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Visiblend
Driving brand sales through YouTube
Visiblend Video Link
Forrest Iandola Sandeep PahujaBen Killmer Khalid AshrafNan Tian
Visiblend
The Team
We Got Out of the Building!
Visiblend
Ad
Exchange
Brand Agency Agency
Trading
Desk
PublisherSupply-
Side
Platform
Demand
Side
Platform
Ad Network
Visiblend
Digital Advertising Ecosystem
Help video publishers
optimize ads
Help ad agencies buy the
right video ads
Video-serving platforms (e.
g. Hulu)
Demand-side platforms
Personalized service for
MVP customers Automotive manufacturers
Ad agencies
Value-based pricing on click-through rate improvementsExpensive to acquire new ad-agency customers ($$$ steak dinners?)
Spend lots of money on Amazon server time
Advertising tradeshows
Direct outreach
Develop video indexing
technology
Visiblend
Original Business Model Canvas
Patents on video
classification
Access to video inventory to
advertise on (YouTube)
Product /
(MVP)
Contextual Ads
(Cooking Video Demo)
Contextual Ads
(Technical Car Demo)
YouTube
Analytics
(Static Report)
Brand Champions
(Sizzle Reels)
Contextual Ads
(67% Ad Uplift)
Target
Customer
Demand Side Platforms Media Buyers Social Media /
Analytics Teams
Brands & Agencies Brands & Agencies
Feedback We need customers to
show DSPs that there is
demand for our
technology before
integration
We need to sell ads
via the ad ecosystem:
hit technical
roadblocks
“Solution to a
problem that
doesn’t exist” but
lots of love for
identifying Brand
Champions
Cool...but what do I
do with it?
And who pays us?
Landed first
paying customer,
committed to
tackle technical
challenges both in
machine learning
and in system
integration
Visiblend
Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot
Our Journey
Week 1 Kickoff
Visiblend
Week 1 Kickoff Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot
Our Journey
Product /
(MVP)
Contextual Ads
(Cooking Video Demo)
Contextual Ads
(Technical Car Demo)
YouTube
Analytics
(Static Report)
Brand Champions
(Sizzle Reels)
Contextual Ads
(67% Ad Uplift)
Target
Customer
Demand Side Platforms Media Buyers Social Media /
Analytics Teams
Brands & Agencies Brands & Agencies
Feedback We need customers to
show DSPs that there is
demand for our
technology before
integration
We need to sell ads
via the ad ecosystem:
hit technical
roadblocks
“Solution to a
problem that
doesn’t exist” but
lots of love for
identifying Brand
Champions
Cool...but what do I
do with it?
And who pays us?
Landed first
paying customer,
committed to
tackle technical
challenges both in
machine learning
and in system
integration
Visiblend
Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot
Our Journey
Product /
(MVP)
Contextual Ads
(Cooking Video Demo)
Contextual Ads
(Technical Car Demo)
YouTube
Analytics
(Static Report)
Brand Champions
(Sizzle Reels)
Contextual Ads
(67% Ad Uplift)
Target
Customer
Demand Side Platforms Media Buyers Social Media /
Analytics Teams
Brands & Agencies Brands & Agencies
Feedback We need customers to
show DSPs that there is
demand for our
technology before
integration
We need to sell ads
via the ad ecosystem:
hit technical
roadblocks
“Solution to a
problem that
doesn’t exist” but
lots of love for
identifying Brand
Champions
Cool...but what do I
do with it?
And who pays us?
Landed first
paying customer,
committed to
tackle technical
challenges both in
machine learning
and in system
integration
Week 1 Kickoff
Visiblend
Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot
Our Journey
Product /
(MVP)
Contextual Ads
(Cooking Video Demo)
Contextual Ads
(Technical Car Demo)
YouTube
Analytics
(Static Report)
Brand Champions
(Sizzle Reels)
Contextual Ads
(67% Ad Uplift)
Target
Customer
Demand Side Platforms Media Buyers Social Media /
Analytics Teams
Brands & Agencies Brands & Agencies
Feedback We need customers to
show DSPs that there is
demand for our
technology before
integration
We need to sell ads
via the ad ecosystem:
hit technical
roadblocks
“Solution to a
problem that
doesn’t exist” but
lots of love for
identifying Brand
Champions
Cool...but what do I
do with it?
And who pays us?
Landed first
paying customer,
committed to
tackle technical
challenges both in
machine learning
and in system
integration
Week 1 Kickoff
Visiblend
Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot
Our Journey
Product /
(MVP)
Contextual Ads
(Cooking Video Demo)
Contextual Ads
(Technical Car Demo)
YouTube
Analytics
(Static Report)
Brand Champions
(Sizzle Reels)
Contextual Ads
(67% Ad Uplift)
Target
Customer
Demand Side Platforms Media Buyers Social Media /
Analytics Teams
Brands & Agencies Brands & Agencies
Feedback We need customers to
show DSPs that there is
demand for our
technology before
integration
We need to sell ads
via the ad ecosystem:
hit technical
roadblocks
“Solution to a
problem that
doesn’t exist” but
lots of love for
identifying Brand
Champions
Cool...but what do I
do with it?
And who pays us?
Landed first
paying customer,
committed to
tackle technical
challenges both in
machine learning
and in system
integration
Week 1 Kickoff
Develop video indexing
technology
Visiblend
Final Business Model Canvas
Patents on video
classification
Access to video inventory to
advertise on (YouTube)
Video-serving platforms (e.
g. Hulu)
Demand-side platforms
Expensive to acquire new ad-agency customers ($$$ steak dinners?)
Spend lots of money on Amazon server time
$43/day fixed cost on Amazon server time
Salaries, rent
Payment processing
Value-based pricing on click-through rate improvements
20% of ad buying cost (until we prove ourselves enough to be on
commission to provide uplift)
Help video publishers
optimize ads
Help ad agencies buy the
right video ads
Adding uplift to ad
performance, leading to
increased sales
Advertising tradeshows
Direct outreach
Word of mouth / intra-
agency referral
Automotive manufacturers
Ad agencies
CPG Brands, e.g. Jack Link's,
KitchenAid
Personalized service for
MVP customers
Self-service (crucial for
scalability)
Develop video indexing
technology
Visiblend
Final Business Model Canvas
Patents on video
classification
Access to video inventory to
advertise on (YouTube)
Video-serving platforms (e.
g. Hulu)
Demand-side platforms
Expensive to acquire new ad-agency customers ($$$ steak dinners?)
Spend lots of money on Amazon server time
$43/day fixed cost on Amazon server time
Salaries, rent
Payment processing
Value-based pricing on click-through rate improvements
20% of ad buying cost (until we prove ourselves enough to be on
commission to provide uplift)
Help video publishers
optimize ads
Help ad agencies buy the
right video ads
Adding uplift to ad
performance, leading to
increased sales
Advertising tradeshows
Direct outreach
Word of mouth / intra-
agency referral
Automotive manufacturers
Ad agencies
CPG Brands, e.g. Jack Link's,
KitchenAid
Personalized service for
MVP customers
Self-service (crucial for
scalability)
Brand
Agency
Publisher
Visiblend
Where Visiblend Sits (Today)
Visiblend
Visiblend
Random YouTube
Visiblend Selected Channels
Visiblend
Final MVP: Test Results
63 clicks / 43,275 impressions
$0.98 avg CPC
23 clicks / 9,098 impressions
$1.10 avg CPC
.15% CTR
.25% CTR
67%
Uplift!
Visiblend
Business & Tech Scalability
Technical
1. Overhead of adding new brands and
products to our model
2. Are there enough relevant video
impressions for a product (e.g.
Nissan Altimas)?
✓ Developed a proprietary method of
rapidly collect sufficient training
data for each product/vertical
✓ Performed early tests and found
sufficient monthly volume (millions
of impressions per month)
Business
1. Server Costs
2. Customer Acquisition
✓ $43/day assumes downloading &
processing 1 million videos/day
? With proven uplift, agencies will
use us across many of their brands
to buy digital ads (our hypothesis)
Challenge Solution
Key Assumptions:
Customer acquisition rates: 35% MoM growth in month 1, scales
down to 5% in month 36
Server Expense: $1,200/mo to process top 10M daily YouTube
videos (based on AWS cost analysis)
Marketing & Sales Exp: 10% of revenue to incentivize sales force
Employee Salaries & Benefits: $200K/employee; 5 paid employees at
Y1Q3 growth to 13 by Y3Q4
Rent & Misc Office Expenses: each $1,000 per employee
Key Financial Notes
● $500K seed funding in Year 1
● Cash flow positive by Year 2
Key Customer Archetype Notes
● Each customer is a brand
● Business model only reflects selling to agencies
& brands
● Could attempt partnerships with ad platforms
starting in Year 2 (with 30+ brand customers)
Visiblend
Financial & Operational Model
VisiblendVisiblend
Top 5 Learnings
1. Hacked together MVPs work: don’t over-engineer
2. Pitch what you can deliver in 6-12 months: doesn’t have to ready today
3. Customer needs can be surprisingly simple: give us uplift
4. Advertisers don’t need a product that is 5x better: 20% uplift is a big deal
5. Customers constantly pitch ideas they won’t pay for: ask them to pay
Visiblend
Driving brand sales through YouTube

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Visiblend Berkeley 2015

  • 1. # of B2B interviews: 110 Visiblend Driving brand sales through YouTube Visiblend Video Link
  • 2. Forrest Iandola Sandeep PahujaBen Killmer Khalid AshrafNan Tian Visiblend The Team
  • 3. We Got Out of the Building! Visiblend
  • 5. Help video publishers optimize ads Help ad agencies buy the right video ads Video-serving platforms (e. g. Hulu) Demand-side platforms Personalized service for MVP customers Automotive manufacturers Ad agencies Value-based pricing on click-through rate improvementsExpensive to acquire new ad-agency customers ($$$ steak dinners?) Spend lots of money on Amazon server time Advertising tradeshows Direct outreach Develop video indexing technology Visiblend Original Business Model Canvas Patents on video classification Access to video inventory to advertise on (YouTube)
  • 6. Product / (MVP) Contextual Ads (Cooking Video Demo) Contextual Ads (Technical Car Demo) YouTube Analytics (Static Report) Brand Champions (Sizzle Reels) Contextual Ads (67% Ad Uplift) Target Customer Demand Side Platforms Media Buyers Social Media / Analytics Teams Brands & Agencies Brands & Agencies Feedback We need customers to show DSPs that there is demand for our technology before integration We need to sell ads via the ad ecosystem: hit technical roadblocks “Solution to a problem that doesn’t exist” but lots of love for identifying Brand Champions Cool...but what do I do with it? And who pays us? Landed first paying customer, committed to tackle technical challenges both in machine learning and in system integration Visiblend Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot Our Journey Week 1 Kickoff
  • 7. Visiblend Week 1 Kickoff Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot Our Journey Product / (MVP) Contextual Ads (Cooking Video Demo) Contextual Ads (Technical Car Demo) YouTube Analytics (Static Report) Brand Champions (Sizzle Reels) Contextual Ads (67% Ad Uplift) Target Customer Demand Side Platforms Media Buyers Social Media / Analytics Teams Brands & Agencies Brands & Agencies Feedback We need customers to show DSPs that there is demand for our technology before integration We need to sell ads via the ad ecosystem: hit technical roadblocks “Solution to a problem that doesn’t exist” but lots of love for identifying Brand Champions Cool...but what do I do with it? And who pays us? Landed first paying customer, committed to tackle technical challenges both in machine learning and in system integration
  • 8. Visiblend Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot Our Journey Product / (MVP) Contextual Ads (Cooking Video Demo) Contextual Ads (Technical Car Demo) YouTube Analytics (Static Report) Brand Champions (Sizzle Reels) Contextual Ads (67% Ad Uplift) Target Customer Demand Side Platforms Media Buyers Social Media / Analytics Teams Brands & Agencies Brands & Agencies Feedback We need customers to show DSPs that there is demand for our technology before integration We need to sell ads via the ad ecosystem: hit technical roadblocks “Solution to a problem that doesn’t exist” but lots of love for identifying Brand Champions Cool...but what do I do with it? And who pays us? Landed first paying customer, committed to tackle technical challenges both in machine learning and in system integration Week 1 Kickoff
  • 9. Visiblend Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot Our Journey Product / (MVP) Contextual Ads (Cooking Video Demo) Contextual Ads (Technical Car Demo) YouTube Analytics (Static Report) Brand Champions (Sizzle Reels) Contextual Ads (67% Ad Uplift) Target Customer Demand Side Platforms Media Buyers Social Media / Analytics Teams Brands & Agencies Brands & Agencies Feedback We need customers to show DSPs that there is demand for our technology before integration We need to sell ads via the ad ecosystem: hit technical roadblocks “Solution to a problem that doesn’t exist” but lots of love for identifying Brand Champions Cool...but what do I do with it? And who pays us? Landed first paying customer, committed to tackle technical challenges both in machine learning and in system integration Week 1 Kickoff
  • 10. Visiblend Week 3 Pivot Week 5 Pivot Week 7 Pivot Week 9 Pivot Our Journey Product / (MVP) Contextual Ads (Cooking Video Demo) Contextual Ads (Technical Car Demo) YouTube Analytics (Static Report) Brand Champions (Sizzle Reels) Contextual Ads (67% Ad Uplift) Target Customer Demand Side Platforms Media Buyers Social Media / Analytics Teams Brands & Agencies Brands & Agencies Feedback We need customers to show DSPs that there is demand for our technology before integration We need to sell ads via the ad ecosystem: hit technical roadblocks “Solution to a problem that doesn’t exist” but lots of love for identifying Brand Champions Cool...but what do I do with it? And who pays us? Landed first paying customer, committed to tackle technical challenges both in machine learning and in system integration Week 1 Kickoff
  • 11. Develop video indexing technology Visiblend Final Business Model Canvas Patents on video classification Access to video inventory to advertise on (YouTube) Video-serving platforms (e. g. Hulu) Demand-side platforms Expensive to acquire new ad-agency customers ($$$ steak dinners?) Spend lots of money on Amazon server time $43/day fixed cost on Amazon server time Salaries, rent Payment processing Value-based pricing on click-through rate improvements 20% of ad buying cost (until we prove ourselves enough to be on commission to provide uplift) Help video publishers optimize ads Help ad agencies buy the right video ads Adding uplift to ad performance, leading to increased sales Advertising tradeshows Direct outreach Word of mouth / intra- agency referral Automotive manufacturers Ad agencies CPG Brands, e.g. Jack Link's, KitchenAid Personalized service for MVP customers Self-service (crucial for scalability)
  • 12. Develop video indexing technology Visiblend Final Business Model Canvas Patents on video classification Access to video inventory to advertise on (YouTube) Video-serving platforms (e. g. Hulu) Demand-side platforms Expensive to acquire new ad-agency customers ($$$ steak dinners?) Spend lots of money on Amazon server time $43/day fixed cost on Amazon server time Salaries, rent Payment processing Value-based pricing on click-through rate improvements 20% of ad buying cost (until we prove ourselves enough to be on commission to provide uplift) Help video publishers optimize ads Help ad agencies buy the right video ads Adding uplift to ad performance, leading to increased sales Advertising tradeshows Direct outreach Word of mouth / intra- agency referral Automotive manufacturers Ad agencies CPG Brands, e.g. Jack Link's, KitchenAid Personalized service for MVP customers Self-service (crucial for scalability)
  • 14. Random YouTube Visiblend Selected Channels Visiblend Final MVP: Test Results 63 clicks / 43,275 impressions $0.98 avg CPC 23 clicks / 9,098 impressions $1.10 avg CPC .15% CTR .25% CTR 67% Uplift!
  • 15. Visiblend Business & Tech Scalability Technical 1. Overhead of adding new brands and products to our model 2. Are there enough relevant video impressions for a product (e.g. Nissan Altimas)? ✓ Developed a proprietary method of rapidly collect sufficient training data for each product/vertical ✓ Performed early tests and found sufficient monthly volume (millions of impressions per month) Business 1. Server Costs 2. Customer Acquisition ✓ $43/day assumes downloading & processing 1 million videos/day ? With proven uplift, agencies will use us across many of their brands to buy digital ads (our hypothesis) Challenge Solution
  • 16. Key Assumptions: Customer acquisition rates: 35% MoM growth in month 1, scales down to 5% in month 36 Server Expense: $1,200/mo to process top 10M daily YouTube videos (based on AWS cost analysis) Marketing & Sales Exp: 10% of revenue to incentivize sales force Employee Salaries & Benefits: $200K/employee; 5 paid employees at Y1Q3 growth to 13 by Y3Q4 Rent & Misc Office Expenses: each $1,000 per employee Key Financial Notes ● $500K seed funding in Year 1 ● Cash flow positive by Year 2 Key Customer Archetype Notes ● Each customer is a brand ● Business model only reflects selling to agencies & brands ● Could attempt partnerships with ad platforms starting in Year 2 (with 30+ brand customers) Visiblend Financial & Operational Model
  • 17. VisiblendVisiblend Top 5 Learnings 1. Hacked together MVPs work: don’t over-engineer 2. Pitch what you can deliver in 6-12 months: doesn’t have to ready today 3. Customer needs can be surprisingly simple: give us uplift 4. Advertisers don’t need a product that is 5x better: 20% uplift is a big deal 5. Customers constantly pitch ideas they won’t pay for: ask them to pay
  • 18. Visiblend Driving brand sales through YouTube