Most of the advertising startups who pitch their new services and products to agencies will never return money for themselves or their investors, says Rob Norman, Chief Digital Officer at GroupM Global, during an interview with Beet.TV at the Beet Retreat 2013 in Vieques, Puerto Rico.
“Of every 100 companies that come to see me, 85 won’t make money for themselves or their investors,” he tells Ashley Swartz, the founder and CEO of the New York-based consultancy Furious Minds. Beyond that, another ten will make some money for themselves and their investors. He estimates that four will make a significant return, but only one of the 100 companies will have a meaningful impact on the advertising business.
For more insight into how a top media agency executive evaluates new businesses and venture-based companies, as well as how the shifts in media affect hiring, strategy and business development, check out this video interview.