Jerry Neumann is a partner in Neu Venture Capital, a New York City-based seed-stage investor group with investments in 33Across, Metamarkets, PerformLine, The Trade Desk, Optim.al, Media Armor, and Yieldbot among others.
Jokes all start with one of a few stock set-ups. "A man walked into a bar." But the punchlines are all different. VC pitches are the opposite: the set-ups are all different, but the punchlines are all the same.
Stop me if you've heard this one before. "We enable the half of advertising that is not yet online: brand advertising!" Been hearing that one for more than ten years now. It permeates the hopes and dreams of every adtech entrepreneur and investor. And still no one has cracked the code.
- No standards or consistent measures of “success” other than outdated or inadequate metrics like CPM and CTR;
- Limited real-time intelligence;
- Unsuitable display ad formats; and
- Lack of creativity in formats.
The prize is huge. As Tim and Tim point out, two-thirds of advertising spending is brand advertising, but online only one quarter is. In fact, if brand advertising dollars moved online in the same proportion that sales advertising has, it would almost exactly close the famous gap between time spent online and ad dollars spent online. The $50 billion gap that Mary Meeker mentions is exactly equal to the missing brand spend.