Category Archives: Advertising & Marketing

Areas of Interest from kbs+p Ventures Summit

We launched kbs+p Ventures about 6 months ago as an early stage investment arm of our agency, kbs+p.  Last Friday, we hosted a summit where we brought a small group of people with both visionary and tactical backgrounds to help us filter the areas that are of potential investment focus.  While most firms keep this confidential, following Fred’s recent post over at AVC, I’ll open these thoughts up as well.

Why?  I hope that any of you reading this blog might help point me/us in the right direction of entrepreneurs who are innovating in any one of these spaces.  You can easily get in touch with me here or on Twitter or LinkedIn.

In no particular order:

1.  Virtual Currency – what will the impact be of Facebook Credits?

2.  Measurement – how do you measure engagement?  How do you value “social”?

3.  Fan Acquisition – what are the best ways to acquire “fans” and “followers”?

4.  In-Stream – should brands participate in the stream of conversation and if they do, what are the rules to play by?  A company who is participating here is 140Proof

5.  Influence – how do you buy influence?

6.  No two networks or channels are used the same way.  I.e. While Facebook is a social channel, so is Linked In.  Think about the differences in your usage.  Compare this to 20 years ago when ABC and NBC, both television stations, were used similarly.

7.  With millions of web publishers, how do you match creative to each individual publisher?  It’s tough.

8.  We spend a lot of time targeting specific audiences, but an additional filter to overlay is “mindset.”  Are they currently in the “mode” to purchase? How do we differentiate messaging based upon where audiences are in the funnel?

9.  How do we combine SEM + social media monitoring.  If a topic is trending, how do we buy SEM against it?

10.  Predictive Trending – how do we predict what might trend and then purchase advertising around it.  (current company doing this is buzzfeed)

11.  How do we create video at low-cost, and then scale the distribution

12.  There currently isn’t one cohesive “stream” of me.  How can we harness the entire stream?  Where will the meta-stream live?

Leave comments and/or questions.  Would love to elaborate on any or all of these.

We (and they) are hiring!

At my last startup, we used our investors not just for business guidance, but also as talent scouts.  They were constantly meeting interesting people who were looking to join or build the next big idea and they helped us place some great talent within our organization.

Now, as an investor at kbs+p Ventures (and still an entrepreneur), our portfolio companies are asking us for hiring help.  Taylor and I are working on an internal & external talent management tool but I didn’t want to wait to publish these until it’s polished and released as it could be another month or so.

Here are some awesome opportunities from our portfolio (and friends of ours) who have asked us for candidates:

Crowdtwist:  A New York based startup who drives customer engagement through next generation loyalty software. CrowdTwist’s activity engine intelligently tracks consumer interactions with your brand (i.e. consuming, creating, sharing, purchasing, etc.) within your own site and across other destinations online. They are currently looking for:  Director of Engineering, Project Manager.

Adapt.ly:  A New York based startup who has made it extremely easy to buy media and audiences across the social web.  I personally call these guys the first social DSP.  They are currently looking to hire:  Ruby Developers, Data Scientists, Account Managers, and Summer Interns

The Media Kitchen:  New York based communications planning and buying agency (part of kbs+p) is hiring an Associate Director of Media Technology.  This position will be reporting into myself and will be an awesome role for someone who understands the infamous GCA/Luma Partners slide and reads AdExchanger daily.  Job description is located here.

If I missed any opportunities, I’ll post again in a few weeks.  If you are interested in applying for an opportunity, please contact the company directly (follow instructions on the opportunity page).

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Paid, Owned, Earned (Media)

I’ve been on a recent kick looking for “media” opportunities that cross the paid, owned, and earned landscape.  I’ve been looking for them for some of our clients media plans but I’ve also been looking at them from an investment perspective thru kbs+p Ventures.

The Paid, Owned, Earned Media framework isn’t new and a quick Google search reveals that it started catching on in 2009.

For those unfamiliar with the team, it’s a media construct/framework where a tactic (or overall strategy) crosses between paid media (media you purchase), owned media (media you own such as a website, video) and earned media (Re-tweets, shares, etc).

I’m on the lookout for companies who cross into this category.  An example of one that I was a lead mentor for in the TechStars NY program is CrowdTwist, as it’s a social loyalty platform that plays into the POEM framework.

Would love to hear about any other POEM partners out there as I think this area is really interesting.

Incentivized Viewership

I wrestle with whether or not I like the notion of  Incentivized Viewership.  It’s coming up a lot lately around the office as we’re starting to see more and more vendors offering us solutions to have viewers watch or interact with our clients ads because they are being compensated to do so.

I decided to write this post to get my thoughts out in the open and hopefully have a dialogue with all of you who can help create a better informed POV.

My general thought is that incentivized viewership is negative for the ecosystem because the quality of the view is diluted because the person did not decide on their own to watch or interact with the ad unit.  The person is only watching the ad unit because they earn a Facebook credit, a game credit, or some other form of compensation.  Here are a few posts about Facebook and some partners incentivizing video watching to earn Facebook credits.

Does anyone have any research that uses a control and variable group to measure conversion and/or brand metrics around people who are incentivized to view?  I’d love to see it.

Do you believe that incentivized viewership is good for the ecosystem?

Measuring Integrated Advertising

I have a lot of respect for Mark Suster, an entrepreneur who turned venture capitalist and now is investing out of GRP Partners.  He writes a terrific blog called Both Sides of the Table and his posts are picked up on TechCrunch and other major outlets.

He recently wrote a declarative post called The Future of Advertising Will be Integrated.  The post went up on April 29th but I’ve been noodling it ever since. Due to some personal obligations, I’ve not been able to respond, but finally, here it is.

As an entrepreneur turned ad agency guy, when I hear the word “integrated,” I immediately think media and creative under one roof, such as my firm, kirshenbaum bond senecal + partners.  I personally believe this is really the only way to go if you want to get to a big platform.  With media and creative all under one roof, under one P&L, and with a cohesive team, you can create big ideas that know no creative or media boundaries.

We have a saying internally at the agency, E=(MC)2, which is obviously repurposed, but it means a “[brand] experience” is exponentially greater when media and creative work together.

Enough agency speak for now but keep this last sentence in the back of your mind as you read the rest.  I hope you do.

Mark came at his post a bit differently and took the above tenants, whether he realized or not, and applied them to the digital media ecosystem today.  He highlighted a few companies such as my buddy Ari’s company, Solve Media, along with Adly and Kontera (amongst others).  The creative is the media in most of these, along with the media being the creative.  I’d argue Paid Search links play here as well.

The Elephant in the Room

One of the largest issues that the digital advertising ecosystem faces today is that we as an entire industry, are not setup to measure the “integrated” nature effectively. Because of this, at scale, this is not a near term reality.  There, I said it.  The elephant is in the room.

The digital advertising ecosystem by default rewards the intent harvesters, not the intent generators.  The primary reason why is that many agencies and marketers are using 3rd party ad serving systems that reward the last click or last action.  In the world of rewarding the last click or action, generally, the ad networks are the ones who win out.  There are 400 (or 700 depending on who you talk to) or so ad networks in the world who have nice businesses.  Just look at ValueClick or InterClick’s financial statements as they are public.  Not too bad.

THE Digital Opportunity

Because of the above, therein lies an opportunity.  If we believe what Mark wrote last week and I’ve been saying for years, then an opportunity lies in being able to create a measurement platform that allows us to understand intent harvesting and intent generation/creation. Piecing together a DART (3rd party ad server) report with a ComScore or Knowledge Networks study is inefficient and frankly, annoying.   There needs to be an evolution here.  This is a big opportunity.

Where We Are Today

Many readers of this blog don’t work in advertising agencies but are awesome entrepreneurs looking to figure out the next big idea to go and tackle.  Being that you are not in the walls of agencies on the daily basis, I thought I’d take the remainder of this post to outline where the industry is in terms of advanced analytics and then open this up for commenting in the thread below.

I highly request that you engage in the comments as group knowledge will benefit the community at large, you might find your next co-founder, and I love open conversations.

Ad Serving:  The Madison Avenue ecosystem basically uses one of three third party ad servers to “serve” and “track” different pieces of creative.  We use Microsoft’s Atlas, DoubleClick’s DART, and MediaMind.  In Q1 2011, we moved the majority of our clients off of Atlas and onto MediaMind because I personally have a strong viewpoint of independence of my ad-server and it’s relationship to media. (should be separate)

Data Warehousing:  This is a relatively new area and somewhat unchartered territory for many agencies.  Many agencies rely on their third party ad-server to be their main data warehouse for tracking. This is good, as you’d be surprised how many people don’t use a 3rd party ad server, but this is not great. Using a full on data warehouse such as VisualIQ, Neteeza, Artemis, or others allows for a larger capability to manipulate data and understand the relationships between touchpoints beyond “last click.”

At the agency, we’ve been using VisualIQ with some of our most progressive clients and the reports and results we’re seeing are fascinating.  One of the biggest questions we’re tackling is “optimal touchpoint analysis” and we’re seeing the relationships between display, video, search, social, and beyond.  We can now determine a value to each one.

Brand Lift Studies:  While I’ve argued time and time again, that “brand” advertising for the sake of brand advertising online is dead, many marketers continue just spending on “brand.”  Agencies use 3rd party brand study vendors such as ComScore, Knowledge Networks, Vizu, and others that help measure the “lift” (or change) associated in any one of many categories including but not limited to awareness, intent, and consideration.

Opportunities

·     The basic ideas behind today’s ad serving systems were conceptualized in the mid to late 1990s.  Online video, social, search, etc were not around then.

·     Product placement and integration into online video and social are hard to quantitatively measure with a 3rd party ad serving system as the only metrics you can pull back to your ad server are by using a click-tag.

·     The Display ecosystem is being fractured into traditional display (i.e. banners on ESPN) and social display (i.e. creative/textual units on Facebook, LinkedIn, etc).

·     I see Paid Search and Display converging on each other within the next 12 months. In some cases, they already are: Google Content Network.

·     I challenge you to ask your 3rd party ad-serving vendor to recommend an attribution model – report back what they tell you.  Not much – there is no standard yet.  It’s unchartered territory.

Next Steps

I would obviously love to hear your feedback.  Please post it in the comments section below or shoot me a note.  I believe that we won’t see large integrated opportunities that get their portion of the measurement/attribution credit until there is a way to measure these.  While we might try one or two of these integrated opportunities on each media plan, if you ask the agency how they really performed, the agency won’t have much to tell you because the tools for measurement are ancient.  With the data warehouses mentioned above, we get much better, but not perfect.

While we don’t need perfect to make the industry move forward, we do need better tools.  If you are building them, I’d like to speak to you.

Controling Your Image

All too often, Startups get compared to other startups.  Spacely Sprockets is Foursquare meets Yelp.  Widgetsly is Appnexus meets Legolas.  Usually, startups don’t pick who they are compared to as it’s up to the writers or editors of whoever is writing the press piece.

I was recently chatting with Chris Dixon, the CEO/founder of Hunch and angel investor in over 70+ companies, and he said something that really stuck with me.  I’m going to paraphrase here but he said something along the lines of, “when you are designing a product and crafting the positioning and messaging strategy, you need to keep the above in mind so that you, as the startup, controls who you get compared to.  If that means making your interface more like one company so you can be compared to them, that’s what you should do.”

Remember, once you contact the media to talk about your startup, the story is out of your hands and in someone else’s.

Of Acceleration, Inspiration Spaces, and Funds: 2011 TMK Digital Media VC Conference

One of the areas that I focus on is bridging Madison Avenue with Silicon Alley/Valley.  I think it’s unbelievably important for the future growth of both ecosystems.

At The Media Kitchen, in 2008, we launched our first Digital Media Venture Capital Conference.  We haven’t looked back since and we’re going on our 4th year of doing this.  We’ve had venture firms such as Union Square Ventures, First Round Capital, DFJ Gotham, Spark Capital, Betaworks (not a full VC firm), and IA Ventures present in the past with a wealth of CEOs and founders from amazing startups including but not limited to Meetup, 33 Across, AppNexus, Pinch Media, Izea, ContextWeb, DoubleVerify, Boxee, 5Min, TargetSpot, ChartBeat, Bit.ly, Zenetics, Metamarkets, FourSquare, GetGlue, Tumblr, and Twitter.  Here’s a link to my post from our 2008 conference.

This year, we’re changing it up a bit and not focusing 100% on Venture Capital funds, but around the ecosystem that surrounds entrepreneurship.  I think this is very important to present because the more people that we inspire about the surrounding ecosystem of entrepreneurship, the more people will feel comfortable with the possibilities of innovation.

We’re holding our TMK Digital Media Venture Capital Conference entitled, Accelerators, Inspiration Spaces, and Startups on May 17, 2011 here in New York City.  I have the ability to give 5 lucky readers of this post admission to the event which will be from 8;15am-12:30pm.  It’ll be an intimate group  of <150 awesome people.

If you are interested in attending and want to come, please reach out using this form with 1-2 sentences of why.  I’d love to give the right people the opportunity to be here to mingle with our entire agency, our clients, and our friends from the entrepreneurial world.

Data Dashboard: eBay Auctions, Autotrader, Manheim Data Sets

I’m in the market to make a new automotive purchase. Because of the nature of the purchase, I’d like to do as much due diligence as possible.

I’ve spent the last week watching new auctions pop up on eBay Motors and the like for a few specific models of cars, but realized that unless I keep a detailed manual spreadsheet of all I’m tracking, I’m going to be wasting my time watching different auctions.

The data geek in me is excited.

I’m wondering if there are any data dashboards or software that can scan eBay, Autotrader, Manheim, and other automotive datasets and record the following:

  1. Automotive Make (i.e. Toyota)
  2. Automotive Model (i.e. Camry LE)
  3. Exterior Color
  4. Interior Color
  5. Mileage
  6. Condition
  7. Source (eBay, Autotrader, Manheim, etc)
  8. Seller Name
  9. Seller Email
  10. Seller Phone

If I had just the 10 items above, in a structured data set for a rolling 90 days of data, I think I’d be very much ahead of the game.  I’d then port the data table into visualization software such as Tableau and then manipulate it so that I can figure out which cars I should be focusing on.

So, my question to the Interweb:

  1. Does this type of software already exist?
  2. If not, can it exist?  (if so, please contact me if you’d like to build it)

I don’t think this is too difficult but I could be wrong.

2011 Silicon Alley Golf Invitational

It’s that time of year again… an excuse to leave the office for a day and play a round of 18 holes with some of the top founders, investors, and supporting cast of the digital media ecosystem.  It’s time for the Silicon Alley Golf Invitational.  While I’ve personally held this event for a bunch of years now for a smaller group, last year is the first year where I opened it up a bit and went from 12 to 40 players.  This year, I’m expecting about 60-70 players based on the amount of positive response so far.  We even had some coverage in the Wall Street Journal, Business Insider, and NY Convergence, last year.

This year, we’re doing much of the same though switching the course, adding additional players, and maybe a few new prizes.

If you would like to play and can hold your own on the golf course, or would like to come up for the outside BBQ luncheon & awards ceremony, and you are a solid member of the Silicon Alley ecosystem, please fill out this form.  Due to space restrictions, we cannot accomodate everyone but will add an additional 5-15 people over the next month or so once I get a better grasp on RSVPs.

The date is July 18 and location is a country club in Westchester County.

The hashtag for the Silicon Alley Golf Invitational is #SAGI11

The Innovation Equation

I attended a talk at the Summit Series led by Chip Conley, the author of PEAK (and various books) and founder/CEO of Joie de Vivre.  Here’s his TED talk.  Over the past 25 years, he’s studied many different emotions and has broken them down into equations.  An example of this is:  DESPAIR = SUFFERING – MEANING

I’m working on a presentation about Innovation.  I’d like to break down the word innovation into an equation as inspired by Chip.

Here’s my stab at it:  Innovation = Execution + Evolution + Inspiration

What are your thoughts?  Is this equation good?  Did I miss anything?