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Response to

  Request for Clarification

    Surpassing Pinterest’s
      Visual Discovery
- From Curation to Algorithm -
          Mark Lee
              Nov 2012




           Private & Confidential
Pinterest’s Curation Drives Visual Discovery




              But it’s Visual Discovery 1.0



                     Private & Confidential
Learning from History
            Web 1.0 Discovery
    Human Curation vs. Algorithmic Search
       Curation                                            Algorithm
             1994                                             1998




Using Partner Search Algorithms
    2000: Google; 2009 Bing

                  Will the Curation -> Algorithm
                 Historical Pattern Repeat Itself?

                       Will Algorithms
            Eventually Dominate Visual Discovery?
                                  Private & Confidential
Anglo Digital’s Visual Recommendation Engine
    Uses Algorithms for Visual Discovery


                                                  Excerpt
                                            from the 2010/2011
                                                Application




                   We Can Use
              Algorithms to Surpass
                     Pinterest
               for Visual Discovery


                   Private & Confidential
Our Algorithms and Superior Functionality
          Surpass Pinterest’s Value Proposition
Consumer Need                       Anglo Digital                     Pinterest
Visual Discovery                      Algorithm                       Curation
Superior TRI/ID Functionality Delivers a Superior Interactive Customer Experience
                                      User Can
Digital Try                                                      Not Available
                                Digitally Try Product
                                     User Can
Digital Restyle                 Restyle Selection to             Not Available
                                Better Match Desire
                                     User Gets
Digital Iterate                  Superior Visual Fit             Not Available
                                 Recommendations
                   Users Can Iteratively Try and Restyle Selections
                    to get Superior Visual Fit Recommendations

                                    Private & Confidential
Visual Recommendation Engine Focuses Upon
        Facial Products across Multiple Markets

     2011 Global Cosmetics Market                           2010 US Vision Market
           EU$153B = US$195B                                        US$65B
31% Advertising & Promotion Costs: US$60B           40% Selling & Advertising Costs: US$26B




                                                Selling, Advertising, Promotion Opportunity:
                                                           US$86 Billion Annually


                                    Private & Confidential
Appendix




Private & Confidential
Curation versus Algorithm for Discovery
                                    (Readings)


The primary difficulty of Web 1.0 was one of information overload.
Google’s solution to this problem was to improve search.
Yahoo’s solution to this problem was to improve curated directories
http://thoughtfaucet.com/strategy/insight/pattern-recognition-last-years-battle/ .

Yahoo!’s human approach seemed quaint and largely irrelevant and sure enough they
eventually discontinued that approach, hired mathematicians of their own and competed
with Google on an algorithmic basis.
http://www.choicestream.com/curated-vs-algorithmic-brand-safety/




                                    Private & Confidential
The Visual Recommendation Engine                               2010/2011
                                                                           Slide
               Empowers the Customers
                                Sell Better
                                                        TRI/ID* Tool
              Customer Picture
                                                    Try       Restyle

                                         1st Rec
Anglo               Visual
               Recommendation            2nd+ Rec
Digital            Engine


             Data Driven Insights                       Restyling
                                                        Feedback
                   Databases
            • Product (mfg cost, time)                Iterate Loop
           • Customer (prefs, contact)               Until Customer
                                                       is Delighted

            Improvement Input for                               Customer Process of
           Add’l Recommendations                               *Try-Restyle-Improve/
             Of Existing Products                              Iterate until Delighted

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Response to CIP 500 Request for Clarification

  • 1. Response to Request for Clarification Surpassing Pinterest’s Visual Discovery - From Curation to Algorithm - Mark Lee Nov 2012 Private & Confidential
  • 2. Pinterest’s Curation Drives Visual Discovery But it’s Visual Discovery 1.0 Private & Confidential
  • 3. Learning from History Web 1.0 Discovery Human Curation vs. Algorithmic Search Curation Algorithm 1994 1998 Using Partner Search Algorithms 2000: Google; 2009 Bing Will the Curation -> Algorithm Historical Pattern Repeat Itself? Will Algorithms Eventually Dominate Visual Discovery? Private & Confidential
  • 4. Anglo Digital’s Visual Recommendation Engine Uses Algorithms for Visual Discovery Excerpt from the 2010/2011 Application We Can Use Algorithms to Surpass Pinterest for Visual Discovery Private & Confidential
  • 5. Our Algorithms and Superior Functionality Surpass Pinterest’s Value Proposition Consumer Need Anglo Digital Pinterest Visual Discovery Algorithm Curation Superior TRI/ID Functionality Delivers a Superior Interactive Customer Experience User Can Digital Try Not Available Digitally Try Product User Can Digital Restyle Restyle Selection to Not Available Better Match Desire User Gets Digital Iterate Superior Visual Fit Not Available Recommendations Users Can Iteratively Try and Restyle Selections to get Superior Visual Fit Recommendations Private & Confidential
  • 6. Visual Recommendation Engine Focuses Upon Facial Products across Multiple Markets 2011 Global Cosmetics Market 2010 US Vision Market EU$153B = US$195B US$65B 31% Advertising & Promotion Costs: US$60B 40% Selling & Advertising Costs: US$26B Selling, Advertising, Promotion Opportunity: US$86 Billion Annually Private & Confidential
  • 8. Curation versus Algorithm for Discovery (Readings) The primary difficulty of Web 1.0 was one of information overload. Google’s solution to this problem was to improve search. Yahoo’s solution to this problem was to improve curated directories http://thoughtfaucet.com/strategy/insight/pattern-recognition-last-years-battle/ . Yahoo!’s human approach seemed quaint and largely irrelevant and sure enough they eventually discontinued that approach, hired mathematicians of their own and competed with Google on an algorithmic basis. http://www.choicestream.com/curated-vs-algorithmic-brand-safety/ Private & Confidential
  • 9. The Visual Recommendation Engine 2010/2011 Slide Empowers the Customers Sell Better TRI/ID* Tool Customer Picture Try Restyle 1st Rec Anglo Visual Recommendation 2nd+ Rec Digital Engine Data Driven Insights Restyling Feedback Databases • Product (mfg cost, time) Iterate Loop • Customer (prefs, contact) Until Customer is Delighted Improvement Input for Customer Process of Add’l Recommendations *Try-Restyle-Improve/ Of Existing Products Iterate until Delighted