OP #260: Lessons from the Trenches: VMM's 15-Year Retrospective

15 Years of VMM: The Journey from Innovation to Industry Leader

Author

Darren Herman
June 04, 2024

Good morning OP Community,

I cannot believe it’s June 4. There are only 26 days until the end of the second calendar quarter. Crazy!

After a busy few weeks, I am back in full swing. I’m looking forward to speaking at the Boston GenAI Meetup at MIT/NERD tomorrow, Wednesday, and attending a PE session at Google NYC later this month. I think I’m also recording a podcast somewhere in between with the Karma School of Business.

The meat of today’s OP was inspired by a message from John Whitmore, a friend and one of the first, if not the first, Varick Media Management employees. I founded VMM in 2008. He told me that his Facebook feed reminded him that 15 years ago, this past week, VMM was on the front page of the NY Times business section. That instantly brought back memories and inspired the below piece.

Before we get to that piece, a huge shoutout to my pal Ben Kartzman on an incredible 18 year run with Spongcell, Flashtalking, and MediaOcean. He’s headed to Attain as President & COO. Congrats Ben!

Speaking of talent and jobs, here’s a great role at one of my portfolio companies, athenahealth, to join their Customer Data Platform team.

Not sure if you saw Ari Paparo’s latest newsletter where he defines the Open Web. The map below was created by Ari and a good way to think through the evolution of the web.

Late last week, we announced the next Silicon Alley Sports event: Silicon Alley Tennis Invitational on July 24. This is a much smaller event - 36 or so people - who all love tennis and are part of the Silicon Alley ecosystem. If you are interested in signing up, go here. To learn more, go here. In the first week, we sold 42% of our tickets. It will surely sell-out.

Here are some good reads to get us started:

I hope you enjoy this OP. If you have any questions or ways to make it better, please do not hesitate to reach out. If you’d like to sign-up to receive the OP, go here.

Darren

Reflecting on 15 Years of Varick Media Management: A Journey of Innovation and Lessons Learned

Fifteen years ago, Varick Media Management (VMM) was featured on the front page of the New York Times business section, marking a significant milestone in our journey. It all began with a breakfast or lunch at 12 Chairs or Blue Water Grill with Joe Zawadzki. In his academic yet commercial way, Joe explained his vision for MediaMath and how the future of media buying would shift from bulk buys to individual impressions. The idea of buying audiences and data independently was revolutionary—and I was hooked.

NY Times Article On My Home Office Wall

Shortly after, a visit from our friends at Yahoo! introduced me to Brian, Jonah, and Michael at Right Media, which was similar to MediaMath but part of Yahoo!’s larger offering. Our new friends at Right Media introduced me to Nat and Zach, a dynamic duo building Invite Media. And this guy Jeff from Microsoft’s AdECN talked to us about where he’s headed… after he leaves AdECN…Between MediaMath, Right Media, The Trade Desk, and Invite Media, I saw the future of media buying clearly. This all happened in the span of a month or two and my mind was blown.

At that time, I was leading digital at The Media Kitchen, part of MDC Partners (now Stagwell Global). Barry Lowenthal, my boss and partner in innovation, was equally excited about this media revolution. Together, we embarked on a journey to learn everything we could about programmatic advertising, often meeting with the passionate teams at MediaMath and Invite Media and anyone else who would educate us.

We realized that to stay ahead, we needed to build a new capability with media traders, data scientists, product managers, and yield optimizers. This was a departure from traditional agency structures and required a new approach and new finances. I proposed creating Varick Media Management as a separate entity to focus on the demand side of the programmatic ecosystem. MediaMath was to be our initial launch partner.

After working nights and weekends on a business plan, I pitched VMM to our holding company, MDC Partners. Despite initial setbacks (I failed 2 out of 3 times pitching), the support from Miles Nadal, David Doft, Mitch Gendel, Brandon Berger, and other key players helped us launch VMM in 2008. By 2009, we were on the cover of the New York Times business section and speaking at every major conference.

Reflecting on those early days, several key memories and lessons stand out:

  1. Building Relationships and Networks: The connections made with industry pioneers, like Joe Zawadzki at MediaMath and the team at Yahoo!, TTD and Invite Media, were instrumental in shaping VMM’s direction. These relationships underscored the importance of networking and collaboration in driving innovation. Also, building relationships with key members of the press to help drive awareness was crucial. Joe Mandese, Zach Rodgers, Webmaster, Lara, Stephanie, and Tanzina were amazing for us.

  2. Embracing Innovation: Barry Lowenthal’s excitement for innovation and our shared belief in the impending media revolution pushed us to explore and embrace new technologies and strategies. Jon, Richard, Stephen, Chris, and many others pushed us too. This willingness to innovate was crucial to VMM’s success.

  3. Overcoming Challenges: Pitching the business multiple times before gaining approval taught me the value of persistence and resilience. Each setback was a learning opportunity that refined our approach and strengthened our resolve.

  4. Building a Strong Team: The early team members of VMM, such as Greg, Seni, Ali, Keith, Jeremy, and Archie, were some of the smartest people I’ve worked with. Their expertise and dedication were key to navigating the complex landscape of programmatic advertising.

  5. The Importance of Support Systems: Having a sounding board in Barry Lowenthal and the unwavering support of my executive assistant (and much more), Lara FZ, was invaluable. Their contributions were crucial to my ability to lead effectively. Lara was my rock and we often tackled things together. When people came to visit me in the office, they often spent more time with Lara! Some people say that EA’s are a waste - they have clearly hired the wrong ones.

  6. Continuous Learning and Adaptation: The early years were marked by constant learning, whether it was through every-Saturday morning financial reviews and planning or troubleshooting client campaigns with industry leaders like Nat Turner and Brian O’Kelley.

  7. The Role of Measurement in Advertising: Despite advancements, the challenge of accurately measuring marketing and advertising effectiveness remains. This ongoing issue highlights the need for continued innovation in measurement and analytics.

Looking back, the journey of Varick Media Management is a testament to the power of innovation, collaboration, and resilience. As we celebrate this milestone, I’m reminded of the importance of staying curious, building strong relationships, and embracing change.

I owe my relationship with many of you to my time at VMM.

For those of you navigating the ever-evolving landscape of digital media, remember that the future is shaped by those who dare to innovate and learn from their experiences. Here’s to the next 15 years of growth, innovation, and success.

…and if you liked this piece, you may really like my friend Auren Hoffman’s piece titled One Decade After Selling LiveRamp - What Did We Learn?

The below links are articles that I read during the past week. I am sharing them because I think they are interesting. I may not agree with everything in every article. If you come across an article that you might think I or the OP community would like, I encourage you to reach out and share it. I reserve the right to select whether or not it gets shared in the OP.

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