Embed Size (px)
DESCRIPTION
Citation preview
Private and Confidential
Managing Change in the dynamic business environment today
Sammy Hsieh Founder and CEO
Private and Confidential
• 1997 – British American Tobacco • 1999 - LVMH • 2001 – Joined Yahoo! HK • 2005 – Launched Overture HK • 2008 – Joined Efficient Frontier • 2009 – Formed iClick Interactive
My Background
Private and Confidential
• The iClick Story • Managing Change • Q&A
Agenda
Private and Confidential
Company Overview
Founded in 2009; backed by a number of institutions, led by Bertelsmann, Sumitomo, SSG Capital and Otto Group
First in the region to introduce algorithmic optimization and programmatic media buying focusing on performance marketing inventories
Over 80 clients from Fortune 100 companies, world premier brands and MNC; selected verticals include:
• Finance and Banking, Hotel and Travel, E-Commerce and CPG Leading data-driven buy-side digital marketing platform in Asia
• Tracking: Universal tracking and attribution • Technology: Robust ad-serving technology • Platform: Proprietary algorithmic cross-media optimization • Data: Over 100 million transactional cookies and 12 terabytes of click
log data
Offices in Hong Kong, Beijing, Shanghai, Shenzhen, Singapore and Taiwan; 180 employees across the region
Private and Confidential
Feb 2010 Series A Investment
from Sumitomo
Jan 2010 Established Beijing and
Shanghai offices
5
2009 1H
2009 2H
2010 1H
2010 2H
2011 1H
Jan 2009 Established in HK and focus
on local clients only
Apr 2009 Operational breakeven Accumulated over 20
clients
Dec 2009 Established R&D center to build new generation
XMO platform
Sep 2010 80% advertisers’ migration to XMO
completed Accumulated over 60
clients
Oct 2010 JV with Baidu to form exclusive agency in
HK, TW and SG
Jan 2011 Key China advertiser win incl. Dangdang,
M18 and Joyo
Feb 2011 Series B Investment
from Bertelsmann, SSG, Sumitomo and OTTO
Feb 2011 Established TW and
SG offices 90% advertisers’ migration to XMO
Company Milestones
2012
Nov 2012 Best Interactive Agency – Yahoo! BIC Awards 2012
Jan 2012 Deloitte Technology Fast 500 Asia Pacific Award
and Fast 50 China Award
Mar 2012 Established SZ office
Private and Confidential
The Changing Online Landscape
Private & Confidential. All Rights Reserved by Optimix. 6
Key players led by a few dominant portals that only offered impression buy and position buy
- Highly fragmented landscape - Valuable long tail traffic but difficult to target
- Various charging models (e.g., CPM, CPC, CPA) i.e., increasingly difficult for advertisers to reach out to desired audience!
Late 90s to early 2000
Present
Private and Confidential
Data
The Difficult Online Media Buying Process
Agency Creative
Performance Agency
DSP
Media Planning
Ad Network Ad Exchanges
Measurement and Analytics
Advertisers
Publishers Ad Server
Ad Ops
Private and Confidential
Search Engines
Display Ad Exchanges
Video, Mobile Ad Exchanges
Advertisers/ Ad Agencies
Various Publishers
Online Users
Customer Data Aggregator
Various Exchanges
iClick Unique Solutions
We facilitates the digital media buying process by helping advertisers aggregate, bid and optimize inventory across different online marketplaces
Cross Market Optimizer
Private and Confidential
3.0 Buy Side Platform
Media Resources Programmatic Media Planning
Data Analytics Optimization
Campaign Objectives • Maximize ROI • Increase conversions? • Lower CPA?
Private and Confidential
Performance Marketing is Dominating
Source: iAB, Oct 2012, eMarketer, Sep 2012
Performance-based model, which covers both search and display, currently in pole position
41% 47%
51% 57% 59%
62% 65% 67%
46% 48% 45%
39% 37% 33% 31% 31%
13%
5% 4% 4% 4% 5% 4% 2%
2005 2006 2007 2008 2009 2010 2011 1H 2012
US Internet Ad Revenues by Pricing Model, 2005 - 1H 2012
Performance-based Impression-Based Hybrid
USD 24 billion: the expected value of performance-based traded inventory in 2012
Source: Credit Suisse Estimates, Feb 2012
37% 40% 42% 44% 45% 46% 50% 52%
36% 32% 28% 25% 22% 19% 16% 14%
27% 28% 30% 31% 32% 33% 34% 34%
2010 2011E 2012E 2013E 2014E 2015E 2016E 2017E
Desktop Display Market $ Share, 2010 - 2017E Indirect (long tail) Mid-tier Premium Growing trends of performance driven display
ad • Reason: Premium inventory cost keeps inflating vs
under monetized indirect long tail inventory • Performance-based pricing for long tail inventory:
• Share of indirect inventory display ad spending to outgrow other segments, reaching 50% by 2016
• Possible to achieve cost efficiency
Private and Confidential
Real-Time Bidding (“RTB”) on The Rise
Performance-driven display ad is traded dynamically via RTB* under programmatic buying.
0.4 1.0
1.9
3.4
4.6
5.8
7.1
4%
8%
13%
19%
22%
25%
28%
0%
5%
10%
15%
20%
25%
30%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2010 2011 2012E 2013E 2014E 2015E 2016E
US RTB Digital Display Ad Spending
RTB digital display ad spending % of total digital display ad spending
(US$ B’)
Source: “The Arrival of Real-time Bidding” from Google, 2011 Source: eMarketer, Nov 2012
“47% of advertisers and agencies intend to spend more on digital advertising because of the benefits of RTB” – Survey by Google and Digiday 2011
8%
22%
37% 39%
48%
56%
64% 66% 68%
Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11 Mar 11 May 11
Growth of % spend via RTB on DoubleClick Ad Network
Remark: RTB allows bidding on single impression for single audience. Buying inventory based on audience request targeting based on data: geographic info, interest, demographic info and online behavior.
Private and Confidential
A billion dollar question: will China follow suit?
Private and Confidential
The Scenario in China: Massive Growth ahead
Online ad spending growth in China more robust than in US albeit from low base; fueled by large headroom for online population growth, high online time spent for users, low time spend as % of online ad spend
Online ad spend 2012 ad spending (RMB B’) 2015 ad spending (RMB B’) 2012 – 2015 CAGR China 79.4 187.7 33% (vs US: ~12%)
Online exceeds Print media for the first time in 2012 and is 34% greater than Print ad spend
Search and display ad drive growth in China • Rapid search growth and will reach 59% of
total online ad spend by 2015* • Strong growth for display ad
• Rising trend of performance-based pricing (CPA/CPL) to reach 12.3% of total display ad spending by 2015*
12.2 23.2
37.7
55.4
79.0
111.1
17.6 23.8
34.9 44.2
53.7 64.0
32.6
51.3
79.4
107.5
143.1
187.7
2010 2011 2012E 2013E 2014E 2015E
China online marketing ad spending by category 2010 - 1015E
Search
Display
Total
RMB B'
Source: iResearch, May 2012
* Source: iResearch, May 2012. Search includes vertical search
Source: iResearch, May 2012
Private and Confidential
Unique Challenges in China
Online Game E-Commerce
Video
Product Review Site
Forum
Chat
Instant Messaging
Micro-blog
Social Media
Photo Albums
Bookmark
Wiki
Answers
RSS
Music Review Social Media
*Source: CNNIC, Jul 2012
1. Difficulty in reaching target audience Market highly fragmented. As of Jun 2012, over 538 million of internet users in China and 2.5 millions China-based websites*
2. Increasing pressure on ROAS Rising cost for premium inventory (CPM and CPT)
3. Growing efficiency issue in ad placing Relationship driven sales of inventory instead of using technology to add value
An unique opportunity for a cross-channel advertising and optimization platform to thrive
The Chinese online market has a few key characteristics which press for needs for a more effective way of display ad placement.
Private and Confidential
What’s Next After Ad Exchange Adoption
China
US
Ad Network Ad Exchange RTB DSP*
2005 2007 2009
2007 2011 Up Next
With the rise of Ad Exchanges in China, it is likely that RTB is the next big thing
In China, Ad Exchanges arise in response to the needs of the market to increase efficiency With number of DSPs growing in China, the environment for RTB and programmatic buying is building up rapidly.
Source: IDC, 2012
Remark: Demand side platforms, DSP, enable inventory buying through multiple exchanges with programmatic RTB capability.
0.13 0.52 1.22
2.36
3.91
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2012 2013 2014 2015 2016
RTB based display ad in China, 2012-2016
China RTB based display ad spendingRMB B'
Private and Confidential
Managing Change – The Vision
• Lessons learned • Attractive marketplace • Create the “Blue Ocean” • Stay focus
Private and Confidential
Managing Change – The Motivation
• Lessons learned • Team formation – roles and responsibility • Internal and external communication • Share your success - ESOP
Private and Confidential
Leading Industry Verticals
E-Commerce (5 out of China’s TOP 10
E-Commerce players are using iClick to make better decisions)
Travel & Hospitality
Banking & Finance
Consumer Products
Others
Private and Confidential
Reach Ad Spend of : US$120M by 2013
Over 110% CAGR in Past 4 Years
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
Total2009 2010 2011 2012 2013
USD
138% 197%
48%
87%
Private and Confidential
Managing Change – The Momentum
• Lessons learned • Anchor clients • Hungry for business • Networking
Private and Confidential
Conclusion
• Lessons learned • Huge and high-growth market • Market under-served and inefficiency • Unique value proposition • Financially healthy • Management team with proven track record
