The document provides an overview and analysis of trends in the online and mobile advertising market from Siemer & Associates, a global merchant bank. Some of the key points made in the summary are:
- Consolidation is likely to continue in the advertising technology sector as many funded point solutions lack differentiation. The market will consolidate around broader platforms serving the buy-side or sell-side.
- Real-time bidding continues to see strong growth and will account for a larger share of online advertising spend. However, concerns around bot-driven traffic and impression fraud may benefit large players like Facebook and Google.
- Emerging areas like mobile app marketing, native advertising, and universal buy-side SDKs are driving more dollars to
Executive summary of a seminar given by Tim Dolan of Kickframe to a group of Canadian marketers. The focus of the session was to provide a strategic foundation for planning digital marketing. The approach for this session was:
1. To go broad across the digital marketing toolbox, and not deep on a specific tool
2. To provide guiding principles that are lasting, and not more specific tactical advice
3 . To arm participants with relevant planning tools that they could take and put into action
Marketo - The definitive guide to digital advertisingDuy, Vo Hoang
Advertising has evolved. No longer is it restricted to print publications, static billboards, radio, and television. Modern technologies have opened the door to a whole new era of advertising–digital advertising. Digital advertising allows marketers and advertisers to reach and appeal to their core audiences in new ways and with more precision.
The challenge of meeting the modern buyer's expectation of a continuous, cross-channel, and personal experience is met with new ad technology and innovations that continue to advance at break-neck speeds. New ad technology platforms, types of ads, methods of tracking, dynamic ad content, and advances such as the Internet of Things now provide endless opportunities for marketers and advertisers to engage their customers personally and across channels.
In this comprehensive, 110+ page guide, we cover topics from the evolution of digital advertising, to how to structure your digital marketing team, to testing and optimization. Loaded with checklists, charts, and thought leadership from digital advertising experts, The Definitive Guide to Digital Advertising will teach you how to create strategic and dynamic digital advertising.
In this report we provide an overview of the native advertising ecosystem, with a specific focus on native advertising delivered programmatically. We touch on the native advertising market size, key vendors in the space, recent updates from incumbent advertising companies like Facebook, Google, Yahoo & Twitter, and key challenges and opportunities within the native ads market.
Executive summary of a seminar given by Tim Dolan of Kickframe to a group of Canadian marketers. The focus of the session was to provide a strategic foundation for planning digital marketing. The approach for this session was:
1. To go broad across the digital marketing toolbox, and not deep on a specific tool
2. To provide guiding principles that are lasting, and not more specific tactical advice
3 . To arm participants with relevant planning tools that they could take and put into action
Marketo - The definitive guide to digital advertisingDuy, Vo Hoang
Advertising has evolved. No longer is it restricted to print publications, static billboards, radio, and television. Modern technologies have opened the door to a whole new era of advertising–digital advertising. Digital advertising allows marketers and advertisers to reach and appeal to their core audiences in new ways and with more precision.
The challenge of meeting the modern buyer's expectation of a continuous, cross-channel, and personal experience is met with new ad technology and innovations that continue to advance at break-neck speeds. New ad technology platforms, types of ads, methods of tracking, dynamic ad content, and advances such as the Internet of Things now provide endless opportunities for marketers and advertisers to engage their customers personally and across channels.
In this comprehensive, 110+ page guide, we cover topics from the evolution of digital advertising, to how to structure your digital marketing team, to testing and optimization. Loaded with checklists, charts, and thought leadership from digital advertising experts, The Definitive Guide to Digital Advertising will teach you how to create strategic and dynamic digital advertising.
In this report we provide an overview of the native advertising ecosystem, with a specific focus on native advertising delivered programmatically. We touch on the native advertising market size, key vendors in the space, recent updates from incumbent advertising companies like Facebook, Google, Yahoo & Twitter, and key challenges and opportunities within the native ads market.
Digital marketing- A non conventional way of Marketing where the clients and the organization has a digital relationship between them. A newest and cheapest way of marketing.
In this presentation you will get a complete insight of the digital marketing and its types.
This report highlights major trends worth taking into consideration in order to understand today’s digital market and get a sense of how the industry will evolve in the future.
Far more than simply ecommerce, the digital channel is the growth engine to drive new markets, test merchandise quickly and cost effectively, acquire new customers, retain existing customers and tap them along with brand fans to propagate messages, content and influence purchases across all channels. In this session, you’ll learn why the digital channel is a growth engine for your business and how to realize its full potential. This session will delve into digital, its benefits and opportunities, and examine how the consumer purchase decision is forever altered by the new digital consumer.
AICTE Sponsored National Conference on “Artificial intelligence in Marketing”, Department of Management Studies, PSNA college of Engineering & Technology, Dindigul, Tamil Nadu, India on 23rd December 2020
Digital Advertising Trends 2021 – Mid-Year ReportJomer Gregorio
As more consumers shift towards virtual means of engagement and communication with brands, businesses, and other people, marketers were signaled to adopt a digital-first approach to advertising. Get more insights through this presentation.
Full blog here - https://digitalmarketingphilippines.com/digital-advertising-trends-2021-mid-year-report-infographic/
Prepared as a part of the Study Oriented Project titled 'A study of Internet Marketing techniques in India'
This seminar focuses on Social Media Optimisation, Search Engine marketing and Viral Marketing
Red Ant: Digital Strategy Whitepaper 2011Brian Crotty
In 2009, the IAB (Internet Advertising Bureau) predicted that internet advertising – just one small part of a digital strategy - would
overtake TV advertising by the end of the year. This was inaccurate – according to the IAB’s own figures, internet ad spend
outstripped TV ad spend a good three months before the end of 2009. The UK is now the world’s first major economy to spend
more on online advertising than on TV – currently, the internet takes 23% of all advertising spend, compared with 21.9% for TV.
And, according to analysis by business consultants Price Waterhouse Coopers, over the last 12 months most digital media
categories grew by more than originally forecast, despite a challenging economic climate which frequently had a devastating
effect on other, more traditional marketing activities. Digital is clearly still the fastest growing area of marketing, customer
retention and engagement. Inevitably, digital channels and engagement through digital channels are now not only an expected
part of audience experience when connecting with a brand - they are often at the core of an audience member’s engagement
with a brand. Audience expectation has increased to such a level when considering brand engagement that:
• it is no longer acceptable for a brand to wait for the audience to visit
• brands must actively communicate to prosper
• positive engagement snowballs, arrogance creates stagnancy
Here is Red Door’s Media Made Simple MindSHARE. This information comes from the minds of two of our Red Door Media experts. It is the product of intense research, field experience and considerable expertise. We are happy to share this with you—Red Door MindSHARE is a resource through which you can leverage our knowledge to learn about the latest trends in the digital realm.
By reading this, you will:
1. Learn how to put different media to work for your brand
2. Learn about growing media tactics such as: video, native ads, and programmic buying
3. Discover innovative techniques and ideas that you can use
View all of our MindSHAREs here: http://www.reddoor.biz/blogs/categories/mindshare
A beginner's guide to the world of online advertising. Find out what happens under the hood; find out how online advertising generates revenue and for whom; find out who the players are and their roles in the world of online advertisting.
Digital marketing- A non conventional way of Marketing where the clients and the organization has a digital relationship between them. A newest and cheapest way of marketing.
In this presentation you will get a complete insight of the digital marketing and its types.
This report highlights major trends worth taking into consideration in order to understand today’s digital market and get a sense of how the industry will evolve in the future.
Far more than simply ecommerce, the digital channel is the growth engine to drive new markets, test merchandise quickly and cost effectively, acquire new customers, retain existing customers and tap them along with brand fans to propagate messages, content and influence purchases across all channels. In this session, you’ll learn why the digital channel is a growth engine for your business and how to realize its full potential. This session will delve into digital, its benefits and opportunities, and examine how the consumer purchase decision is forever altered by the new digital consumer.
AICTE Sponsored National Conference on “Artificial intelligence in Marketing”, Department of Management Studies, PSNA college of Engineering & Technology, Dindigul, Tamil Nadu, India on 23rd December 2020
Digital Advertising Trends 2021 – Mid-Year ReportJomer Gregorio
As more consumers shift towards virtual means of engagement and communication with brands, businesses, and other people, marketers were signaled to adopt a digital-first approach to advertising. Get more insights through this presentation.
Full blog here - https://digitalmarketingphilippines.com/digital-advertising-trends-2021-mid-year-report-infographic/
Prepared as a part of the Study Oriented Project titled 'A study of Internet Marketing techniques in India'
This seminar focuses on Social Media Optimisation, Search Engine marketing and Viral Marketing
Red Ant: Digital Strategy Whitepaper 2011Brian Crotty
In 2009, the IAB (Internet Advertising Bureau) predicted that internet advertising – just one small part of a digital strategy - would
overtake TV advertising by the end of the year. This was inaccurate – according to the IAB’s own figures, internet ad spend
outstripped TV ad spend a good three months before the end of 2009. The UK is now the world’s first major economy to spend
more on online advertising than on TV – currently, the internet takes 23% of all advertising spend, compared with 21.9% for TV.
And, according to analysis by business consultants Price Waterhouse Coopers, over the last 12 months most digital media
categories grew by more than originally forecast, despite a challenging economic climate which frequently had a devastating
effect on other, more traditional marketing activities. Digital is clearly still the fastest growing area of marketing, customer
retention and engagement. Inevitably, digital channels and engagement through digital channels are now not only an expected
part of audience experience when connecting with a brand - they are often at the core of an audience member’s engagement
with a brand. Audience expectation has increased to such a level when considering brand engagement that:
• it is no longer acceptable for a brand to wait for the audience to visit
• brands must actively communicate to prosper
• positive engagement snowballs, arrogance creates stagnancy
Here is Red Door’s Media Made Simple MindSHARE. This information comes from the minds of two of our Red Door Media experts. It is the product of intense research, field experience and considerable expertise. We are happy to share this with you—Red Door MindSHARE is a resource through which you can leverage our knowledge to learn about the latest trends in the digital realm.
By reading this, you will:
1. Learn how to put different media to work for your brand
2. Learn about growing media tactics such as: video, native ads, and programmic buying
3. Discover innovative techniques and ideas that you can use
View all of our MindSHAREs here: http://www.reddoor.biz/blogs/categories/mindshare
A beginner's guide to the world of online advertising. Find out what happens under the hood; find out how online advertising generates revenue and for whom; find out who the players are and their roles in the world of online advertisting.
Reimagine Growth: Define your mobile acquisition strategy for todayCleverTap
Can your mobile brand thrive in this current climate?
Join top marketing professionals from thriving businesses as they address the challenges and share strategies they’re using to reimagine mobile growth.
Session 01: Define your mobile acquisition strategy for today
Key Learnings:
-Grow faster and scale smarter by leveraging data to execute multiple campaigns
-Use deep linking technology to enable a smooth user experience and supercharge acquisition
-Understand the role of data in eliminating mobile AdFraud and increasing user acquisition in real time
Executive summary of a seminar given by Kickframe to a group of Canadian marketers. The focus of the session was providing a strategic foundation for planning digital marketing. The approach for this session was:
1. To go broad across the digital marketing toolbox, and not deep on a specific tool
2. To provide guiding principles that are lasting, and not more specific tactical advice
3 . To arm participants with relevant planning tools that they could take and put into action
A presentation for the lovely students studying Advertising Management & Campaigns Project (ADV30002) at Swinburne University of Technology on Thursday, 20th March 2014.
This is a great initiative organised by lecturer, Mr David Reid.
Today, we will cover the following agenda items:
- Introduction
- Relationships
- Digital update & opportunities
- 5 step work-flow
- Q&A's
If you have any questions, please contact me on:
damus@puglifeadsolutions.com.au
Mobile Marketing presentation from Magnus Jern, CEO Golden Gekko, at CREA Dig...DMI
The presentation covers the following topics
* Why Mobile - latest stats and trends that you need to know
* Why Mobile First - why mobile is more important than desktop PCs
* Apps vs Web - what technology should you go for?
* How do I create a great mobile service - tips and tricks
9 essential competencies of platform marketing 11 22 2015Andrew Leone
Summary of the book, "The Rise of the Platform Marketer," which contains 9 essential competencies of platform marketing. To buy this book: http://amzn.to/1N7qcCl
Thomvest Mobile Advertising Overview - February 2016Thomvest Ventures
This is an overview of the mobile adtech ecosystem. Research was conducted by Thomvest Ventures. It covers topics including mobile advertising spend, programmatic advertising, key mobile advertising vendors (i.e DSP, SSP, exchanges & networks), and key trends.
Impact Radius a buyer's guide to affiliate management software 2014Justin Leroy
Great guide from the expert team over at Impact Radius http://www.impactradius.com/
Impact Radius a buyer's guide to affiliate management software 2014
MaxAxion is a specialist, performance focused, digital media sales house connecting brands and agencies to their desired audiences using a combination of Low-tech (Wi-fi, SMS, Please Call Me), Programmatic & Premium digital advertising.
We are in the midst of the next great transformative era in the media business. The digital age, supported by data, technology, and predictive analytics has created a new opportunity to be more precise, more efficient, and more effective with our clients’ media investments:
- New ways of identifying who your customers are.
- New ways of reaching and influencing them at critical moments.
New ways of discovering the 50% of advertising that works, and avo- iding the 50% that doesn’t.
This reports analyses the state to digital media and its impact on the future.
For further information please look up your regional contact here: http://news.ipgmediabrands.com/magna-global/press-releases/
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
2. Siemer & Associates
Siemer & Associates LLC is a global boutique merchant bank dedicated to offering candid insight and guidance to digital media, software
and Internet companies throughout their business life cycles. Composed of industry veterans who have worked both inside and out of
technology enterprises, S&A has successfully completed more than 50 transactions that aggregated over $3 billion in sell-side mandates
and surpassed $1.5 billion in equity capital. Headquartered in Los Angeles with offices in London, Singapore and Hong Kong, S&A offers
exceptional corporate capital raising, financial advisory services and M&A, specializing in complex cross-border transactions.
Committed to expanding the international technology ecosystem, Siemer & Associates promotes innovative entrepreneurs through its
relationship with early-stage investment firm, Siemer Ventures, and its incubator, WaveMaker Labs. One of the most active investment
funds in Southern California, Siemer Ventures supports close to 100 active portfolio companies and makes an average of 20-30 new
investments each year in digital media and software startups. Based in Singapore, WaveMaker Labs is an "approved technology
incubator" under the Technology Incubation Scheme (TIS) of the Singaporean government's National Research Foundation (NRF).
2
3. Table of Contents
Section I
Summary Observations
Section II
Online and Mobile Advertising Market
Appendix
Select S&A Ad Tech Experience
Public and Transaction Comparables
Ad Tech IPO Trends
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Online Advertising Report
5. S&A Market Observations
Clear trends have emerged in the M&A and capital raising environment for companies in the broad online and
mobile advertising markets
Only a handful of ad tech businesses have truly gained scale and / or differentiation in the marketplace
− Not enough revenue / profit in the market to accommodate the many solutions that have been funded
Every dollar of agency spend nets a publisher $0.45 on average
Remainder gets cut up among trading desks, DSPs, exchanges, networks, data suppliers, data aggregators, ad
verification, tag management, retargeters, optimization, SSPs, etc.
− Too many point solutions funded, leading to overlap amongst relatively undifferentiated offerings
consolidation is likely to increase
Agencies used to be able to manage multiple vendors – now they want to consolidate vendor
relationships
Twitter’s acquisition of MoPub, in addition to recent acquisitions over the summer made by Criteo,
Media6Degrees, X+1, and Yahoo, highlight the extent to which cross-device targeting capabilities have
become a key aspect of differentiation in the eyes of buyers and investors
Mobile remains among the most active areas of the ecosystem with incumbents now seeking to fill the
gaps in their offering with those who have already achieved significant scale
− Programmatic demand-side features (i.e., real-time bidding platforms), and auction-based exchange platforms
for mobile are of particular interest, especially those directly integrated with media buying desks
5
Winter 2014
Online Advertising Report
6. Consolidation of Point Solutions toward Broader Offering
We believe that the market will coalesce around broad, all-encompassing platforms serving either the
buy-side or sell-side of the ecosystem
Currently, a host of solutions, ranging from trading desks, demand-side platforms and data
management platforms service the buy-side, while an array of publisher tools and supply-side platforms
currently service the sell-side
Consolidation on the supply-side is likely to lead to platforms that have the following attributes:
− Access to both premium publishers and ad networks
− Multiplatform/multichannel (video, social, mobile)
− Integration of both behavioral and contextual targeting
Due to the inefficiencies and costs of fragmentation, S&A sees the buy-side ecosystem eventually
being served by consolidated dynamic ad intelligence platforms
− Such a platform will centralize all major features and functionalities valued by media buyers, including:
Centralized ad server
Optimization of campaign creative for multiple formats and channels
Re-targeting capabilities
Data management, analytics and reporting capabilities
6
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Online Advertising Report
7. Consolidation of Point Solutions toward Broader Offering
The current ecosystem has become “over-segmented” without offering real differentiation
DSP
SSP
DMP
INFRASTRUCTURE
Source: LUMA Partners
7
Winter 2014
Online Advertising Report
8. Consolidation of Point Solutions toward Broader Offering
The resulting consolidation will see only a handful of players reach the size and / or scale to pursue a
meaningful exit, with other large Ad Tech players or large online media companies stepping up and
playing the role of consolidators
This trend has begun to play out in earnest, with several large acquisitions occurring over the past year
such as Twitter’s acquisition of MoPub, Millennial Media’s acquisition of Jumptap, and AOL’s
acquisition of Adap.tv
More recently, and indicative of continuing consolidation, Neustar acquired Aggregate Knowledge, a
DMP, while digital workflow specialist Centro acquired SiteScout, a DSP, to offer alongside their
existing programmatic display ad server
− Centro has already signaled their intention to acquire a data management platform (“DMP”) in 2014 to enable
easy use of predictive analytics for both guaranteed buys and RTB on a single platform
Other potential consolidators within the Ad Tech space include:
Company
Capital Raised
Investors
Comments
RocketFuel
$107.9M (IPO, Sep 2013 )
Mohr Davidow, Summit, Northgate, Nokia
• Multichannel DSP
AppNexus
$75.0M (Jan 2013)
TCV, Venrock, Tribeca
• DSP
Videology
$68.3M (May 2013)
NEA, Comcast, Valhalla, Pinnacle, Catalyst
• Video Ad DSP
Turn
$61.1M (Aug 2012)
Norwest, Trident, Shasta, Focus
• DSP
TubeMogul
$53.2M (Jun 2013)
NSV, Knights Bridge, Trinity, Northgate, SingTel
• Video Ad DSP
PubMatic
$45.0M (Jun 2012)
August, DFJ, Nexus, Helion
• SSP
8
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Online Advertising Report
9. Additional Emerging Trends
Certain sub-themes within the online and mobile advertising markets are continuing to develop
Mobile / Tablet App Download Marketing is becoming more sophisticated with the rise of Universal
Buyside SDK solutions
− Attribution is a key issue and platforms enabling tracking of app downloads are seeing significant investor
interest
− App marketing throughout the lifecycle of app usage is emerging as a theme – peak monetization of user
believed to occur at time of install and follows a lifecycle from there
− App user “reactivation,” “re-engagement” driving more creative in-app ad formats and driving higher CPIs
Native advertising is gaining further traction as a preferred ad format to engage online with customers
especially on mobile, where intrusive banners have proven difficult to monetize
− Native changes the online advertising ecosystem by creating new opportunities for both publishers (new
inventory) and advertisers (new ways to connect and create awareness)
− While effectiveness is currently rated based on measuring engagement, exact metrics and expectations
continue to evolve
Awareness around impression fraud has become more prominent with several companies attempting to
quantify lost ad spend
−
Integral Ad Science (formerly AdSafe) is one such firm seeking to evaluate and advise on ad safety, and estimates that
impression fraud costs approximately $6.0bn a year
9
Winter 2014
Online Advertising Report
11. Real-Time Bidding
Online ad buying has rapidly evolved from insertion orders (one-to-one negotiations for specific inventory) to
programmatic buying (real-time bidding)
Real-time buying allows advertisers to buy inventory for a defined target audience instead of just buying pre-defined
display slots online
Advertisers bid against each other for inventory through a process in which they determine if the combined publisher
data on users and inventory matches their desired criteria
−
This occurs in the split-second it takes to load the image on the user’s web page
−
This process allows advertisers to bid on individual ad impressions to targeted users rather than pre-defined slots
There are two major benefits to Real-Time Bidding:
−
Increased Effectiveness: Purchasing inventory on an impression basis allows advertisers to maximize their effectiveness as
advertisers value impressions on a highly relative basis
−
Increased Efficiency: Efficiency is also increased as advertisers are able to target specific audiences across multiple websites
Real-time bidding ad spend will increase nearly 75.0% this year – well above the overall online ad growth rate of
17.1%
Ad
Opportunity
Arises
Ad Request
Sent Out by
Publisher
Data from
Impression
Sent Out
Value of
Impression
Calculated
Bids
Formed and
Evaluated
Winning Ad
Published
Source: Wall Street Research, eMarketer
11
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Online Advertising Report
12. Real-Time Bidding Continues to See Robust Adoption
Consolidation of point solutions will drive growth in the RTB market, which is expected to grow from $1.9bn in
2012 to $8.0bn by 2016
$10,000.0
160.0%
148.9%
$7,975.0
120.0%
$6,645.5
97.0%
$6,000.0
75.0%
$4,000.0
$3,408.1
$5,112.2
80.0%
50.0%
43.8%
$1,947.5
$2,000.0
$396.2
$0.0
4.1%
1.5%
2010A
35.9%
25.8%
3.1%
5.2%
7.8%
49.8%
40.0%
30.0%
20.0%
16.0%
$986.0
8.9%
Growth Rate
Real-Time-Bidding Ad Spend (in $ mm)
$8,000.0
10.2%
11.6%
12.3%
0.0%
2011A
Real-Time Bidding
2012A
Y / Y Growth
2013E
RTB as a % of Total Display
2014E
2015E
2016E
RTB as a % of Total Online Advertising
Source: Wall Street Research, eMarketer
12
Winter 2014
Online Advertising Report
13. Private Exchanges and Real-Time Bidding
Private ad exchanges are a way for publishers to participate in real-time, auction-based selling without
allowing third party ad networks and other vendors to eat into their margin
Because exchanges are third-party marketplaces and publishers are forced to surrender control of their
inventory, large portions of revenue generated go to the various vendors across the tech stack rather
then the agency or the publisher
To retain more revenue, some publishers are setting up private exchanges for their online inventory,
and by managing their own “premium inventory” they can maintain and guarantee a higher price
Through private exchanges, sellers can maintain control over their most valuable inventory, but take
advantage of RTB auctions to create competition for each impression sold, thereby increasing eCPMs
without the overhead and inefficiencies of manual, direct sales
Recent examples of private exchanges include:
− Hearst, a private magazine publisher, created a private ad exchange 12 months ago and generates 19.0% of
its real-time bidding ad sales through the platform
− News Corp. created a private exchange for all digital inventory, rather than allocating only a portion to the
exchange as is typical
Downsides of private exchanges:
− Complicates concerns as to whether the publisher is cannibalizing premium inventory
− Concern that buyers who might have bought direct will buy cheaper inventory listed in the exchange
Source: Wall Street Research, eMarketer
13
Winter 2014
Online Advertising Report
14. Increasing Concern Around Bot-Driven Traffic
Impression fraud has long been an issue in the online advertising industry, though lately buyers, sellers and
vendors have sought to quantify the problem
Despite efforts by ad verification companies – including Integral Ad Science, DoubleVerify, Spider.io,
WhiteOps and Solve Media – to expand their respective responses to combat bots that leave phony
impressions, their attempts are hindered by a lack of regulatory action and complacency by some
marketers and publishers concerned about the appearance of losing scale
Advertisers will turn to platforms that have massive ad inventory but that can also offer guarantees
against rip-offs; there are only a handful of them – with Facebook atop the list
− Facebook Exchange (“FBX”) is effectively fraud-free as brands bid, in real-time, to retarget users on Facebook
based on their browsing history
− FBX stands out from traditional exchanges because it functions more like a curated department store than a
bazaar, i.e., not just anyone can dump ad inventory into their exchange, thus removing the possibility of
participation by the people who control botnets
In the wake of Yahoo’s steady decline in the display ad business, Facebook has emerged as the only
real rival to Google’s dominance of the online ad space
−
If the fraud fears persist, the two giants will likely consolidate their lead even more at the expense of the other exchanges
−
In Facebook’s case, it will further squeeze out the smaller ad-tech companies that have helped it build its exchange
Source: Wall Street Research, GigaOM, Digiday, NY Times
14
Winter 2014
Online Advertising Report
15. Increasing Concern Around Bot-Driven Traffic
There is a consensus among industry professionals that blacklisting suspect sites would be
counterproductive, thus fraud-prevention vendors are well-positioned as key players in the ecosystem
in order to help buyers understand and identify when the ‘consumer’ is not actually human
Estimated Impression Fraud by Format Type
Exchanges: 25%
Networks: 20%
Publisher Direct: 2%
Total Advertising: 15%
Bid Requests: 30%
Source: Integral Ad Science, AdExchanger
In-Banner Video: 40%
Pre-Roll: 3%
% Fraudulent Impressions
15
Winter 2014
Online Advertising Report
16. Emerging Mobile Ad Solutions
The past year has seen the emergence of the Universal Buyside SDK, or “Meta DSPs”
Large mobile app advertisers work with multiple DSPs or networks in order to reach and target against
as broad an audience as possible; in a mobile app environment this presents a unique challenge
In order to track effectiveness and attribution, DSPs and networks need to have their SDKs installed in
the mobile app being advertised. As a result, mobile apps often integrate multiple buyside SDKs in their
apps, causing end-user performance issues
A Universal Buyside SDK allows mobile app developers to replace all buyside SDKs with a single
“universal” SDK connecting to multiple networks / DSPs via API integrations, minimizing end-user
performance issues
Early focus for Universal Buyside SDKs was on attribution; now moving into trafficking, RTB,
consolidated buying across multiple DSPs – the emergence of the “Meta DSP”
− Over time, media buyers will use “Meta DSPs” to adjust and execute advertising budgets
The emergence of this category of companies will drive more ad dollars into the mobile app ecosystem
− Increased buy-side transparency
− Smaller mobile ad networks and DSPs will have an easier time reaching scale
− Re-targeting on mobile becomes a reality now
− No longer needing to build SDKs, the large online (desktop) DSPs can now allocate spend to mobile more easily
16
Winter 2014
Online Advertising Report
17. Internet Giants Positioned to be Powerful Data Platforms
Major players are best positioned to leverage massive user data and footprint to track and target users for
advertising across devices and on- and off-network
Twitter, Facebook and Google and potentially others with as large a user base (with unique login data)
are positioned to use this data to monetize not just within their own network but "off-network" as well
− Twitter's acquisition of MoPub affords them the opportunity to target users within MoPub's network of mobile
apps and sites with data on those users mined from Twitter's data feeds
− Facebook has just resumed activity on its own off-Facebook ad network after a nine month hiatus
− Google is, unsurprisingly, aggressively moving toward having its users adopt Google+ when interacting with its
suite of services including YouTube and Photos, in an effort to be able to track these users as they use these
services in desktop and mobile environments
Additionally, Google AdID is a way of creating a unique identifier / cookie that is uniquely tied to Google
login data which could disrupt the entire environment for DSP players
− This allows them to track their users not only within Google's network, but within any publisher site - desktop
online or mobile - that is using Google for monetization or any of its social widget tools (i.e., Google+).
− Additionally, publishers using DFP will be in this network of targetable users
− Even if not within the targetable universe, third-party cookie information on such users can be used to generate a
unique Google AdID which will allow Google to target that user for the time being until or unless an AdID is
generated with Google specific data
17
Winter 2014
Online Advertising Report
18. DMP Trends
DMPs have become fragmented as well – there is a need for a DMP for DMPs / DSPs to emerge
– Validate and “cleanse” data from multiple DMPs / DSPs
– Provide mediation across various DMPs / DSPs in order to maximize targeting accuracy, reach
– Provide integrated DCO, tag management, ad verification capabilities as part of solution
Key trend is the separation of the data layer from the execution layer in the marketing stack
– Brands want to leverage learnings of their audience profiles and customer data and apply that to all marketing
and consumer touch-points – online and offline
Biggest opportunity for growth lies in ability to use accurate data profiles across all consumer marketing
channels
– Huge opportunity in using data to inform offline media buying
– Important areas of focus also include social, video and mobile
Current implementation efforts are focused on the core purpose of targeted media buying
Long-term potential for DMPs to be integrated into core business software systems to facilitate datadriven decision making on sales, product development and financial management
DMPs will also garner interest from large e-commerce players given the higher value that their data has
for retargeting users who are looking to transact
– DMPs in emerging markets are additionally being evaluated as foundational platforms to build out international
affiliate and merchant businesses
18
Winter 2014
Online Advertising Report
19. DMP Trends
Generally Supported Applications by Existing DMPs
Priority Applications for Future DMPs
Targeted Media Buying
82.0%
Customer Insight
Development
Customer Insight Development
78.0%
93.0%
Targeted Media Buying
90.0%
Channel Optimization
45.0%
Campaign Channel Attribution
Campaign Channel
Attribution
44.0%
Multichannel Integration & Optimization
84.0%
Emerging Channel Deployment
84.0%
Channel Optimization
83.0%
Multichannel Integration &
Optimization
40.0%
Advertising Yield
Optimization
37.0%
CRM Program Optimization
36.0%
Site Content Optimization
CRM Program Optimization
32.0%
Creative Content
Optimization
32.0%
Emerging Channel
Deployment
Creative Content Optimization
Site Content Optimization
23.0%
0%
20%
Advertising Yield Optimization
40%
86.0%
60%
80%
0.0%
76.0%
73.0%
69.0%
59.0%
20.0% 40.0% 60.0% 80.0% 100.0%
Survey conducted by IAP & Winterberry Group
19
Winter 2014
Online Advertising Report
20. Emergence of Native Advertising
Native Advertising is gaining further traction as a preferred form of marketing for brands to engage
more directly with customers and target audience
− Breaks down the previous constraints created by traditional banner ads
− Merges both paid and owned media into a form of converged media
Native changes the online advertising ecosystem by creating new opportunities for both publishers
(new inventory) and advertisers (new ways to connect and create awareness)
− Brands want to leverage learnings of their audience profiles and customer data and apply that to all marketing
and consumer touch-points – online and offline
US Publishers that Offer Native Advertising on Their Site
Likelihood Marketers Spend on Native Advertising in Next 6 Mo.
60%
17%
Considering offering
one this year
10%
73%
48%
50%
40%
No
30%
20%
Yes, currently
27%
17%
8%
10%
0%
Very Likely
Somewhat Likely
Not Very Likely
Not At All Likely
Source: Wall Street Research
20
Winter 2014
Online Advertising Report
21. Native Advertising Trends
Exact use and definition of native advertising continues to evolve in eyes of advertisers and publishers
− While perhaps new in some circumstance such as promoted “tweets” or pins, some traditional publishers see
native advertising as simply a new title for activities they’ve been undertaking for several years.
− “Native” vs. Advertorial vs. sponsored/branded/custom content
While effectiveness is currently rated based on measuring engagement, exact metrics and
expectations continue to evolve
Definitions of Native Advertising According to US Publishers
Integration into the design of the publisher's site
and lives on the same domain
93%
Content provided by, produced in conjuction with or
created on behalf of advertisers that runs within the
editorial stream
79%
10%
Editorial value to the reader and conforms to the
reader's expectations
68%
Contextually relevant, nonstandard advertising
units
Highly automated advertising content such as
sponsored stories, publisher tweets, etc
17%
86%
Clear delineation and labeling as advertising
content
Content marketing such as sponsored games,
infographics, sites, etc.
% of US Digital Professionals Buying Native Mobile Ads
73%
64%
61%
54%
Considering offering one this year
No
Yes, currently
Source: BusinessInsider, eMarketer
21
Winter 2014
Online Advertising Report
22. Native Advertising Trends
Native Advertising: Pros
Publishers
Social Networks
Brands & Agencies
Users opt-in to content/pull strategy
New revenue streams
Life/reach/efficacy of owned media
Better paid-owned-earned media integration
Higher engagement
Strong potential for mobile platforms
Potential for deeper behavioral/contextual data
Reinforce or even improve UX
Amplification beyond fans/followers
Social Networks
Brands & Agencies
Native Advertising: Cons
Publishers
Scale/labor-intensive
X
Lack of landscape clarity, still evolving
X
Metrics/KPIs not fully defined
X
X
X
X
X
X
Requires strong content ability
Education/training required
X
X
X
Sales team training/pushback (more complex sales cycle)
X
Transparency/disclosure issues
X
X
X
Voice, context, environment, authenticity
X
X
X
Source: Wall Street Reporter
22
Winter 2014
Online Advertising Report
25. Mogreet Case Study
Mogreet Acquired by
payvia in May 2013
Mogreet is a leading mobile marketing company, providing mobile
video and rich media messaging capabilities.
S&A was retained by Mogreet as its exclusive financial advisor in
evaluating strategic alternatives for the Company. S&A conducted
a highly targeted solicitation process and approached a select
group of potential acquirers deemed to be a strong strategic fit.
S&A introduced Mogreet to payvia. Payvia has the largest direct
carrier connected messaging and mobile payments platform in the
U.S., covering 120mm unique mobile users and processing billions
of mobile messages every year.
payvia’s mobile payments and authentication platform works with
merchants and developers to integrate a customized smart
checkout experience.
has been acquired by
Mogreet’s mobile video marketing platform, which delivers high
quality video to virtually any mobile phone, will provide payvia’s
clients with tools to drive customer acquisition and revenue
generation.
The combined entity will be the only fully integrated end-to-end
product solution for mobile engagement and payments to
enterprises of all sizes.
Leveraging its strong relationships and expertise in the mobile
space, S&A generated a "home run" outcome for Mogreet and
found the perfect partner for the business to scale its technology.
25
Winter 2014
Online Advertising Report
26. TapIt! Media Group Case Study
TapIt! Media Group Acquired by
Phunware in December 2012
TapIt! is a leading global independent mobile advertising platform.
S&A was retained by TapIt! as its exclusive financial advisor to
evaluate strategic alternatives for the Company. S&A conducted a
highly targeted outreach process and approached a select group
of potential acquirers deemed to be a strong strategic fit for the
Company.
S&A introduced TapIt! to Phunware and CEO, Alan Knitowski.
Phunware is a leading fully integrated services platform enabling
brands to engage, manage and monetize users on mobile.
Phunware clients include major film and TV studios and highly
visible brands such as the NFL, NASCAR, CBS, NBC Universal,
The CW, ESPN, E!, OWN and Univision.
Phunware issued an LOI to acquire TapIt! in November 2012 and
the S&A team worked diligently to drive the acquisition to a close in
late December 2012.
has been acquired by
Through the acquisition of TapIt!, Phunware will now be able to
provide mobile advertising as part of its Mobile-as-a-Service
(MaaS) monetization platform for iOS and Android mobile
publishers.
Leveraging its strong relationships and expertise in the mobile
space, S&A was able to generate a "home run" outcome for TapIt!
and find the right home for the business to allow it to scale its
activities by leveraging Phunware's large development resources
and access to sales channels into premier brands and advertisers.
26
Winter 2014
Online Advertising Report
27. Select Siemer Ventures Ad Tech Exits
has been acquired by
has been acquired by
has been acquired by
has been acquired by
has been acquired by
has been acquired by
27
Winter 2014
Online Advertising Report
28. Select Siemer Ventures Ad Tech Investments
Social media advertising and
promotional platform
Multi-channel digital distribution
platform
Marketing automation for local
businesses
Natural language search and
analytics
Audience analytics and crosschannel connection platform
Social video distribution and
seeding platform
Publisher loyalty tools and offerings
Lead generation for financial
advisory firms
Native advertising platform
28
Winter 2014
Online Advertising Report
29. Select Siemer Ventures Ad Tech Investments
Integrated services platform for
mobile
Player engagement platform
Hispanic targeted advertising
platform
Collaboration platform for marketers
and agencies
Social sharing tools for user
aquisition
Integrated online media and ad
network
Mobile demand side platform
29
Winter 2014
Online Advertising Report
31. S&A Market Observations
Social and mobile ad companies with strong technology, unique publisher access and ad formats, high
engagement and scaleability are attracting significant interest from strategic buyers and investors
Mobile
Online
Strategic Interest / Priority
Social
SMS / MMS
Marketing
In-App
Display
In-App
Video
CPI
Marketing
Agency
FB Game
Ads
Local /
SMB
Self-Serve
Platforms
Native
Search
RTB Auction
Exchanges
DSPs
Ad Networks
Affiliate Networks
Display
Low
Interest / Valuation
31
High
Winter 2014
Online Advertising Report
32. Public Online Advertising Valuation Comps
(figures in millions of $USD, except per share)
Company Name
Online Media & Advertising
AOL Inc.
Apple Inc.
Blinkx plc
Criteo SA
Demand Media, Inc.
Digital Generation, Inc.
Facebook, Inc.
Google Inc.
IAC/InterActiveCorp
Marin Software Incorporated
Microsoft Corporation
Naspers Ltd.
Renren Inc.
Rocket Fuel Inc.
Sohu.com Inc.
Tremor Video, Inc.
ValueClick, Inc.
Yahoo! Inc.
YuMe, Inc.
Video Platforms
Akamai Technologies, Inc.
Amazon.com Inc.
Brightcove, Inc.
Limelight Networks, Inc.
Netflix, Inc.
Youku Tudou Inc.
Source: Capital IQ and S&A proprietary research
Share Price as of
1/9/2014
$45.97
543.46
3.41
31.90
5.50
13.39
58.23
1,141.23
70.33
10.68
35.76
101.38
3.36
62.29
78.55
5.01
22.80
41.02
7.74
Mean
Median
$46.68
401.92
11.33
2.22
340.99
33.55
Mean
Median
Market
Cap
Enterprise
Value (EV)
EV / CY 2013E
Revenue
EBITDA
EV / CY 2014E
Revenue
EBITDA
LTM Annual
Revenue Growth
$3,536.5
485,065.8
1,359.9
1,764.0
493.7
374.7
147,916.6
381,270.6
5,858.1
348.5
298,523.3
40,135.8
1,272.8
2,044.4
3,007.9
248.8
1,522.1
41,612.4
247.1
$3,474.4
461,435.8
1,289.3
1,726.8
437.2
700.9
139,163.6
333,671.6
5,755.8
243.9
235,114.3
42,291.2
364.3
1,946.0
2,497.2
152.5
1,662.5
39,880.3
184.2
1.5x
2.7x
5.6x
NA
1.1x
1.8x
18.2x
5.6x
1.9x
3.2x
2.8x
NA
2.1x
8.4x
1.8x
1.2x
2.9x
9.0x
NA
7.4x
8.3x
37.6x
NA
5.0x
6.0x
30.8x
15.5x
9.8x
NM
7.4x
NA
NM
NM
10.0x
NM
7.6x
26.3x
NA
1.4x
2.5x
4.5x
NA
1.1x
1.8x
13.4x
4.8x
1.8x
2.6x
2.7x
NA
2.3x
4.6x
1.5x
1.0x
2.7x
8.8x
NA
6.8x
7.8x
29.1x
NA
5.0x
5.7x
23.1x
12.9x
8.4x
NM
7.5x
NA
NM
NM
8.4x
NM
7.1x
25.3x
NA
3.3%
9.2%
49.9%
0.0%
10.8%
-2.4%
48.2%
23.8%
16.4%
34.5%
11.1%
30.4%
20.3%
0.0%
29.6%
0.0%
24.7%
-4.1%
0.0%
$78,686.4
$2,526.2
$70,656.0
$2,221.6
4.4x
2.8x
14.3x
9.0x
3.6x
2.5x
12.3x
8.1x
17.0%
13.7%
$8,354.6
183,972.4
326.0
215.9
20,206.3
5,606.5
$7,788.3
179,326.4
291.9
104.7
19,571.3
5,083.3
5.0x
2.4x
2.7x
0.6x
4.5x
10.3x
11.4x
35.7x
NM
44.4x
56.0x
NM
10.2x
26.4x
NM
NM
34.9x
68.2x
15.2%
22.5%
27.2%
-1.1%
17.1%
88.1%
$48,217.2
$4,340.3
$46,877.8
$4,040.1
2.7x
2.5x
30.5x
35.7x
18.3x
18.3x
15.9%
18.8%
32
4.4x
2.0x
2.3x
0.6x
3.8x
7.3x
2.3x
2.1x
Winter 2014
Online Advertising Report
33. Public Online Advertising Valuation Comps
(figures in millions of $USD, except per share)
Company Name
Mobile Media & Advertising
Acotel Group SpA
Hipcricket, Inc.
InternetQ PLC
Kongzhong Corp.
Mandalay Digital Group, Inc
Millennial Media Inc.
Ad Agencies
The Interpublic Group of Companies, Inc.
MDC Partners Inc.
Omnicom Group Inc.
Publicis Groupe SA
WPP plc
Share Price as of
1/9/2014
$29.64
0.30
5.11
9.12
3.10
7.36
Mean
Median
$17.52
26.03
71.51
89.51
21.98
Mean
Median
Market
Cap
Enterprise
Value (EV)
EV / CY 2013E
Revenue
EBITDA
$121.9
46.3
198.6
382.6
96.9
781.7
$101.3
42.8
191.4
225.0
89.2
660.5
NA
1.4x
NA
NA
4.2x
2.5x
NA
NM
NA
NA
NM
NM
$271.3
$160.2
$218.4
$146.3
2.7x
2.5x
NM
NM
$7,292.6
1,228.8
18,403.9
19,086.6
29,620.9
$8,439.6
1,865.2
21,585.9
20,024.4
34,533.9
1.2x
1.6x
1.5x
NA
1.9x
9.5x
11.7x
9.9x
NA
11.0x
$15,126.5
$18,403.9
$17,289.8
$20,024.4
1.5x
1.5x
10.5x
10.5x
EV / CY 2014E
Revenue
EBITDA
NA
0.0x
NA
NA
1.9x
1.6x
1.2x
1.6x
1.1x
1.5x
1.4x
NA
1.8x
1.5x
1.5x
LTM Annual
Revenue Growth
NA
0.0x
NA
NA
15.9x
23.7x
17.4%
15.4%
36.9%
-3.2%
184.0%
42.9%
13.2x
15.9x
48.9%
27.1%
8.4x
10.5x
9.5x
NA
10.4x
1.4%
11.2%
2.4%
10.9%
4.4%
9.7x
10.0x
6.1%
4.4%
Source: Capital IQ and S&A proprietary research
33
Winter 2014
Online Advertising Report
34. Selected Online Advertising Acquisitions
(figures in millions of $USD)
Date Announced
11/15/2013
11/05/2013
11/01/2013
10/25/2013
10/01/2013
08/05/2013
08/05/2013
07/17/2013
07/16/2013
07/15/2013
07/02/2013
07/01/2013
04/17/2013
04/09/2013
03/13/2013
03/12/2013
03/11/2013
02/28/2013
02/14/2013
12/31/2012
12/28/2012
12/21/2012
12/16/2012
12/07/2012
10/15/2012
10/10/2012
Target
Emediate
SiteScout
Digital Window
Aggregate Knowledge
41st Parameter / AdTruth
Adap.tv, Inc.
Grab Media
Wireless Developer Agency
Everyscreen Media
AD-X
IgnitionOne
Adaptive Media, Inc.
Digital Broadcasting Corp
Dedicated Media, Inc.
Tru Measure
OLX, Slando.ru
Amaze
Atlas DMT
Volt Media
Media Whiz
TapIt! Media Group
Massive Media
Ströer Interactive, freeXmedia
Carview
ZAO Begun
Vertis
Acquirer
Cxense
Centro
Zanox
NeuStar
Experian
AOL
Blinkx
[x+1]
Media6Degrees (nka: Dstillery)
Criteo
ABS Capital Partners; Persimmon Capital
Mimvi, Inc.
Alloy Digital
LIN Media
The McClatchy Company
Avito.ru
St Ives Marketing Services
Facebook
Alphabird Australia
Matomy Media Group
Phunware
Meetic
Ströer Media
Yahoo Japan
Vieli Enterprises
Quad/Graphics
Implied EV
$10.0
40.0
NA
119.0
324.0
405.0
10.7
NA
NA
NA
NA
2.6
NA
NA
NA
570.0
37.9
NA
NA
10.0
23.0
24.6
71.1
0.7
30.6
267.0
EV / LTM
Revenue
EBITDA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
3.5x
NA
1.0x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
1.4x
NA
NA
NA
NA
NA
0.1x
NA
NA
NA
NANA
NA
NANA
NA
NA
0.1x
NANA
NA
NA
NA
Source: Industry estimates, Capital IQ and S&A proprietary research
34
Winter 2014
Online Advertising Report
35. Selected Online Advertising Acquisitions
(figures in millions of $USD)
Date Announced
10/04/2012
10/02/2012
09/25/2012
09/10/2012
08/21/2012
07/12/2012
07/04/2012
06/29/2012
06/26/2012
06/04/2012
05/31/2012
03/23/2012
03/14/2012
01/31/2012
12/31/2011
12/28/2011
12/26/2011
12/22/2011
12/15/2011
12/06/2011
12/05/2011
11/22/2011
11/21/2011
11/14/2011
11/14/2011
11/14/2011
Target
Iris Associates
Viewdle
Synaptic Digital
Sou Yi Lian Mei Network Technology
BLiNQ Media
Aegis Group
Tro Media
LookSmart
Adverline
Onet.pl
OrangeSoda
Beyond D
TVC Group
RealGravity
RJ Palmer
Call Genie
GMO Searchteria
Krush
Sou Yi Lian Mei Network Technology
Panache
Enswers
Nami Media
Interface
Webxu Media
Mr. Youth
LesPAC
Acquirer
Weare 2020
Motorola Mobility
Definition 6
Network Technology
Gannett Digital Marketing
Dentsu Inc.
Beyond Investments
Platinum Management
Financière Adverline
Ringier Axel Springer Media
Deluxe
Beyond International
The Economist Group
Scripps Networks Interactive
MDC Partners
VoodooVox
GMO AD Partners
Boston Seed Capital, Raptor Ventures
Network Technology
24/7 Media, Inc.
KT
LIN TV
incuBeta Intelligent Marketing
Webxu
LBi International
Mediagrif Interactive Technologies
Implied EV
$3.9
45.0
25.0
11.2
40.0
4,764.2
8.2
9.4
64.9
404.5
26.7
3.3
10.7
28.3
25.0
2.8
5.2
4.5
16.0
NA
39.9
8.3
12.0
31.9
40.0
71.3
EV / LTM
Revenue
EBITDA
NA
13.3x
NA
NA
NA
NA
1.6x
3.8x
NANA
NA
2.6x
14.8x
2.1x
20.5x
NM
NM
2.1x
18.9x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
15.0x
NA
NA
NA
NA
NA
1.7x
NA
NA
NA
5.8x
8.2x
Source: Industry estimates, Capital IQ and S&A proprietary research
35
Winter 2014
Online Advertising Report
36. Selected Online Advertising Acquisitions
(figures in millions of $USD)
Date Announced
11/09/2011
10/31/2011
10/18/2011
10/06/2011
09/20/2011
09/13/2011
09/06/2011
08/30/2011
08/18/2011
08/08/2011
08/01/2011
07/24/2011
06/15/2011
06/13/2011
06/13/2011
05/23/2011
05/16/2011
04/25/2011
04/11/2011
04/07/2011
03/12/2011
03/02/2011
02/14/2011
02/04/2011
01/31/2011
Target
Prime Visibility Media Group
interclick
Auditude, Inc.
smartclip AG
Sometrics
AdoTube
Digital & Direct Communications
chors, EyeWonder
CC Media
IndieClick Media Group
Dotomi
Adperio
MediaMind
AdMeld
ACTSoft
BzzAgent
5to1
Aspen Marketing Services
Tatto
Burst Media
Adenyo
Juno Internet
Business.com
Reply!
GoViral Limited
Source: Industry estimates, Capital IQ and S&A proprietary research
Acquirer
Blinkx
Yahoo!
Adobe Systems
Adconion Media
Serve Virtual Enterprises
Exponential Interactive
Sapientnitro
Digital Generation
APN News & Media
Demand Media
ValueClick
Matomy Media Group
Digital Generation
Google
NEOWIZ Games
DunnhumbyUSA
Yahoo!
Epsilon Data Management
Ozura World
Blinkx
Motricity
Axel Springer
Resource Nation
Saints Capital
AOL
Mean
Median
36
Implied EV
$36.0
250.9
NA
NA
30.0
19.6
64.0
58.3
12.6
13.0
278.2
30.0
422.7
400.0
14.3
60.0
26.4
345.6
60.0
30.1
139.5
53.4
10.5
10.0
91.7
$157.9
$30.1
EV / LTM
Revenue
EBITDA
1.2x
NA
2.0x
23.6x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
5.6x
NA
0.6x
NA
5.0x
28.5x
NA
NA
NA
NA
NA
NA
NM
NM
1.4x
NA
NA
NA
0.8x
NM
10.6x
NM
NA
NA
NA
NA
NA
NA
7.4x
NA
3.7x
14.6x
2.1x
14.8x
Winter 2014
Online Advertising Report
37. Selected Mobile Advertising Acquisitions
(figures in millions of $USD)
Date Announced
12/03/2013
09/09/2013
08/13/2013
04/26/2013
04/25/2013
04/26/2013
04/11/2013
04/11/2013
03/26/2013
02/14/2013
01/15/2013
12/28/2012
10/17/2012
10/10/2012
10/01/2012
08/10/2012
08/06/2012
05/23/2012
05/14/2012
03/16/2012
03/05/2012
11/14/2011
08/03/2011
07/20/2011
04/21/2011
Target
Rhythm NewMedia
MoPub
Jumptap
E-surfing Media
Parse
Wavii
mia
Pulse
Summly
Skyfire Labs
Redmas
TapIt! Media Group
SPiRE, Inc
ThinkNear
e-machi town
Howmark Mobile
Innity Corporation
MobSmith
Buongiorno
Social Hour
Amobee
Mobile Interactive Group
HipCricket
JAGTAG
Greystripe
Acquirer
Blinkx
Twitter
Millennial Media
China Telecommunications Corp
Facebook
Google
Mandalay Digital Group
LinkedIn
Yahoo
Opera Software
Adsmovil
Phunware
motionBEAT
Telenav
Hikari-Tsushin
MOKO.mobi
DA Consortium
The Rubicon Project
DOCOMO Deutschland
PlayPhone
SingTel
Velti
Augme Technologies
Augme Technologies
ValueClick
Implied EV
$65.0
350.0
261.3
242.1
85.0
30.0
8.2
90.0
30.0
155.0
NA
23.0
23.0
22.4
25.9
4.9
20.4
10.0
336.0
51.5
321.0
62.2
55.8
6.1
70.6
EV / LTM
Revenue
EBITDA
4.7x
NA
NA
NA
4.1x
NM
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
12.0x
NA
NA
NA
NA
NA
NA
NM
NA
NA
0.2x
2.2x
2.4x
NA
1.6x
16.9x
NA
NA
1.1x
11.4x
NA
NA
10.7x
NA
3.1x
NA
6.7x
NM
4.3x
NA
2.8x
NA
Source: Industry estimates, Capital IQ and S&A proprietary research
37
Winter 2014
Online Advertising Report
38. Selected Mobile Advertising Acquisitions
EV / LTM
(figures in millions of $USD)
Date Announced
04/19/2011
03/12/2011
03/03/2011
09/30/2010
01/20/2010
01/05/2010
11/09/2009
Target
Where
Adenyo
Adsparq
Mobclix
AdMarvel
Quattro Wireless
AdMob
Acquirer
Mean
Median
Revenue
7.9x
10.6x
NA
NA
2.6x
6.9x
12.5x
EBITDA
NA
NM
NA
NA
NA
NA
NA
$114.7
$55.1
eBay
Motricity
Mobivity Holdings
Velti
Opera Software
Apple
Google
Implied EV
$135.0
139.5
$7.4
54.1
23.0
275.0
582.2
4.9x
4.1x
10.2x
11.4x
Source: Industry estimates, Capital IQ and S&A proprietary research
38
Winter 2014
Online Advertising Report
39. Select Transaction Case Studies
Acquires
Acquires
Date Announced: September 9, 2013
Date Announced: August 7, 2013
Target Description: MoPub is an ad serving
platform for mobile application publishers to
manage their ad inventory on iOS and Android
devices.
Target Description: Adap.tv offers a technology
platform that automates the process of buying and
selling video advertising on the Web, mobile
devices and connected TVs.
Implied Enterprise Value: $350.0mm
Implied Enterprise Value: $405.0mm
Implied EV / Revenue Run-Rate Multiple: 3.5x
Implied EV / Revenue Multiple: 3.5x
Deal Commentary / Rationale:
Deal Commentary / Rationale:
Twitter’s acquisition of MoPub capitalizes on
the explosion in mobile device usage and the
industry-wide shift toward programmatic and
RTB
The combination of AOL On video network
and Adap.tv will give AOL an end-to-end
solution and video stack for publishers and
advertisers, including monetization
Twitter intends to incorporate MoPub’s
technology into its own ad platform, allowing
advertisers to easily automate and serve their
ad buys while also significantly expanding
their reach
AOL features a considerable amount of
premium video content (in-house or
distributed through content partnerships)
AOL will be able to offer its unsold inventory
to be monetized via the Adap.tv Exchange
Twitter now has the scale in mobile to offer
retargeting of its users as they traverse the
desktop/different mobile web and within apps
39
Winter 2014
Online Advertising Report
40. Select Transaction Case Studies
Acquires
Acquires
Date Announced: August 13, 2013
Date Announced: July 15, 2013
Target Description: Jumptap, Inc. operates a
mobile audience targeting platform that provides
audience-centric advertising solutions to reach
mobile users in the United States and
internationally.
Target Description: AD-X offers real time
analysis reports via dashboard or API to integrate
into a system. It analyses advertising
effectiveness in driving downloads.
Implied Enterprise Value: $261.3mm
Implied EV / Revenue Multiple: NA
Implied Enterprise Value: $12.6mm
Implied EV / LTM Revenue Multiple: 4.1x
Deal Commentary / Rationale:
Deal Commentary / Rationale:
40
The AD-X acquisition is intended to address
the major lacking component (mobile) in their
platform capabilities on their path to an IPO
The Jumptap deal was likely driven by the
rise of online DSPs / RTB platforms and the
pressure the online branded advertising
networks are seeing, which has led to a
continuing decline in eCPMs
The combination of AD-X and Criteo will give
mobile marketers the ability to target and
deliver relevant ads across smartphones and
tablets, and then track results
Millennial Media adds expertise in
programmatic buying, third-party data and
performance marketing as it looks to build a
mobile advertising platform capable of
competing with Google and Facebook
AD-X is one of the earliest providers of a
universal SDK solution and has 120+
advertisers including, eBay, Expedia and
Priceline
Winter 2014
Online Advertising Report
41. Selected Online Advertising Private Placements
Date
Company
Nov. 2013
Signpost
Nov. 2013
Multichannel
Nov. 2013
Run
Oct. 2013
Revenew
Oct. 2013
Komli Media
India
Sep. 2013
YD Group B.V.
Sep. 2013
Revenew
Aug. 2013
Jebbit
Jul. 2013
Adtheorent
Description
Spark Capital Partners, OpenView Venture
Partners, Scout Ventures
NA
Amount
Raised ($M)
10.0
Dmitry Fedotov, Hong Kong Government,
Kevin Ng
NA
3.0
Verizon Ventures
A
1.5
IllinoisVENTURE, Tgap Ventures, Allos
Ventures
B
5.0
Draper Fisher Jurvetson, Norwest Venture
Partners, Peepul Capital, Nexus Venture
Partners, Helion Venture Partners
Partech International, Active Venture Partners,
SGECR
IllinoisVENTURES, Tgap Ventures, Allos
Ventures
NA
29.8
NA
6.1
A
6.0
Boston Seed Capital, Data Point Capital
NA
1.3
Mogility Capital, OmniCapital Group, Verizon
Ventures
NA
4.9
Round Investors
Operates an online advertising platform
that connects local businesses with new
customers in the United States
Aids marketers in automating online
advertising with its cloud-based
advertising manager
Offers on-demand access to digital ad
inventory and optimization techniques
Enables a network of manufacturers,
resellers and industry groups to promote
brands
Offers solutions across lead acquisition,
targeting, rich media, audience
measurement and brand measurement
Provides performance display
advertising technology and services
Enables a network of manufacturers,
resellers and industry groups to promote
brands
Creates brand awareness among
college students
Develops real-time bidding-enabled
mobile ad networks
Round
1 Does
not include some undisclosed funding
Source: Industry estimates, Capital IQ and S&A proprietary research
41
Winter 2014
Online Advertising Report
42. Selected Online Advertising Private Placements
Date
Company
A
Amount
Raised ($M)
68.3
Insight Venture Partners
NA
35.8
OpenView Venture Partners
NA
5.0
Battery Ventures, Western Technology
Investment, Javelin Venture Partners
Crede CG
NA
8.0
NA
3.4
Hummer Winblad Venture Partners, Iris Capital,
Sequoia Capital, General Catalyst Partners,
Conde Nast Americas
C
9.0
CommonAngels, Kirshenbaum Bond Senecal,
Neu Venture Capital, New Atlantic Ventures,
RRE Ventures
Accel Partners, Samsung Venture Investment
Corporation, Cox Media Group
Ventech, Isai Gestion
Description
NA
5.0
NA
20.0
B
4.0
Round Investors
Jul. 2013
Affec.Tv
Improves the relevancy of online
advertisements
Octopus Investments Limited
Jul. 2013
Mediaspectrum
Jul. 2013
Balihoo
Provides a cloud technology platform for
mobile advertising
Provides web-based local marketing
automation technology and services to
brands with local marketing needs
Jun. 2013
Boost Media
Jun. 2013
Jun. 2013
Interntainment
Media
Flite
Jun. 2013
Yieldbot
May 2013
Collective
May 2013
StickyADStv
Operates a platform that enables
advertisers to optimize advertisments
Engages in developing technologies
and social media platforms
Develops a cloud-based advertising
platform that enables advertisers,
publishers and marketers to deliver
campaigns
Provides relationship mapping in an
analytical and graphical nature of visitor
intent
Provides multi-screen advertising
solutions
Operates an online video advertising
network
Round
1 Does
not include some undisclosed funding
Source: Industry estimates, Capital IQ and S&A proprietary research
42
Winter 2014
Online Advertising Report
43. Selected Online Advertising Private Placements
Date
May 2013
May 2013
Apr. 2013
Apr. 2013
Apr. 2013
Apr. 2013
Apr. 2013
Apr. 2013
Apr. 2013
Company
Round Investors
Round
North Atlantic Capital, Spark Capital Partners,
Foundry Group
New Enterprise Associates, Comcast
Ventures, Valhalla Partners, Catalyst Investors,
Pinnacle Ventures
Iris Capital, Tiger Global Management, Jabbar
Internet Group
NA
Amount
Raised ($M)
6.0
D
68.3
NA
3.0
Meditor Group Limited, Violette Company
Limited
Institutional Venture Partners, Sequel Venture
Partners, General Catalyst Partners, Costanoa
Venture Capital
Northzone Ventures, Conor Venture Partners
NA
3.0
B
25.0
B
3.0
iTech Advisors
A
3.5
Avalon Ventures
A
5.8
NA
10.0
Description
Triggit
Offers a toolset that enables advertisers
to optimize advertisements
Videology
Provides online video advertising
solutions via the Videology Addressable
Audience Platform
Ikoo Media
Provides a digital advertising solution for
various advertising campaigns and
options
Phorm
Offers solutions for engaging in
behavioral online advertising
DataLogix
Develops and delivers purchase-based
audiences models targeting to drive
online and offline sales
Sticky AB
Provides a platform to make sure that
display advertisements are seen
Garpun
Develops online and management tools
for digital agencies and coporate
advisors
Nanigan
Operates an application programming
interface for Facebook advertisements
Moment Systems Provides digital advertising solutions for
advertisers and agencies
Redpoint Ventures, CBC Capital, WPP Digital,
KPCB China
1 Does
not include some undisclosed funding
Source: Industry estimates, Capital IQ and S&A proprietary research
43
Winter 2014
Online Advertising Report
44. Selected Online Advertising Private Placements
Date
Company
Mar. 2013
Demandbase
Mar. 2013
Zamplus
Technology
Mar. 2013
Innovid
Mar. 2013
AdzCentral
Mar. 2013
OpenX
Mar. 2013
Wantr
Mar. 2013
Turn
Feb. 2013
Virool
Feb. 2013
Samba
D
Amount
Raised ($M)
15.0
NA
20.0
Sequoia Capital, T-Venture Holding GmhH,
Genesis Partners, Vintage Investment Partners
C
11.0
Electric Sheep, Digital Media Partners
A
3.2
Samsung Venture Investment, Accel Partners,
Index Ventures, SAP Ventures, Mitsui,
Presidio Ventures
SEED Capital Denmark and Other Angels
E
25.0
NA
0.6
NA
NA
3.6
Draper Fisher Jurvetson, Menlo Ventures,
Phenomen Ventures, #DominateFund, Various
Investors, Thomvest Ventures
Initial Capital, 500 Startups, e.Bricks Digital,
Rhodium
NA
6.6
NA
0.5
Description
Round Investors
Provides business contact and lead
generation solutions for B2B marketing
and sales professionals
Provides professional data service
solutions to the digital advertising
industry
Provides interactive video advertisment
solutions that enable advertisers and
publishers to add interactive elements
Provides advertising technology tools
and expertise to improve clients’ digital
media spending
Provides integrated enterprise digital
and mobile advertising technology
Altos Ventures, Sigma Partners, Sutter Hill
Ventures, Scale Venture Partners, Adobe
Ventures, Costanoa Venture Capital
Intel Capital, Northern Light Venture Capital
Allows users to discover products and
shop online
Delivers real-time insights for advertising
agencies and marketers
Operates as a viral video advertising
network
Provides content management and
distribution solutions online
Round
1 Does
not include some undisclosed funding
Source: Industry estimates, Capital IQ and S&A proprietary research
44
Winter 2014
Online Advertising Report
45. Selected Online Advertising Private Placements
Date
Company
Description
Draper Fisher Jurvetson, Norwest Venture
Partners, Peepul Capital, Nexus Venture
Partners, Helion Venture Partners
Seedfund
NA
Amount
Raised ($M)
29.8
NA
3.0
August Capital, Morgenthaler, Onset Ventures,
QuestMark Partners, Thayer Ventures
NA
20.0
Time Warner Investments, Avalon Ventures,
Union Square Ventures
Bain Capital Ventures
NA
6.0
A
15.0
Cava Capital, Extreme Venture Partners,
Verizon Communications, Webb Investment
Network, Advancit Capital
Mark Cuban, David Cohen, Scott Banister,
Peter Weck, Tod Sacerdoti, Don Hutchison,
Jared Kopf, Jason Seats, William Lohse,
Savan Devani, Shriraj Gaglani, I/O Ventures
Bayern Kapital, LBBW Venture Capital, HighTech Gründerfonds, Mountain Super Angel,
BayBG Bayerische Beteiligungsgesellschaft
Atlas Venture, Flybridge Capital Partners,
Infocomm Investments, Menlo Ventures,
Thomvest Ventures
NA
1.5
NA
0.8
NA
5.0
NA
27.0
Round Investors
Oct. 2013
Komli Media
India
Feb. 2013
Banyan Netfaqs
Feb. 2013
Adara Media
Feb. 2013
Simulmedia
Feb. 2013
Persado
Feb. 2013
LocalResponse
Offers solutions across lead acquisition,
targeting, rich media, audience
measurement and brand measurement
Provides media, marketing, and digital
advertising services
Provides an audience platform for digital
advertisers to reach highly-targeted
traveler and hospitality audiences
Provides a digital advertisement platform
for linear television
Provides marketing persuasion
technology solutions
Operates a social advertising platform
Feb. 2013
VidIQ
Provides YouTube video marketing suite
Feb. 2013
Crealytics
Specializes in performance search
engine marketing
Jan. 2013
DataXu
Provides multi-channel demand side
platform for online, video, and mobile
advertisers
Round
1 Does
not include some undisclosed funding
Source: Industry estimates, Capital IQ and S&A proprietary research
45
Winter 2014
Online Advertising Report
46. Selected Online Advertising Private Placements
Date
Jan. 2013
Jan. 2013
Jan. 2013
Jan. 2013
Jan. 2013
Company
Provides social marketing-as-a-service
programs
ADmantX
Provides advertising solutions based on
semantic technology
Wanderful Media Provides a local search platform where
consumers can find the best local deals
Adyoulike
Provides interactive advertising formats
to global brands and agencies
Optimal
Provides audience-based advertising
technologies
AppNexus
Jan. 2013
Celtra
Jan. 2013
PinYou
Jan. 2013
Prosper
Marketplace
B
1.0
NA
5.0
Banexi Ventures Partners
A
1.2
Silicon Valley Bank, Siemer Ventures, WGI
Group, Neu Venture Capital, DoubleRock,
Signal Ventures, The Social Internet Fund,
Social Starts, Stonnington Asset Allocation
Technology Crossover Ventures, Venrock,
Tribeca Venture Partners
B
4.5
D
75.0
NA
27.0
NA
20.0
NA
20.0
Round Investors
Extole
Jan. 2013
C
Amount
Raised ($M)
7.6
Description
Offers cloud-based real-time advertising
platform for global ad networks and
demand-side platforms
Provides a web-based self-service
platform for advertising optimization
Operates as a digital advertisement
wireless network technology company
Operates as a peer-to-peer lending
marketplace to originate loans and notes
Shasta Ventures, Norwest Venture Partners,
Redpoint Ventures, Trident Capital
Atlante Ventures, Mezzogiorno
NA
Thomvest Ventures, Atlas Venture, Flybridge
Capital Partners, Menlo Ventures
CBS Capital, Vangoo Investment Partners,
Fude Capital
Accel Partners, Draper Fisher Jurvetson,
CrossLink Capital, Sequoia Capital, Atlanticus
Holdings, Omidyar Network, Volition Capital,
Tomorrow Ventures. QED Partners
Median
Round
$6.0
1 Does
not include some undisclosed funding
Source: Industry estimates, Capital IQ and S&A proprietary research
46
Winter 2014
Online Advertising Report
48. Tremor Video (TRMR)
IPO Date:
6/26/13
Founded: 2005
Company Size: 287 Employees
IPO Price:
$10.00
CEO: William Day
Total Revenue: $125.5mm
Proceeds Raised:
$69.8mm
Stock Price
Equity
Value
Closing Price at Day 1
$8.50
$420.1
$395.6
3.5x
Closing Price at 1 Month
$8.67
$428.5
$403.0
3.6x
Closing Price at 3 Month
$10.04
$497.4
$634.9
5.2x
Year-End Closing Price
$5.80
$288.0
$191.8
Description: Provides technology-driven video advertising solutions that
enable brand advertisers to engage consumers in various Internetconnected devices
Enterprise EV/LTM
Value
Rev
1.5x
VC Investors & Owners: Canaan Partners, Draper Fisher Johnson,
EDB Investments, European Founders Fund Management, Flybridge
Capital Partners, General Catalyst Partners, Keating Capital, Masthead
Venture Partners, Meritech Capital Partners, Relay Ventures, SamStella,
SAP Ventures, Triangle Peak Partners, W Capital Partners
Historic Stock Price: From IPO to Year-End
Public Commentary
“The company has seen a substantial increase in demand for in-stream ads,
but also recently launched a bidding and buying feature available through its
video advertising platform called VideoHub Connect. Even more interesting,
the company has formed partnerships with video inventory suppliers such as
DoubleClick AD Exchange, LiveRail, and SpotXchange. The ability to grab
some of the huge growth in RTB should boost an already robust growth rate.
The recent second-quarter results showed a strong 41% growth rate as
advertisers and brands continue to push forward with video ads that offer a
higher level of interactivity with the consumer. Tremor generated a gross
margin of 46.5% or roughly in line with Rocket Fuel.”
-Wall Street Research
$12
$10
$8
$6
$4
$2
6/26/2013
08/02/2013
09/10/2013
10/16/2013
11/21/2013
12/31/2013
Sources: Capital IQ, Yahoo Finance, CrunchBase, The Street
48
Winter 2014
Online Advertising Report
49. Rocket Fuel (FUEL)
IPO Date:
9/19/13
Founded: 2008
Company Size: 552 Employees
IPO Price:
$29.00
CEO: George John
Total Revenue: $231.7mm
Proceeds Raised:
$107.9mm
Stock Price
Equity
Value
Closing Price at Day 1
$56.10
$1,822.9
$1,822.8
11.4x
Closing Price at 1 Month
$64.93
$2,109.8
$2109.7
13.2x
Closing Price at 3 Month
$56.83
$1865.2
$1766.8
9.1x
Year-End Closing Price
$61.49
$2,018.2
$1,919.7
Description: Provides artificial-intelligence digital advertising solutions
built on its real-time optimization engine and computational infrastructure
to deliver measurable digital advertising campaigns
Enterprise EV/LTM
Value
Rev
9.8x
VC Investors & Owners: Comerica Bank, Cross Creek Advisors, DLA
Piper, Labrador Ventures, Mohr Davidow Ventures, Nokia Growth
Partners, Northgate Capital Group, Summit Partners, Western
Technology Investment, Wilson, Sonsini, Goodrich & Rosati
Historic Stock Price: From IPO to Year-End
Public Commentary
“Most market analysis agrees that demand for all forms of digital advertising is
going to explode over the next few years whether mobile, social, or video. The
companies that can bridge that conversion will make huge gains for
shareholders…one potential winner could be Rocket Fuel based on recent
results. MAGNA Global forecasts that the real-time bidding, or RTB, segment
of the market will explode from roughly $4 billion spent in 2012 to $16 billion by
2016….The CAGR rate and the recent growth rates in excess of 100% is what
drove the IPO of Rocket Fuel to double during the first day of trading. The
other ad tech stocks are seeing more modest growth in the 30% range that
hasn't attracted investors seeking the extremely fast growth companies. In
addition, Rocket Fuel is involved in the intersection of key buzzwords of
Artificial Intelligence and Big Data that likely grabbed the attention of
investors.”
-Wall Street Research
$70
$60
$50
$40
$30
$20
9/19/2013
10/09/2013
10/29/2013
11/18/2013
12/9/2013
12/30/2013
Sources: Capital IQ, Yahoo Finance, CrunchBase, The Street
49
Winter 2014
Online Advertising Report
50. Marin Software (MRIN)
IPO Date:
3/21/13
Founded: 2006
Company Size: 424 Employees
IPO Price:
$14.00
CEO: Chris Lien
Total Revenue: $76.7mm
Proceeds Raised:
$97.7mm
Description: Operates a cloud-based digital advertising management
platform for large-scale advertising campaigns
Stock Price
Equity
Value
Enterprise EV/LTM
Value
Rev
Closing Price at Day 1
$16.26
$502.6
$481.9
8.1x
Closing Price at 1 Month
$14.61
$451.6
$430.9
7.2x
Closing Price at 3 Month
$10.41
$324.0
$214.5
3.4x
Year-End Closing Price
$10.24
$334.1
$229.5
3.2x
VC Investors & Owners: Amicus Capital, Benchmark Capital, CrossLink
Capital, DAG Ventures, Temasek Capital, Triangle Peak Partners
Historic Stock Price: From IPO to Year-End
Public Commentary
“As digital advertising becomes more complex, Marin offers a solution that
allows advertisers to manage across different platforms, including Google and
Facebook, from one entry point. The cloud-based platform allows those
advertisers to measure, manage, and optimize their advertising investments
while also saving time and improving outcomes. Currently, the platform
generates 90% of revenue from search, but mobile is quickly becoming an
additional focus with the increased complexity due to fragmentation among
devices and operating systems.
The company reached 584 active advertisers during its 2013 second quarter,
compared to 487 in the same period last year. The solid growth and subdued
stock price should attract more investors in the months ahead. Not to mention,
the stock lock-up period from the IPO ended on September 18, providing less
fears of massive insider dumping.”
-Wall Street Research
$18
$16
$14
$12
$10
$8
3/21/2013
05/16/2013
07/12/2013
09/06/2013
10/31/2013
12/27/2013
Sources: Capital IQ, Yahoo Finance, CrunchBase, The Street
50
Winter 2014
Online Advertising Report
51. YuMe (YUME)
IPO Date:
8/6/13
Founded: 2004
Company Size: 329 Employees
IPO Price:
$9.00
CEO: Jayant Kadambi
Total Revenue: $156.6mm
Proceeds Raised:
$42.9mm
Recent Acquisition: Crowd Science on January 15, 2013
Stock Price
Equity
Value
Closing Price at Day 1
$9.00
$286.2
$260.4
2.1x
Closing Price at 1 Month
$8.16
$260.8
$314.1
2.4x
Closing Price at 3 Month
$8.00
$255.7
$309.0
2.3x
Year-End Closing Price
$7.45
$238.0
$175.0
Description: Provides technology-driven video advertising solutions
which enables brand advertisers to find and target audiences across
Internet-connected devices and digital media properties
Enterprise EV/LTM
Value
Rev
1.2x
VC Investors & Owners: Accel Partners, DAG Ventures, Felicis
Ventures, FLOODGATE, Intel Capital, Khosla Ventures, Menlo Ventures,
Samsung Venture Investment Corporation, TransLink Capital,
WestSummit Capital
Historic Stock Price: From IPO to Year-End
Public Commentary
$14
YuMe’s PQI already provides composite inventory grading for factors such as
video player size, content association and device type, while improving brand
lift, video completion rate (VCR) and a number of other measures, including
fraud detection. However, this latest improvement will give advertisers
additional transparency into inventory quality. This is all possible because of
the software YuMe embeds across its inventory partner screens – the YuMe
SDK.
$12
$10
-Wall Street Research
$8
$6
8/6/2013
9/6/2013
10/6/2013
11/6/2013
12/6/2013
Sources: Capital IQ, Yahoo Finance, CrunchBase, The Street
51
Winter 2014
Online Advertising Report
52. Millennial Media (MM)
IPO Date:
3/28/12
Founded: 2006
Company Size: 437 Employees
IPO Price:
$13.00
CEO: Paul Palmieri
Total Revenue: $264.3mm
Proceeds Raised:
$111.2mm
Recent Acquisition: Jumptap on August 13, 2013
Stock Price
Equity
Value
Closing Price at Day 1
$25.00
$1,872.3
$1,855.5
17.9x
Closing Price at 1 Month
$18.97
$1,420.7
$1,404.0
13.5x
Closing Price at 3 Month
$12.75
$970.1
$1,040.1
9.0x
Year-End Closing Price
$7.27
$772.2
$651.0
Description: Provides mobile advertising solutions for advertisers and
developers in the Unites States and internationally
Enterprise EV/LTM
Value
Rev
3.0x
VC Investors & Owners: Acta Capital, Bessemer Venture Partners,
Charles River Ventures, Columbia Capital, New Enterprise Associates
Historic Stock Price: From IPO to Year-End
Public Commentary
“[Millennial] guided to between $80 million and $85 million in third quarter 2013
for the combined entity, yet it was unwilling to break out the Millennial only
portion. This raised concerns among analysts that the company was struggling
to reach growth targets…The reason it might not matter is the company guided
between $340 million to $350 million for the full year. Considering the
combined companies generated $230 million in revenue for 2012, the growth
forecast of at least 48% should appease investors. Either the Millennial part
will continue strong growth or the new Jumptap programmatic platform will
boost the growth rate…Not to mention, one has to wonder if all these expected
growth gains were coming from Jumptap why it would agree to a stock based
buyout at a low revenue multiple.”
-Wall Street Research
$30
$25
$20
$15
$10
$5
3/28/2012
9/4/2012
2/11/2013
7/21/2013
12/28/2013
Sources: Capital IQ, Yahoo Finance, CrunchBase, The Street
52
Winter 2014
Online Advertising Report
53. Criteo (CRTO)
IPO Date:
10/29/13
Founded: 2005
Company Size: 700 Employees
IPO Price:
$31.00
CEO: Jean-Baptiste Rudelle
Total Revenue: $594.9mm
Proceeds Raised:
$233.7mm
Recent Acquisition: AD-X Limited on July 15, 2013
Stock Price
Equity
Value
Closing Price at Day 1
$35.39
$1,957.0
$1,907.6
4.2x
Closing Price at 1 Month
$36.10
$1996.3
$1,959.1
3.7
Closing Price at 3 Month
NA
NA
NA
NA
Year-End Closing Price
$34.20
$1,819.2
$1,854.0
Description: Provides pay-per-click performance display advertising
solutions by enabling e-commerce companies to leverage large volumes
of granular data to engage and convert their customers
Enterprise EV/LTM
Value
Rev
3.5x
VC Investors & Owners: Adams Street Partners, Bessemer Venture
Partners, Elaia Partners, Fourvest Sarl, IDInvest Partners, Index Venture
Associates IV Limited, Index Ventures, SAP Ventures, Softbank Capital,
YJ Capital
Historic Stock Price: From IPO to Year-End
Public Commentary
“Criteo is one of a number of companies, including Google and Facebook, to
benefit from the on-line ad boom, the result of major companies following their
audience to the web and away from newspapers and magazines… The
company developed a technology known as "re-targeting" which catches users
who have visited a shopping website without buying anything, and then
showing them ads for similar items on other sites to tempt them back…
Criteo has roughly doubled its revenues every year since 2010 to reach 271.9
million euros in 2012. It made a profit of 800,000 euros last year but swung to
a loss of 4.9 million in the first six months of 2013 because of increased
investments.
-Reuters
$40
$35
$30
$25
10/29/2013
11/13/2013
11/28/2013
12/13/2013
12/28/2013
Sources: Capital IQ, Yahoo Finance, CrunchBase, The Street
53
Winter 2014
Online Advertising Report
54. Contact Information
Siemer & Associates, LLC ● Member FINRA/SIPC
1333 2nd Street, Suite 600
Santa Monica, CA 90401
Phone: (310) 861-2100
Fax: (310) 861-2125
www.siemer.com