Digital Advertising Seminar Disruption, Consolidation and Growth September 9, 2014
WCP Overview Woodside Capital Partners is a global, independent investment bank that delivers world-class strategic and financial advice to emerging growth companies in technology sectors Founded in 2001: over $10 billion in transaction value M&A, private placement/strategic partnership and corporate finance advisory — Hardware: Semiconductors, Electronics, and Enabling Materials — Software, Digital Media/Advertising and Internet — Special Situations 30 professionals; backgrounds as entrepreneurs/CEOs and from top investment banks Silicon Valley-based, with offices in London – 1/3 of transactions are cross-border Silicon Valley headquarters of M&A International WCP Research team offers technology research serving buy-side institutional investors and technology industry executives 1
A GENDA Disruption and Consolidation I. Growth Drivers II. The Holy Grail III. Industry Consolidation IV. Trends and Predictions V. 2
Disruption and Consolidation High Tech and Big Data Meet Don Draper Shift to Digital Media (Internet and Mobile) Ongoing Disruption of Advertiser / Agency / Publisher Relationship Rapid Growth in Programmatic / RTB Fragmented Landscape = Opportunity 3
High Tech Meets Don Draper 4
Big Data Meets Don Draper 200MS: THE LIFE OF A PROGRAMMATIC RTB AD IMPRESSION 5
More Spending Will Shift to Mobile 50% Ad Spending vs. Media Consumption 43% % Time Spent 40% 42% % Ad Spending % Ad Spent $30B+ Market Opportunity (USA) 30% 26% 4% 23% 20% 22% 14% 10% 12% 9% 10% 6% 3% 0% Print Radio TV Internet Mobile Internet Ad = $37B Mobile Ad = $4B 6 Source: KPCB, Internet Trends 2013
Disruption of Advertiser / Agency / Publisher Relationship Intermediary Tax $0.60 Data Platform Display Self Serve Ad Server Exchange Other DSP Publishers $1.00 Mobile $0.40 Advertisers Video 7
Rapid Growth in Programmatic RTB Ad Sales Market (US) $20 $18 $3.8 $16 $14 $3.1 Video $12 Mobile $6.8 $2.0 $10 Desktop Display $4.9 $8 $2.9 $1.1 $6 $1.4 $0.5 $4 $0.5 $7.5 $7.1 $0.1 $6.5 $0.1 $4.9 $2 $3.8 $2.9 $0 2013 2014 2015E 2016E 2017E 2018E Source: BI Intelligence, The Programmatic Advertising Report; 8/29/2014 8
Fragmented Industry = Consolidation Opportunity 9
A GENDA Disruption and Consolidation I. Growth Drivers II. The Holy Grail III. Industry Consolidation IV. Trends and Predictions V. 10
Major Growth Drivers Programmatic and Real-Time Bidding Cross-Screen Advertising Growth in Mobile Usage Video Advertising Improved Analytics and Attribution 11
A GENDA Disruption and Consolidation I. Growth Drivers II. The Holy Grail III. Industry Consolidation IV. Trends and Predictions V. 12
Challenges of Mobile Advertising Limited cookies/device identification Current mobile targeting solutions rely on guesswork, probability Difficult to prove ROI 13
Leveraging Big Data 4Info used advanced technologies and 4Info analyzed billions of ad requests using geocoding to map every U.S. household patented clustering algorithms. to lat / long. Ad Requests Ad Requests Ad Requests Ad Requests Ad Requests Ad Requests Ad Requests Ad Request(s) Ad Requests Ad Requests Ad Requests Ad Requests 14
Persistent Mobile ID Enables Cross-Screen Campaigns Enabling Targeting and Attribution Across Screens Targeting Targeting Attribution Attribution Frequent Shopper Data 152 Million Point-of-Sale Data Warranty Registrations Panels & Surveys Credit Card Data 101 Million Attribution Platforms 300 Million 15
4INFO Case Study: BuyerVision Mobile Results Situation Custom Campaign Challenge: New Product Category: The average household Launch Sports Drinks spend on mobile was almost double that of display Approach: Drive Target: awareness Target 1: Category A AND Category B (75%) $587k Success criteria: Payback Target 2: Category B (25%) Incremental for media spend, Sales incremental volume Reach: 2 MM Households Payback (per $1 Impressions: spent) 8 M $4.86 Source: NCS Sales-Effect Analysis 16
Public Companies Have Lost Value but Still Have Cash $70 CRTO $60 MRIN $50 MM FUEL $40 RUBI $30 SZMK TRMR $20 TUBE $10 $0 17 Source: CapitalIQ and Woodside Capital Partners estimates; 9/4/2014
Notable M&A Transactions in 2014 18
A GENDA Disruption and Consolidation I. Growth Drivers II. The Holy Grail III. Industry Consolidation IV. Trends and Predictions V. 19
Trends and Predictions Video, Mobile, Native Grow Faster Than Display, Search Increased Verticalization by Brands and Agencies Consolidation of Adjacent Players -> Enterprise Advertising Management Systems (EAMS) Programmatic Extends to Old School Television Apple / Google Enter Mobile Payments with Attribution Loop Google, Apple, Facebook, Amazon, Adobe, SFDC, AOL, Microsoft, Oracle, Yahoo Extend Their Reach Waves of Acquisition: Ad Exchanges, DSPs, Video, Mobile, Cross-Screen, Attribution 20
WCP Contact Info WCP Research Ed Bierdeman Marshall Senk Software Analyst and Managing Director Software Analyst and Managing Director +1 650 387 5204 +1 949 284 0599 ed.bierdeman@woodsidecap.com marshall.senk@woodsidecap.com WCP Banking Tricia Salinero Ron Heller Managing Director Managing Director +1 650 421 6547 +1 650 513 2762 tricia.salinero@woodsidecap.com ron.heller@woodsidecap.com 21
WCP Office Info – Silicon Valley and UK Presence Silicon Valley Offices 1530 Page Mill Road, Suite 200 Palo Alto, California 94304 Tel: +1 650 513 2775 UK Offices Ibex House 42-47 Minories London, EC3N 1DY, UK Tel: +44 7989 384590 22
Q&A Q&A 23
Upcoming Events Internet of Things Seminar -- November 2014, Date TBD Open Stack Seminar -- December 2014, Date TBD Mergers and Acquisitions in Silicon Valley Gathering -- January 21 & 22, 2015 24
MASiV Gathering – January 21 & 22, 2015 Representative 2014 Attendees: Consumer Internet and Mobile: Andreessen Horowitz – Jamie McGurk, Partner Deloitte – Garrett Herbert, Partner, M&A Google – Dave Sobota, Sr Dir, Corp Dev Intuit – Kevin Jacques, Director, Corp Dev Opera Software – Erik Harrell, CFO Square – Rishi Garg, Head, Corp Dev Telefonica Digital – Jennifer Vancini, Sr Dir, Bus Dev VISA – Lester Liu, Global M&A and Corp Dev Yahoo! – Steven Fan, Mobile Corp Dev Cloud and Enterprise: Autodesk – David Hindley, Sr Dir, Corp Dev Box – Niall Wall, SVP, Business and Corp Dev BMC Software – Clarence Hinton, VP, Corp Dev Citrix – Mike Cristinziano, Corp VP EMC – Matt Olton, SVP, Corp Dev IBM – Claudia Munce, VP, Strategy and Venture Salesforce – John Somorjai, SVP, Corp Dev Samsung – Kevin Morrow, VP, Partnership & Bus Dev SAP – Monty Gray, Corp Dev SAP Cloud – Roy Ng, SVP and COO Storm Ventures – Jason Lemkin, Managing Director 25
Recommend
More recommend
