eDay2010 Daan witteveen


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eDay2010 Daan witteveen

  1. 1. A new consolidation wave in internet marketing services Daan Witteveen partner Deloitte – leader Technology Fast50
  2. 2. What will we discuss today? Trends Online Marketing Consolidation Drivers What can we expect? Who will be leading?
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  4. 4. Numerous brands and business models are competing online
  5. 5. Online marketing services provides guidance on the internet
  6. 6. A typical online customer journey
  7. 7. So what`s the Buzz? SEA Display Advertising Interactive Advertising eCPC CPL CPM CPC SEO Affiliate marketing Viral marketing Email marketing Comparison CPA
  8. 8. Behind the scenes….. Media TV Affiliates E-mail Display SEO … Procurement Contact Analytics Check-out Fulfilment ...
  9. 9. Drivers for online consolidation in online marketing <ul><li>Internet becomes core to the business </li></ul><ul><li>Preferred suppliership (~IT) </li></ul><ul><li>No single optimal solution  best of breed & integrated solutions </li></ul><ul><li>Platform costs (cost border sharing) </li></ul><ul><li>Shift towards per performance based </li></ul><ul><li>Shift from traditional media budget to sales costs </li></ul><ul><li>High growth  value creation opportunity </li></ul>
  10. 10. Consolidation 2008 Compete Inc., USA Taylor Nelson Sofres Plc., UK 2010 Mitchell Com. Ltd., Australia Aegis Group Plc., UK 2010 Razorfish Inc., USA Publicis Group SA, France 2009 AdMob Inc., USA Google Inc., USA 2008 D+S Europe AG, Germany Pyramus S.a r.I, Luxembourg Home run exits Playing field?? Selection of online marketing deals over the last 24 months
  11. 11. Horizontal and Vertical integration in the Online Value chain Online Marketing I & M services Ad agencies Publishers Telecom / CDN PE
  12. 12. Selection of consolidators Pure Play Online Marketing Information and Marketing Services Jan 2010 Experian  A-Care Systems Dec 2008 Bisnode  Wer Liefert Was March 2008 Taylor Nelson Sofres  Compete Publishers Aug 2009 Axel Springer & PubliGroup  Digital Window Telecom / CDN Dec 2009 Limlight Networks  Eyewonder Aug 2009 France Telecom  Unanimis Private Equity Jan 2010 TA Associates  eCircle April 2008 Apax  D+S Europe Advertising Agencies Aug 2010 Rentabiliweb  Edencast July 2010 Aegis Group  Mitchell Com. Group June 2010 Interpublic Group  D.L.K.W. & Partners Ltd. Nov 2009 Google  AdMob July 2009 Hi Media  AdLINK Media July 2008 Google  ZAO Begun Russia June 2008 Hi Media  Mobil Trend April 2008 LBI Int.  Special Ops Media Aug 2009 Publicis  Razorfish
  13. 13. While the online marketing industry is maturing, new start-ups drive innovation Online Marketing Introduction Growth Maturity Decline TV Magazines Newspapers Radio Games Internet Music Billboards Typical strategy Build portfolio of ‘real options’: limited investments that can be grown fast when succesful Create group of synergistic businesses Either consolidate the sector, exit early or concentrate on profitable niches Strategic objective Build portfolio of assets Capture synergy within group Consolidate market Key screening criterium Upside potential Leveraging core’s competences Revenue and cost synergies Cost synergies
  14. 14. Who will take the lead in internet marketing services? <ul><li>Most likely </li></ul><ul><li>Internet marketing pure plays (Zanox, Getupdated, Google, Value Click …) </li></ul><ul><li>Advertising agencies (Publicis,Omnicon …) </li></ul><ul><li>Media companies (Axel Springer, Sanoma …) </li></ul><ul><li>Expected new entrants: </li></ul><ul><li>Call centers </li></ul><ul><li>Procurement players </li></ul><ul><li>Private Equity (buy & Build) </li></ul>
  15. 15. Discussion