Ozzy Eng245 2017

Original idea: Building an outdoor ad network for transit digital displays allowing geo- and time- targeted advertisements creating value for outdoor advertisers & ride-share

companies

Re-segmenting existing markets as niche entrant.

Total Interviewed:

177

Final idea: Putting screens on top of ride-share & delivery cars, allowing SMBs to target consumers where and when they want and drivers to make more money.

KAAN GUNAYCEO

DENIZ UZUNCGO

MELISA TOKMAKCOO

BERK COKERCTO

JAMIE MCFARLANECMO

MAR HERSHENSONMENTOR

Key PartnersPrimary● Screen supplier

○ LG-MRI (Peter K - CEO, Eric H - VP)

○ Spark (Robert T - VP)● Rideshare contractors● Data providers

○ Advertiser customer data, out-of-home ad spend data, demographic data, out-of-home ad performance data provider

● Regulatory○ OAAA, MuniCode, law firms

● Funding○ VCs, Angel investors

Secondary● Rideshare platforms● Transit DOOH providers

○ Waive Car○ Verifone Media

Key Activities● Establish leasing agreements with screen

suppliers● Build driver network for distribution

mechanism● Develop ad delivery infrastructure● Create location & time-based dynamic

pricing platform○ Recommendations to maximize ROI

Value PropositionCore B2B● Segment targeting in OOH by

location-,time- and trigger-based (e.g. weather) ad placement for agency clients

● Segment targeting in OOH by location-,time- and trigger-based (e.g. weather) ad placement for advertisers

● Flexible OOH buying● Cost saving● Lowering barrier to entry for

SMEs● Flexible OOH buying

Complimentary B2C● Providing additional source of

income to rideshare drivers, who are struggling to make a living in big cities

● Seeing immediately relevant ads through location-, time- and trigger-targeting

Customer Relationships● Establish high-touch partnership with

OOH media planning agency● Enterprise high-touch partnership

with key clients○ Assigned customer relationship

managers● High breadth customer relationship

managers / no-touch digital platform● Contractor management

○ Hunter: network expansion○ Farmer: Operations management

(e.g. Problem handling, incentivization, ..)

● Quarterly awareness and impact surveys

Customer SegmentsPrimary: ● Out-of-Home media

planning/buying agency○ Posterscope

■ Kenneth B, DOOH SVP○ Kinetic Worldwide

● Established OOH Advertisers○ Top OOH spenders○ Key contact: VP of Marketing

departments / Media planner■ Laura S, Communication

Planner, Reckitt B■ Bahar G, Marketing Manager,

L’Oreal● Emerging OOH advertisers

○ New OOH advertisers due to geo-targeted and flexible ad opportunity

■ Restaurants■ Single-store retailers

● Ridesharing Contractors○ Uber and Lyft drivers

Secondary:● Audience

○ Commuters: Driver / rider / bus rider

○ Bystanders / streetwalkers○ Rideshare riders

Key Resources● Data sources

○ Advertiser current OOH spend■ Kantar Media

○ Advertiser customer■ Demographics of our advertisers’

customers (Age, Sex, Income, etc.)● Alexa

○ Demographics by zip codes■ Demographics of locations by zip

codes (Age, Sex, Income, etc.)● Census data

○ OOH data providers■ Estimate human traffic and impression■ Estimate ROI

● GeoPath, xAd, Distillery, Placed ● High quality digital displays● Experienced advisors on:

○ OOH advertisement○ Bidding system like Adwords○ OOH regulations

Channels● Enterprise relationships● Enterprise relationships● Digital sales platform and

recommendation engine● Driver Management Platform

○ Sign-up platform○ Reach out to drivers through:

■ Existing social media groups of rideshare drivers

■ Digital ads○ Current contractor platform

■ Support platform■ Performance tracking

● Transit digital displays

Week 1

BMC - Week 1

Ozzy operates in a two-sided market

ADVERTISERS


























































Week 1 Week 2

Our Hypothesis: Outdoor advertising currently

addresses brand awareness needs. There is a need for targeting.


























































Week 1 Week 2

- Geo-targeting- Time-targeting- Trigger-

targeting

Value Proposition

So we GOT OUT OF THE BUILDING and talked to every media agency we could find

Week 1 Week 2

WRONG CUSTOMER SEGMENT

Week 1 Week 2

“Taxi ads are not seen as premium. Big brands have stayed away from it because it is not premium. “

Former Global Planning Director of JWT

“Taxis are traditionally cheaper looking. Larger brands might be more reluctant at first. You need to convince brands you are truly revolutionary. ”

Global Associate Strategy Director at Maxus (Global Media Agency)

Transit Advertising is “Cheap”

PIVOT


























































Week 1 Week 2


targeting

Value Proposition- Geo-targeting- Time-targeting- Trigger-

targeting

- High quality

Value Proposition


























































Our Hypothesis: Advertisers (SMBs) are willing to buy targeted ads on high quality

displays.

Week 3 Week 4

Our First MVP: the screen specs

Week 3 Week 4

SHOW, NOT TELL$20,000 per screen

Week 3 Week 4

So we GOT OUT OF THE BUILDING and talked to every advertiser we could find

*

Week 3 Week 4

“I wouldn’t buy anything without knowing the impact. This is why I didn’t continue with Wrapify… What is the CPM?”

Founder of Nature’s Sleep

“How do they measure the impact of people advertising on the street? I would want tracking in micro-level.”

Founder of Bevi

Advertisers want cost savings and impact measurement



























































targeting

- High quality

Value Proposition Value Proposition

Week 3 Week 4


targeting

- High quality- Impact

measurement- Cost savings


























































Our Hypothesis: 1. We can offer a low cost solution.2. We can maintain an evaluation

process that addresses measurability.

Week 5 Week 6

Screen Hunt: getting cheaper roof-rack screens

Week 5 Week 6

Turkish Zap SolutionPoor quality for advertisers

Very CheapBritish Eyetease SolutionHigh quality for advertisers

Affordable

LG’s roof-rack solution:High quality for advertisers

Very expensive

$20,000 per screen

$7,700 per screen

$5,000 per screenwith 100 screens

What’s the best price for advertisers?

Pricing from ClearChannel, Wrapify, and Verifone.

Week 5 Week 6

Offer $200 per slot, lower than all

How to solve the impression problem?

Week 5 Week 6

2. Find a scientific way3. Create your own simple method until more scientific method found

1.Start with what others are doing

Copy Verifone estimatesSF: 300,000

impressions/car/monthOzzy CPM: $5

Use city data available: Map of estimated yearly pedestrian volume at intersections

City Data for Foot Traffic

Tracking where your ad has been

https://data.sfgov.org/Transportation/Map-of-Estimated-Yearly-Pedestrian-Volume-at-Inter/xzu6-znwn

Advertisers

Week 5 Week 6

what they really want

what industry thinks they want


























































Our Hypothesis:

1. If we put something on the road people will actually

look at it and remember it

Week 7 Week 8

Our Next MVP: Let’s get on the road!

Week 7 Week 8

STATIC

MOVING

Same size as the screen

Geo-targeting

Final MVP

Week 7 Week 8

From those who saw the banner (their eyeballs were literally on it)

N = 30

60% 30% 20%

Remembered seeing the ad and could recall something

about it (not including drivers)

Unaided recall of the name “Free Will”

Understood that the ad was offering them a

free will.

Week 7 Week 8

We need to deliver a concise, recognizable

message


























































Our Hypothesis:

2. Advertisers will buy our product if we offer a low-cost, targeted

solution with limited measurability

Week 7 Week 8

So after a lot of unreturned emails and knocking on doors….

$48k of Written Commitments

Week 7 Week 8

Mountain View Pizza Chain National Hotel Booking Website Top Online Games Site

Interested in the finished productWeek 7 Week 8

So after a lot of unreturned emails and knocking on doors….

ADVERTISERS

Ozzy operates in a two-sided market

DRIVERS


























































Our Hypothesis: Ride-share and delivery companies will want to partner with us because

it increases the stickiness of the drivers.

Week 3 Week 4


























































Ride-share Companies:- Uber- Lyft

Delivery Companies:- Doordash- Instacart- GrubHub

Partners

Week 3 Week 4

We started by reaching out to major ride-share companies

“The independent contractor

relationship is critical for Uber. And

so we don’t tell drivers what to do

with their cars”Product Manager

“Explain to me how this gives me benefit over Uber or Lyft? Are

you offering me exclusivity?”

Product Operations Manager

Week 3 Week 4

PIVOT


























































Ride-share Companies:- Uber- Lyft

Delivery Companies:- Doordash- Instacart- GrubHub

Partners

Week 3 Week 4

- Uber drivers- Lyft drivers- Doordash drivers- Instacart drivers- GrubHub drivers

Partners


























































Our Hypothesis: We can directly go to drivers

because they will want to put the screen on their car to earn extra $$

$.

Week 5 Week 6

Driver Interviews

Week 5 Week 6

interviews69

Week 3 Week 4 Week 5 Week 6

Our First MVP: the screen specsSHOW, NOT TELLWould you put a drill-screen on your car?

Yes, for affordable amount

Yes, for high

amount No, for high

amountNo, for

affordable amount

No, for affordable amount

Week 3 Week 4

SHOW, NOT TELL

Week 5 Week 6

Would you put a roof-rack screen on your car?


Yes, for high

amount $400/month

No, for high amount

No, for affordable amount


Week 3 Week 4

SHOW, NOT TELL

Week 5 Week 6

Would you put this screen on your car for...

$200/month

$300/month

$400/month more?$400/month

Driver archetypes

Power User

Only job and driving 40 + hours per week

30%

Week 3 Week 4 Week 5 Week 6

35%

Short term solution. Hopes to

be moving on, drive X hours

Stop GapperMoonlighte

rs35%

Retired or supplementing other income,

drive 25+ hours


























































- Uber drivers- Lyft drivers- Doordash drivers- Instacart drivers- GrubHub drivers

Partners

Power-drivers in ride-share and delivery companies

Partners

Week 5 Week 6


























































Our Hypothesis: We can get a free-lance driver to drive around with our final MVP

Week 5 Week 6

The Power drivers are more excited about Ozzy than we are!

Week 7 Week 8

Our Final MVP

Week 7 Week 8

DRIVERS


○ Richard Corbett - EyeTease Media Freelance contractors

○ DoorDash○ Grubhub○ Postmates○ Lyft

● Data providers● Regulatory● FundingSecondary● Freelance Platforms● Screen insurers


suppliers● Partner with an existing driver network to

launch● Develop ad delivery infrastructure● Acquire safety certifications● Basic advertising campaigns with startups

to test geo-targeting and measurability


location-,time- and trigger-based (e.g. weather) ad placement for advertisers

● Measurable results that include sales lift and accurate impressions




income to freelance drivers, without them doing an extra work.


Customer Relationships● Enterprise high-touch partnership with

key clients● High breadth customer relationship

managers● App where they can track activity in

real time and that provides measurability

● Contractor management● Quarterly awareness and impact

reports.

Customer SegmentsPrimary: ● Emerging OOH advertisers● Startups (Series A, B level who can

afford OOH advertisements.)● Companies who are advertising with

our competitors (e.x. Wrapify)● Freelance Drivers with private

driveways / garages & the companies that hire them.

Key Resources● Data sources● High quality digital displays● Experienced advisors on:

○ OOH advertisement○ OOH regulations

● Champion at Doordash, Postmates, or Grubhub

● Sales partners who take a commission. ● DoD engineers who verify federal

compliance● Third-party expert who would check for

safety rules Channels● Direct e-commerce to mid size

companies (short-time)● 2-step distribution to media agencies

(long term) ● Middle-men sales● Driver Management Platform & high

touch relationship with the companies that hire them.


Week 9 Week 10 Future

Final Business Canvas Model


○ Richard Corbett - EyeTease Media Freelance contractors

○ DoorDash○ Grubhub○ Postmates○ Lyft

● Data providers● Regulatory● FundingSecondary● Freelance Platforms● Screen insurers


suppliers● Partner with an existing driver network to

launch● Develop ad delivery infrastructure● Acquire safety certifications● Basic advertising campaigns with startups

to test geo-targeting and measurability


location-,time- and trigger-based (e.g. weather) ad placement for advertisers

● Measurable results that include sales lift and accurate impressions




income to freelance drivers, without them doing an extra work.


Customer Relationships● Enterprise high-touch partnership

with key clients● High breadth customer relationship

managers● App where they can track activity in

real time and that provides measurability

● Contractor management● Quarterly awareness and impact

reports.

Customer SegmentsPrimary: ● Emerging OOH advertisers● Startups (Series A, B level who can

afford OOH advertisements.)● Companies who are advertising

with our competitors (e.x. Wrapify)● Freelance Drivers with private

driveways / garages & the companies that hire them.

Key Resources● Data sources● High quality digital displays● Experienced advisors on:

○ OOH advertisement○ OOH regulations

● Champion at Doordash, Postmates, or Grubhub

● Sales partners who take a commission. ● DoD engineers who verify federal

compliance● Third-party expert who would check for

safety rules Channels● Direct e-commerce to mid size

companies (short-time)● 2-step distribution to media agencies

(long term) ● Middle-men sales● Driver Management Platform & high

touch relationship with the companies that hire them.



Final Business Canvas Model

Power-drivers in ride-share and delivery companies

Partners Value Proposition- Geo-targeting- Time-targeting- Trigger-targeting

- High quality- Impact

measurement- Cost savings- Flexible buying

- SMBs in the short-run

- National advertisers in the long-run

Customers

Unit economics per month

$1,600

$200/month x 8 slots

$400 $100Advertising

incomeCommission costs

for high quality displays

Revenue Costs

Revenue share with drivers

Misc: Insurance, maintenance, etc.

$160$7,700 one-time cost from seed


3-year Income Statement ($)Year 1 Year 2 Year 3

Income 200x8x12x50 = 960,000 5.8M 17.7M

Driver compensation 400x12x50 = 240,000 1.4M 4.7M

Screen (ins.+ship.) 5000 (one-time cost)x50 = 250,000

4500x250 = 1.1 M 2.8M

Cost of Sales (if app) 30x50x12 = 18,000 108K 360K

Supplier commission 160x12x50 = 96,000 576K 2M

Other costs (soft. + main)

75x50x12 + 5x130K = 695,000

270K + 1.9M 900K + 3.2M

Total Profits -339K 400K 3.8M

Number of cars 50 300 1,000

YEAR 1 YEAR 2 YEAR 3

-$339K

$400K $3.8M


Market Size in the US

US Outdoor Advertising Industry

Total Available Market

US Transit AdvertisingServiceable Available Market

$9.66bn

$1.2bn

Ozzy OOH shareTarget Market in Year 3

$17.7m

Year 1: $960K (50 cars) Year 2: $5.8M (300 cars)Year 3: $17.7M (1000 cars)


VIABLE BUSINESS

Competitive Landscape

On-ca

r ad

verti

sers

Traditional

OOH

DigitalOOH

innovators

Transit Digital OOH

The Future


- First screen coming in May

- 2/5 members continuing after class

- Applying to incubator programs for the summer

- Need $600K for 50 screens

Operational and Financial Milestones

Year 1 Year 2 Year 3


THANK YOU, EVERYONEAgencies Advertisers

Exceptional teaching team,

Amazing mentor, Mar,

Supportive teaching assistants,

Awesome Lean Launchpad Class of

2017!

Education

Ozzy Eng245 2017