Newsletter on innovative business models leverage digital capabilities. Issue #1, led by Hugo Azerad

1. IMAGINE THE FUTURE
Leveraging innovative business models
Media advertising for small businesses
- Newsletter # 1, 2008 -
Context
New online media services are expanding advertising access to smaller
business accounts. Spot Runner, for example, enables local businesses to
manage their commercial production (video ad spot), media planning and
media buying through an innovative online platform. This full package
allows small businesses to run a small-scale campaign for as low as $1,500
Innovative business model (example of Spot Runner for a TV ad)
LOCAL BUSINESSES
R ESTAURANT R EAL ESTATE C LOTHING STORE PHARMACY
online process Key Highlights
Full package offer
2 Select a template • TV advertising has long been
reserved to large companies
• DigitalTV development in
Europe and the large
number of local channels in
the US are now making
1 Select your industry 3 Personalize your TV Spot
airtime affordable for small
businesses
• New media services
companies such as Spot
4 Create your media plan
Runner are enabling small
businesses to advertise on
TV by providing a full
package offer (from spot
production to media buying)
• Pre-produced TV spots can
be easily customized online
by the client
• Thisinnovative business offer
has been replicated in other
Business opportunities media (radio, online, print
and out-of-home) and could
• Leveraging the ad spend potential of small businesses with:
be expanded to other
- Tremendous potential market of small businesses (11M in the
countries
United States)
- Overseas expansion opportunity in Europe through Digital TV • While the advertising
development (with significant potential unsold airtime) revenues of traditional
• Revenue growth especially for: media are stagnating or
- Media companies (TV, websites, radio, newspapers) declining, this opportunity
- Ad agencies could be considered as a
• Besides these initiatives, this emerging market needs to be organized new growth opportunity

2. Spot Runner profile Website
• Launched in 2006
• Employees: over 300
• Founders : Nick Grouf & David Waxman
(founders of Firefly network sold to Microsoft in 1998)
• Funding: $111M
• Source of revenue: online B2B (fees on spot production
& commissions on sold airtime)
Key words from Spot Runner’s Vice President of Corporate Communications
• “We see huge potential for growth in the market we’re addressing. The ad industry is undergoing a tectonic
shift due to an increasingly fragmented media environment”
• “The traditional infrastructures that dictate the way advertising is created, planned, targeted, bought and
sold are quickly becoming outmoded. In order to do this efficiently and keep up with the fast-pace today’s
consumers expect, new technology solutions are required to automate aspects of creative production,
information sharing, and the media buying and selling process”
• “Advertisers can – and now must – utilize multiple channels to reach audiences with highly targeted
messages”
• “In addition to television, Spot Runner can help local businesses create and execute campaigns in other
media, including online, radio, print and out-of-home”
• “Spot Runner’s clients encompass a range of advertisers – from small and local businesses to national
brands”
• “We work closely with many agencies as an extension of their team, oftentimes focusing on areas of the
business they are not set up to serve – such as hyper targeting and localized advertising”
• “In May we received additional funding, among other things, we plan on using this funding to investigate
opportunities abroad as well as continue to build new technology”
Example of alternative offers
Jivox Google TV ads SpotMixer
• Launched in 2007 • Launched in May 2008 • Launched in May 2008
• A online platform enabling • A flexible, all-digital system • A self-service online platform
small and medium businesses for buying "more accountable for local businesses to create
to create and place video ads and measurable" TV and publish video ads on the
on local websites, premium advertising with the possibility Internet
local TV and newspaper to be connected to online TV
ad producers
About A.T. Kearney
A.T. Kearney is a global strategic management consulting firm known for helping clients gain leading results through a
unique combination of strategic insight and collaborative working style. We serve the largest global clients in all major
industries from our offices located in 34 countries. We have developed a leading Communications and Media practice
with more than 600 dedicated professionals worldwide, focusing on addressing strategic and operational issues of the
Telecom, Media and High Technology industry
For further information about the A.T.Kearney CHT practice please visit: www.atkearney.com
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