1. 1 The Race Sideways: Value Transfer to Reaggregators and New Geographic Filters Gigi Johnson Lecturer, UCLA Anderson Executive Director, Maremel Institute

2. “Abundance breaks more things than scarcity.” Clay Shirkey, SXSW 2010 Cc-2.0 johan-larsson/flickr

3. One Look at Ad-Based Media Investment in Contracted Content Geographic Audience Geographic Matching Advertising Trusted Filter Ad- Based Media

4. The Race Sideways to New Distribution Users/Consumers Media Advertisers Aggregators as Filters Behavioral and Usage Data “making up the difference” CPM-based challenge: Value of audience vs Cost of content and delivery

5. Friction: Opposing Forces to “Smooth” Change Abundant digitized content Search Plummeting Cost of Creative Tools Data-Based Advertising Mobility Systems based on Scarcity of Content Bounded Rationality Rights Contracts Lack of Time Need for Filters REAL COST & CPM GAP

6. Re-Combining Audience, Ads, & Data Geotargetting Search-driven HyperLocal Local TV Print et al Local Markets National TV National Print National Market Internet-driven Global Media Pulling value by unleashing geographic market limits

7. Example #1: US Video on Demand: Forcing Abundance Cable Networks Forced to provide programming to keep channels Cable MSOs Wanted it free to fight satellite Advertisers Wanted data and relevance Audience Glad for free content, but not marketed well Content Providers Not paid “TV Anywhere” – Brewing battle over “Over the Top” Internet Access to content

8. Example #2: Video before Ad Market Source: Universal McCann Wave4 7/09 Myth of the $25 CPM: Hulu Vevo/YouTube Veoh Vs. iTunes/iPad Splinternets

9. Example #3: My Abu Dhabi Class Abundant content (Arabic and English) around country borders: Lebanon, Saudi, US Syndication – Knew Oprah, Disney Online and Cable Content “filtered” by government Global Long Tail: Connected and sold their media content all over the world, cross culture No material ad business for print or Internet yet – nothing to pay for this…yet

10. Example #4: New Filters -- “No Cost” Social Media Growth Source: Universal McCann NextThingNow 4/08

11. Online Population Growth Surge: Matching Online Ad Geographies? Source: ComScore, 9/09

12. Page 12 Specific Challenge for Facebook Economics

13. Old Social Global Spread: 2007

14. Global Time Spread: 2009

15. Social Nets Expanding Audience in Asia Pacific Page 15 Source: ComScore 8/09

16. Asia Pacific Growth in Audience Share Source: ComScore, 9/09

17. Example #5: Language in Aggregation

18. Gathering of Local(ized) Voices

19. BRIC: Next 1 Billion Source: Universal McCann Wave4 7/09

20. Re-Aggregating Attention: Global, Language, and HyperLocal Geotargetting Search Driven HyperLocal Local TV Print et al Local Markets National TV National Print National Market Internet-driven Language and social Global Media Language Aggregation? Cross-Cultural Platforms? Advertising Challenge? Re-Aggregating Local?

21. SLOW BUT AWKWARD…AND SPEEDING UP Cc-2.0 Mr. Thomas/flickr

22. Gigi L. Johnson Executive Director, Maremel Institute Technology transformation in creative, cultural, and knowledge industries Research, Advisory, Educational Programs, and Partnerships 1-626-603-2420 phone | 1-626-841-8972 mobile/sms | Skype: maremel5 www.maremel.com | gigi@maremel.com | Twitter: @maremel Partner Educational Programs:  UCLA Anderson School of Management  UCLA Herb Alpert School of Music  USC Center for Communication Technology Management  Columbia College, Los Angeles Campus  Universidad de Navarra, Pamplona, MCEG  Higher Colleges of Technology, Abu Dhabi, MCCI