What's hot in marcoms?

What’s hot in marcoms today?

INTRODUCTION
As specialist advisors to the marketing communications and technologies industry,
we strive to ensure that we are continually on top of key trends in this rapidly
evolving landscape.
One of our key tools is our global deal tracker, which gathers the details of all
completed deals in this sector, subcategorised and cross referenced by our team of
analysts. This, along with the hundreds of conversations we have each month with
both buyers and sellers, enables us to continuously identify emerging M&A trends.
With the ever blurring boundaries between “marcoms” and “martech”, it is maybe
unsurprising to see that the most talked about subsectors sit at their convergence
points, namely :
1.Content marketing
2.Data & analytics,
3.eCommerce
4.Digital marketing; and
5.Mobile marketing
This paper examines each subsector, the key trends and deal activity in 2014 YTD
using both proprietary and third party data, which is referenced on page 55.

Contents
01 Content Marketing 4
02 Data & Analytics 15
03 eCommerce 22
04 Digital Marketing 32
05 Mobile Marketing 42
06 References 54
07 About Results 56
Disclaimer:
This document has been produced by Results International Group LLP (“Results”) and is
furnished to you solely for your information and may not be reproduced or redistributed, in
whole or in part, to any other person. No representation or warranty (expressed or implied) is
made as to, and no reliance should be placed on, the fairness, accuracy or completeness
of the information contained herein and, accordingly, none of Results’ officers or employees
accepts any liability whatsoever arising directly or indirectly from the use of this document.

Content Marketing
Sector Overview
Market Overview
Content
Sector Overview

5
Content Marketing Market Overview
Creation Curation & Recommendation Planning & Optimisation
Market landscape: Illustrative

6
Ecosystem
Content
App integration
In-feed
Social
Native ad platforms
Publishers
Video &
Mobile
Social
Networks
Brands
News &
Sharing
Search

7
Key trends (1)
Small deals Publishers reinventing
Local deals
• Majority of content marketing firms are
small operations
• Deal sizes typically less than $5 million
• The $18 million consideration paid by Lin
Digital Media for Federated Media
Publishing being one of the bigger deals
seen in the space
• Firms have began developing stronger
connections with content producers to ensure
improved ROI
• For example, McLaren, through its spin-off
McLaren Animation, formed a long-term
partnership with Framestore
• Their first collaborative effort established itself as
a media property, eventually being broadcast
on Sky in its own right
Long-term partnerships
• Knowledge of the specific culture very
important
• Only 5 cross border content deals have
occurred since 2013 – 2 of which involved PE
buyers
• Little to no strategic interest in foreign
companies
• Firms with no previous experience in content
marketing aggressively pursuing acquisitions
• E.g. Fuel FX and Ideon Media, both multiple
buyers in the last year, buying small content firms
based in the same country (US and Canada
respectively)
Fast growing national players
• Epitomised by Advantage Business
Media, a PE-owned publisher
• From 2006 to 2011 digital revenues rose
from 11% to 50% (2)
• New York Times also has a documented
strategy to improve its readership
through content marketing

8
Key trends & challenges (3)
Trends
Challenges
• 42% of marketers rarely or never use responsive design, despite up to 50% of their customers opening emails on
mobiles
• Calculating content marketing ROI
• Producing enough content that engages the consumer
• 60% of businesses are engaging in some form of content marketing, with 93% of B2B marketers now using content
marketing
• 44% of B2B marketers have a defined content strategy in place
• 78% of marketers are creating more content than they did last year

9
Native Ads: A comparison with traditional advertising (4)
0%
5%
10%
15%
20%
25%
30%
Banner ads Native ads Content
0%
20%
40%
60%
Banner ads Native ads
Native ads have been shown to attract more viewer
attention than editorial content itself
26% of consumers view native ads against 24% for
editorial content, with traditional banner ads lagging
behind on 20%
0
1
2
3
4
5
Banner ads Native ads
Native ads significantly outperform their banner
counterparts in fostering purchase intent
Contribute to a 52% lift in buyer purchasing intent
The amount of times a visitor’s eye is drawn to each
type of ad is also significantly different
Native ads draw almost twice the amount of views
per session
Engagement
Buying
intent
Average
views

10
87% 86% 85%
82%
77% 76%
73%
69%
57% 57% 55%
48%
45% 45% 45% 43%
40% 38% 38%
35% 34% 32% 31%
26% 25% 24%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
UK firms on average use 14 of these content marketing distribution channels
Marketers in the UK utilise almost all of these channels to a greater extent than their North American and Australian
counterparts
In-person events, white papers, webinars and online presentations were the only categories North American marketers used
more frequently than UK marketers
Content marketing usage in the UK (5)
Distribution channels

11
Role of social networks in content marketing (6)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
UK
USA
Marketers use of social media platforms in content distribution
Global research findings
• Marketers use an average of 6 social media platforms to distribute content
• In the UK, Twitter is used most often, at 87%
• In the US, LinkedIn is used most often, at 91%
• UK marketers regarded LinkedIn as the most effective platform, with Instagram viewed as the least effective in the
UK

Content Marketing
Sector Overview
M&A Market
Content
Sector Overview

13
Content Marketing M&A Overview
Deal Volume
16
3
6
1
Cross Border
PE Backed
Target Region
Major Buyers Deal Types
Q1-Q3 2014 Content Marketing deals (7)
Quarterly Split
Q2
Q1
Q3
North America
UK
Western Europe
Africa
22
Ideon Media FuelFX
5
4
16
3
11
1
South America
30
Total Deals
3
APAC

14
Content Marketing M&A Overview
Q1-Q3 2014 selected transactions
Date Buyer Target Target Location Target Description
Sep-14 USA
Media company powering the creation and
sharing of video content
Jul-14 USA Specialises in producing digital content
Jul-14 UK
Content marketing agency developing omni-
channel content
Apr-14 UK Video production company
Feb-14 USA
3D and interactive multimedia marketing
content producer
Feb-14 USA Graphics designer and developer
Feb-14 USA Digital, print & creative solutions
Feb-14 Netherlands
Entertainment programming & content
creation
Feb-14 USA Digitally focused media company
Jan-14 USA Conversational content for brand marketers

Contents
01 Content Marketing 4
02 Data & Analytics 15
03 eCommerce 22
04 Digital Marketing 32
05 Mobile Marketing 42
06 References 54
07 About Results 56

Data & Analytics
Sector Overview
Market Overview

17
Data & Analytics Market Overview
Typicallyfordirect
marketingpurposes
Typicallyforoverall
campaignpurposes
Data Quality Management Data Driven Marketing Database Marketing Agency
Full Service Agencies with Specialist Data Services
Marketing Performance Data & Analytics

18
Data & Analytics Market Overview
Key trends & challenges (8)
• Visualisation technologies
Low cost visualisation applications have made data reporting and business intelligence understandable and easily
accessible to almost everyone
• Machine learning
Semi-automated development of predictive and prescriptive models are getting better over time – software learns
how to better fit the data, separating meaningful signals from meaningless noise
• Rise of Chief Analytics Officers, Chief Data Officers, Heads of Big Data
There are many examples of organisations that have successfully folded analytics into other C-level jobs and are
increasingly creating dedicated roles for analytics e.g. Facebook, AIG, Chubb and XL Group
• Development of data products running amok
For online companies such as Google every offering is a data product. However, the development of data
products and services is taking place even in industrial and manufacturing organisations (e.g. embedded sensors
in gas, turbines and medical devices)
• Hadoop products overtaking enterprise data warehouses
Hadoop platforms, an open source software framework for data storage, offer a much cheaper alternative to
traditional enterprise data warehouses. In addition, Hadoop platforms can perform substantial process tasks and
analytics besides data storage
Trends
Challenges
• Talent – companies are struggling at almost every level of analytics recruiting today
• Keeping pace with the ever-increasing changes in the market landscape

Data & Analytics
Sector Overview
M&A Market

20
Data & Analytics M&A Overview
2
1
Q1-Q3 2014 Data & Analytics deals (9)
Deal VolumeTarget Region
Quarterly Split
12
1
3
5
North America
UK
APAC
Western Europe
Cross Border
PE Backed
7
6
8
4
10
1
11
1
Ebiquity Dentsu Aegis GTCR Teradata
1 Eastern Europe
Q2
Q1
Q3
22
Total Deals

21
Data & Analytics M&A Overview
Sep-14 USA Data analytics marketing agency
Sep-14 USA
Provider of data science and engineering
services
Aug-14 USA
Analytics and database integration agency
for financial institutions
Jul-14 New Zealand
Provider of database resources for marketing,
research and analysis
Jul-14 Australia
Business marketing database offering lead
generation, sales prospects and marketing
support data
Jun-14 USA
Real-time predictive analytics and
personalisation
Apr-14 USA Data and intelligence platform
Mar-14 Canada
Web analytics across media buying, SEO and
social media
Feb-14 UK
Provider of consumer data solutions, software
and analytics
Jan-14 Hong Kong
Media buying agency engaged in KPI data
measurement and continuous improvement
NexGraph

eCommerce
Sector Overview
Market Overview

24
eCommerce Market Overview
Back-end
• Platform providers that offer the
fundamental eCommerce
technology platform
• Product: re-usable software
that can be implemented by a
third party or in-house
developers
Integration
• Systems integrators and front-
end agencies with systems
integration capabilities by own
middleware or partnership
• Service: bespoke eCommerce
platforms to businesses’ specific
enterprise systems
Front-end
• Digital design agencies with
systems integration capabilities
and pure front-end digital
design agencies
• Service: design the customer
facing website – the front-end
of an integrated eCommerce
platform
Full solution providers
Use either third party or proprietary software as
a starting point in delivering a fully functional
online store
Technology Marcoms services
eCommerce value chain

25
eCommerce Market OverviewMagentoHybrisDemandwareOther
Back-end Front-endIntegration

26
35%
32%
23%
4%
4% 2%
APAC
North America
Western Europe
Central & Eastern Europe
Latin America
Middle East & Africa
Regional share of Global eCommerce sales 2014
Global eCommerce sales forecast 2012 - 2017
• Largest eCommerce market in the EU
• Very mature: 39m people out of the
UK’s 63.3m strong population already
buy online
• Online retail accounts for 13% of the
UK economy
UK
• Total eCommerce sales in the USA are
expected to grow 15.5% to $304b by
the end of 2014
• Online retail is expected to account
for 6.8% of all retail in 2014 and 9% by
2017
USA
• In 2014 consumers in APAC will spend
more online than those in North
America
• It is estimated that China will account
for six in every ten dollars of the total
APAC spend
APAC
0
200
400
600
800
1000
1200
2012 2013 2014 2015 2016 2017
APAC
North America
Western Europe
Rest of the
World
Key trends & global statistics (10)

27
1,058
1,251
1,505
1,771
2,053
2,357
22.3%
18.2% 20.3%
17.7% 15.9% 14.8%
2012 2013 2014 2015 2016 2017
Sales ($bn)
YoY growth
Global eCommerce customers
Global eCommerce B2C sales forecast
• Twice as much spent on mobile
devices in Dec-2013 compared to
Dec-2012
• Increases in services that utilise
multiple channels driving growth
• Such services include click/reserve
and collect which accounted for 25%
of multichannel retail sales
2013
• Expanding online and mobile user
bases in emerging markets
• Increasing mCommerce sales
• Developing payment and shipping
options
• Pushing into new international markets
Driving
growth in
2014
• International B2C eCommerce sales
are expected to reach $1.5tn in 2014
and $2.4tn in 2017
• Growth driven by an increasing
internet ‘usership’ as emerging
markets come online and an
increasing proportion shop digitally
Looking
forward
Key trends & global statistics cont’d. (11)
904
1,016
1,124
1,229
1,321
39.2% 41.3% 42.7% 44.3% 45.4%
2012 2013 2014 2015 2016
Number of global
customers (millions)
Digital buyer
penetration

28
Key trends (12)
Trends
• Tablet first design
Default for responsive websites is still desktop – with tablets overtaking PCs in 2016 it is likely that responsive websites
will be designed for tablet first
• Cross-channel purchase journeys
Currently cross-channel purchase journeys are being enabled by location and identification tools/solutions, i.e.
iBeacons, and wearables such as Galaxy gear and the Apple Watch
• Mobile payments won’t take off until 2015
Consumers still need a convincing reason to use mwallets and until then retailers are unlikely to invest in this
technology. A large number of different mwallet technologies have come to market recently – still not known
which of these will make the biggest impact
• Consumers learning value of data and privacy
Consumers are becoming more savvy about their digital presence and the value of their data to advertisers. Needs
to be a clearer value exchange – so consumers are incentivised to provide eTailers with data about themselves
and are aware of where that data is going
• Mobile and tablet purchase points
One in five store checkouts will take place on a mobile/tablet by 2015
• Reduce high return rates
eTailers currently face high return rates. On average return rates are 25% but some eTailers face return rates of >50%.
Solutions such as virtual changing rooms are attempting to combat this

eCommerce
Sector Overview
M&A Market

30
eCommerce M&A Market
Q3
Q1-Q3 2014 eCommerce deals (13)
Quarterly Split
2
1
UK
APACAfrica
Western Europe
7
North America
4
3
4
Cross Border
PE Backed
6
2
11
5
3
1
3
1
Publicis WPP Dentsu
Q2
Q1
19
Total Deals
1

31
eCommerce M&A Market
Sep-14 UK
Multichannel eCommerce integrator
specialising in Hybris
Sep-14 USA
Multichannel eCommerce integrator
specialising Oracle and Demandware
Sep-14 South Africa
eCommerce integrator and application
developer
July-14 USA
Web/enterprise content management and
systems integration agency
Jun-14 Japan
eCommerce website design and build
agency
May-14 USA
IBM Smarter Commerce division of Trifecta
acquired; IBM WebSphere Commerce
solutions consultancy
May-14 UK
Multiservice digital agency with eCommerce
website design and build specialty
Apr-14 France
Sage France SA, eCommerce business
acquired; France-based eCommerce business
solutions provider
Mar-14 USA
Provider of mobile and multichannel
commerce solutions and websites
Jan-14 UK Retail and eCommerce systems integrator

Digital Marketing
Sector Overview
Market Overview

Digital Marketing Market Overview
34
2012 2013 2014 2015 2016 2017 2018
North America 38.0% 38.5% 39.1% 39.9% 40.5% 40.9% 41.3%
Asia-Pacific 29.2% 29.1% 28.6% 28.2% 27.9% 27.8% 27.7%
Western Europe 25.1% 24.1% 23.2% 22.4% 21.6% 20.9% 20.2%
Central & Eastern Europe 3.5% 3.8% 4.0% 4.0% 4.0% 4.0% 4.0%
Latin America 3.2% 3.4% 3.8% 4.0% 4.2% 4.4% 4.6%
Middle East & Africa 0.9% 1.1% 1.4% 1.6% 1.8% 2.0% 2.3%
Total 100% 100% 100% 100% 100% 100% 100%
$104.58
$119.84
$137.53
$154.29
$171.08
$187.65
$204.10
20.4%
14.6% 14.8% 12.2% 10.9% 9.7% 8.8%
20.8%
23.2% 25.3% 27.0%
28.4% 29.8% 31.1%
2012 2013 2014 2015 2016 2017 2018
Digital ad spending % change % of total media ad spending
Digital ad spending share worldwide by region 2012-2018 (14)
Digital ad spending worldwide 2012-2018 (14)
• Digital ad spending will reach $137.5 billion in 2014, up 14.8%
over 2013 levels
• USA still biggest spender on digital ads, at 39% compared with
28.6% in Asia-Pacific – where share is dropping slightly
• Western Europe accounts for nearly one-quarter of all digital
spending around the world
• UK has highest share of total media spending on digital
channels, at 47.5% expected this year compared with 27.9% in
the USA
Summary
Digital ad spending share worldwide by region 2014 & 2018 (14)
% of total
Note: includes advertising on desktop and laptop computers as well as mobile phones
and tablets, and includes all various formats of advertising on those platforms; excludes
SMS, MMS and P2P messaging based advertising
39.1%
28.6%
23.2%
4.0%
3.8% 1.4%
41.3%
27.7%
20.2%
4.0%
4.6% 2.3%
2014
Total = $137.5 billion
2018
Total = $204.1 billion
North
America
North
America
Asia-Pacific Asia-Pacific
Western
Europe
Western
Europe
Digital advertising spending on track to hit $137.5 billion this year

35
6.6
4.6
2.8
1.4
1.2
0.8 0.9
0.6 0.6
7.4
4.7
3.5
1.7
1.3
0.9 0.9
0.7 0.6
0
1
2
3
4
5
6
7
8
2012 2013
Western Europe digital adspend by country, 2012 -2013 (€bn) (15)
• UK remains by far the largest market in Western Europe
• UK continues to grow faster than any other country in region at c.16% YoY despite being the largest market in Europe
UK remains the largest market in Western Europe

36
5,416
6,300
7,245
7,970
8,647
9,252
12.6%
16.3%
15.0%
10.0%
8.5%
7.0%
2012 2013 2014 2015 2016 2017
UK Digital Ad Spending (£m) YOY Growth
Search remains the leading category within digital ad spending (17)UK digital ad spending, 2012 - 2017 (16)
• In 2013, spending on digital ad formats in the UK rose 16.3% to
reach £6.3 billion
• This year, digital ad spending will slow to 15.0% but that’s still
much faster than total media ad spending at 6.6%
• Digital will account for half of all paid media ad spending in
the UK next year, according to eMarketer
• More than half of all digital ad spending will go toward search
formats, while spending on display formats will amount to one
third of the UK’s digital ad market
• This year mobile will account for nearly 30% of all UK digital ad
spending, with this figure rising to more than half by 2016
Total Digital
Adspend, 2013
£6.3bn
14%
30% 55%
Paid for
search
Classified
Display
1% Other
Category 2012 Share
Search 58%
Display 24%
Classified 16%
UK digital advertising market continues growth

37
345
590
£m
2012 2013
71%
• Mobile was up 95% in the UK in 2013, reaching £1bn for the first
time
• Adspend on social channels exhibited the next strongest
growth at 71% year on year to c.£600m
• Video adspend also showed strong growth at 63% reaching
£325m in 2013, as video continues to proliferate across different
devices
529
1,031
£m
2012 2013
95%
200
325
£m
2012 2013
63%
Mobile Social
Video Summary
Key growth drivers (18)

38
• Lack of digital skills, resource and funding
• Increasing complexity of digital landscape
• Managing big data
• Multichannel “integrated marketing”
Customers no longer use just one channel to complete a purchase. 2014 will see this trend accelerate, with
retailers offering a multi-channel experience being the most successful
• Prime time for “real time”
Real-time marketing ranges from mobile advertising that uses GPS and beacon technology to deliver location-
based ads to customizing campaigns based on latest trends
• Micro-video
With the increasing popularity of photo and video sharing on social media sites, image and video based content
such as infographics and micro-videos will play a key part in 2014
• Growth in paid media
Facebook’s organic reach is gradually declining and Twitter also needs to grow revenues following their IPO last
year. Expect both to be pushing forward with their own paid media strategies
• Content interactivity & storytelling
Consumers are increasingly looking for power, personalization and control over content. As such, brands and
publishers are creating interactive content that puts the audience into the story
Key trends & challenges
Trends
Challenges

Digital Marketing
Sector Overview
M&A Market

Digital Marketing M&A Market
40
Q1-Q3 2014 Digital Marketing deals (19)
Quarterly Split
34
11
3
North America
UK
APAC
Western
Europe
29
3
Cross Border
PE Backed
15 Eastern
Europe
3
10
Africa
South America 2
Q3
Q2
Q1
18
29
31
6
6
3
2
2 2
WPP Publicis Omnicom IPG Havas Thoughtwire
78
Total Deals

Digital Marketing M&A Market
41
Sep-14 France Provides digital marketing services
Aug-14 UK Full service digital marketing agency
Jul-14 UK Integrated marketing and advertising agency
May-14 UK Digital advertising agency
May-14 South Africa Provides digital marketing services
May-14 UK Digital advertising agency
Apr-14 Brazil Provides advertising services
Apr-14 Brazil Provides digital marketing services
Feb-14 South Africa Offers integrated digital marketing services
Jan-14 UK Provides digital marketing services

Mobile Marketing
Sector Overview
Market Overview

44
Mobile Marketing Market Overview
22
36
58
88
127
177
0
20
40
60
80
100
120
140
160
180
200
2013 2014 2015 2016 2017 2018
ConnectedWearableUnits(m)
250
315
360
405
455
0
100
200
300
400
500
600
2013 2014 2015 2016 2017
TabletPCUnitShipments(m)
Global growth of tablets (20) Growth of global connected wearable devices (21)
Growth slowing quarter on quarter, Apple noticeably suffering
Strong price elasticity, cheaper alternatives to high end models are
gaining market share
Dominated by consumers (89% in 2013), enterprise targeted as a
growth sector
Potential high growth sector, currently in the early stages of
adoption
Particular focus in 2014 as Apple announce Watch, Google
Glasses go on sale for the first time and Samsung continue to
develop their range
Mobile redefined

45
UK mobile adspend to increase 96% in 2014, an
increase of nearly a £1bn from 2013
This will represent nearly 30% of all digital advertising in
the UK. Mobile adspend is forecast to increase as a
percentage of digital (and total media adspend)
and eventually dominate digital adspend in 2018 with
a 70% share
526
1,031
2,021
3,233
4,462
5,756
6,907
9.7%
16.4%
27.9%
40.6%
51.6%
62.2%
70.4%
3.9%
7.3%
13.4%
20.5%
27.1%
33.7%
39.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2012 2013 2014 2015 2016 2017 2018
%oftotaldigital/mediaadspend
UKmobileadspend(£m)
UK mobile adspend % of total digital adspend % total media adspend
Globally, mobile adspend will increase from an expected $13.1bn in
2013 to $41.9bn in 2017, representing a CAGR of 33.7%. North America
is projected to take the lion’s share of growth. However, the UK is
expected to grow at a CAGR of 53.7% over the same period
Video is expected show the highest growth, with display formats
expected to make up the most revenue. Display is predicted to shift to
mobile web display away from in-app display
UK mobile adspend predictions (22)

46
Native Mobile Advertising
Native advertising site examples
• Native advertising is establishing itself as new trend in the mobile
marketing industry
• Difficult to define – “native in the eye of the beholder”
• Small screen means disruptive advertising does not work
• Whether it is in story or video format, the aim is to make an ad
blend inconspicuously into the experience of the consumer.
• Facebook, Twitter and most recently Instagram are pioneers of
the technology
• Future trends for native advertising:
• Standardisation
• Regulation
• Data-driven
IAB’s ‘Core Six Native Ads’
In-Feed Units Paid Search Units Recommendation Widgets
Promoted Listings
In-Ad (IAB Standard) with
Naïve Element Units
Custom / “Can’t Be
Contained”
USA native social ad revenues
Mobile - Native Display (21)
1.6
2.9
4.6
0
1
2
3
4
5
2012 2013 2014 2015 2016 2017
USAnativesocialladrevenue($bn)

47
Mobile marketing – Video
• Two main uses:
- Within a mobile app install unit to drive app downloads
- Embed into a sponsored post for a page
• Mobile video views increased 300% between 2012-2013
• Tablets are fuelling the growth
• Key driver in the ‘Big Data’ trend
• Content creation that detects the device, delivering the right size
and style of video delivers best growth
• Emerging markets – cheaper average cost per click:
- India, Pakistan and Tanzania: 1 cent
- UK: 5.4 cents
The completion rate of videos by spot position
Completion rate is the single most-important metric when
talking about mobile video
Growth in global mobile video internet traffic
Mobile video consumption has increased 532% since 2012
Facebook – the video pioneer
• October 2013 – Facebook introduces mobile video marketing
• Users will ‘click play’ to watch the video about their app before
being led to the app installation page.
- Increases installation rates and decreases the overall cost per
installation
• December 2013 – In-feed video ads trialled and introduced on
mobile
• Focus on brand promotion and mCommerce
Mobile – Video (23)
0
2000
4000
6000
8000
10000
12000
2013 2014 2015 2016 2017 2018
Petabytespermonthofinternettraffic
59% Post-roll
59% Pre-roll
88% Mid-roll

48
• There are over a million apps available, which generate over $26 billion of
revenue p.a., and this is constantly growing
• There were 102 billion downloads in 2013
• Money is increasingly made through advertising and in-app purchases, fewer
developers are charging for the initial download to achieve a greater
audience
• Tablet app adspend is catching up with smartphone devices; by 2017, the
tablet/smartphone app adspend split will be almost 50/50
• Consumers spend the majority of their time on apps when using their
smartphone devices; the split is 80:20, app:browser
• Strategy around how to climb the app store rankings is becoming a key part of
mobile marketing – high costs associated with climbing the ‘top charts’ have
meant it has become increasingly difficult to promote an app without
significant cost
App advertising Paid for apps
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2011 2012 2013 2014 2015 2016 2017
%ofappstorerevenues
Revenuefrompaiddownloads($m)
Paid-for apps % of app store revenues
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2011 2012 2013 2014 2015 2016 2017
%ofappstorerevenues
Revenuefromin-apppurchases($m)
In-app purchases % of app store revenues
In-app purchases
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
-
2,000
4,000
6,000
8,000
10,000
12,000
2011 2012 2013 2014 2015 2016 2017
%ofappstorerevenue
Advertisingrevenue($m)
Advertising Revenue % of App Store Revenues
Mobile apps (24)

49
65.6%
17.7%
16.7%
79.5%
11.8%
8.7%
USA digital ad spend 2011-2017 – Search
Global paid search spend by device
Computer
Phone
Tablet
14.4 15.1 15.3 14.9 13.9 12.6
10.3
0.7 2.2
4.3
6.7 9.3 12.2
15.3
0
5
10
15
20
25
30
2011 2012 2013 2014 2015 2016 2017
USSearchAdSpend($'bns)
PC & Laptop Mobile & Tablet
2012 2013
Computer
Tablet
82.8%
68.5%
65.7% 64.1% 64.2%
50%
60%
70%
80%
90%
2012 2013 2014 2015 2016
Phone
Search (25)
Why is search on mobile a good tool?
• Increased mobile usage: Searches on mobile devices are expected to surpass desktop
searches by the end of 2014
• Facilitation of local search: 97% of consumers go online to research products or services in
their local area
• mCommerce on the rise: 74% of mobile users utilise a search engine during their
purchasing process
• Strong conversion statistics: 73% of mobile searches trigger additional action and
conversion (purchase, visit of website, visited store)
• Click through rates second only to video
Mobile Search Marketing – Key Considerations
• 81% of mobile searches are driven by speed & convenience
- Mobile user experience improved through mobile friendly website
- Mobile page load speeds
• Understanding and interpreting mobile user’s intent
• Expanding search mechanisms - augmented reality, conversational and voice
• Google Adwords – shift to integrated (desktop & mobile) search approach
Google losing market share
• Search isn’t restricted to browsers – innovative apps allow consumers new ways to
monetise search
Google as a % of total USA mobile search ad spending

50
Key trends
• Definition of “Mobile Marketing” – 2014 is becoming the year of the wearable, with mobile marketing evolving
beyond smartphones and tablets
• Programmatic buying in mobile media is shaping the way marketers are thinking and implementing mobile
campaigns and this will only evolve as technology becomes more sophisticated
• Inevitable innovation of ad formats – Native has been a revelation in 2014 and with the rise of mobile video and
improvements in location targeting tech new ad formats taking advantage of this will undoubtedly follow
• Big data – The increased integration and usage of data in mobile marketing is rapidly quashing the myth that
mobile customers are typically difficult to target
• Increased intelligent in-app marketing – Apps are where the user spends the majority of their time on mobile, and
with Snapchat and Instagram introducing advertising into their apps the bar is being raised as to how to maximise
return on investment, whilst minimising intrusion
• New sensory functionality in apps – Apple’s new health update for example will mean new innovation on a new
mobile platform resulting in a new way for marketers to raise brand awareness
• Mobile first marketing – Budgets will begin to shift to target mobile as a primary marketing route with improved
yields and engagements metrics vs. more traditional channels
Trends

Mobile Marketing
Sector Overview
M&A Market

52
Mobile Marketing M&A Market
Q1-Q3 2014 Mobile Marketing deals (26)
Q3
Quarterly Split
Cross Border
PE Backed
18
2
25
11
12
Q2
Q1
21
2
North America
UK
1
South America
Middle East1
4
2
WPP DMI
48
Total Deals
1
APAC
11
Africa
8
Western Europe
Eastern Europe
3

53
Aug-14 UK Mobile app development
Aug-14 USA Mobile app development
Jul-14 USA Mobile app development
Jun-14 Australia Mobile sites and app development
Jun-14 Sweden Full service mobile marketing
Jun-14 Hong Kong Mobile advertising
May-14 Turkey Full service mobile marketing
Apr-14 USA Full service mobile marketing
Mar-14 UK Full service mobile marketing
Jan-14 South Africa Full service mobile marketing

55
References
1) Results Intelligence
2) Advantage Business Media’s digital road map, AdAge
3) Content Marketing in the UK: 2014 Benchmarks, Budgets and Trends: Content Marketing Institute/DMA UK
4) Nativeadvertising.com
5) Content Marketing in the UK: 2014 Benchmarks, Budgets and Trends: Content Marketing Institute/DMA UK
6) Content Marketing in the UK, Content Marketing in North America: 2014 Benchmarks, Budgets and Trends: Content Marketing Institute/DMA
7) CapIQ, 451, OneSource, Results Intelligence
8) ExactTarget Marketing Cloud 2014 State of Marketing Survey, Deloitte Analytics Trends 2014, IBM, TechRepublic
9) CapIQ, 451, MergerMarket, Results Intelligence
10) eConsultancy (January 2014), eMarketer (January & April 2014), International Business Times (October 2013), eCommerce Week (January 2014),
bpost International (January 2014)
11) eConsultancy (January 2014), IMRG (January 2014), eCommerce Week (January 2014), bpost International (January 2014), Statista (2014)
12) The Drum (February 2014), Talk Business Magazine (December 2013)
14) eMarketer (March 2014)
15) IAB Digital Adspend 2013
16) eMarketer (June 2014)
17) IAB/PWC Adspend 2013
18) IAB Digital Adspend 2013
20) Cisco VNI Mobile (2014), NPD DisplaySearch (February 2014), IDC Worldwide Quarterly Tablet Tracker (2014)
21) IAB Native Advertising Playbook (2013), BIA/Kelsey
22) eMarketer (July 2014), Gartner (2013)
23) Google & Nielsen (March 2013), Cisco VNI Mobile (2014), relevant press, company websites
24) Gartner (September 2014), relevant press, company websites, Results Intelligence
25) eMarketer (August 2013), Kenshoo (December 2013)
26) CapIQ, Companies House documents, Press, company websites, Results intelligence

57
About Results
Corporate Finance Advisors to the Marketing Services & Marketing Technology sectors
Selected clients and transaction counterparties
An established team of sector experts…
• Results International is a market-leading M&A advisory
firm founded in 1991
• Entrepreneurial and owner-managed
• 40 person global team with over 250 completed
transactions
• Senior level attention on all transactions
• Winner of Cross-Border Deal of the Year 2014 (sale of We
Are Social to Blue Focus)
Software
Marketing
Services
Marketing
Technology
Digital Media
Sector specialism
…with global reach

58
About Results
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has invested in
has been acquired
by
launched a new
global creative
network
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
Unrivalled expertise in the Marcoms sector

59
About Results
Mark Williams
Director
• Joined Results in 2012. He started
his career at KPMG working in
Financial Services M&A and
moved to Ingenious Corporate
Finance in 2010
• Clients include Staffcare,
Moonpig, St Ives, and Inflexion
Julia Crawley-Boevey
Director
• Joined Results in 2010 having spent
over four years at BDO where she
worked in both Audit and
Corporate Finance
• Clients include The Group, Blue
Rubicon, Virgo Health, Incite, and
Crayon
• Joined Results in 2012 to lead the
tech and digital media practice
• 15 years M&A experience at
Broadview then Jefferies, advising
tech and digital media companies
on M&A and fundraising
• Advised on transactions with
Oracle, Microsoft, Experian,
Moody’s, IAC, Axel Springer, DMGT,
and BT
James Kesner
Manager
• Joined Results in 2013 from Kingston
Smith
• ACA qualified, previously worked
as a Finance Director for a London
based brand consultancy
• Clients include ID magazine, Not to
Scale, Writtle, Adam and Eve
Richard Latner
Manager
• Joined Results in 2014 after having
spent 9 years at KPMG across
audit, TS & M&A functions
• Clients include: WRG, Irdeto and
neoworks
Selected Team Members
• Joined Results in 2005 - Previously
Head of M&A at Ernst & Young
• 20+ years experience in corporate
finance, including M&A,
fundraising, IPOs, JVs, MBOs and
MBIs
• Clients include The Group, Figtree,
Monitor Media, Spannerworks, Flip
Media, Transactis, Punktilio,
Flamingo, Brand X, and AIA
Keith Hunt
Managing Partner
Julie Langley
Partner
• Joined Results in 2014, with over
15 years M&A experience
• Prior to joining Results, Chris led
the Technology M&A practice at
KPMG. He previously spent 11
years advising tech companies
at Arma Partners and JPMorgan
• Recent clients include Zinc
Ahead, Pushbutton and Irdeto
Chris Lewis
Managing Director

60
About Results
Selected Team Members – International
• Long career in marketing sector
(Ogilvy & Mather, The Ball
Partnership)
• Managed the acquisition of SMART
by McCann Worldgroup, CCG by
Publicis Group to establish Digitas
China, CIC by Kantar Media and
The Upper Storey by Isobar
Andrew Kefford
Managing Partner –
Asia Pacific & MENA
Chris Beaumont
Managing Partner –
North Asia
• 16 years of experience
consulting in Asia
• For 10 years Chris was with
McCann-Erickson in Asia; he was
both Vice-Chairman of its
operations in Tokyo and Chief
Strategy Officer for WorldGroup
across Asia
• Has closed over 35
transactions totaling $0.75
billion
• Experience includes advising
Hunt Mobile Advertising on its
transaction with Opera
Mediaworks
• Maurice has previously
worked at the Zanett Group,
Morgan Stanley and IBM
Maurice Watkins
Partner
• 27 years experience in the
advertising sector, including
as COO of JWT's Middle East
Network
• Joined Results International in
2008 and has since been
engaged in a number of buy
and sell mandates
Imad Kublawi
Regional Partner –
MENA
• Spent 24 years at Hindustan
Thompson (part of JWT), the
largest ad agency in India
• Other roles include COO at
RK Swamy/BBDO and as
advisor to companies in India,
Pakistan & Dubai
Sunil Gupta
Area Liaison –
South Asia
USA
Asia
Pierre-Georges Roy
Partner
• Closed $4.0 billion in cross-
border transactions
• Experience includes advising
Hunt Mobile Advertising on its
transaction with Opera
Mediaworks and Telesystem
International Wireless (NASDAQ:
TIWI) on its sale to Vodafone

For more information contact:
Keith Hunt
Partner
+44 (0) 20 7514 8232
keithhunt@resultsig.com
Disclaimer:
This document has been produced by Results International Group LLP (“Results”) and is furnished to you solely for your information
and may not be reproduced or redistributed, in whole or in part, to any other person. No representation or warranty (expressed or
implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained
herein and, accordingly, none of Results’ officers or employees accepts any liability whatsoever arising directly or indirectly from
the use of this document.
Julia Crawley- Boevey
Director
+44 (0) 20 7514 8239
jcrawley-boevey@resultsig.com
Julie Langley
Partner
+44 (0) 20 7514 8247
jlangley@resultsig.com

What's hot in marcoms?

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to What's hot in marcoms?

Similar to What's hot in marcoms? (20)

More from resultsig

More from resultsig (20)

Recently uploaded

Recently uploaded (20)

What's hot in marcoms?