Legendary Entertainment presentation at the Chief Analytics Officer, Fall 2016

1. Disrupting Hollywood Paradigms with Analytics October 2016
2. Hollywood Paradigm: Four Quadrants Note:Using the US populationas an illustrative example. Traditional Hollywood Four Quadrant Legendary Applied Analytics Micro Segment Four Quadrant: 4 groups of 80 million Micro Segment: 80 million groups of 4
3. Hollywood Paradigm: Spray and Pray General Population Hard Core Fans MarketTopDown Audience Box Office
4. Legendary Analytics: Invert Audience Building Extended Reach Efficiency Gain MarketBottomUp Box Office Audience Hard Core Fans General Population
5. People and Locations Based in Boston Extension in LA Diverse set of over 70 people and growing
6. People and Locations Based in BostonExtension in LA Growing in Beijing Diverse set of over 70 people and growing
7. Transform Marketing Identify, Understand, Reach, Persuade Individuals Goal: Reduce Media Spend by 15-20%
8. Virtuous Cycle
9. Virtuous Cycle Conversation SocialPeople Content • 1.5B email addresses • 200M households with PII • Hundreds of attributes per person from many sources • 500M Twitter profiles • 100M Facebook profiles • Hundreds of attributes per person from many sources • Billions of Tweets • All of Reddit • All of Wikipedia • Thousands of news sites and blogs • Box Officeby theater for all movies since 2007 • All US ads run since 2007 • Meta data by second for thousands of movies Substantial sets of data integrated in unique ways
10. Virtuous Cycle Web Traffic Warcraft Dawn of the Planet of the Apes Hobbit 2 Hobbit 3 Hobbit 1 Godzilla Jurassic World ConversationAnalysis Social Interactionsby Geography Extensive analyses using traditional and innovative techniques
11. Virtuous Cycle Proprietary, sophisticated platform that integrates data, analytics, and campaigns
12. Virtuous Cycle •Build audience profiles •Create hundreds of microsegments •Identify key persuadable points •Produce detailed, actionable insights •Uncover persuadable audience • Measure changes in intent • Test and develop creative Actionable insights emerging from data and analytics – at a rate of over 50 per movie per week
13. Virtuous Cycle Deep API integration allows for scale execution and sophisticated reporting
14. Virtuous Cycle Campaign data allows for continual optimization
15. • Investment • $160 million Production • $120 million Advertising • Testing • 8 audience screenings (including extensive biometrics) • 3 different versions screened in the same night (a record!) • Reception • 26% by critics on Rotten Tomatoes • 83% by fans on Rotten Tomatoes • 98th Percentile in ratio of Critics to Fans reception WARCRAFT CHINA CASE STUDY THE NEXT PARADIGM DISRUPTED Extensive global release in June 2016 for a unique property
16. APPLIED ANALYTICS: WARCRAFT CHINA CASE STUDY TARGETED MARKETING AT SCALE TENCENT PLATFORM QQ tips window: 34.3M targeted ads. BAIDU PLATFORMS Nuomi: 29 million individuals targeted. Maps: 17 million individuals targeted. Music: 16 million individuals targeted. Search ads: Thousands of keywords covered Delivered 79 million impressions (high CTR at 3.5%) 150+ MILLION TARGETED INDIVIDUALS: 6.5x Return on Media 3.0x More Likely to Buy a Ticket IMPACT:
17. WARCRAFT CHINA CASE STUDY THE NEXT PARADIGM DISRUPTED $300M+ box office in its first week, $430M+ total, with a record setting $230M in China
18. Disrupting Hollywood Paradigms with Analytics October 2016

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