Digital Advertising Seminar Disruption, Consolidation and Growth - - PowerPoint PPT Presentation

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Digital Advertising Seminar Disruption, Consolidation and Growth - - PowerPoint PPT Presentation

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Digital Advertising Seminar Disruption, Consolidation and Growth September 9, 2014 WCP Overview Woodside Capital Partners is a global, independent investment bank that delivers world-class strategic and financial advice to emerging growth

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Digital Advertising Seminar

Disruption, Consolidation and Growth

September 9, 2014

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1

WCP Overview

  • Woodside Capital Partners is a global, independent investment bank that delivers

world-class strategic and financial advice to emerging growth companies in technology sectors

  • Founded in 2001: over $10 billion in transaction value
  • M&A, private placement/strategic partnership and corporate finance advisory

— Hardware: Semiconductors, Electronics, and Enabling Materials — Software, Digital Media/Advertising and Internet — Special Situations

  • 30 professionals; backgrounds as entrepreneurs/CEOs and from top investment

banks

  • Silicon Valley-based, with offices in London – 1/3 of transactions are cross-border
  • Silicon Valley headquarters of M&A International
  • WCP Research team offers technology research serving buy-side institutional

investors and technology industry executives

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I.

Disruption and Consolidation

II.

Growth Drivers

III.

The Holy Grail

IV.

Industry Consolidation

V.

Trends and Predictions

AGENDA

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  • High Tech and Big Data Meet Don Draper
  • Shift to Digital Media (Internet and Mobile)

Ongoing

  • Disruption of Advertiser / Agency / Publisher

Relationship

  • Rapid Growth in Programmatic / RTB
  • Fragmented Landscape = Opportunity

Disruption and Consolidation

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High Tech Meets Don Draper

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Big Data Meets Don Draper

200MS: THE LIFE OF A PROGRAMMATIC RTB AD IMPRESSION

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6% 14% 42% 26% 12% 23% 10% 43% 22% 3% 0% 10% 20% 30% 40% 50% Print Radio TV Internet Mobile

Ad Spending vs. Media Consumption

% Time Spent % Ad Spent

$30B+ Market Opportunity (USA)

% Ad Spending

More Spending Will Shift to Mobile

Source: KPCB, Internet Trends 2013

6 Internet Ad = $37B Mobile Ad = $4B

4% 9%

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$0.40 $1.00

Self Serve DSP Ad Server Exchange Other Data Platform

Display

Mobile Video

Publishers Advertisers

Intermediary Tax $0.60

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Disruption of Advertiser / Agency / Publisher Relationship

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$2.9 $3.8 $4.9 $6.5 $7.1 $7.5 $0.1 $0.5 $1.4 $2.9 $4.9 $6.8 $0.1 $0.5 $1.1 $2.0 $3.1 $3.8 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2013 2014 2015E 2016E 2017E 2018E

RTB Ad Sales Market (US)

Video Mobile Desktop Display

Rapid Growth in Programmatic

Source: BI Intelligence, The Programmatic Advertising Report; 8/29/2014

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Fragmented Industry = Consolidation Opportunity

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I.

Disruption and Consolidation

II.

Growth Drivers

III.

The Holy Grail

IV.

Industry Consolidation

V.

Trends and Predictions

AGENDA

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  • Programmatic and Real-Time Bidding
  • Cross-Screen Advertising
  • Growth in Mobile Usage
  • Video Advertising
  • Improved Analytics and Attribution

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Major Growth Drivers

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I.

Disruption and Consolidation

II.

Growth Drivers

III.

The Holy Grail

IV.

Industry Consolidation

V.

Trends and Predictions

AGENDA

12

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13

Limited cookies/device identification Current mobile targeting solutions rely on guesswork, probability Difficult to prove ROI

Challenges of Mobile Advertising

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Ad Requests Ad Requests Ad Requests Ad Requests Ad Request(s) Ad Requests Ad Requests Ad Requests Ad Requests Ad Requests Ad Requests

4Info used advanced technologies and geocoding to map every U.S. household to lat / long. 4Info analyzed billions of ad requests using patented clustering algorithms.

Ad Requests 14

Leveraging Big Data

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Enabling Targeting and Attribution Across Screens

Frequent Shopper Data Point-of-Sale Data Warranty Registrations Panels & Surveys Credit Card Data Attribution Platforms 152 Million 101 Million 300 Million

Targeting Targeting Attribution Attribution

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Persistent Mobile ID Enables Cross-Screen Campaigns

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Situation

  • Challenge: New Product

Launch

  • Approach: Drive

awareness

  • Success criteria: Payback

for media spend, incremental volume

Source: NCS Sales-Effect Analysis

Custom Campaign

Category: Sports Drinks Target:

  • Target 1: Category A AND

Category B (75%)

  • Target 2: Category B (25%)

Reach: 2 MM Households Impressions: 8 M

Results

The average household spend on mobile was almost double that of display

Payback (per $1 spent)

$4.86

$587k

Incremental Sales

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4INFO Case Study: BuyerVision Mobile

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$0 $10 $20 $30 $40 $50 $60 $70 CRTO MRIN MM FUEL RUBI SZMK TRMR TUBE

Public Companies Have Lost Value but Still Have Cash

Source: CapitalIQ and Woodside Capital Partners estimates; 9/4/2014

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Notable M&A Transactions in 2014

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I.

Disruption and Consolidation

II.

Growth Drivers

III.

The Holy Grail

IV.

Industry Consolidation

V.

Trends and Predictions

AGENDA

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  • Video, Mobile, Native Grow Faster Than Display, Search
  • Increased Verticalization by Brands and Agencies
  • Consolidation of Adjacent Players -> Enterprise Advertising

Management Systems (EAMS)

  • Programmatic Extends to Old School Television
  • Apple / Google Enter Mobile Payments with Attribution Loop
  • Google, Apple, Facebook, Amazon, Adobe, SFDC, AOL,

Microsoft, Oracle, Yahoo Extend Their Reach

  • Waves of Acquisition: Ad Exchanges, DSPs, Video, Mobile,

Cross-Screen, Attribution

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Trends and Predictions

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  • WCP Research
  • WCP Banking

21

Tricia Salinero

Managing Director +1 650 421 6547 tricia.salinero@woodsidecap.com

Ron Heller

Managing Director +1 650 513 2762 ron.heller@woodsidecap.com

Ed Bierdeman

Software Analyst and Managing Director +1 650 387 5204 ed.bierdeman@woodsidecap.com

Marshall Senk

Software Analyst and Managing Director +1 949 284 0599 marshall.senk@woodsidecap.com

WCP Contact Info

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WCP Office Info – Silicon Valley and UK Presence

Silicon Valley Offices 1530 Page Mill Road, Suite 200 Palo Alto, California 94304 Tel: +1 650 513 2775 UK Offices Ibex House 42-47 Minories London, EC3N 1DY, UK Tel: +44 7989 384590

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Q&A

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Q&A

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  • Internet of Things Seminar
  • - November 2014, Date TBD
  • Open Stack Seminar
  • - December 2014, Date TBD
  • Mergers and Acquisitions in Silicon Valley Gathering
  • - January 21 & 22, 2015

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Upcoming Events

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MASiV Gathering – January 21 & 22, 2015

Representative 2014 Attendees:

Consumer Internet and Mobile:

Andreessen Horowitz – Jamie McGurk, Partner Deloitte – Garrett Herbert, Partner, M&A Google – Dave Sobota, Sr Dir, Corp Dev Intuit – Kevin Jacques, Director, Corp Dev Opera Software – Erik Harrell, CFO Square – Rishi Garg, Head, Corp Dev Telefonica Digital – Jennifer Vancini, Sr Dir, Bus Dev VISA – Lester Liu, Global M&A and Corp Dev Yahoo! – Steven Fan, Mobile Corp Dev

Cloud and Enterprise:

Autodesk – David Hindley, Sr Dir, Corp Dev Box – Niall Wall, SVP, Business and Corp Dev BMC Software – Clarence Hinton, VP, Corp Dev Citrix – Mike Cristinziano, Corp VP EMC – Matt Olton, SVP, Corp Dev IBM – Claudia Munce, VP, Strategy and Venture Salesforce – John Somorjai, SVP, Corp Dev Samsung – Kevin Morrow, VP, Partnership & Bus Dev SAP – Monty Gray, Corp Dev SAP Cloud – Roy Ng, SVP and COO Storm Ventures – Jason Lemkin, Managing Director