TECHNOLOGY FOCUS. BROAD REACH. OPTIMAL RESULTS.Market Thoughts: Personalization in Digital MarketingSpring 2013Peter Falve...
2Market OverviewMulti-channel personalization is among the top priorities for CMOs. Many solutionsvendors from diverse seg...
3Personalization Becoming a BattlegroundThe value of marketing solutions is closely tied to the ability to personalize con...
4Testing & Analytics Players are Well-Positioned to WinWe believe that the testing and analytics players will emerge as th...
5Funding Landscape Among Leading Independent VendorsWe anticipate competition from vendors will ratchet in the coming mont...
6Targets and Offering MapMRM/Automation Social Web Analytics eCommerce WCM Sales CRM Online Testing E-mailin 2012 for $870...
7Target Date Amount / Total Raised InvestorsApril 2013 $28M / $31.2M Benchmark Capital, Bain Ventures, Battery Ventures, G...
8Recent M&A ActivityThe consolidators are paying attractive prices for the emergent leaders in digitalmarketing to fill in...
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Multi-Channel Testing & Personalization

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Multi-Channel Testing & Personalization

  1. 1. TECHNOLOGY FOCUS. BROAD REACH. OPTIMAL RESULTS.Market Thoughts: Personalization in Digital MarketingSpring 2013Peter FalveyManaging Directorpeter.falvey@falveypartners.comP. 1.617.598.0437Jason MylerManaging Directorjason.myler@falveypartners.comP. 1.617.598.0438Jeffrey CookVice Presidentjeffrey.cook@falveypartners.comP. 1.617.598.0439
  2. 2. 2Market OverviewMulti-channel personalization is among the top priorities for CMOs. Many solutionsvendors from diverse segments of the market are attempting to address the demand.Considerations Important Sector: Personalization is currently among the most critical objectives ofmarketers. Demand for personalization technologies is creating an increasingly attractivemarket and many companies are ramping revenues quickly Growing Number of Vendors Moving into Personalization: Vendors from several,diverse market segments are taking different approaches to deliver multi-channel, real-time personalization for marketers Significant Investment in Leading Vendors: A significant amount of venture capital hasrecently poured into the space as leaders try to take advantage of a rapidly growingmarket opportunity Consolidation on the Horizon: We believe larger players will begin to consolidate themarket in the next 12-18 months as they react to growing customer demand forpersonalization tools
  3. 3. 3Personalization Becoming a BattlegroundThe value of marketing solutions is closely tied to the ability to personalize contentacross channels, attracting entrants from diverse market segmentsTESTING & ANALYTICS PROVIDERS- Testing and analytics tools increasingly moving intopersonalization as automation and more diverse testingCONTENT MANAGEMENT- Deep integration with existing enterprise systems- Would argue that they are best positioned as they hold the“pane of glass” between the user and channelE-COMMERCE INFRASTRUCTURE- Many e-commerce vendors moving from recommendationengines towards omni-channel personalization- Larger players releasing new products (e.g. Hybris)DIVERSIFIED ENTERPRISE SOFTWARE- Personalization initiatives leveraging investments inmarketing software and BigData / analyticsMulti-ChannelPersonalization
  4. 4. 4Testing & Analytics Players are Well-Positioned to WinWe believe that the testing and analytics players will emerge as the leaders among thegrowing number of personalization technologiesSolution OfferingBasic EnterpriseScaleSmallerLargerTESTING & ANALYTICS MARKET MAP Personalization = Data: Personalization isbecoming an exercise in BigData, and testingand analytics platforms are already handlingthe core of the corporation’s marketing data End customer the same: Corporate users oftesting and analytics platforms are the sameconsumers driving growth of personalizationtechnologies Measurement is critical: Testing andanalytics vendors provide critical measuringtools to complement personalization Natural product extension: Effectivepersonalization automate and optimizes thehistorical testing processWHY TESTING & ANALYTICS PLAYERS WILL WIN
  5. 5. 5Funding Landscape Among Leading Independent VendorsWe anticipate competition from vendors will ratchet in the coming months ascompanies deploy significant amounts of capital that has been raised recently$50M+$25M - $50M$10M - $25M<$10MUnfunded
  6. 6. 6Targets and Offering MapMRM/Automation Social Web Analytics eCommerce WCM Sales CRM Online Testing E-mailin 2012 for $870M in 2012 for $300M in 2010 for $1B in 2011 in 2011 for $1.5Bin 2010 for $480M in 2010 for ~$600M in 2010 for $1.4Bin 2011 for $400M in 2009 for $1.8B in 2010 for $240Min 2012in 2013via Autonomy in 2011 for $11Bvia ExactTarget in 2012 for $689M via ExactTarget in 2013 for $2.2BAcquirerPlatform Players Will Start to Consolidate Personalization ToolsWe believe consolidation activity will be catalyzed by the larger marketing platformplayers as they continue to build their portfoliosNo offeringStrong offering Some offering
  7. 7. 7Target Date Amount / Total Raised InvestorsApril 2013 $28M / $31.2M Benchmark Capital, Bain Ventures, Battery Ventures, Google VenturesFebruary 2013 $15M / $36M OpenView Venture Partners, Rose Tech VenturesFebruary 2013 $15M / $34M Bain Capital Ventures, TL CapitalFebruary 2013 $18M / $34M OpenView Venture Partners, Austin VenturesJanuary 2013 $60M / $79M Goldman Sachs, Arthur VenturesDecember 2012 $20M / $36M Northgate Capital, Trinity PartnersNovember 2012 $25M / $69M Mitsui Global, Orix VenturesNovember 2012 $20M / $39M New Enterprise Associates, Sequoia CapitalNovember 2012 $30M / $69M Investor Growth Capital, Tenaya Capital, North Bridge VenturesNovember 2012 $35M / $101M Altimeter Capital, Cross Creek Capital , Undisclosed InvestorsOctober 2012 $25M / $41M New Enterprise Associates, Lightspeed Venture Partners, Bain VenturesSeptember 2012 $16M / $31M Norwest Venture Partners, Trinity VenturesSeptember 2012 $20M / $35M General Catalyst Partners, FloodgateJune 2012 $39M / $67M Norwest Venture Partners, Nexus Venture PartnersJune 2012 $32M / $38M LLR PartnersJune 2012 $50M / $76M Northgate Capital, Summit PartnersMay 2012 $70M / $70M Accel Partners, Sequoia CapitalMay 2012 $26M / $47M Sequoia Capital, Hummer WinbladApril 2012 $33M / $80M New Enterprise Associates, DFJ, Walden InternationalsJanuary 2012 $12M / $14M Investor Growth Capital, Pentech VenturesRecent Investment ActivityHigh profile capital providers are showing interest in the broader marketing softwaresector through significant investmentSource: Company Press Releases, SEC Filings, Wall Street Research, CapitalIQ, Pitchbook
  8. 8. 8Recent M&A ActivityThe consolidators are paying attractive prices for the emergent leaders in digitalmarketing to fill in product offering holesSource: Company Press Releases, SEC Filings, Wall Street Research, CapitalIQ, PitchbookTarget Acquirer Date EV Revenue / EVJun 2013 N/A N/AJun 2013 2,250M 7.1xJan 2013 N/A N/ADec 2012 N/A N/ADec 2012 $870M 9.7xOct 2012 $95.5M 8.7xOct 2012 $21M N/AJul 2012 $350M ~7.8x – 10xJul 2012 N/A N/AJun 2012 $745M ~14.9x – 18.6xMay 2012 $500M 10.0xMay 2012 $300M 3.0xFeb 2012 $169M 3.4x
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