Back2Media
What does the FUTURE OF MEDIA look like?
@BenjLerer#Back2Media
The media company of the future will figure out a way to
DIRECTLY MONETIZE its users
@BenjLerer#Back2Media
COMMERCE
@BenjLerer#Back2Media
The distance between INSPIRATION and POINT OF
PURCHASE has come together
@BenjLerer#Back2Media
A media company’s CORE ASSET is its access to, relationship with, and
ultimately influence over its audience
@BenjLerer#Back2Media
@BenjLerer#Back2Media
Commerce provides the opportunity for media
companies to not just think about share of ATTENTION, but also share of WALLET
@BenjLerer#Back2Media
2
HISTORY
MAY 4, 2005
Thrillist Sends Its First
JULY 31, 2008
JackThreads Launches as a Flash Sale Street
Wear Brand
OCTOBER 9, 2008
Thrillist Features JackThreadsEditorially
SEPTEMBER 16, 2013
Our Integrated Content &
Commerce Platform,Launches
OCTOBER 23, 2013
Supercompressor
Launches
MAY 13, 2010
Thrillist Acquires
JackThreads
+
@BenjLerer#Back2Media
The Commerce Business
1M+Packages Shipped
In 2014Packages ShippedIn 2014$100
Packages Shipped In 2014
Projected Revenue in 2015
60%Packages Shipped
In 2014Repeat Buyers
@BenjLerer#Back2Media
Massive Commerce Business
80% commerce
20% advertising
@BenjLerer#Back2Media
We are the media company that’s closest to the customer’s wallet
@BenjLerer#Back2Media
StorySelling
Content ata Venue
Content in Funnel
Content in a Box
Contentfor Sale
Relevant ContentAwareness &Consideration
CommerceIntent &
Conversion @BenjLerer#Back2Media
Content in Funnel
@BenjLerer#Back2Media
Bad Definition of Disruptive
1. To cause something to be unable to continue in the normal way; to interrupt the normal progress or activity of something
@BenjLerer#Back2Media
2. A new product, service or idea that radically changes an industry or business strategy
Good Definition of Disruptive
@BenjLerer#Back2Media
18
Content for Sale
@BenjLerer#Back2Media
Content in a Box
@BenjLerer#Back2Media
Actionable User Data No Media Company Can Match
Taxonomy
Content Categories
Commerce Product Categories
Commerce Brand Names
User Behavior
Content Clicks
Social Sharing
Add to Cart
Browsing History
Order History
Purchase Frequency
Average Order Size
LTV
Personally Identifiable Information
Age
Email Address
Home Shipping Address
Types of Credit Cards
Social Login Information
Mobile Devices Used
Thrillist City Subscription Preferences
Private Label & Collaborations
Personalization Ad Targeting @BenjLerer#Back2Media
Purchase Intent
@BenjLerer#Back2Media
TMG Ad Campaign with Integrated Content & Commerce
3.5x Larger
@BenjLerer#Back2Media
Turning Readers into Buyers
@BenjLerer#Back2Media
And Turning Buyers into Readers
@BenjLerer#Back2Media
@BenjLerer#Back2Media
Maximum Monetization
$9.18
$8.21
$6.47
$4.86$4.40
$3.99
$3.02$2.70
2014 ARPU
$102.77
$66.97
$52.66$48.83
$26.76
$12.85 $10.24 $10.16
2014 RPM
@BenjLerer#Back2Media
We’re not the only ones doing this
@BenjLerer#Back2Media
@BenjLerer#Back2Media
@BenjLerer#Back2Media
@BenjLerer#Back2Media
@BenjLerer#Back2Media
@BenjLerer#Back2Media
@BENJLERER @THRILLISTMEDIA
#DIGICRONUT@BenjLerer
#Back2Media
The media company of the future will figure out a way to
DIRECTLY MONETIZE its users
@BenjLerer#Back2Media
THANK YOU.I would definitely make out
with most of you.
@BenjLerer#Back2Media