Charity Huff's presentation at The 2017 ROUNDTABLE in Vail, CO

1. Ad Tech
Consolidation
Vail Roundtable
August 2017
@charityhuff
Maroonventures.com

2. Representing our media, adtech clients, and our own
ventures, Maroon has managed many successfully M&A
transactions through our tenure.
Managing Partner,
Charity Huff

3. Google & Facebook own 85% (and rising)
Share of the Internet Advertising Growth
$0
$5
$10
$15
$20
$25
$30
$35
2015
2016
2015
2016
2015
2016
20%
YoY
62%
YoY
9%
YoY
Mary Meeker: Kleiner Perkins Internet Trends 2017
Google FB Other

4. Only Best of Breed will survive

5. Factors Leading to Consolidation
Since the spike in VC investment in 2013, investment dollars are
passing on the majority of this industry in favor mid-cap, more
established business models.
01
Lack of Market
Maturity
02
Rise of
Programmatic
03
Limited Market
Share
04
Fragmentation
05
Fraud
Venture Beat, Oct 2016

6. Options
M&A
217 adtech/martech
deals in the 1H2017
RAISE RAISE RAISE
Private equity
investment in adtech
grows to 15% in Q2
2017
FIND
PROFITABILITY
Few ad tech companies
find profitability thanks
to a crowed space
competing for a
shrinking 15% total
market share
Results International, Julie Langley, January 2017
CheifMarTech.com
Ad Exchanger, August 2016
Global adtech and martech M&A levels for H1 2017 confirm consolidation

7. “No Man’s Land” Opportunity
There are early stage, promising adtech/martech
companies generating
$1-10M actively seeking strategic investment and/or
acquisition.
Sweet Spot
Companies are facing the reality that their run-rates now exist on a shorter timetable.
48% 44%Private,
Investor-
funded
Private, self
funded
7%
Public
CheifMarTech.com
HALF THE MARKET IS MADE UP OF “NICHE” PLAYERS WITH
LESS THAN $100 MILLION IN REVENUE

8. Invest Smart
Look for best-of-breed
User Base Accretive to your
Core or Emerging Business
Value Chain
Defensible Value
Proposition
Profitability

9. Unique Value Proposition
Don’t Invest in ”Me Too”
User Experience Data Rich Self-Serve Scalable Efficient
Differentiated suite of features
Multiple software services lines
Maximize spend
Reach the right audience, at the
right time with the right message
Moving away from managed
services
Full transparency; no more black
box arbitrage
Automation
Machine learning
Consolidate tools set within a
single platform
Margin sensitives

10. Data driven: Right content, right place, right time
Personalization
Consumers are moving away from: Search, Find, Obtain to
”I want”
Search is Shifting
Generational shift in media consumption
Agencies are seeking a full adtech stack to serve their clients,
create effeicincies
User Experience
M. Meeker’s Insights
Mary Meeker: Kleiner Perkins Internet Trends 2017

11. $35-$40M
AI-powered marketing platform that drives
relevant interactions with users at every
touchpoint, increasing engagement, retention, &
LTV.
Zeta Global/Boomtrain
Assumed ownership in the YP/Dex merger
Mobile location data for predictive analytics in advertising, incorporate
over 1,000 behavioral attributes that are extracted from location data.
Real-time bidding ad platform targets and serves the ads through mobile
ad exchanges, acting as a Demand Side Platform (DSP) with brand and
agency clients bought from YP.com who’d acquired in 2014.
Verve/Sense Networks
$20M cash
Wi-Fi customer analytics and location-based marketing solutions for
brick-and-mortar retail stores. Expands the types of business
marketing services Yelp already offers beyond those that are focused
on customer acquisition, to also include those that help businesses
with customer retention and loyalty.
.
Yelp/Turnstyle Solutions
Recent adtech/martech Acquisitions

12. Recent adtech/martech Acquisitions
Raised $4.2 in 2 rounds prior to acquisition
Location and reputation mgmt SaaS solutions
enable businesses to manage their location data
and measure consumer engagement.
SweetIQ/Gannett
$850M
Measure whether people see and interact with
online ads, increasingly important given advertiser
concerns around viewability, fraud, and trust.
Oracle/Moat
$37.7
Allows any SMB build an app, and enables
mobile websites to behave as native apps,
automatically generate and manage a mobile
optimized website for SMEs, directly on a
phone.
Endurance International/
AppMachine

13. Good Time for Buyers
Since the the waning years of the VC Boom, valuations have flipped from a revenue multiplier to a smarter
EBITDA valuation
Shop for Profitability
4-6x
Best of Breed User Experience Differentiated Tech

14. Ad Tech
Consolidation
Vail Roundtable
August 2017
@charityhuff
Maroonventures.com
303-886-6816
Maroonventures.com