millenial global pov (2)

Download Millenial global pov (2)

Post on 29-Jul-2015




0 download

Embed Size (px)


1. Millennial Global POVMillennial MediaMillennial Media was founded in 2006 with the goal of aggregating mobile WAP sites tomake mobile buying scalable for advertisers. As mobile grew, Millennial grew with it andbecame one of the largest mobile ad networks in the US and expanded into applicationbased advertising.In recent years the mobile ad network space has become very competitive with very littledifferentiating features between companies. Understanding the market place in 2013,Millennial purchased one of its closest competitors Jumptap who was the market leader fordata and targeting. The acquisition made Millennial even stronger in the space but asmobile technology advances advertisers look for more transparency which is why Millennialrecently partnered with Appnexus to pilot a DSP launch.Global Market Place: Mobile ProgrammaticUnfortunately there is limited 3rd party data available that speaks to the size of the majorcompetitor for each region. In fact the syndicated research tools in the US cannot accuratelyproject the audience size for mobile ad networks due to the lack of cookie based tracking.Millennial claims they are responsible for over 30% of all mobile purchasedprogrammatically at a global level (data source not provided).The mobile network space continues to be competitive and although there is not marketshare break outs by region available; below is a chart of the major mobile network in eachregion. On top of the mobile networks StrikeAd, Adelphic, Turn and Media Math are DSPsthat can be used globally to garner scale. 2. Previous ExperiencePrevious Spend:GM is very familiar with Millennial in the US and last year spent $3.6MM with them and$3.1MM with Jumptap for a combine total of $6.7MM. Thru May of 2014 GM has booked$3.1MM with Millennial and the divisions are forecasting an additional $2.9MM for theremainder of the year. This would put GM on pace for $6MM with Millennial in 2014.Outside of the US, GM has only purchased Millennial in Canada at a very minimal spend.Previous Performance:Millennial has been one of the strongest performers in the mobile network space in the USwhich has made them one of a few preferred mobile partners.Package/Offer:Millennial is looking for an $18MM global commitment with $13.8MM in the US and $4.2MMin other regions which is almost triple what we are projecting. With this commitment wewould get the following:-33% Rate reduction on current rate card-Creative consultancy including production resources & first look opportunities-Access to insights by region-Metrics, data and dashboards-12 Brand lift studies-4 Cross screen attribution studies-8 Studies on foot traffic to dealership-6 Auto purchase rate studies-Data pipeline into reporting (cross channel campaign performance)Considerations:In efforts to help clients get more efficient with their programmatic dollars, agencies hadminimized their spend with display ad networks about five years ago and video networks 2-3 years ago to build trading desks. Trading desks are essentially an extension of the digitalbuying team that purchases across multiple DSPs and is transparent on both rates & sitesas well as provides market insights. Prior to trading desk it was rumored that networks took50-60% margins on the inventory purchased. Mobile inventory hasnt been as readilyavailable via DSPs in the last couple year however there has been quite a bit of evolution inthe past 18 months and spend is starting to follow.Millennial is proposing a 100% managed service where they purchase inventory off theirexchange while managing the bids and site level optimization. As part of a cost exercise wehad Aegiss Trading Desk AMNet pull average CPM by country with three different mobileDSPs. On average the inventory that AMNet can buy via a self-service platform is 30-40%less expensive than the rates Millennial is offering thru their managed service.We would estimate the added value studies listed above at $600kRecommendation: 3. Millennial is looking for GM to increase spend by 300% YoY for a buying avenue (managedservice) that will continue to lose market share over the next couple years. Although wevalue Millennial as a current partner in the US this is a lot of money to invest with onevendor in a very crowded space. Historically, other regions havent purchased Millennial soadding a $4.2MM commitment might take away from their preferred mobile partners.Additionally a good portion of the benefits listed i.e. lower spend, insights, metrics anddashboads can already be garnered through Carats Trading Desk. AMNet can actuallypurchase off Millennials DSP and others at a 30-40% rate reduction without a spendcommitment. Although the added value studies ($600k) are enticing they would not justify aspend increase of $12MM.At this point we would not recommend this program with Millennial for the reasons listedabove. If there is an appetite for a global programmatic mobile solution we wouldrecommend testing a couple different DSPs including Millennial via AMNet at a lower scale.This would allow for optimal learning aptitude for each region.