LiveRamp Holdings, Inc. · NYSE:RAMP
LiveRamp — LUMA Partners — Rot R Chicago (2018)
42 slides from LiveRamp's conference presentation, Sep 21, 2018
Slide 1: TV's Data-Driven Future
TV’s Data-Driven Future Conor McKenna
Slide 2: The Leading Strategic Advisory Firm at the Intersection of Media and Marketing
Digital Media Content Ad Tech Technology MarTech Marketing The Leading Strategic Advisory Firm at the Intersection of Media and Marketing
Slide 3: LUMA Has the Best Pulse on Trends and Insights
LUMA Has the Best Pulse on Trends and Insights Highest Volume & Quality of Information Unparalleled Access to Strategics / Marketers
Slide 4: Digital Media Continues its Rapid Growth
Digital Media Continues its Rapid Growth Usage Monetization Time Spent Across Media in U.S. Total Ad Spend in U.S. ($ in billions) 2012 2017 $210 $124 $180 $124 $123 $128 $126 18% $150 $128 24% 36% $120 49% 40% 33% $90 $83 $60 $72 $60 $43 $50 $30 $37 $0 2012 2013 2014 2015 2016 2017 Digital TV Other
Slide 5: Sophisticated Marketers Leverage Data to Go D2C
First-Party Sophisticated Marketers Leverage Data to Go D2C ^
Slide 6: Performance Advertising Drives Results
Performance Advertising Drives Results DR CPA CPI CPC SCALE CPM AUTOMATION
Slide 7: Making Advertising a Profit Center
Making Advertising a Profit Center INCOME STATEMENT Spend “X” Revenue $1,000 COGS $550 Gross Margin $450 Expenses $250 Revenue “Y” Pre Tax Profit $200
Slide 8: What's the Next Frontier?
What’s the Next Frontier?
Slide 9: The Next Frontier Is in Your Living Room: TV
The Next Frontier Is in Your Living Room: TV
Slide 10: A Large Market Ripe for Disruption, Right Now
A Large Market Ripe for Disruption, Right Now >$70B U.S. TV Ad Spend Source: eMarketer
Slide 11: Make No Mistake, The Future of TV is Data-Driven
Make No Mistake, The Future of TV is Data-Driven “Over the next 12 to 18 months, as we stand the programmatic capability up, we want to start funneling Turner advertising inventory through the programmatic platform.” Randall Stephenson CEO, AT&T
Slide 12: Applying Digital Attributes to TV
Applying Digital Attributes to TV Targeting Sight, Sound & Motion Personalization Audience & Spend Scale AD Attribution Premium Inventory Performance Brand Safety
Slide 13: The Shifting TV Ecosystem
The Shifting TV Ecosystem
Slide 14: TV is in a Platinum Age
TV is in a Platinum Age amazon WETFLIX hulu oy) ©D\oulubeTV ESF + étv Roku fubo” Now HBO CRACKLE SIJ*WIIME CBS@aLLAccess EUbi B Playstation\Vue
Slide 15: Linear TV is Getting Older, Faster
Linear TV is Getting Older, Faster Change in Monthly Time Watching Linear TV by Age Group in the U.S. 30% 65+: +21% 20% 10% 50-64: +13% 0% 35-49+: -6% -10% -20% 2-11: -18% -30% 25-34: -26% 18-24: -37% -40% 12-17: -42% -50% 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 2016 Q2 2017 Q2 2-11 12-17 18
Slide 16: Yet TV Economics Remain Strong
Yet TV Economics Remain Strong
Slide 17: Selling Points Have Reversed
Selling Points Have Reversed Upfronts NewFronts Selling Premium Content Selling Data-Driven Approach
Slide 18: Selling Points Have Reversed
Selling Points Have Reversed Upfronts NewFronts Selling Data-Driven Approach Selling Premium Content
Slide 19: Outspending TV Networks for Original Content
Outspending TV Networks for Original Content Estimated Original Content Spending in 2017 $2.0B $4.0B $4.3B $4.5B $6.0B Source: L2
Slide 20: Adoption of OTT Continues to Climb
Adoption of OTT Continues to Climb Linear TV vs OTT Subscribers in U.S. (millions) 160 148 151 142 146 140 136 51 57 128 40 47 34 120 27 100 101 102 102 99 97 94 80 60 40 20 0 2012 2013 2014 2015 2016 2017 Linear TV OTT Source: Needham
Slide 21: Though Total OTT Viewing is Nascent
Though Total OTT Viewing is Nascent Streaming’s Share of TV Viewing Hours (Adults 18-49) 11% 8% 5% 2015 2016 2017 Source: Video Advertising Bureau
Slide 22: Live Sports Remain the Linchpin of Linear TV
Live Sports Remain the Linchpin of Linear TV Sports Programming Top 100 Live Broadcasts (hours, 100K) TV Broadcast Hours By Viewership 150 134 86 124 126 125 103 100 84 78 75 Sports 64 Other 50 37 31 25 14 0 '02 '04 '06 '08 '10 '12 '14 '16 '17 2017 Note: Sports programming includes shoulder programm
Slide 23: The Digital Giants Want a Piece of Sports
The Digital Giants Want a Piece of Sports Thursday Night 25 Weekday Exclusive Streaming Weekly MLB Football Games Afternoon Games Rights to 2 MLS Teams Day-Games 2017-2018 Season 2018 Season 2018 Season 2018 Season 24 MLS Matches 2018 Season
Slide 24: The Digital Giants Want a Piece of Sports
The Digital Giants Want a Piece of Sports “As we look at all the new players out there, we’re trying to prove that our content actually can make networks. Ultimately, live sports – will make Thursday Night 25 Weekdayplatforms.” Exclusive Streaming Weekly MLB Football Games Afternoon Games Rights to
Slide 25: Convergence of Two Worlds
Convergence of Two Worlds Premium Content Brand Relationships Integrated Workflow Programmatic Platforms Targeting Technology Attribution / Analytics Low-Cost Production
Slide 26: Perception vs. Reality in Convergent TV
Perception vs. Reality in Convergent TV Perception Linear TV Programmatic TV Reality Linear TV Addressable Video On Over The Top Digital Programmatic TV Linear TV Demand (OTT) Video (VOD)
Slide 27: "Programmatic TV" Won't Follow Digital
“Programmatic TV” Won’t Follow Digital TV Digital AD BID
Slide 28: The Unified TV / Video Challenge and Opportunity
The Unified TV / Video Challenge and Opportunity M Linear TV C A Unified, O R Standardized N Addressable TV K Measurement S E to Plan, Buy, U T Analyze, and M OTT E Attribute E R Advertising R S Digital Video S
Slide 29: Performance Advertising Drives Results & Brand
Performance Advertising Drives Results & Brand DR CPA CPI Business CPC CPE Outcomes SCALE CPM CPV CPM BRAND AUTOMATION
Slide 30: Performance Advertising Drives Results & Brand
Performance Advertising Drives Results & Brand DR CPA CPI Business CPC CPE Outcomes SCALE CPM CPV CPM BRAND AUTOMATION
Slide 31: Addressability Democratizes TV Ad Spend
Addressability Democratizes TV Ad Spend 5 Million 200 Advertisers Advertisers
Slide 32: What's at Stake
What’s at Stake Ad-Supported Video Subscription Video Linear TV Addressable TV Linear TV $70B $92B $1B $78B$71B OTT Digital Video OTT $7B $13B $7B Source: eMarketer, Needham
Slide 33: The Battle for the Future of TV is On
The Battle for the Future of TV is On STRATEGY OFFENSE DEFENSE PLAYERS Content Licensing: Regulation: TACTICS Product Experience: M&A:
Slide 34: It's Not a Fair Fight
It’s Not a Fair Fight ($ in billions) Market Cap by Company $12 $14 $21 TV INCUMBENTS $72 Avg. 2018E Rev Growth: 5% Avg. EV / 2018E Rev: 2.7x $234 $165 $227 $243 DIGITAL GIANTS Avg. 2018E Rev Growth: 38% $161 Avg. EV / 2018E Rev: 6.3x $468 $812 $971 $1,068 $0 $200 $400 $600 $800 $1,000 $1,200 Source
Slide 35: The Digital Giants are Global
The Digital Giants are Global STRATEGY OFFENSE DEFENSE PLAYERS Content Licensing: Regulation: TACTICS Product Experience: M&A:
Slide 36: The Digital Giants are Global
The Digital Giants are Global STRATEGY OFFENSE DEFENSE PLAYERS Content Licensing: Regulation: CRTC TACTICS Product Experience: M&A:
Slide 37: The Digital Giants are Global
The Digital Giants are Global STRATEGY OFFENSE DEFENSE PLAYERS Content Licensing: Regulation: TACTICS Product Experience: M&A:
Slide 38: The Digital Giants are Global
The Digital Giants are Global STRATEGY OFFENSE DEFENSE PLAYERS Content Licensing: Regulation: TACTICS Product Experience: M&A:
Slide 39: The Digital Giants are Global
The Digital Giants are Global STRATEGY OFFENSE DEFENSE PLAYERS Content Licensing: Regulation: TACTICS Product Experience: M&A:
Slide 40: The Incumbents are Preparing for Battle
The Incumbents are Preparing for Battle CONTENT ? DISTRIBUTION
Slide 41: The Incumbents are Preparing for Battle
The Incumbents are Preparing for Battle CONTENT $320B >$500B $180B ? Closed in Deals Pending DISTRIBUTION
Slide 42: Thank You!
Thank @cjmckenna12 You! Investment Banking. Evolved. New York | Palo Alto