I just finished participating in the Silicon Alley Invitational Golf Tournament in New York. Every year, one of the projects PODIUM Ventures is working on sponsors this tournament, as it is one of the best networking events available when it comes to Consumer Internet Advertising based projects. As it relates to internet advertising, innovation and startups, many of the most knowledgeable and experienced players in the world make up the field of only 46 players and another 50ish attendees for the luncheon. In this crowd everyone has something worth listening to and learning from.
Data is the new media.
What this means is that advertisers used to focus on data to decide on what media to purchase. Now the media itself produces the data. An example of this is shopping games or apps that are the “media” but produce data as an output of the user experience. These are experiences based on consumer behavior that allow users to self identify their likes, while the programs customize their experiences to match their desires.
Compare this with the media of old, say, watching TV; the user experience is compelling but no mass actionable feedback is immediately available as part of the user experience.
In the media data, (MeData ™) era even TV has changed with the advent of the second screen, (via your tablet or smart phone) interacting with other audience members and/or the actual broadcast or movie you are watching. Combine this with TV’s becoming home-based web portals and the media data movement is fundamentally shifting how traditional media operates.
Big Data, which I recently wrote about, is an important model that startup investors need to understand. As much as an advocate as I am for the Big Data business model, I really had no clue how tangible and close monetization of this data was on anything but a large scale. I am writing this today having witnessed small startups that can garner small specific information sets that are already successfully selling their data, even though it is not huge in volume. This is happening because Data Resellers and Data Agencies have emerged who buy data and aggregate it, thus having even smaller amounts of data that are the long tail of an industry sector or demographic is valuable. The presence and collection of Big Data has led small scale data collectors and users to gain a new monetization strategy that even 5 years ago was impossible.
Welcome to the era of MeData ™. If you are looking at a project to invest in, Big Data and MeData ™ are new considerations to figure into your investment decision. What data does this Startup produce? When and how can it be monetized? Does Management understand Big Data and MeData ™?