Accelerating growth through Big Data and Analytics

December 6, 2012 Presented by:

Key points we want to make today

I. Overview on Luminar and Impetus

II.

Shift from the status quo

III. How Big data is helping advance how we market to Latinos IV. The journey, implementation approach

V. A new business model supporting clients

VI. Lessons Learned

 Luminar is an analytics and modeling company focused on helping clients become more efficient in targeting the US Hispanic market Company was established Spring 2012 Luminar is a business unit of Entravision Communications (NASDAQ: EVC) Based in Denver with operations in LA, DC, Buenos Aires, Argentina; and Mexico City Key client segments include: Retail, CPG, Financial Services, Media & Entertainment, and Publishing

Big DataWhat it is

Big Data is NOT just analytics. It's NOT just about storage. It's NOT just about anything - it's about everything. It's about tossing out the old way of doing things because those ways simply won't work in the world of BIG.
- Steve Duplessie, founder and senior analyst at ESG

The value of Big Data varies by company

Improve Operational Efficiencies Grow Sales & Profitability Empower New Business Models

Save Time Lower Complexity Self Service

Actionable Customer Insights Reduce Churn Predictive Analytics Improve Customer Experience

Competitive Differentiation Data As a Service Data Science Services Incubate New Ventures

Understanding the magnitude of the US Hispanic Population some basic facts

Understanding why Luminar decided to make a Big Data play

Four key factors influenced this decision:

1.
2. 3. 4.

We wanted to shift from the current marketing paradigm targeting Latinos focused on sample data
We recognized that Hispanic consumers are under represented with most marketing approaches Our service offerings are synergistic to our parent company Our model would necessitate ingesting vast amounts of diverse data that required a robust analytics environment

Underserved market what we saw in the marketplace

Brands are making marketing investment decisions on limited information

Targeting assumptions based mostly on survey or sample methods (i.e. Latinos over-index on mobile usage)
No real insights or true performance of program

Campaigns mostly based on just ethnicallycoded data

Stereotype approach; they speak Spanish, consume Spanish media, heavy online usersthereforegood target Little or no cultural relevancy

Actionable insights is an evolving process

Testing market No in-language experience Mass media, single channel No dedicated Hispanic team Lack of understanding how to use analytics

Retains Hispanic agency Use focus group Multi-channel, often not integrated Top Hispanic DMAs Bilingual experience Qualitative data use

Increased ability to capture, aggregate and analyze data Use analytics to guide actions

Use analytics to prescribe actions Effective at sharing information and insights Strong ability to capture, aggregate, analyze or share information Strong use of insights to guide day-to-day operations

Growing use of insights to guide future strategy

Big Data brings a high-value offering

Ability to more precisely support customers across the entire marketing value chain: - Move from a media & communications discussion to a business challenge discussion - Help identify growth opportunity within the Hispanic market - Improve measurement of Hispanic market investments - Demonstrate ROI - Help accelerate growth through empirical data insights Transformative in the way we approached business and marketing needs Leverage big data environment and 3rd party data sources across business units
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Winning executive buy-in was critical

Its was a significant investment and commitment that required CEO vision and support Developed detailed roadmap for success: - Prepared comprehensive plan detailing operations, resources, level of investment and implementation path - We weighted the need for big data as new revenue source for EVC

- We identified packaged solutions for a big data offering

- And, we clearly defined how big data fulfilled an underserved market and provided a shift from sample-based research to empirical analytics

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Result Luminar was created as a new Entravision business unit

New business unit was created dedicated to serving Hispanic-focused analytics and insights

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Luminar Big Data would need to support these needs

Analytics-as-a-Service platform Aggregate multiple sources of data from diverse sources - Licensed data - EVC data - Unstructured social data - Client data

Offer an advanced and unique focused analytics service

- Provide insights into Hispanic consumer behavior - Targeting customers in retail, financial services, insurance and auto segments Future offerings - Platform as a Service - White Label Services

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Importance of aligning our vision with the right technology partner

Proven track record vendor had to have a demonstrable experience in the implementation of big data solutions Technology agnostic We needed a technology partner that could help plan and deploy a solution architecture that was not married to any one vendor Experience with multiple technology providers/suppliers We needed a partner that could understand the big data landscape now, in 6 moths and 18 months from today Blended team approach Our ideal partner had to clearly understand that they would be operating in a blended client/vendor team environment

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Deployment Objectives
Build a best-of-breed model based on Luminar requirements

- Take a vendor neutral approach

- Lowest Total Cost of Ownership - No requirement to integrate with any legacy systems but SQL data migration

Cloud based architecture

Maximize re-use of vendor experience in Big Data Scalability for future data requirements Data security requirements Visualization Start with a shoestring approach

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Build the right foundation for growth

Impetus lead solution architecture and vendor selection process We established a solution framework that delivers four client offerings We architected a solution that defined all major technology Key Performance Indicators (KPIs) and SPOF

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Advisors Experience.

Architects Expertise.

Applications Excellence.

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Use Case Discovery and Implementations

Verticals

Big Data Analytics

Use-Case Patterns Value Drivers and Functional areas

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Solution Creation Approach - Steps

1: Initial Phase Understand Data, ETL and Analytical/Reporting & roadmap requirements Prepare comprehensive/ long list of candidates Finalize assessment criteria and weightage factors 2: Finalize POC Candidates Compare and recommend short list of candidates after detailed evaluation including vendor meetings Implement, execute and benchmark critical use cases Execute POC candidates in parallel if possible

3: POC

4: Final Phase

Assessment report Recommend best solution fit

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Vendor selection based on weighted scoring

We created a custom-scoring matrix used for evaluating vendors pros and cons, defining requirements, and weighting against Luminars objectives

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Technology Hybrid architecture

Data Sources

Amazon AWS

BI Display Outputs

ETL / ELT

Licensed Data

Security Module & Compliance Software

BI Tools/ Data Services

Web-based

Internal Data
Talend Tableau Data Stream Processing (LADAP) Statistical Modeling

Workstation

Client Data Unstructured Data Other Data Sources

Tablet

Mobile

Notebook
Revolution /Hive

Luminar Data Store Cluster

(HDFS on EBS + P+G + 53 + RDS + Hdbase) Horton Works

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Implemented solution overview

Hadoop Cluster provisioned on Amazon EC2 in under four hours Original data sets imported from MySQL to HDFS/Hive using Sqoop and Talend Existing R scripts were modified to work with Hive for data analysis. Minimal code modification required Tableau work books modified to connect to Hive via Hortonworks ODBC driver
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Our value proposition formula

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How we do It
Data Sources Data Management & Staging Insight Solutions
Customer Visualization Application

Luminar Data

Luminar Insight App

Customer Decision Engine Client Data Files

Real-Time Cloud Insights

3rd Party Data

Unstructured Data

Big Data Analytics

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Luminar Business Insights

Closing remarksFour key takeaways

1

Make a strategic connection to Big Data In Luminars case, it provided a clear strategic path to a new marketing approach Big Data initiative requires holistic approach bringing business and IT together to stitch all the parts

While IT and business need to work together, the business must own the initiatives
Have a flexible approach to your roll-out strategy

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Accelerating Growth through Big Data and Analytics

Q&A
December 6, 2012 Presented by:

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