Headwaters Internet Advertising Trends 2013

959 views

Published on

Internet advertising is at an inflection point in its history as the industry continues to grow and mature. In preparation for our first annual Internet Advertising trends report, we spoke to over 150 Internet Advertising companies. Our findings include:

Overall Internet Advertising growth remains strong as Internet Advertising takes share from traditional advertising
Mobile is changing the landscape – yet is still, in many cases, separate from other web IA approaches and solutions.
Social media's importance for Internet Advertising is established – how to effectively deal with it is still a question mark for most advertisers
Search is becoming more local and mobile
Current view of the Internet Advertising landscape is overly complicated - it's not that hard
Unless you offer neutral data and tools, you are not going to be able serve both publishers and advertisers effectively
We are still early in the maturation of the sector
Customer sophistication is still early – even the most successful advertisers "get it less wrong!” to a degree
Search and DR remain the foundations for successful internet advertising campaigns – but no longer stand alone
Big data, social and mobile driving richer data sets enabling advanced analytics
Attribution & Transparency will be hot in 2013 as customers drive for better ROI
Publishers - Tool Up, Adapt or DIE
RTB is hot now - but winners must evolve quickly as publishers and advertisers become more sophisticated
Brand dollars still sitting on the sideline (mostly) but change is coming
M&A remains steady but multiples likely pressured in 2013 due to scale and overfunding

Published in: Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
959
On SlideShare
0
From Embeds
0
Number of Embeds
8
Actions
Shares
0
Downloads
36
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Headwaters Internet Advertising Trends 2013

  1. 1. Internet Advertising Trends - 2013 Mark R. Langner" Managing Director – Industry Analysis January 2013
  2. 2. Contents1.  Summary2.  Internet Industry Statistics – Internet Growth Shifting To Emerging Markets and Asia; Mobile Data Consumption Driving Importance of Mobile Strategies; Mobile is Growing at Expense of Desktop Usage in U.S. and Europe; Mobile’s Importance Grows as Users Sift from Desktop to Mobile; Social Media’s Importance for Internet Advertising is Established…; As Social Media Has Become Nearly 20% of Time Spent On-Line; Search is Changing – Becoming More Local and Mobile.3.  Internet Advertising Market Figures – Internet Advertising Has Grown Rapidly…; And is Projected to Continue Growing Rapidly; Digital’s Share of Worldwide Ad Spend Will Rise; Mobile Advertising Market Needs to Catch Up to Usage; Which Means Expect Mobile’s Share of Spend to Grow Fast.4.  Key Internet Advertising Industry Trends – Making Sense of the IA Landscape; Headwaters’ View of IA Landscape; The Basics (Search and Direct Response) – Still Lots of Opportunity; Search – Many Advertisers Still Struggle With The Basics; Direct Response Continues to Be Important – But Harder; Long-Term – Search and DR are Foundations for Success; Publishers – Tool Up, Adapt, or Die; More Analytics = Better Performance?; Importance of Attribution and Transparency; RTB is Growing Rapidly – Is this Good or Bad?; RTB – Our View and Outlook for the Future; What About the Long Tail?; Mobile – Convergence and Divergence; Will Brands Ever Go Digital?; Why Brand Dollars Will Eventually Move to Digital.5.  Internet Advertising and the M&A Trends for 2013 – Internet Advertising M&A Volume Remains Steady; VC Investment in IA Declining Rapidly; The IA Landscape, Investment and Consolidation; Where Do We Expect Continued Investment?; Where Will Consolidation Come First? Page 2
  3. 3. Section 1SUMMARY"
  4. 4. SummaryHeadwaters spoke to over 150 Internet Advertising companies in preparation of this report. A summary of thetrends we are seeing is as follows:1.  Overall Internet Advertising growth remains strong as Internet Advertising takes share from traditional advertising2.  Mobile is changing the landscape – yet is still, in many cases, separate from other web IA approaches and solutions.3.  Social medias importance for Internet Advertising is established – how to effectively deal with it is still a question mark for most advertisers4.  Search is becoming more local and mobile5.  Current view of the Internet Advertising landscape is overly complicated - its not that hard!6.  Unless you offer neutral data and tools, you are not going to be able serve both publishers and advertisers effectively!7.  We are still early in the maturation of the sector8.  Customer sophistication is still early – even he most successful advertisers "get it less wrong!” to a degree9.  Search and DR remain the foundations for successful internet advertising campaigns – but no longer stand alone10.  Big data, social and mobile driving richer data sets enabling advanced analytics11.  Attribution & Transparency will be hot in 2013 as customers drive for better ROI 12.  Publishers - Tool Up, Adapt or DIE13.  RTB is hot now - but winners must evolve quickly as publishers and advertisers become more sophisticated14.  Brand dollars still sitting on the sideline (mostly) but change is coming15.  M&A remains steady but multiples likely pressured in 2013 due to scale and overfunding Page 4
  5. 5. Section 2INTERNET INDUSTRY STATISTICS""
  6. 6. Internet Growth Shifting To Emerging Markets And Asia•  2.26 B Internet Users •  Europe & U.S. Approaching Saturation•  72% Growth During Last 5 Years •  Continued Strong Growth in Asia & Emerging Markets &$#!!$!!!$!!!" Asia   139mm  Internet  Users  -­‐2011   215%  Growth  2007-­‐2011   13%  Internet  Penetra9on     &$!!!$!!!$!!!" Africa   Rapid  Growth/ Mid-­‐East   Low   %$#!!$!!!$!!!" 1.0B  Internet  Users  -­‐  2011   Penetra9on   99%  Growth  2007-­‐2011   27%  Internet  Penetra9on     %$!!!$!!!$!!!" Asia   La9n  America   501mm  Internet  Users  -­‐  2011   Europe   25%  Growth  2007-­‐2011   #!!$!!!$!!!" 68%  Internet  Penetra9on   Slower   Oceania       Growth/ 273mm  Internet  Users  -­‐  2011   Approaching   U.S.  &  Canada   15%  Growth  2007-­‐2011   Satura9on   79%  Internet  Penetra9on   !"   &!!" &!!(" &!!)" &!%!" &!%%" Source:  ITU,  United  Na3ons,  US  Census  Bureau,   GfK,  and  www.internetworldstats.com     Page 6
  7. 7. Mobile Data Consumption Driving Importance Of Mobile StrategiesMobile Internet Usage Exploding; e.g., AT&T Mobile Data Usage Up 8,000% in Four Years 15B   PB/Month   10B   5B   2007                                2008                                            2009                                                        2010   Source:  AT&T   Page 7
  8. 8. Mobile Is Growing At Expense Of Desktop Usage In U.S. And EuropeIn Established Markets Mobile/Internet Shift is Net Sum Game; U.S. User Growth at 3% CAGR; Mobile Share ofOverall Internet Traffic Growing at 88% CAGR 10%! 3%  CAGR   !!"!# North  America  Internet  Users  (in  millions)   &$!"!# Mobile  Share  of  North  American   8%! &!!"!# Internet  Traffic   6%! %$!"!# 4%! %!!"!# 2%! $!"!# 0%! !"!# 2008! 2009! 2010! 2011! Mobile Users Source:    ITU,  United  Na3ons,  US  Census  Bureau,  GfK,   www.internetworldstats.com;  StatsCounter  Global  Stats     Page 8
  9. 9. Mobile’s Importance Grows As Users Shift From Desktop To MobileInternet Use Shifting from Desktop to Mobile; Mobile Now 10.3% of Worldwide Internet Traffic 12.0%! 10.0%! !"($% Mobile  Share  of  Worldwide   8.0%! ,"!$% Internet  Traffic   6.0%! #"+$% 4.0%! *"$% 2.0%! )"#$% "($% !"#$% !"&$% 0.0%! 08 ! 10 ! 10 ! 11 ! 11 ! 12 ! 09 ! 09 ! c- n- c- n- c- n- n- c- De De De Ju Ju Ju De Ju Source:  StatsCounter  Global  Stats   Page 9
  10. 10. Social Media’s Importance For Internet Advertising Is Established…Unsurprisingly, Adoption of Social Media is Huge; Facebook Dominates Facebook  User  Growth   Other  Social  Networking   900   Monthly  Ac9ve  Users*   845mm   TwiYer  465mm   LinkedIn  161mm**    Monthly  Ac9ve  Users  (in  millions)   Instagram  40mm   608mm   Pinterest  14mm***         600   *  As  of  5/31/12   **  As  of  3/30/12   ***  Includes  only  “Facebook   Connected  Users”   360mm   300   Facebook   145mm   Reaches  83%   of  American   58mm   Internet   12mm   Users     1mm   6mm   0   Source:  Facebook,  TwiLer,  LinkedIn,   12/04          12/05          12/06            12/07          12/08          12/09            12/10          12/11   TechCrunch,  AppData,  comScore   Page 10
  11. 11. … As Social Media Has Become Nearly 20% Of Time Spent On-lineSocial’s Share of On-Line Time Continues to Grow; Now Estimated as high as 25% of Time Spent On-Line 19%  in  October  2011   6%  in  2007   Page 11
  12. 12. Search Is Changing – Becoming More Local And MobileLocal Search is Growing; Mobile is Key Driver and Poised to Overtake Desktop for Local Searches Source  comScore,  BIA  Kelsey   Page 12
  13. 13. Section 3INTERNET ADVERTISING MARKETFIGURES
  14. 14. Internet Advertising Has Grown Rapidly…Internet Advertising Market Growth Has Been Robust; 20.3% CAGR Source:  IAB   Page 14
  15. 15. … And Is Projected To Continue Growing RapidlySpending on Internet Advertising is Expected to Nearly Double in Next Three Years Source:  Through  2011  (IAB  /  PwC),  2012  data  thereaZer  (eMarketer,  September  2012)   Figures  include  adver3sing  formats  on  desktop,  laptop,  mobile  phones  and  tablet  plaorms   Page 15
  16. 16. Digital’s Share Of Worldwide Ad Spend Will RiseGrowing from 20% to 25% Over Next Four Years Source:  eMarketer   Page 16
  17. 17. Mobile Advertising Market Needs To Catch Up To Usage…There is Material Upside Opportunity for Mobile Ad Spend vs. Current Levels of Mobile Usage Source:  KPCB,  eMarketer   (1)  IAB  (2011)   (2)  Assuming  Internet  and  mobile  ad  spending  share  equivalent  to  respec3ve  3me  spent  share   Page 17
  18. 18. …Which Means Expect Mobile’s Share Of Spend To Grow FastMobile Advertising is Expected to Grow at Much Faster Rate than Other Formats Source:  Comscore,  BIA  Kelsey   Page 18
  19. 19. Section 4KEY INTERNET ADVERTISINGINDUSTRY TRENDS
  20. 20. Making Sense Of The IA Landscape This  is  NOT  a  Sustainable  View  of  the  Market!   Page 20
  21. 21. Making Sense Of The IA Landscape (Cont.) “Any  fool  can  make  something  complex.  It  is  hard  to  keep  things  simple.”  –  Sir  Richard  Branson   Or  if  you  prefer  old-­‐school:   “Any  intelligent  fool  can  make  things  bigger  and  more  complex…  It  takes  a  touch  of  genius  –  and  a   lot  of  courage  to  move  in  the  opposite  direc3on.”  –  Albert  Einstein  Current View of the Landscape is Overly Complex•  Talk to enough of these companies (100+ in our research) and what they do starts to bleed togetherComplex Industry View Requires Unnecessary Differentiation •  Venture capital has overfunded the sector, requiring companies to slice the pie ever thinner to differentiate•  Given that this is an industry of “Marketers,” tendency to creatively create distinctions where none are required•  When you speak to customers at the industry trade shows, they are confused by the attempted differentiations Ultimately Many of these “Companies” are Actually Products or Point Solutions•  Not enough market demand in many of these sectors to support 8-10 companies•  Expect continued consolidation as leaders assemble more complete solutions Page 21
  22. 22. Headwaters’ View Of IA Landscape A  More  Simplified  View  of  the  IA  Landscape:   Sellside  –  Content  Publishers   Buyside  -­‐  Adver9sers   Analytics, Exchanges Exchanges Analytics, Management and and Management and Decision Transaction Transaction and Decision Tools Management Management Tools Neutral Data and ToolsMarket is Coalescing Around 5 Key Functions•  First is a split between buy-side and sell-side, with companies serving the unique needs of publishers and advertisers•  Second is split between enabling technologies (analytics, management and decision tools) & efficiency technologies (exchanges and transaction management) focused on the needs of either advertisers or publishers (but not both!)•  Last is a set of neutral data sources and data management tools that can serve both sides of the market Page 22
  23. 23. The Basics (Search And Direct Response) – Still Lots Of Opportunity “The  reality  is  that  we  are  s3ll  at  the  top  of  the  third  inning  when  it  comes  to  the  development  of  AdTech   companies”  –  John  Batdorf,  Managing  Director  and  Head  of  Internet  Adver3sing  Banking,  Headwaters  MB   “At  this  point,  the  smartest  and  most  successful  adver3sers  are  crea3ng  tremendous  value  for  themselves   by  preLy  much  gehng  it  ‘less  wrong’  than  their  compe3tors”  –  AdTech  Industry  Guru   We  are  at  the  Hihng  the  Side  of  a  Barn  Stage   Page 23
  24. 24. Search - Many Advertisers Still Struggle With The BasicsPartially Because the Concept of “Basic” has Become MoreSophisticated•  It is no longer okay to just be in the digital arena•  Competition for digital real estate has squeezed out the “easy” gains •  Simple approaches that may have worked two years ago are no longer sufficientSuccessful Search Strategies Must Encompass Both Organicand Paid Search Strategies•  This highlights the growing importance of SEM/SEO tools and effective strategies for deploying search dollars•  According to one CEO, roughly 50% of their search customers have significant room for improvement over their current strategies•  Organic search is still critical – especially as the costs for paid search have risen•  Quality of data – and ability to combine public and private data – will be important going forward Page 24
  25. 25. Direct Response Continues To Be Important – But HarderDR has Become More Complex•  Tools to understand attribution that drive ROI are key•  More sophisticated advertisers are working to integrate DR with on-line branding effortsSocial, Mobile and Video Pose Challenges to Managing DRCampaigns•  Still on the learning curve - applying traditional web metrics to these different formats has proven ineffective•  Growing complexity of user behavior in the digital environment has brought similar complexity to what constitutes an effective campaignMore Complexity = More Tools = More Need for Resource forAdvertisers•  Challenge for SMB to keep pace Page 25
  26. 26. Long-term – Search And DR Are Foundations For SuccessIn Future, Search and DR Will Be Cornerstones of More Complex Multi-Channel StrategiesVarious “Silos” Of Internet Advertising Solutions Need to Breakdown Eventually•  In future the sophisticated will evaluate ROI across various digital opportunities•  Data from successful search and DR campaigns will inform other complementary efforts, e.g., mobile, local, social, digital branding, etc.This is not a 2013 Market – Though May Influence Some 2013 Acquisition Activity As Companies PositionThemselves for this Market in 2014-2015Established Search and DR Players With Their Vast Data Experience and History Will Be Central to Breaking Downthe Silos•  Data ownership or ability to enable customers to harness proprietary data will be a differentiator Page 26
  27. 27. Publishers - Tool Up, Adapt Or DiePublishers Continue to Lag in Adtech “Arms Race”Publishers Continue to Get Short End of Stick in Market•  Few have power of large advertisers•  Adtech business models such as “neutral exchanges” or RTB players that sit between advertisers and publishers have been been able to exploit publishersPublisher Control Over Inventory Limited at Best•  Symptomatic of market where value of content is generally unknown•  Makes getting proper value for content difficult•  Purchasing tools in this environment difficult but necessaryPublisher Business Models Need to Change In Order to Best TakeAdvantage of the Potential•  Print-oriented business and sales model ineffective in digital marketplace•  Potential of digital formats not fully exploited in content creation•  Using adtech tools to understand value and ROI of content in discrete units (e.g., pages, stories, clips) will become a critical survival skill•  Understanding and delivering highest value audiences to advertisers within the framework of an editorial “voice” will be hallmark of top publishers•  Glut of content will begin to become rationalized, discrete and fluid – true high value content will be quantified and increase in value as a rare commodity•  Low value content will go wanting for revenues Page 27
  28. 28. More Analytics = Better Performance?Big Data, Social Media, Mobile Use – All Are Driving Bigger and Richer Data SetsTools and Capabilities Built Upon These Data Sets Are Getting More Sophisticated•  Quality of data is becoming paramount•  Data management is becoming paramount – not just plumbing•  Cross channel and cross format analysis raises the bar furtherThe Implication of More Advanced Analytics is the Attendant Complexity They Bring•  How this plays out is still undetermined•  This could create limits to growth - do tools built on these analytics need to become more programmatic to be more “accessible”?•  Do advertisers need to change the way (and personnel) they use to maximize digital marketing and advertising opportunity? Page 28
  29. 29. Importance Of Attribution And TransparencyAttribution and Inventory Transparency WillBe Very Hot Topics for 2013Attribution and Viewability are Big Issues forAdvertisers•  As much as 3/4ths of inventory may not be viewable•  Even in search “last click” is quickly becoming seen as inadequate for properly determining advertising effectiveness•  Attribution issues become even more complex as brand is integrated with search and DRLack of Transparency in the Digital Exchange/RTBEnvironment is an Issue•  Inability of publishers and advertisers to discern between content means artificially low prices for quality content and artificially high prices for content of little or no value•  Pressure on exchanges to provide more transparency will pressure the arbitrage opportunity between ad buyers and sellers Image  Source:  GanneL   Page 29
  30. 30. RTB Is Growing Rapidly – Is This Good Or Bad?Advertisers, Publishers and IA Companies Will Not be Able to Ignore Impact of RTB.•  RTB Continues to Grow in Importance to the Overall Display Market – Projected to be Nearly 1/3rd of Display Advertising by 2016 Note:  includes  all  display  formats  served  to  all  devices   Source:  eMarketer,  Nov  2012   Page 30
  31. 31. RTB: Our View And Outlook For FutureEasy Answer: Good for Advertisers, Bad for PublishersReal Answer – WAY More ComplexRTB is Riding High•  Fast Growth•  Solid Margins•  More Inventory Moving into RTB MarketsRTB Risks•  Increased Competition Driving Potential Margin Compression•  Emergence of Private Exchanges to Siphon Off Easy to Mark-Up Quality Content•  Increased Scrutiny of RTB Inventory by AdvertisersExpect the RTB Market Begin to Change in Next 18-24 MonthsRTB is on a Roll – How Long Until All The Easy Money is Made?•  A Tougher Market Will Separate Winners and Also-Rans We Think Winners Will Need Good Analytics AND Scale•  Presages Potential Market Consolidation•  Scale = Information… Information = Competitive Advantage in a Fast Moving MarketDays of RTB Players Serving Both Publishers and Buyers Are Limited•  Inherent Conflict of Interest is Not Sustainable – Advocates of Both Sides of the Transaction Will Emerge to Balance Market Page 31
  32. 32. What About The Long Tail?Much of Power Offered by Internet Advertising Solutions is Utilized Primarily by Large Companies with Resources •  Scalable solutions that provide “actionable” solutions for small business – even mid-sized business are few at this point•  In some cases, e.g., Paid search, things have gotten even more difficult as the “easy solutions” for small business have become more complex with competition for digital real estateMany Players Have Either Pivoted Away from the Long Tail or Have “Future Plans” for a More Self-Serve, ScalableSolution•  Companies that we have spoken to have realized large companies are where the customers currently can be found•  This implies that the long tail is looking more 2014 than 2013Local May Be the Exception - Ideally Suited to Many Small BusinessChallenge Will Be Scalable Way to Sell Into This Group•  SMB solutions require low-touch on-line sales, easy install and “mass customization” to be effective Page 32
  33. 33. Mobile - Convergence And Divergence Will 2013 Be The Year for a Mobile Advertising “Breakout”? – Probably Not No Doubt that Mobile Is Becoming a Bigger Part of Overall Digital Advertising Market •  Eyeballs continue to move to mobile formats – both web and app – dollars should follow •  Still there are significant challenges in finding effective mobile formats due to screen limitations and different user behavior than web •  Role and function of mobile advertising in coordinated campaigns Mobile Continues to Be a Unique Technology Requiring Unique Skillsets •  Traditional mobile/carrier expertise continues to be a valuable commodity – particularly as the smartphone/web universe converges with the cellphone/SMS universe The Concept of “Mobile” Continues to Evolve - Diverge •  Separation and segmentation between smartphone and tablet – some solutions work for one but not other •  Voice and text are becoming adjuncts •  Role of local and location-based services important Page 33
  34. 34. Will Brands Ever Go Digital?Conventional Wisdom is that Brand Dollars are Sitting on theDigital Side-Line – When Will They Get in the Game?In the U.S. only an estimated $5-7 Billion Dollars are Spent on Digital BrandAdvertising v. $100 Billion off-lineBrand is Less Than ¼ of the Overall Digital Advertising Spend •  Dollars are not yet following eyeballs•  Brand dollars are looking for somewhere to go•  Just look ad rates and TV viewership - crashing but cpms exploding2013 Will Still Be Early in Moving Brand Dollars to Digital – But There isPromise•  Mobile and video are more “brand friendly”•  Brand advertisers are beginning to be more creative with digital to make it work for brand – it’s a more complex opportunity – shedding the TV/print media mindset will take time.There are Still Challenges Though•  Attribution and ROI models for brand are nascent•  Scalability, reach and quality of digital inventory are all legitimate concerns Page 34
  35. 35. Why Brand Dollars Will Eventually Move To Digital Television Viewership Is Down But CPMs Continue To Climb•  This represents the opportunity for brand dollars to follow eye-balls on-line•  It also represents the challenge that digital advertising companies face in attracting brand dollars•  Conversations with advertisers and internet advertising companies point to us reaching a tipping point in the 2013-2014 time frame (1)   Page 35
  36. 36. Section 5INTERNET ADVERTISING M&A TRENDSFOR 2013"
  37. 37. Internet Advertising M&A Volume Remains Steady Source:  451  Group   *  4Q  2012:  through  12/6/2012   Number  of  deals  includes  deals  with  undisclosed  transac3on  values   Page 37
  38. 38. VC Investment in IA Firms Declining Rapidly Source:  Capital  IQ,  PitchBook   *  4Q  2012:  through  12/6/2012   Number  of  deals  includes  deals  with  undisclosed  transac3on  values   Page 38
  39. 39. The IA Landscape, Investment And Consolidation Sellside  –  Content  Publishers   Buyside  -­‐  Adver9sers   Analytics, Exchanges Exchanges Analytics, Management and and Management and Decision Transaction Transaction and Decision Tools Management Management Tools Neutral Data and ToolsLooking Toward 2013 Overall – Sector Has Been Well/Overfunded with Many at On the Buyer Side – Some Issues with Size of PotentialLofty/Unsustainable Valuations Acquisitions•  Too many “me too” plays •  Traditional players looking for accretive acquisitions require scale that is not available in most cases•  Significant valuation gap in market overhangs M&A activity •  Buyers see most technologies in IA currently as too small or “nice to•  Lots of powder means many players will wait to exit have” with little motivation to act due out of competitive pressure•  Sellers (and their investors) see themselves as “must have” and too often seek to “swing for fences” Expect Investors to Be More Conservative in 2013 Page 39
  40. 40. Where Do We Expect Continued Investment? Sellside  –  Content  Publishers   Buyside  -­‐  Adver9sers   Analytics, Exchanges Exchanges Analytics, Management and and Management and Decision Transaction Transaction and Decision Tools Management Management Tools Neutral Data and Tools More  Investment   Expect Publisher Side to Be More Active in Investments While The Overall Trend Has Been Over Investment – Publisher-Side Still Lags •  Opportunities to develop and grow players in response to more developed buy-side •  Opportunities in both tools/analytics and transaction management portions of market Expect More New Investments and Earlier Stage Investments Page 40
  41. 41. Where Will Consolidation Come First? Sellside  –  Content  Publishers   Buyside  -­‐  Adver9sers   Analytics, Exchanges Exchanges Analytics, Early  Consolida>on   and Management and Management and Decision Transaction Transaction and Decision Tools Management Management Tools Neutral Data and Tools Where We See/Believe There is a Need for Consolidation Buy-Side Exchanges, RTB, Transaction Management Plays •  More established than sell-side, e.g., private exchanges •  Ultimately scale game – 2-3 big winners + niche verticals Neutral Data Plays •  Scale and breadth of data key •  Some room for niche verticals around highly specialized data – e.g., HIPPA compliant medical, etc. Page 41
  42. 42. Mark R. Langner"Managing Director – Industry Analysis""""Office: (415) 464-6322"Cell: (415) 994-0557"mlangner@headwatersmb.com"
  43. 43. ExperienceOur bankers have deep personal experience completing transactions for companies in the technology, mediaand telecom space, including: Disclosure:    This  newsleLer  is  a  periodic  compila3on  of  certain   economic  and  corporate  informa3on,  as  well  as  completed  and   announced  merger  and  acquisi3on  ac3vity.    Informa3on  contained   in  this  newsleLer  should  not  be  construed  as  a  recommenda3on  to   sell  or  buy  any  security.    Any  reference  to  or  omission  of  any   reference  to  any  company  in  this  newsleLer  should  not  be   construed  as  a  recommenda3on  to  buy,  sell  or  take  any  other  ac3on   with  respect  to  any  security  of  any  such  company.    We  are  not   solici3ng  any  ac3on  with  respect  to  any  security  or  company  based   on  this  newsleLer.    The  newsleLer  is  published  solely  for  the   general  informa3on  of  clients  and  friends  of  Headwaters  MB,  LLC.     It  does  not  take  into  account  the  par3cular  investment  objec3ves,   financial  situa3on,  or  needs  of  individual  recipients.    Certain   transac3ons,  including  those  involving  early  stage  companies,  give   rise  to  substan3al  risk  and  are  not  suitable  for  all  investors.    This   newsleLer  is  based  upon  informa3on  that  we  consider  reliable,  but   we  do  not  represent  that  it  is  accurate  or  complete,  and  it  should   not  be  relied  upon  as  such.    Predic3on  of  future  events  is  inherently   subject  to  both  known  and  unknown  risks,  and  other  factors  that   may  cause  actual  results  to  vary  materially.    We  are  under  no   obliga3on  to  update  the  informa3on  contained  in  this  newsleLer.   Opinions  expressed  are  our  present  opinions  only  and  are  subject  to   change  without  no3ce.    Addi3onal  informa3on  is  available  upon   request.    The  companies  men3oned  in  this  newsleLer  may  be  clients   of  Headwaters  MB,  LLC.    The  decisions  to  include  any  company  in   this  newsleLer  is  unrelated  in  all  respects  to  any  service  that   Headwaters  MB,  LLC  may  provide  to  such  company.    This  newsleLer   may  not  be  copied  or  reproduced  in  any  form,  or  redistributed   without  the  prior  wriLen  consent  of  Headwaters  MB,  LLC.    The   informa3on  contained  herein  should  not  be  construed  as  legal   advice.   *Some  transac3ons  completed  by  Headwaters  team  members  on  prior  plaorms   Page 43
  44. 44. About Headwaters MBHeadwaters MB is an independently owned, growth investment bank and advisory firm. Headwaters MB has transactedover $7 billion of middle market deals and has over $225 billion of deal experience from its 65 full-time seniorprofessionals. Headwaters has a national office footprint in the United States, headquartered in Denver, with additionaloffices in Boston, Chicago, New York, San Francisco & Washington D.C.Headwaters MB has a significant international track record, providing our clients with a global reach. Our team hasgenerated significant revenue from cross-border transactions, has local advisory partners covering 27 countries and thefirm has won “Cross Border Deal of the Year” awards twice.The firm has an established reputation as quality service provider and trusted long-term advisor to clients with a historyof process and transaction excellence.The Headwaters TMT Team Gary Moon John Batdorf Sun Jen Yung Head of TMT Banking Managing Director Managing Director 415-766-3862 (office) (415) 926-7454 (office) 203-992-1667 (office) 650-515-8734 (mobile) (415) 847-8805 (mobile) 917-297-8716 (mobile) gmoon@headwatersmb.com jbatdorf@headwatersmb.com sunjyung@headwatersb.com  Mark R. Langner Managing Director 415-464-6322 (office) 415-994-0557 (mobile) mlangner@headwatersmb.com Page 44

×