digital marketing industry review
TRANSCRIPT
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January 2013Digital Marketing Industry Review
Ken AllenManaging [email protected]
Rumena ManolovaAssociate
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Blackstone 1
Table of Contents
I. Executive Summary 2
II. Industry Themes 7III. M&A Perspectives 39
Appendix 51
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I. Executive Summary
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Blackstone 3
Summary ObservationsI. Executive Summary
The Digital Marketing
sector continues to
evolve, and is
becoming
increasingly strategic
to a large number
of ecosystem players.
The Digital Marketing Ecosystem Continues to Undergo a Significant
Transformation
Multi-decade transition from analog to digital
Audience-centric, cross-channel, data-driven, real-time
Growth in the Digital Marketing Industry is Being Driven by a Number of
Important Trends
Mobile, Social, Video, Audience Targeting / RTB, and Data / Analytics are critical capabilities
that have gained strategic importance in recent years
The Above Trends Have Catalyzed a Significant Wave of Consolidation in
the Industry
Leading strategic acquirers seeking growth have gained access to these capabilities through
inorganic expansion
Stack convergence is resulting in unified, multi-channel offerings fueled by data and analytics
Consolidation / M&A Will Continue to Define the New Digital
Marketing Ecosystem
Larger players will continue to leverage M&A as a means to unify the product suite, purchase
R&D, acquire talent, and, as a defensive measure, prevent strategic assets from falling into
the wrong hands
Strategic M&A has become a core capability and a source of competitive advantage for
many firms
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Blackstone 4
A Significant Shift Is Occurring in Online Marketing and Commerce Platforms
Marketing and eCommerce platforms are becoming increasingly integrated, supported by data and
analytics, and processed in real time.
Purchase
HistoryIntent
Social
Graph
Demo /
GeoPreferences
/ Likes
1 0 1 1 0 0 1 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 . . . Data . . . 1 0 1 1 0 0 1 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1
How We Decide How We Buy
Multi-ChannelEngagement
Multi-ChannelCommerce
Ecommerce
Auctions
Comparison
ShoppingMobile
Social
Flash Sales /
Daily Deals
TV
Direct MailCall
Center
Point of
Sale
Barcode
Digital
Goods
Search
Display
Mobile Social
Email
Local
Community
Branding
Print
Radio
TV
I. Executive Summary
Behavioral
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Blackstone 5
The Online Channel Represents the Sole Growth Vector in the Global Advertising Market
While currently smallest in size, the Online advertising market is vastly outpacing other channels in
terms of long-term growth.
________________________________________________
Source: Wall Street research, Bloomberg, eMarketer.
2011 Global Market Size ($bn) 2006 2011 CAGR Key Drivers and Themes
Online media becoming central pillar of advertisers marketing efforts Growth driven by increased Internet penetration, advanced technologies
(e.g., data analytics), and new forms of engagement (e.g., video)Advertisers demanding engagement across multiple screens
Persistent decline caused by secular disadvantages
Integration with digital channels (mobile, QR) and enhanced data
analytics capabilities becoming critical
Renewed interest in Direct Mail led by financial services, retail, and
automotive sectors
Rapid decline caused by secular disadvantages
Shift towards brochures, flyers, booklets, press kits; away from news
Increased integration with digital (QR, augmented reality, ambient)
Strength in local / national cable offset by decline in broadcast TV, radio,
and outdoor broadcast
Rapid growth of online video and radio creating competitive pressure
+14%
2%
(5%)
(6%)
($5)
($169)
($125)
($116)
($87)
Global Market Size
Online, 18%
Direct, 34%
Print, 23%
$497bn
Broadcast, 25%
I. Executive Summary
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Blackstone 6
I. Executive Summary
Key Industry Growth Drivers
A number of
important themes
are driving growth in
the Digital Marketing
ecosystem.
Mobile
Social
Video
Audience
Targeting / RTB
Data / Analytics
Consolidation /
M&A
$0
$10
$20
$30
$40
1995 1999 2003 2007 2012
________________________________________________
Note: Digital Advertising Revenue refers to U.S. spending; $ in billions.
Source: Business Insider, IAB, eMarketer, Blackstone.
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II. Industry Themes
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Blackstone 8
II. Industry Themes
Digital Marketing Industry Themes: Mobile
Mobile
Social
Video
Data / Analytics
Audience
Targeting / RTBConsolidation /
M&A
$0
$10
$20
$30
$40
1995 1999 2003 2007 2012
________________________________________________
Note: Digital Advertising Revenue refers to U.S. spending; $ in billions.
Source: Business Insider, IAB, eMarketer, Blackstone.
Social
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Blackstone 9
Mobile Endpoints Are Expected to Drive Significant Data Consumption and Advertising GrowthII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Social
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
CalloutThe proliferation of mobile devices, combined with the potential inherent in mobile targeting,
presents a significant market opportunity.
________________________________________________
Source: Wall Street research.
Evolution of Hardware Device Penetration(Millions in log scale)
Ad Conversion by Device Type
(Based on a scale of 100% for Desktop)
U.S. Net Mobile Ad Revenues
($ in millions)
There are currently 953mm smartphone subscriptions vs. 6.1bn mobile
subscriptions, representing a massive growth opportunity.
110%100%
107%100% 100% 100%
45%50%
90%
25% 27%
93%
17% 22%
68%
0%
20%
40%
60%
80%
100%
120%
Rev. Per Click Conv. Rate Avg. Order Value
iPad Desktop Android Tablet iPhone Android Phone
$0
$1,000
$2,000
$3,000
$4,000
2011 2012E 2013E 2014E
Google Facebook Twitter Apple (iAd) Other
68%
40%194%
85%57%
'11 - '14E CAGRMainframe
Mini
Computer
PC
Desktop
Internet
Mobile
Internet
0
1
10
100
1,000
10,000
100,000
1,000,000
1950 1970 1990 2010 2030
1MM+Units
10MM+Units
100MM+Units
1B+Units / Users
10B+Units?
Social
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Blackstone 10
Mobile Is Taking Share From all Other Media ChannelsII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Consumers are incorporating mobile in all aspects of their daily lives from social activities to
commerce and TV viewing.
Share of Consumer Time Spent with Major Media(1)
70% of users from mobile in 2011
________________________________________________
(1) Source: eMarketer, BII Research.
(2) Source: BII Research, Facebook, Enders Analysis.
45%
25%
17%
4%
9%
7%
44%
26%
16%
6%
8% 8%
43%
26%
15%
9%
7% 7%
42%
26%
14%
12%
6%5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
TV Online Radio Mobile Print Other
2009 2010 2011 2012
55% of users from mobile in 2011
85% of smartphone users access phoneswhile watching TV
~20% of shoppers scan a product barcodeand/or send product pictures to friends
and family
~56% of users from mobile in 2012
~1,000%YoY growth in users in Q3 2012
~1,100%YoY growth in users in Q4 2012
Metric(2)
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Social
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Blackstone 12
Smartphone Penetration in the U.S. Is Showing Signs of SaturationII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
As more than half of U.S. mobile subscribers now own smartphones, the pace of net new adds has
slowed down.
U.S. Smartphone Market: Year-Over-Year Net New Adds(Users in millions)
30% 38% 41% 44% 48% 50% 55%
% Smartphone Penetration(1)
________________________________________________
Source: comScore, Nielsen, BII Research.(1) Note: U.S. mobile subscribers 18+.
1210
13 1314 15
119 8
10
1821
27
29 29
35 3432 32
(40%)
(20%)
0%
20%
40%
60%
80%
100%
0
5
10
15
20
25
30
35
40
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012
3Q2013
Users Added % YoY Growth
Social
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Blackstone 13
Mobile Ad Revenues Have Exhibited Slower Growth Thus Far Relative to Other MediaII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Mobile advertising has grown more slowly than other media, as advertisers struggle to adopt the
right advertising model.
Comparative U.S. Advertising Media Annual $ Revenue Growth (First 5 years)($ in millions)
________________________________________________
Note: Adjusted for inflation.Source: IAB, McCann-Erickson, BIA-Kelsey, Bll Research.
$358
$1,012
$2,162 $2,162
$3,698
$80 $160$392
$806
$1,171
$55$267
$907
$1,920
$4,621
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
Year 1 Year 2 Year 3 Year 4 Year 5
Broadcast TV Mobile Internet
Social
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Blackstone 14
Mobile Ads Are Primarily Web Search and DisplayII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
2011 Global Mobile Ad Spend(1)
Search dominates mobile ad revenues; however, eCPMs are lower than Desktop. The two leading
smartphone platforms, Android and iPhone, garner the highest eCPMs.
Effective CPM, Desktop vs. Mobile(3)
$3.50
$0.75
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Desktop Internet Mobile Internet
________________________________________________
(1) Source: IAB, BII Research.(2) Source: Opera Software, Q2 2012.(3) Source: comScore, Vivaki, Mobclix Exchange, BII Research.
CPM Rates by Mobile Devices(2)
$0.20$0.59 $0.64
$1.01
$2.10
$2.85
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Windows
Phone
Symbian RIM J2ME /
others
Android iPhone
62%
28%
10%
Search
Display
Messaging
Social
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Blackstone 15
Native, Location-based, and Video Ads Represent the Next Big Opportunity in MobileII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Native, social, location-based, and video ads integrate more seamlessly in consumer mobile
experiences and have higher CPMs.
CPM Rate for Selected Mobile Ad Platforms(3)
Location-Based Ads(2)
(Monthly Ad Requests Per Mobile User by Location)
Ads in Timelines (Twitter / Facebook)(1)
________________________________________________
(1) Source: Twitter, Facebook.(2) Source: JiWire, 3Q 2012.(3) Source: Ad platforms, BII Research, Greg Sterling, Opus Research.
$10.00
$5.00
$5.00
$3.50
$0.0 $2.5 $5.0 $7.5 $10.0
Flurry Video Ads
Adsmobi Video Ads
LSN Mobile Local Ads
xAd Local
70 67 67
4737 39 35
27 24 23 160
15
30
45
60
75
Social
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Blackstone 16
Smartphone Users Spend More Time on Apps than on the WebII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
________________________________________________
(1) Source: Nielsen Smartphone Analytics, BII Research, Blackstone.(2) Source: iSuppli, Forrester Research, company press releases, BII Research.
0
20
40
60
80
100
120
140
Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
Mobile Web Apps
Total Time Spent Using Mobile Web vs. Apps(1)(Minutes Spent per Month in billions)
Apple dominates the mobile app revenue market.
2011 Mobile App Revenue Share(2)
83%
7%
10%
Apple iOS
Android
Other
Social
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Blackstone 17
Google Is the Overall Leader in Mobile Ad RevenuesII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
0%10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Google practically owns the mobile search market, and has steadily increased its revenue share
over time.
________________________________________________
(1) Source: BII Research, Blackstone.(2) Source: Global StatCounter, BII Research.
Google Global Mobile Search Market Share(2)
Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12
96% 96% 96% 97% 98% 98% 98% 98% 97% 97% 97% 97% 97% 97% 97% 97%
Other
Mobile Ad Revenue(1)(% of total)
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Blackstone 18
Digital Marketing Industry Themes: Social
Mobile
Social
Video
Audience
Targeting / RTB
Data / Analytics
Consolidation /
M&A
$0
$10
$20
$30
$40
1995 1999 2003 2007 2012
________________________________________________
Note: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone.
Social
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Blackstone 19
Social Networks Are Profoundly Changing How Consumers Discover and Interact with Brands
Traditional Marketing Funnel Social Media Marketing Loop
Interest
Decision
Action
Recomm-
endation
Awareness
Action
Decision
Interest
Awareness
________________________________________________
Source: eMarketer, Blackstone.
Social networks are becoming a primary source for consumers to discover new products, view peer
recommendations, and seek reviews. Innovations such as mobile check-ins and Facebook integration
with retailer sites have allowed consumers to take word-of-mouth marketing to a mass scale.
II. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Social
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2011 2012E 2013E 2014E
70.9% 68.8% 65.6% 63.5%
5.5% 8.3% 11.1% 12.7%
5.5% 6.7% 7.0% 7.4%
4.3% 5.3% 5.8% 6.1%
1.8% - - -
Total Top Five - % of Total Social 88.0% 89.1% 89.5% 89.7%
2011 2012E 2013E 2014E
14.0% 16.8% 17.7% 17.1%
13.8% 16.5% 19.8% 21.7%
10.8% 9.1% 8.1% 7.5%
4.5% 4.4% 4.3% 4.4%
4.3% 4.0% 3.8% 3.7%
Total Top Five - % of Total Display 47.4% 50.8% 53.7% 54.4%
The Shifting Display Ecosystem Has Resulted in Dramatic Share Shifts in Advertising
Underlying industry dynamics have resulted in significant display advertising share shifts from static,
non-targeted premium channels to RTB and Social formats.
________________________________________________
Source: eMarketer.
Net U.S. Online Display Ad Revenues(% of Total Display Ad Revenues, 2011 2014)
II. Industry Themes
Net U.S. Social Network Ad Spending(% of Total Social Ad Revenues, 2011 2014)
Social Games
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Social
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Blackstone 21
Facebook Represents an Exciting, Although As Yet Unproven, Advertising PlatformII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Facebooks data and potential targeting mechanisms hold significant promise for advertisers.
Marketer response, however, has been mixed thus far.
Targeting Channels
Targeting Mechanisms
Facebook
Online
Facebook
Mobile Apps
Zynga.com Smartphone
Apps
YOU
________________________________________________
Source: Blackstone, Wall Street Journal, Citigroup.
Facebook Targeting Framework
Demographic data
Personalinformation
Interest graph
Retargeting
Facebook
Newsfeed
Facebook
Exchange
Third-Party
Sites
Facebook Advertising Feedback from C-Level Executives(Based on Citigroup Facebook Advertiser Survey)
17.1%
44.5%
38.3%
Superior
About the Same
Inferior
Facebook Advertising ROI vs. Competitors(% Surveyed)
Primary customer data Facebook Advertising Partner View Facebook Advertising Partner View
CEO of Major eCommerce Platform Mixed CEO of Online Ad Agency Mixed
CEO of Leading Online Luxury
GoodsRetailerNegative
CEO of Large Online Ad Agency
GroupNegative
CEO of Digital Ad Agency Mixed CMO of Online Ad Agency Positive
Exec at Large Online Auction /
Commerce Site MixedCMO of Large Global Beverage
Company Positive
Exec at Large Online Community Site Negative CMO of Global Bank Mixed
Exec at Consumer / Business Printing
SiteMixed CMO of Leading CPG Company Mixed
Veteran Online Advertising Executive Negative CEO of Online Travel Company Negative
Exec at Online Ad Platform Positive CM O of Onl ine A utom otive R etai le r M ixed
CEO of Large Ad Agency Firm NegativeExec at Leading Hot Beverage
CompanyPositive
Exec at Large Ad Agency Firm Positive
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Blackstone 22
Digital Marketing Industry Themes: Video
Mobile
Social
Video
Audience
Targeting / RTB
Data / Analytics
Consolidation /
M&A
$0
$10
$20
$30
$40
1995 1999 2003 2007 2012
________________________________________________
Note: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone.
Social
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Blackstone 23
0
10
20
30
40
50
60
70
Midnight 2 AM 4 AM 6 AM 8 AM 10 AM 12 PM 2 PM 4 PM 6 PM 8 PM 10 PM
Online Becoming The New Primetime
A Huge Opportunity, One that Online Video Is Ideally-Suited to Target, Exists in Display & Brand Advertising
A significant gap exists between the relative share of online and offline branding, implying a $13.0bn
untapped market opportunity in the U.S. alone.
U.S. Market Opportunity (2011)($ in billions)
Branding(2)
[__]
Branding(2)
($125.0bn, 82%)
Implied
Gap
($13.0bn, 43%)
Direct
Response(1)
($27.0bn, 18%)
Direct
Response(1)
($19.0bn, 61%)
0%
25%
50%
75%
100%
U.S. Offline
Media Spend
U.S. Online
Media Spend
Branding(2)
($12.0bn, 39%)
$31.0bn$152.0bn
________________________________________________
Source: IAB, Wall Street research, comScore, Blackstone.(1) Offline DR includes direct mail and directories. Online DR includes classifieds, e-mail, lead generation, and search.(2) Offline Branding includes outdoor, print, radio, and TV. Online Branding includes banner ads, rich media, sponsorships, and video.
%People15+UsingMedium
Internet
TV
Prime Time
Harder to Reach Audiences in the New Media Model
TARGET AUDIENCE MEDIA
Tra
ditional
M
edia
Fewer ads Reached more people With undivided attention.
ADS
NewMedia
Reaching fewer peopleMore ads Paying less attention.
II. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Social
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Blackstone 24
Over-the-Top Video Is Reaching Mass Adoption
As consumers begin to view more content online, over-the-top video revenues are on the rise.
U.S. Primetime TV Viewing(1)
(% of 18-49 TV set users during 8-9 PM hour, multiple responses permitted) Global Digital Video Revenue(2)
($ in billions)
________________________________________________
(1) Source: GfK, BII Research.(2) Source: Company filings, Wall Street research, BII Research, Blackstone.
II. Industry Themes
82% 83%
64%
17% 16%
26%
6% 6%
8%
7%
0%
20%
40%
60%
80%
100%
120%
2004 2008 2012
Live TV Recorded TV
Video game Streaming video
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
2006 2007 2008 2009 2010 2011
Netfl ix Youtube Hulu
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Social
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Blackstone 25
48%47%
24%
21%
6%
15%
8%
5%5% 5%5%3%3%4%
0% 0%0%
10%
20%
30%
40%
50%
2011 2012E 2013E 2014E 2015E 2016E
Search Display
Video Classifieds and Directories
Lead Generation Rich Media
Sponsorships Email
40%
47%
38%
18%
17%14%
5%
21%
0%
10%
20%
30%
40%
50%
Broadcast Print Direct Online
Online Advertising Has Shown Robust Growth Over the Past Decade
Online advertising growth, which has averaged 18% per year over the past decade, has come mainly
at the expense of Print. In the future, Video is expected to be a major growth driver online.
________________________________________________
Source: Wall Street research, eMarketer.(1) Broadcast includes outdoor, radio, and television.(2) Print includes magazines and newspapers.(3) Direct includes direct mail and directories.(4) Online includes search, display, video, classifieds, lead generation, rich media, sponsorships, and e-mail.(5) Includes mobile advertising.
Historical U.S. Market Share by Channel Projected U.S. Online Advertising Market Share
(1) (2) (3) (4)
(5)
II. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Social
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Blackstone 26
Similar to Print a Decade Ago, TV is Ripe for Disruption
Google already generates almost as much U.S. ad revenue as all magazines and newspapers. The
Company is well positioned to take share from TV networks as more video content is consumed
online and becomes better monetized.
U.S. Ad Revenue(1)($ in billions)
Ad Loads, TV vs. Digital(2)(% share of programming)
________________________________________________
(1) Source: Google, NAA, PIB, BII Research.(2) Source: comScore, June 2012, BII Research.
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
2004 2005 2006 2007 2008 2009 2010 2011 1H2012
Google Magazines Newspapers
II. Industry Themes
92.1%
98.5%
75.2%
7.9%
1.5%
24.8%
0% 20% 40% 60% 80% 100%
Streaming TV Online
Online Video
TV
Content Ads
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
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Blackstone 27
Digital Marketing Industry Themes:Audience Targeting / Real-time Bidding (RTB)
Mobile
Social
Video
Audience
Targeting / RTB
Data / Analytics
Consolidation /
M&A
$0
$10
$20
$30
$40
1995 1999 2003 2007 2012
________________________________________________
Note: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone.
Mobile Video
Social
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The Display Markets Have Seen a Flood of Non-Premium Inventory That Is Less Attractive to BrandsII. Industry Themes
Mobile Video
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
The Display market has been driven by a rise in non-premium inventory, which has typically been
less attractive to brands and has resulted in pricing pressure for premium publishers.
U.S. Average CPM by Media Type
Denotes Average CPM
Broadcast TV
Cable TV
Syndication TV
Radio
Magazine
Newspaper
Out-of-Home
Internet (Display)
CPM $40
Online Video
Hulu
________________________________________________Source: Wall Street research, Blackstone.Note: Display inventory comprised of page views and ad coverage; pricing reflective of RPMs. Pricing reflectiveof the combination of CTRs and CPC.
Global Display Advertising has Seen a Flood of Inventory($ in billions)
Supply-Driven Demand-Driven
$17.1$7.4 ($1.3)
$23.1 $7.8
$1.2 $32.2
$0.0
$20.0
$40.0
$60.0
$80.0
2007 Inventory
(Supply)
Pricing
(Demand)
2010 Inventory
(Supply)
Pricing
(Demand)
2013E
Huge opportunity to increase
ad effectiveness through social
marketing / audience targeting
/ RTB
% Increase'07-'10E '10E-'13E
Supply 122% 87%
Demand (22%) 13%
________________________________________________Source: Media Dynamics, comScore, Wall Street research.Note: All media measured per adult, based on 2009 / 2010 rates; low estimates for traditional media include adsaimed at mass market (no demo targeting); average estimates for TV include 1) early am, 2) daytime, 3) early news,4) primetime, and 5) late evening and are based on upfront pricing.
Mobile Video
Social
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A New Display Advertising Ecosystem Is Emerging
________________________________________________
Source: Blackstone.
The Display ecosystem is increasingly integrated, data-driven, and real-time in nature.
Exchange Ecosystem
Demand-
Side
Platforms
Supply-
Side
Platforms
Data Integration / Aggregation / DMPs
Data Warehouse
Client / Primary Data
Third Party Data
Cloud / Edge Network / CDN
Publisher
Tools
Advertiser
Tools
Publishers
O&OPremium
Niche / Vertical
Social Networks
Video
Mobile
Proprietary
Networks
Format
Display
Search
AdSense
Rich Media
Online Video
Mobile
Social
TV
Radio (?)
Print (?)
Other (?)
Advertisers
Brand
Inventory
Format
Display
Search
AdSense
Rich Media
Online Video
Mobile
Infrastructure
Self-Service
Ad Platforms
SSPs
Optimization
/ Analytics
DSPs /
Targeting
Ad Campaign
Management
Marketing
Automation
Long-tail
Networks
Data
Management
Platforms
Ad
Exchanges
Infrastructure
Direct
Social
Direct
Optimization
/ Analytics
Media Buying
Platforms
II. Industry ThemesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Mobile Video
Social
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Q2 2012QoQ in
# of Advertisers
Major National 57% 30%
Internet Brand 29% 23%
Major Regional 11% 25%
Local Business 3% 49%
$1.0
$7.1
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
2011 2016
RTB Spending Is Growing Across All Major Ad Formats
While it has been used historically to auction remnant inventory, RTB has extended to premium
publishers, premium advertisers, and premium ad formats.
________________________________________________
Note: Includes all display formats served to all devices.Source: eMarketer.
U.S. Real-Time Bidding Digital Display Ad Spending($ in billions)
Types of Advertisers that Use RTB in North America
Key Drivers of RTB Spending
Maturation of Facebook Ad Exchange
Influx of Mobile and Video Inventory
Greater Availability of Premium Inventory
Demand for Increased Transparency
% of Total Display
Ad Spending8% 22%
II. Industry ThemesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Mobile Video
Social
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Ecommerce Players Are Also Disrupting the Display Ecosystem by Leveraging Data
Major eCommerce players have developed significant advertising businesses by harnessing their
unique data assets to target advertising to specific audiences.
U.S. Retailers: Total Ad Display Impressions (1)(In billions)
________________________________________________
(1) comScore, BII Research.(2) Amazon.com, BII Research.
Product Ads From External Websites(2)
II. Industry Themes
0.0
5.0
10.0
15.0
20.0
25.0
Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
Other
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
$40
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
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Digital Marketing Industry Themes: Data / Analytics
Mobile
Social
Video
Audience
Targeting / RTB
Data / Analytics
Consolidation /
M&A
$0
$10
$20
$30
$40
1995 1999 2003 2007 2012
________________________________________________
Note: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone.
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II. Industry Themes
The Internet Has Generated an Explosion of Unstructured Digital Content
________________________________________________
Source: Go-Globe.com
13,000+ hours
MUSIC
STREAMING
on
12,000+
NEW ADS
POSTED
on
370,000+
minutes
VOICE CALLS
on
320+ NEW
accounts
100+ NEW
accounts
The worlds
LARGEST
community
created content
1
NEW article
is published
associatedcontent
6,600+
NEW pictures
are uploaded on
125+
PLUGIN
downloads
510,040
COMMENTS
79,364
WALL POSTS
695,000+
STATUS
UPDATES
1,700+
DOWNLOADS
50+
DOWNLOADS
694,445
SEARCH
QUERIES
168 million
EMAILS
ARE SENT
60+
NEW BLOGS
1,500+
BLOG POSTS
70+DOMAINS
REGISTERED
600+
NEW VIDEOS
25+ hours
TOTAL DURATION
QUESTIONS
asked on the
internet
100+ 40+
Answers.com
13,000+
APPLICATIONS
DOWNLOADED
20,000+
NEWPOSTS on
1
NEWDEFINITION
is added on1,600+
READS ON
98,000+
TWEETS
Mobile Video
Social
$40
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Data Usage Is Projected to Continue to Grow ExponentiallyII. Industry Themes
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
1 9 95 1 9 9 9 2 0 0 3 2 0 0 7 2 0 12
In addition to massively increasing data volumes, the variety and complexity of data are
experiencing similar exponential growth. The explosion of data represents a tremendous
opportunity, and challenge, for marketers.
CAGR
(2010 2014E)
48.0%
22.0%
58.0%
Multiple Sources Contributing to Growth in Data
Megabytes
Big Data
Web
Segmentation
Offer Details
Customer Touches
Support Contacts
CRM
ERP
Purchase Detail
Purchase Record
Payment Record
A/B TestingDynamic Pricing
Web logsOffer History
Affiliate
Networks
Search
Marketing
Behavioral
Targeting
Dynamic
Funnels
Sensors / RFID / Devices
Mobile Web
User Click StreamSentiment
User
Generated
Content
Social
Interaction &
Fees
Spatial & GPS
Coordinates
External
Demographics
HD Video,
Audio,
Images
Speech to Text
Product /Service Logs
SMS / MMS
Gigabytes
Terabytes
Petabytes
Increasing Data Variety and Complexity
________________________________________________
Source: Cisco, Wall Street research, YouTube.
2.5 3.86.3 8.7 10.5
16.4
24.2
35.7
53.2
79.2
0
15
30
45
60
75
90
2005 2006 2007 2008 2009 2010 2011E 2012E2013E2014E
Unstructured Structured
Historical and Projected Data Growth(Exabytes)
Mobile Video
Social
$40
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Data Analytics, Mobile, and Social Are the Top Priorities of Todays CMOII. Industry Themes
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
1 9 95 1 9 9 9 2 0 0 3 2 0 0 7 2 0 12
________________________________________________
Source: IBM, eMarketer.
Analytics, social, and performance-based advertising are at the forefront of the CMO agenda.
Technology that CMOs Worldwide Plan to Increase Useof in the Next 3 5 Years(% Respondents)
Data-Driven Marketing
Transition to Performance-Based Advertising(% Channel Market Share)
Performance-Based CPM Hybrid
41% 41%47%
51%57% 59%
62% 65%
42% 46%
48%45%
39% 37%33% 31%
17%13%
5% 4% 4% 4% 5% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007 2008 2009 2010 201146%
56%61%
62%
63%
66%
68%
70%
72%73%
80%
81%
81%
82%
0% 15% 30% 45% 60% 75% 90%
Email Marketing
Score Cards / DashboardsCampaign Management
Search Engine Optimization
Reputation Management
Predictive Analytics
Collaboration Tools
Single View of Customer
Tablet ApplicationsContent Management
Mobile Applications
CRM
Customer Analytics
Social Media
Mobile Video
Social
$40
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Blackstone 36
Data Is Gaining Increased Importance in the Current Digital Marketing Landscape
Agencies
`
Enterprise CRM Marketing Software
3rd Party Data / Data Exchanges
(WPP)
Analytics, Optimization and Media Plan
Execution
(WPP)
(Omnicom)
Analytics
(IBM)
Networks / Exchanges
(Google)
Database Marketing
Brands / Primary Data
________________________________________________
Source: Blackstone, Gartner.
II. Industry ThemesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
$30
1 9 95 1 9 9 9 2 0 0 3 2 0 0 7 2 0 12
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Digital Marketing Industry Themes: Consolidation / M&A
Mobile
Social
Video
Audience
Targeting / RTB
Data / Analytics
Consolidation /
M&A
$0
$10
$20
$30
$40
1995 1999 2003 2007 2012
________________________________________________
Note: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone.
Mobile Video
Social
$30
$40
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Blackstone 38
Services
/
/ / /
Strategic M&A Activity Is Occurring on All Levels of the Digital Marketing Stack
Email Local Mobile Search Social Video
Optimization
Analytics
Data
//
//
/
/
/
/+
/ /
/
//
/
/
/
/
/ /
/
/
/
________________________________________________
Source: Capital IQ, Blackstone.
(Search partnership)
(Daily deal sites
consolidation)/
/
/ //
/
Display Email / MA Local Mobile Search Social Video
/
/
Platforms/
////
/
/
II. Industry ThemesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
//
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III. M&A Perspectives
Mobile Video
Social
$30
$40
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Blackstone 40
Summary Observations in Digital Marketing M&A
________________________________________________
Source: Blackstone.
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Strategic M&A is impacting every layer of the Digital Marketing stack.
The Digital Marketing Ecosystem Continues to Consolidate through Strategic M&A Marketers realize inherent value from the consolidation of multiple point products into an integrated offering
Market solutions evolving toward integrated CMO dashboards for executing cross-channel campaigns
Data, analytics, and automation are increasingly important components
Digital Marketing Strategic Activity is Concentrated Among a Relatively Small Number of Serial Acquirers
21 major market participants across 4 key sectors: Agencies, Software, Platforms, and Publishers
Others acquirers exist, but tend to make tuck-in buys in a sporadic fashion
Interest in Inorganic Expansion in the Digital Marketing Sector Has Broadened Beyond the Traditional Internet
Platform Players
Google, Yahoo!, Microsoft, AOL, WPP, and Publicis formerly viewed as the end-game
Strategic buyer ecosystem has broadened materially in recent years, most notably into the traditional horizontal software players
Strategic Activity Has Concentrated in a Handful of Hot Sectors of Late
Buyers continue to orient their M&A strategies around key growth sectors Data / Analytics, Social, Mobile, Content, eCommerce, and Digital Agencies have attracted significant investment
No Market Participant Has Assembled a Complete Stack Solution, as Yet
Google has made the most aggressive moves to-date
Adobe, IBM, Oracle, and Salesforce.com beginning to make interesting moves as they target the Marketing Cloud
i
Mobile Video
Social
$20
$30
$40
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Blackstone 41
295
179
214
321
519
570
614
674
758
960
845
(60.0%)
(30.0%)
0.0%
30.0%
60.0%
90.0%
0
200
400
600
800
1,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Number of Deals YoY % Change in # of Deals
$7$5
$13
$28
$36
$64
$27
$16
$15
$20
$32
$0
$25
$50
$75
$100
$125
$0
$15
$30
$45
$60
$75
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Deal Value ($ in Billions) Avg. Deal Size ($ in Millions)
Digital Marketing Strategic Activity: Historical PerspectiveIII. M&A Perspectives
________________________________________________
Note: Includes disclosed deal values only.Source: The 451 Group, Thomson Financial.
Audience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
$20
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Digital Marketing M&A activity has grown steadily post-2008 levels, from both a volume and
size perspective.
Transaction Volume# of Deals YoY % Change
Transaction ValueDeal Value, $bn Average Deal Size, $mm
III M&A P i
Mobile Video
Social
$20
$30
$40
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Blackstone 42
The Digital Marketing Stack Continues to Consolidate
A number of key players continue to consolidate the Digital Marketing stack through strategic M&A.
Digital Marketing Stack Key Industry Consolidations
Channels
Data / Analytics
Networks
Ad Servers and Exchanges
Search Display Video Mobile Social
Agencies
Software
Platforms
________________________________________________
Source: Blackstone.
EmailMarketing
Automation
Advertiser-Side
eCommerce Optimization SSPs Content
Publisher-Side Publishers
Digital Agencies
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
III M&A P ti
Mobile Video
Social
$20
$30
$40
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Blackstone 43
Agencies Software Platforms Publishers
Search
Display
Video
Mobile
Social
Email
Marketing
Automation
Data / Analytics
Networks
Ad Servers /
Exchanges
eCommerce
Optimization
SSPs
Content
Advertiser-Side
Digital Agencies
Software
Publisher-Side
Services
Digital Marketing Strategic M&A Chessboard: 20072012(1)
________________________________________________
Source: The 451 Group, Capital IQ, company websites and news releases.(1) Data represents strategic transactions in the Digital Marketing sector only.
= 1 Transaction
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
III M&A P ti
Mobile Video
Social
$20
$30
$40
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Strategic Buyer Observations
________________________________________________
Source: Blackstone.
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
The Digital Marketing ecosystem has changed dramatically as various players have increasingly
leveraged M&A as a strategic capability.
Buyers from Multiple Sectors are Converging on the Digital Marketing Opportunity
Agencies, Software, Platforms, and Publishers represent core segments of activity
Buyers, Historically, Have Tended to Stay Close to Home
Agencies have rarely bought technology
eCommerce and Publisher players have historically bought within their core sectors
A Small Number of True Stack Players Exist Google, Adobe are the furthest along; each has accomplished stack convergence, in part, through M&A of strategic capabilities
it did not own
Examples include Google buying into Display and Mobile, Adobe buying into Site Optimization and Video
Sector Cross-over is Beginning to Emerge
IT Services increasing Digital Marketing presence and vice-versa
Traditional horizontal software players moving aggressively into marketing vertical
Commerce players, such as Amazon, moving into Display Advertising (organically, thus far)
M&A is Becoming a Strategic Capability
Innovation is difficult for many large companies; M&A in the Digital Marketing sector has served as a method for strategics to acquire
R&D, key personnel, and expertise
Those companies who have been consistent and successful acquirers have tended to perform well financially and in the equity markets
III M&A Perspectives
Mobile Video
Social
$10
$20
$30
$40
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Blackstone 45
97
71
47
3129
16
98 8 6
2 1
37
20 2018 18
64
23
18
0
10
20
30
40
50
60
70
A Wide Range of Activity in the Digital Marketing Landscape Exists Across Market Participants
Number of Digital Marketing Transactions by Strategic Buyer(# of Deals, 2007-2012)
________________________________________________
Source: The 451 Group, Capital IQ, company websites and news releases.
Agencies Software Platforms Publishers
100
Strategic activity in Digital Marketing varies widely by participant. WPP, Microsoft, Google, and
Gannett lead their respective sectors in terms of the number of transactions completed.
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
$10
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
III M&A Perspectives
Mobile Video
Social
$10
$20
$30
$40
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Blackstone 46
Digital Marketing Strategic Activity Momentum by BuyerTwo-Year Perspective (2011 2012)
Deal momentum in the Digital Marketing sector varies considerably by participant.
________________________________________________
Source: The 451 Group, Capital IQ, company websites and news releases.Note: Position on timeline based on total number of transactions from 1/1/2011 to 12/31/2012 relative to peers within given s ector. Size of circle represents the aggregate total enterprise value of transactions by each company from
1/1/2011 to 12/31/2012, relative to peers within given sector. Transactions with undisclosed enterprise value are assumed to contribute a size of $25mm to the aggregate total enterprise va lue.
Agencies
Softw
are
Platforms
Publishers
Low High
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
III M&A Perspectives
Mobile Video
Social
$10
$20
$30
$40
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Blackstone 47
Valuation Trends
________________________________________________
Source: Blackstone.
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Valuations in Digital Marketing are driven by growth, scalability, scarcity, synergy potential / fit, and
a competitive dynamic among the relevant buyer universe.
Divergence Exists in the Multiples Paid by Various M&A Participants
Platform and Software players have paid nearly 2x the multiple of Publishers and Agencies, on average
Valuations in Digital Marketing are a Function of Growth and Scalability
Interactive agencies and other services businesses tend to have low margins, lower growth and low scalability, and as such achieve
lower multiples
Software and platform companies tend to trade at high multiples due to above average growth prospects and higher profitability
Strategic Assets Command Strategic Valuations
Assets in sectors viewed as being highly strategic, such as mobile and social, command premium valuations
Scarce assets that either have achieved scale in a sector, or have a differentiated and strategic technology also command a valuation
premium
YouTube, Admob, Buddy Media represent notable examples
Other key valuation drivers include: fostering a competitive dynamic among relevant buyers, synergies, and defensive reasons
Google has been the Most Prolific and Aggressive Acquirer
37 deals across nearly every segment of the stack
Highest aggregate value and multiple paid (for disclosed deals)
III M&A Perspectives
Mobile Video
Social
$10
$20
$30
$40
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Blackstone 48
0x
2x
4x
6x
8x
10x
12x
14x
16x
18x
20x
0 10 20 30 40 50 60 70 80 90 100 110
MedianTransaction
TEV/LTM
Revenue
Total # of Transactions
Valuation Trends: 20072012(1)
________________________________________________
Source: The 451 Group, Capital IQ, company websites and news releases.Note: Size of circle represents the aggregate total enterprise value of transactions by each company. Transactions with undisclosed enterprise value are assumed to contribute a size of $25mm to the aggregate total enterprise value.Facebook, IPG, and Omnicom excluded from graph due to unavailable transaction enterprise value data; total number of deals for Facebook, IPG, and Omnicom: 6, 29, and 31, respectively.(1) Data represents strategic transactions in the Digital Marketing sector only.
Agencies Software Media Platforms Publishers
Digital Marketing Transactions by Valuation Multiple and Size = $500 million
$ in millions Summary Statistics
# of Deals Agg. Enterprise Value Avg. EV per Deal Median Multiple
Agencies 275 $18,923 $69 2.4xSoftware 50 19,921 398 5.2x
Platforms 123 19,271 157 6.7x
Publishers 41 4,059 99 3.5x
Total 489 $62,174 $127 4.4x
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
III M&A Perspectives
Mobile Video
Social
$0
$10
$20
$30
$40
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Blackstone 49
Sector Observations
________________________________________________
Source: Blackstone.
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
$0
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
Digital Marketing strategic M&A is concentrated along a number of key sectors and themes.
The Global Roll-up of Digital Agencies Continues
Acquisitions in the sector tend to be of relatively small agencies (
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Blackstone 50
272
20
12
75
3 3 2
23
14
4
66
49
8
1
0
10
20
30
40
50
60
70
Digital
Agencies
Mobile
Social
Search
Marketing
Automation
Video
Display
Email
Data/Analytics
Networks
AdServers/
Exchanges
Content
eCommerce
Optimization
SSPs
Strategic Activity in Digital Marketing Varies Widely by Sector
Advertiser-Side Publisher-Side
280
SoftwareServices
Number of Transactions by Target Sector(# of Deals, 2007-2012)
________________________________________________
Source: The 451 Group, Capital IQ, company websites and news releases.
The highest volume of Digital Marketing transactions exists in the Digital Agency, Mobile, Social,
Data / Analytics, Content, and eCommerce sectors.
III. M&A PerspectivesAudience
Targeting/
RTB
Consolidation
/M&A
Dat a/
Analytics
1 9 95 1 9 99 2 0 0 3 2 0 0 7 2 0 1 2
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Appendix
Appendix
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Biography:Ken Allen
Ken Allen
Managing Director
Ken Allen is a Managing Director in Blackstone Advisory Partners L.P., is a founding member of
Blackstones Technology M&A practice, and leads the firms Digital Marketing and Cloud Computing
Advisory efforts.
Mr. Allen has advised hundreds of companies in his 15 years in the industry, and has successfully
executed M&A transactions having an aggregate value of over $10 billion.
Notable transactions Mr. Allen has advised on include Publicis $530 million acquisition of Razorfish
from Microsoft, OrangeSodas sale to Deluxe Corporation, ClickSquareds Series C Private
Placement, Sapient's acquisitions of The Nitro Group and Derivatives Consulting Group,
Compellents $960 million sale to Dell, Xerox's $8.3 billion acquisition of ACS, and the 190 million
sale of Xafinity to Advent International.
Prior to joining Blackstone in 2007, Mr. Allen worked in Deutsche Bank's Technology Group, where
he focused on mergers and acquisitions, leveraged recapitalizations, leveraged buyouts, and equity
financings for a range of companies including Infosys, Ciena, Intralinks, WNS, Stratus Technologies,
Allot Communications, and Interwise.
Mr. Allen received an MBA from the Tuck School of Business at Dartmouth, where he graduated asa Tuck Scholar. He also received his BE from Dartmouth in Electrical Engineering, where he
graduated with summa cum laude and Phi Beta Kappa honors.
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