Ad Tech Event          London  October 23rd, 2012            15 Stratton Street     London W1J 8LQ, United Kingdom        ...
Who IS CLIPPERTON FINANCE ?
Who are We ?  Values      TOMBSTONESMulti-LOCAL    Research
Who are We ? Independence Loyalty Intuitu Personae Selectiveness                    TOMBSTONESMulti-LOCAL          Research
Who are We ?  Values      TOMBSTONESMulti-LOCAL    Research
Who are We ?               $150 million  Values      $10 millionMulti-LOCAL       Research
Who are We ?  Values      TOMBSTONESMulti-LOCAL    Research
Who are We ?Values    TOMBSTONES           Research
Who are We ?  Values      TOMBSTONESMulti-LOCAL    Research
Thought Leadership                 Research papers                          Transactions                Research paper onE...
Why Focus on  AD TECH &Online Advertising ?
Strong & Steady Usage Growth…                     2005   2011    CAGR                                   2005-11InternetUse...
… Has Attracted an IncreasingAmount of Advertising Dollars Online           Online Advertising Revenue & Forecasts (2003-2...
… Which in turn Led to Sustained Investments     (but subject to economic stress)          Private Placements in Digital A...
… AND An ever moreCOMPLEX ECOSYSTEM!
Yesterday’s Ad Tech EcosystemAdvertisers              Ad Networks                                       Publishers        ...
Today’s Ad Tech EcosystemAdvertisers                                 Ad Networks                                Analytics ...
What Happens      NOW ?
What Trends are Driving the Market?     INNOVATION                      Innovative tools                      New format...
What Trends are Driving the Market?     INNOVATION                      Innovative tools                      New format...
New Tools Empower AdvertisersTARGETING & Customization             Sophisticated targeting &              customization c...
New Formats: Video running the Show       Display Advertising Market will be                                 … a segment i...
New Devices enable New Possibilities Mobile Advertising Market                            Smartphone Tablet Connected TV  ...
What Trends are Driving the Market?     INNOVATION                      Innovative tools                      New format...
“   Advertisers need greater confidence that their    online investments are helping them achieve    their brand goals.   ...
“Interactive Is Ready To Lead Brand Campaigns”                                                                           T...
What Trends are Driving the Market?     INNOVATION                      Innovative tools                      New format...
“   The adoption of automated solutions    will wreak havoc on existing                                    ”    media-buyi...
Reallocation of Advertising Dollars: towards        the Death of Ad Networks?                    “   Ad networks will tran...
What Trends are Driving the Market?     INNOVATION                      Innovative tools                      New format...
Today’s Ad Tech EcosystemAdvertisers                                 Ad Networks                                Analytics ...
Today’s Ad Tech Ecosystem  Advertisers                                     Ad Networks                                    ...
Today’s Ad Tech Ecosystem   Trad. Software VendorsAdvertisers                                  Ad Networks     2nd Wave: 2...
Today’s Ad Tech EcosystemAdvertisers                                    Ad Networks                               3rd Wave...
Selected M&A transactions in Social Web                                                                Total Funding DEAL ...
Panel discussion   Jonathan Wolf                 Martijn HamannChief Product Officer   Partner - Board Director of Unruly,...
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Clipperton Finance Ad Tech Event London 121023

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Panel:
- Mark Read, WPP Digital
- Jonathan Wolf, Criteo,
- Martijn Hamann, Van den Ende & Deitmers
- Sorosh Tavakoli, Videoplaza

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Clipperton Finance Ad Tech Event London 121023

  1. 1. Ad Tech Event London October 23rd, 2012 15 Stratton Street London W1J 8LQ, United Kingdom 10 rue du Mont Thabor 75001 Paris, France
  2. 2. Who IS CLIPPERTON FINANCE ?
  3. 3. Who are We ? Values TOMBSTONESMulti-LOCAL Research
  4. 4. Who are We ? Independence Loyalty Intuitu Personae Selectiveness TOMBSTONESMulti-LOCAL Research
  5. 5. Who are We ? Values TOMBSTONESMulti-LOCAL Research
  6. 6. Who are We ? $150 million Values $10 millionMulti-LOCAL Research
  7. 7. Who are We ? Values TOMBSTONESMulti-LOCAL Research
  8. 8. Who are We ?Values TOMBSTONES Research
  9. 9. Who are We ? Values TOMBSTONESMulti-LOCAL Research
  10. 10. Thought Leadership Research papers Transactions Research paper onE-COMMERCE EU E-Commerce Private Sales eCommerce Second hand fashion Social Commerce (Groupe Casino) Acquires Private Placement Private Placement Buy-Side Buy-Side Research paper onSOCIAL GAMING Online gaming Social gaming Social Casual Social Mobile Secondary placement Gaming Gaming Seller Nicomvest Private Placement Private Placement Sell-Side Sell-Side Research paper onAD-TECH Nov-09 sold to Travel Affiliation Ad Technologies New TV sell-side Audio Video Ad platform Server & measurement Private Placement Private Placement Private Placement Sell-Side
  11. 11. Why Focus on AD TECH &Online Advertising ?
  12. 12. Strong & Steady Usage Growth… 2005 2011 CAGR 2005-11InternetUsers (worldwide) 0.9bn 2.1bn +15%AccessPOINTS (worldwide) 0.16 0.39 +16%Time SpentOnline (US) 6h 13h +14%OnlineBuyers (EU) 18% 34% +11%
  13. 13. … Has Attracted an IncreasingAmount of Advertising Dollars Online Online Advertising Revenue & Forecasts (2003-2014) CAGR 2003-14 +25% 105 94 82 71 60 49 52 39 29 14 20 9 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Clipperton Finance analysis, JPMorgan, Zenithoptimedia
  14. 14. … Which in turn Led to Sustained Investments (but subject to economic stress) Private Placements in Digital Advertising Businesses (number of $10m+ transactions) 65 62 58 56 51 45 Q4’12 62 Est. 34 52 57 51 20 39 31 35 19 1 6 6 5 3 5 3 3 2005 2006 2007 2008 2009 2010 2011 2012 N.. America Europe
  15. 15. … AND An ever moreCOMPLEX ECOSYSTEM!
  16. 16. Yesterday’s Ad Tech EcosystemAdvertisers Ad Networks Publishers Agencies Publishers Publishers
  17. 17. Today’s Ad Tech EcosystemAdvertisers Ad Networks Analytics Publishers Analytics SSPs Agencies DSPs Publishers Ad Exchanges Ad Servers Analytics DMP Publishers
  18. 18. What Happens NOW ?
  19. 19. What Trends are Driving the Market? INNOVATION  Innovative tools  New formats  New devices CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline” AUTOMATION Strong demand for automated solutions that increase overall market efficiency CONSOLIDATION Ad tech space features active consolidation mechanics
  20. 20. What Trends are Driving the Market? INNOVATION  Innovative tools  New formats  New devices CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline” AUTOMATION Strong demand for automated solutions that increase overall market efficiency CONSOLIDATION Ad tech space features active consolidation mechanics
  21. 21. New Tools Empower AdvertisersTARGETING & Customization  Sophisticated targeting & customization capabilities  Create tailored & highly- focused branding campaigns Measurement & Analytics  Need for cross-media strategies  Branding campaigns lack adequate measuring tools  The typical indicators are suited for direct marketing, less for branding
  22. 22. New Formats: Video running the Show Display Advertising Market will be … a segment in which Start-Ups led by Video & Rich Media… have a card to play ($B, 2010-2017) Video ad reach in the US – oct. 12$30 Total Internet 54%$25 BrightRoll 42%$20 Specific Media 34%$15 ADAP.TV 31% $10 / Google Sites 30% $5 TubeMogul 24% $0 Tremor Video 21% 2010 2011 2012 2013 2014 Videology 20% 2015 2016 2017 SpotXchange 20% Video Rich media (excl. video) Auditude 17% Static image Text ads Hulu 7%Source: Forrester Research Online Display Advertising Forecast, Source: Comscore
  23. 23. New Devices enable New Possibilities Mobile Advertising Market Smartphone Tablet Connected TV ($B, 2010-2015) Rest of the world 20.6 +66% 5yr-CAGR 15.6 11.3 New Possibilities in Sight 6.8 Geo-localized Ads1.6 3.3 Interactive Formats LOCAL Ads In-App Display Augmented Reality Source: Gartner, Deutsche Bank …
  24. 24. What Trends are Driving the Market? INNOVATION  Innovative tools  New formats  New devices CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline” AUTOMATION Strong demand for automated solutions that increase overall market efficiency CONSOLIDATION Ad tech space features active consolidation mechanics
  25. 25. “ Advertisers need greater confidence that their online investments are helping them achieve their brand goals. ” Nielsen, “Beyond click & impressions”
  26. 26. “Interactive Is Ready To Lead Brand Campaigns” The old model of branding revolves around TV* Nate Elliott, Forrester: Performance Radio Internet“ Its time for marketers to wake up to the brand building potential of Advertising TV interactive channels because: Branding Print 1. Interactive marketing is proven to create brand impact 2. Interactive tools offer marketers Tomorrow’s branding model will be interactive new ways to tell stories 3. People trust what they learn about brands online ” Internet Advertising Performance Branding Website TV Radio PrintSource : Adaption of Nate Elliott’s diagram published in “The Interactive Brand Ecosystem”
  27. 27. What Trends are Driving the Market? INNOVATION  Innovative tools  New formats  New devices CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline” AUTOMATION Strong demand for automated solutions that increase overall market efficiency CONSOLIDATION Ad tech space features active consolidation mechanics
  28. 28. “ The adoption of automated solutions will wreak havoc on existing ” media-buying economics. Shar VanBoskirk, FOrrester
  29. 29. Reallocation of Advertising Dollars: towards the Death of Ad Networks? “ Ad networks will transform or die. […] We bet broad, mass- reach ad networks will disappear as DSPs crush ad network margins. ” Shar VanBoskirk, Forrester Current Value breakdown Future breakdown: ad networks are gone ? (CPM, $) (CPM, $)$5.00 $4,20 An $10B+ $0,50 opportunity? $0,40 $0.50 $2.00 $1.80 $0.75 $2,15 $0.25 $0.30 $0.10 $0.35 $0.10Advertiser Agency Ad Data Ad Ad Publisher Advertiser Agency DSP Data Ad Ad Publisher Network Provider Exchange Serving Provider Exchange ServingSource : Tradedoubler “Digital Day”
  30. 30. What Trends are Driving the Market? INNOVATION  Innovative tools  New formats  New devices CONVERGENCE Convergence between “Performance” & “Branding” , Devices & Consumer “timeline” AUTOMATION Strong demand for automated solutions that increase overall market efficiency CONSOLIDATION Ad tech space features active consolidation mechanics
  31. 31. Today’s Ad Tech EcosystemAdvertisers Ad Networks Analytics Publishers Analytics SSPs Agencies DSPs Publishers Ad Exchanges Ad Servers Analytics DMP Publishers
  32. 32. Today’s Ad Tech Ecosystem Advertisers Ad Networks Analytics Publishers 1st Wave: 2007-2008 Analytics SSPs AgenciesAd Networks buy Ad Exchanges DSPs2008 Publishers20072007 Ad Exchanges Ad Servers Analytics DMP Publishers
  33. 33. Today’s Ad Tech Ecosystem Trad. Software VendorsAdvertisers Ad Networks 2nd Wave: 2009-2012 External Software Vendors Analytics Publishers Analytics SSPs Agencies Enter the Ad tech game 2012 DSPs 2012 2011 Publishers 2009 Ad Exchanges 2009 Ad Servers Analytics DMP Publishers
  34. 34. Today’s Ad Tech EcosystemAdvertisers Ad Networks 3rd Wave: 2013-2015 Analytics Publishers Analytics SSPs Agencies  Vertical Consolidation Strategy? DSPs  Transversal Integration (mobile, video, …) ? Publishers  Continued Consolidation of Tools, SSPs/DSPs by Traditional Software Vendors. And more? Ad Exchanges Ad Servers Analytics DMP Publishers
  35. 35. Selected M&A transactions in Social Web Total Funding DEAL VALUE CASH on CASH (Venture, $m) ($m) buys 14 350 25x buys 90 689 8x buys 33 300 9x buys 54 321 6x buys 18 270 15x buys 15 400 27x buys 38 120 3x buys - 59 - buys 38 414 11xSource: Thomson One, Venture Source, Crunchbase, Clipperton Finance estimates
  36. 36. Panel discussion Jonathan Wolf Martijn HamannChief Product Officer Partner - Board Director of Unruly, Smartclip & Improve Digital Sorosh Tavakoli Mark Read CEO CEO WPP Digital

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