September 16 – 5 Key Stories From The Digital World

By September 15, 2019 Insight

1. How to stop vanity marketing from killing your startup

  • Vanity marketing is a tempting investment for a company…got some vague, ephemeral yet satisfying results…got a big party, you’ve got a wrapped Humvee, you’ve got something cool to point at, and perhaps you’ll achieve the mythical “virality” that gets a particular thing 10,000 shares or retweets
  • Almost every single major startup flameout you’ve seen has had some form of major Vanity Marketing Spend, one totally divorced from, say, the cost of acquiring a single user
  • The boring, consistent marketing you can do — that you can analyze, that you can truly understand the effect of — is so much less interesting than the big, shiny objects…might not look as impressive, but it’ll work

2. How The Gap, Old Navy plan to utilize data, IT, e-commerce as they split up in pursuit of growth

  • in the process of rolling out a proprietary assortment and buy planning tool…has the API for machine learning and machine decisions as it relates to store allocation…right product, right place at the right time
  • Imperative for this company is to bring the younger customer into the fold…spend close to $200 million a year on marketing…Today, marketing lends itself to analytics like it never has in the history of business
  • currently sit as the fourth-largest e-comm site…unleash the full potential of the omni selling opportunity…Currently, about 17% of our customers shop across both channels, and the lifetime value of a cross-channel shopper is 3x as great as a single-channel shopper

3.  Music publishers say Peloton stole even more music, ask for $300 million

  • discovering more unlicensed music — including songs by Taylor Swift and Kesha — being used in workout videos that play on the bikes’ built-in screens
  • After the lawsuit was filed, the offending songs conveniently disappeared, upsetting connected exercise equipment owners who’d gotten used to their beloved playlists…But not all the songs disappeared
  • Popular music is core to Peloton’s business model…company, set to go public later this year, allows people to replicate the experience of being in a fancy workout class without ever leaving their living rooms…brand could be worth as much as $8 billion

4. Searching for a Parking Spot? AI Got It

  • To enable parking space perception, we use camera image data collected in various conditions, and deep neural network processing through our ParkNet DNN
  • DNN generalizes to define four lines connected at arbitrary, rather than right, angles…enables it to perceive parking spaces regardless of the lane markings’ orientation with respect to the car
  • By using camera self-calibration results…ParkNet results can be converted into 3D coordinates…enables 3D position estimation that’s particularly accurate for short-distance self-parking maneuvers

5. The Hit Rate

  • they define “hit rate” as…the percent of invested dollars generating a 10X or greater return
  • It could be the number of investments in your portfolio that return the fund…number of seed investments you make that turn into billion-dollar valued businesses…could be the number of your seed and Series A investments that go public
  • Venture capital returns are highly correlated to a fund’s hit rate…a fund’s hit rate determines their returns…your big winners will determine your returns…Same as it always was