This short presentation provides a snapshot of the rapidly changing media and marketing landscape driven by evolving consumer behavior. Troy Centazzo

1. Media and Advertising
Snapshot
Consumer Behavior and Trends 2011
Troy K. Centazzo

2. The Ad Universe (Pre-Internet)
Print Advertisements in Newspapers and Magazines; Short and Long-Form Commercials and Sponsorships on
Radio and Television; Billboards and Signs; Public Relations; Direct Mail and Catalogs; Tiny Classified Ads;
Network Marketing; Trade Shows and Conferences

3. The Digital Ad / Marketing Universe (circa January 2011)
Enormous innovation: companies now have thousands of new tools to communicate
Emerging
Advertising /
Marketing Business
Models
Data, Analytics,
Optimization
Ad Networks (Currently
Hundreds Exist)
Ad Exchanges
Ad Serving / Rich Media
Performance Advertising
Data Sources,
Aggregators
Demand Side Platforms
Publisher Side Platforms
Mobile / Video Ads
Verification / Attribution
A result of robust, early stage sector investment
Media Buying Platforms
and capital efficient business models

4. Consumers and “Traditional” Media – Drifting Apart?
Change in Average Time Spent Per Day with Media Types by US Adults
2009: -13.2% Includes Video
2010: -9.1% 2009: -3.9% 2009: +5.1%
2009: -12.0% 2010: -2.0% 2010: -1.1%
Flat Over Last 5 Years
2010: -9.1%
Source: eMarketer, Dec. 2010.

5. So What Are Those Consumers Spending Their Time Doing?
The Rapid Rise of Cell Phones (and now Tablets) in the US and Around the World
US Smartphone Penetration
60%
Mobile Subscriptions per 100 Inhabitants (2000-10)
50%
40%
30%
US = ͠100% 20%
10%
0%
Q4, 2008 Q4, 2009 Q4, 2010 Q4, 2011
US = ͠45% (E)
Projected Growth of Tablet Sales, US Adults
Sources: ITU World Telecommunications; Forrester Research, Inc.; Nielson; Forrester Research, Inc.

6. So What Are Consumers Spending Their Time Doing?
For the first time, Americans now spend as much time on the Internet
as they do watching TV (13 hours per week)*
45% Have a DVR Up 121% Over Last 5 Years
Share of Time Spent on Internet (2010)
(on PCs and Laptops)
Social Networks / Blogs: Games: Email:
22.7%, up 43% from 2009 10.2%, up 10% 8.3%, down
from 2009 28% from 2009
* Note: A recent meta-study by eMarketer concluded that US adults spent 40% of their time with media watching TV and 24% on the
Internet. Sources: The Nielson Company; eMarketer (2010).

7. So What Are Those Consumers Spending Their Time Doing?
Time spent on mobile devices – increasingly smartphones and tablets –
is rising the fastest compared to other media
Change in Time Spent Using
Mobile Devices Over Prior Year
Share of Time Spent on Smartphones (US & UK)
40.0%
21.9% 28.2%
Research Has Shown Much Diversity:
2009 2010 2011 (E) • 50% of time spent keeping in touch with
others (email, text, phone calls)
• 20% - media (music, videos, pictures)
and games)
• 12% browsing the internet
• 2% on “productive” activities
Sources: eMarketer (2010); Falaki, Hossein et al. 2010. Diversity in Smartphone Usage. MobiSys’10

8. What the %$#* Just Happened?
Recent Carnage Across the Traditional Media Industry
Newspapers in Double digit
Distress (2008-10) revenue declines Magazines in
projected in 2011 Distress (2008-10)
Freedom Bankruptcy, 2009 Country Home, Folded
Communications Hallmark, Travel
(dozens of papers)
& Leisure, Best
Philly Daily News; LA Bankruptcy, 2009 Life, Blender,
Times, Chicago Vibe, Domino
Tribune
613 magazines
Rocky Mountain News Closed, 2009 folded in 2008;
Seattle Post- Bankruptcy, 2009 383 in 2009; and
Intelligencer; 127 in Q1 – Q3,
Minneapolis Star
2010
Tribune
Misc. Media in
Boston Globe Distressed sale Distress (2008-10)
process, 2009
Radio in Distress Blockbuster Bankruptcy, 9/10
McLatchy (29 papers) Severe cost cuts (2008-10) Affiliated Media Bankruptcy, 1/10
Atlantic, Regent, Bankruptcy, 2010 American Media Bankruptcy, 11/10
TV in Distress Air America
(2008-10) Local Insight Media Bankruptcy, 11/10
Citadel, Bankruptcy, 2009
NBC Univ.; Gems Sale, 2010 ; NextMedia SuperMedia Bankruptcy, 2009
TV Bankruptcy Tribune Bankruptcy, 2008
Equity Media; Bankruptcy, 2009
Young;
Source: Media Finder, Growthink research.
Pappas; Tribune Bankruptcy, 2008

9. Advertisers Have (Partially) Responded to These Rapid Changes
• 2010 brought a recovery to the advertising and public relations sectors, which is
expected to continue through 2011
• $300 billion in US and $500 billion worldwide (5% growth in 2011)
• 2/3 of PR agencies reported double digit growth in 2010
• Online increased to $25.8B, equaling spend on print for the first time
• Facebook ad spend equaled $1.86B ($1.2B in US and $.65 outside US)
US Ad Spend (2010)
1%
23%
Television
52% Online
24% Newpaper
Print
Sources: eMarketer (Dec, 2010);

10. About the Author
Troy is an Engagement Partner at GT Securities/Growthink, where
he leads investment banking and consulting engagements for the
firm’s clients. He focuses on convergence media. Troy brings to
GT more than 20 years of experience advising corporations at all
stages of development, from start-up firms to Fortune 500
companies.
Troy joins Growthink’s Los Angeles office after serving as the founding
Principal of MBL, an advisory and investment firm that assisted clients in
all areas of business, including developing their strategies and raising
Troy Centazzo capital. Also a seasoned entrepreneur, he helped found, manage and
Engagement Partner invest in several start-up companies, primarily in the consumer products,
technology and New Media sectors while at and before MBL.
Digital Media
Expert Troy additionally worked as an Associate in the Investment Banking and
Merchant Banking Divisions at Donaldson, Lufkin & Jenrette (DLJ, now
Contact: CS First Boston). His first job after college was serving as the founding
Director of the RI Enterprise Zone Program.
Cell: (202) 369-2188 Education
Email • JD, Law School; MBA, Darden School, University of Virginia (Winner,
The Faculty Award; Raven Society)
LinkedIn • BA, Brown University (Honors; Class Co-President)
Twitter