June 21, 2012www.jegi.com
Since 1987
June 13, 2013www.jegi.com
2013 SIIA Strategic and Financial ConferenceNew York, NY
The Coming Shift in Digital Marketing: “Always‐On CRM”
CONFIDENTIAL 2
Discussion Agenda
2
Shifting Model, Enabling Technologies
M&A Heating Up in Marketing Technology
Emergence of the Enterprise Marketing Management Stack
Implications
CONFIDENTIAL 3
State of M&A Market
3
Key drivers in 2012:• Rising corporate investment
• Rush to beat changes in US tax code
• Pace picking up in Q2 2013 after Q1 lull
Strategic buyers continue to be active• Accelerating growth via acquisitions
• Strong balance sheets – as of Q4, U.S. non‐financials held $2+ trillion in cash
• Retooling models to leverage technology and new platforms/channels
Strong PE activity• Race to invest $600+ billion raised ‘07‐08
• Lender activity picking up, rates low, greater comfort in marketing services
Shortage of high‐quality available assets
2012 US volume and value surged, up 50% and 43% over 2011
CONFIDENTIAL 4
M&A Volume and Value by Sector
4
Despite Q1 ‘13 calm after Q4 ’12 M&A bulge, Marketing Services & Technology remains most active segment
Industry SectorNo. of Deals
Value (millions)
No. of Deals
Value (millions)
No. of Deals
Value
B2B Online Media & Technology 21 $198 19 $201 11% (1%)
B2C Online Media & Technology 53 $1,218 70 $1,537 (24%) (21%)
Business‐to‐Business Media 8 $102 9 $63 (11%) 61%
Consumer Magazines 11 $183 16 $83 (31%) 120%
Database & Information Services 12 $481 20 $3,862 (40%) (88%)
Education Information, Technology & Training 21 $238 12 $516 75% (54%)
Exhibitions & Conferences 16 $164 15 $263 7% (38%)
Healthcare Information & Technology 52 $1,596 46 $2,058 13% (22%)
Marketing Services & Technology 118 $2,539 136 $2,961 (13%) (14%)
Mobile Media & Technology 41 $819 31 $697 32% 17%
Total 353 $7,537 374 $12,242 (6%) (38%)
Marketing Services & Technology ‐ % of Total 33% 34% 36% 24%
Source: JEGI Transaction Database
Media, Information, Marketing & Technology M&A Activity
2013 2012
January ‐ March January ‐ March % Change
CONFIDENTIAL 5
Strategics Snapping Up Technology‐Driven Marketing
5
Expanding functionality through acquisition
Cross‐channel, interactive marketing SaaS solution
SaaS‐based B2B marketing automation software solutions
Develops, hosts, and supports database software and hardware
SaaS -based marketing automation platform with revenue performance management
Provides enterprise cloud computing and CRM solutions
Provides social media marketing platform
Provides advertisement planning and placement services
Global provider of media and digital services
Multi‐channel market data and measurement solutions
Measurement solutions for analyzing the TV and radio markets
Provides multi‐channel advertising solutions
Enables brands to better acquire and engage customers through digital channels
Provides enterprise cloud computing and CRM solutions
Cross‐channel, interactive marketing SaaS solution
Provides search, advertising and analytics solutions
Social media marketing management tools
Database marketing and marketing services company
Provides a suite of integrated performance marketing solutions
Online real estate database with residential market data
Online marketing solutions for real estate professionals
CONFIDENTIAL 66
Target Acquirer
PE Also Very Active In Technology‐Driven Marketing
Over the last 12 months, ~40% of 17 JEGI sale transactions have closed with PE buyers
Ecommerce + shopper marketing software
Content marketing and development
Custom marketing research for consumer brands
Sales enablement and BI SaaS
Digital promotions across mobile, social and web
CONFIDENTIAL 7
Discussion Agenda
7
Shifting Model, Enabling Technologies
M&A Heating Up in Marketing Technology
Emergence of the Enterprise Marketing Management Stack
Implications
CONFIDENTIAL 88
Technology Impact on Marketing Budgets
“…by 2017, the CMO will be spending more on IT than the CIO…”
‐‐ Gartner
CONFIDENTIAL 9
Top of the EMM Stack Recent M&A
9
Enterprise software companies acquiring for growth to keep pace with customers’ marketing needs and the unprecedented rate of technology adoption by CMOs
$22+ billion in M&A value 2010‐2012
CONFIDENTIAL 10
Enterprise Marketing Management (EMM) Stack
10
Breaking Down the Stack
CONFIDENTIAL 11
Enterprise Marketing Management (EMM) Stack
11
What is it?
Repositories for marketing content for use across all marketing activities
You know its DAM / MAM / PDM when you hear…
“Let’s make sure our logos look the same on our direct mail package as well as our mobile marketing campaigns”
Digital Asset (DAM) / Marketing Asset (MAM) / Product Data Management (PDM)
COMPANIES IN SECTOR
CONFIDENTIAL 12
Enterprise Marketing Management (EMM) Stack
12
What is it?
Software that enables websites to serve rich, dynamic and personalized messages to visitors, responsively and at scale
You know its MOM / WCM when you hear…
“Let’s serve our ad campaign to customers who have recently searched for our product…”
Marketing Operations (MOM) / Web Content Management (WCM)
COMPANIES IN SECTOR
CONFIDENTIAL 13
Enterprise Marketing Management (EMM) Stack
13
What is it?
CRM systems enable businesses to manage customer relationships and the data and information associated with them
You know its CRM when you hear…
“Show me a list of customers who have purchased more than one of our products in the last 6 months…”
Customer Relationship Management (CRM)
COMPANIES IN SECTOR
CONFIDENTIAL 14
Enterprise Marketing Management (EMM) Stack
14
What is it?
Software that coordinates and tracks marketing executions across channels
You know its MRM when you hear…
“We need to do a better job of integrating our B2B email acquisition campaigns with our other lead gen activities…”
Marketing Resource Management (MRM)
COMPANIES IN SECTOR
CONFIDENTIAL 15
Enterprise Marketing Management (EMM) Stack
15
What is it?
Customer satisfaction on steroids ‐‐ what makes individual customers “tick”
You know its CEM / CIM when you hear…
“Why are we seeing a spike in customer complaints about our new product…”
Customer Experience Management (CEM) / Customer Interaction Management (CIM)
COMPANIES IN SECTOR
CONFIDENTIAL 16
Enterprise Marketing Management (EMM) Stack
16
What is it?
Data and dashboards and decision support for media and marketing investments
You know its Media and Marketing Analytics when you hear…
“Should I spend more on search or social to drive eCommerce revenue…”
Media and Marketing Analytics
COMPANIES IN SECTOR
CONFIDENTIAL 17
Enterprise Marketing Management (EMM) Stack
17
What is it?
Predictive business insights for multiple data sets
You know its BI when you hear…
“Looking at our recent campaign results what customer segments responded to our last campaign…”
Business Intelligence (BI)
COMPANIES IN SECTOR
CONFIDENTIAL 18
Enterprise Marketing Management (EMM) Stack
18
EMM dramatically impacting how large organizations invest in marketing
Marketing assets, channels, data sources, third‐party APIs increasing in number and complexity
Connect and synchronize end‐to‐end marketing and sales activities…
Brand / creative
Media planning / buying
Field and channel
Online ad ops and campaign execution
Acquisition / eCommerce
Offer management and optimization
Customer care and loyalty
Marketing ROI measurement
CONFIDENTIAL 1919
Presenting Companies in the EMM Ecosystem
Company Company Description
Technology that maximizes online advertising effectiveness
SaaS sales intelligence solutions
SaaS digital transformation platform
Mobile apps market leader in nature and wildlife
Actionable agriculture market data
Full‐service content marketing agency
Email intelligence for marketers
Behavioral online reference software for efficient recruiting
SaaS data driven marketing automation platform
CONFIDENTIAL 20
Discussion Agenda
20
Shifting Model, Enabling Technologies
M&A Heating Up in Marketing Technology
Emergence of the Enterprise Marketing Management Stack
Implications
CONFIDENTIAL 2121
Customer Segmentation
Who are your customers?
How do you reach them?
CONFIDENTIAL 2222
Identify and Connect Customer Across All Channels
HubHub
Click streamSearch
Social interactions
Online shopping
E‐commerce transactions
Email registrationsCatalog/direct
transactions
Print subscriptions
Retail transactions
Financial transactions
Membership/loyalty
Call center
CONFIDENTIAL 2323
Traditional model
Target audience segments Context / endemic sites
Premium sites
Retargeting
BT segments (low effectiveness)
Run campaign
Measure results CTR (weak or negative proxy)
Engagement, attitude lift
Stare at data, repeat
Emerging model
Target best current / next customers Relationship / transactional / CRM data Model at individual level Cross channel data
Web, mobile, social On‐site, Off‐line, In‐store
Dynamic, continuous communication Cross channel (ditto) Dynamic messaging at individual level
Measure results Closed‐loop from desired event Feedback into CRM system At massive scale
Advertising Becoming “Always‐On CRM”
CONFIDENTIAL 24
Always‐On CRM Enabling Technologies
24
Additional Strategic
InitiativesDaaS Product Offering
Identify:Best
customers and prospects
Reach:Across web, mobile, email, offline, and in‐store platforms
Measure:Closing the loop
on result / conversion
measurement
Connect:Link digital
identities across channels
Optimize Message:Message and frequency
EMM Stack Enables Always‐On CRM at Massive Scale
End to end, closed loop, measured and managed ROI
25
MyWebGrocer: Online Driving In‐store Shopping
Transaction/Close the Loop
Add to Shopping List
26
Sociomantic: Real Time Bidding on a Global Scale
Real Time Bidding
– Enables bidding for individual ad impressions in real-
time auctions
– Bids are calculated in milliseconds
Impressions at the Perfect Price
– Range of factors determines a precise value of
impressions for advertisers
Personalized Creatives
– Deep layers of intelligence show best possible
ad for every impression, boosting conversions
27
The Trade Desk: Empowering 170+ media buyers with proprietary RTB platform
MANAGEMENT & SERVICE
TRAFFICKING & OPTIMIZATION
DATA VISUALIZATION
CLIENT REPORTING
ANALYTICS & DATA MGT (CRM INTEGRATION)
AUDIENCE INSIGHTS
USER LEVEL DECISIONING
ATTRIBUTION
CHANNEL INTEGRATIONS (ALL SOURCES IN DISPLAY, SOCIAL, SEARCH, EMAIL, ETC)
DYNAMIC CREATIVE OPTIMIZATION
TAG MANAGEMENT
DATA MARKETPLACE
DATA MANAGEMENT PLATFORM
PERFORMANCE REPORTING
BI AND DATA PROCESSING
REAL‐TIME ADSERVER
REAL‐TIME BIDDER
core tech
service
OPTIONAL FOR SERVICE LAYER, ALSO PROVIDED BY PLATFORM
SERVICE LAYER (TTD CLIENTS)
THE TRADE DESK PLATFORM
28
Discussion Agenda
28
Shifting Model, Enabling Technologies
M&A Heating Up in Marketing Technology
Emergence of the Enterprise Marketing Management Stack
Implications
CONFIDENTIAL 2929
Technology Impact on Services Marketplace
“…despite all of this technology at work, the most critical element in our evolving service mix is world class creative capabilities…”
‐‐ Chief Marketing Officer Global IT Services Firm
“Our role is to serve as a systems integrator for our clients…to help brands tell their stories via marketing technologies and API’s”
‐‐ Chief Strategy OfficerGlobal Agency Group
30
Converging Services Market
30DAM/MAM
WCM
CRM
MCM
CEM
Analytics
BI
Point Apps, Platforms and APIs
EMM Stack
IT/ Consulting Services
IT/ Consulting Services
Agency/ Creative Services
Agency/ Creative Services
31
EMM Stack
Converging Services Market
31
IT/ Consulting Services
IT/ Consulting Services
Agency/ Creative Services
Agency/ Creative Services
32
Content Marketing Ecosystem
32
Textual Content
Interactive Tools
White Papers
Video
Webinars/Event Marketing
Blogs
Digital Point of Purchase
Social Media
Search Marketing
Direct Marketing
Websites
Mobile / Tablet Applications
Webisodes
Podcasts PublicationsContent Marketing
3333
Looking Ahead
What’s Next?
Wearable Technologies
3434
Next Marketing Channel ‐Wearable Technology?
Connected consumer devices proliferate –each a data machine
Marketers can annoy consumers at home, at the gym, while sleeping,
while driving…
Tweeting with your eyes
Dividing your attention
35
Recent JEGI Transactions
35In each transaction JEGI client is mentioned first.
20 transactions in 2012 & 2013 for over $1 billion in enterprise value
Since 1987
June 13, 2013www.jegi.com
150 East 52nd Street 18th FloorNew York, NY 10022
Phone: (212) 754‐0710Fax: (212) 754‐0337
The Coming Shift in Digital Marketing: “Always‐On CRM”