15 Stratton Street London W1J 8LQ, United Kingdom
10 rue du Mont Thabor
75001 Paris, France
October 23rd, 2012
Ad Tech Event London
Who IS CLIPPERTON FINANCE ?
Values TOMBSTONES
Multi-LOCAL Research
Who are We ?
TOMBSTONES
Multi-LOCAL Research
Independence Loyalty Intuitu Personae Selectiveness
Who are We ?
Values TOMBSTONES
Multi-LOCAL Research
Who are We ?
Values
Multi-LOCAL Research
$150 million
$10 million
Who are We ?
Values TOMBSTONES
Multi-LOCAL Research
Who are We ?
Values TOMBSTONES
Research
Who are We ?
Values TOMBSTONES
Multi-LOCAL Research
Who are We ?
Thought Leadership Transactions Research papers
SOCIAL GAMING Secondary placement
Seller Nicomvest
Online gaming
Social Casual Gaming
Social Mobile Gaming
Research paper on Social gaming
E-COMMERCE Acquires Social Commerce
Second hand fashion
Private Placement
eCommerce Private Sales
Research paper on EU E-Commerce (Groupe Casino)
Buy-Side
AD-TECH New TV sell-side platform
Audio Video Ad Server &
measurement
Nov-09 Travel Affiliation sold to Research paper on
Ad Technologies
Private Placement Buy-Side
Private Placement Private Placement
Private Placement Private Placement Private Placement
Sell-Side Sell-Side
Sell-Side
Why Focus on AD TECH & Online Advertising ?
2005 2011
0.9bn Internet Users 2.1bn +15% (worldwide)
0.16 Access POINTS 0.39 +16% (worldwide)
6h Time Spent Online 13h +14% (US)
18% Online Buyers 34% +11% (EU)
Strong & Steady Usage Growth… CAGR
2005-11
200320042005 2006 2007 2008 2009 2010 2011 2012 2013 2014
9 14 20 29 39
49 52 60
71 82
94 105
CAGR 2003-14 +25%
Online Advertising Revenue & Forecasts (2003-2014)
Source: Clipperton Finance analysis, JPMorgan, Zenithoptimedia
… Has Attracted an Increasing Amount of Advertising Dollars Online
2005 2006 2007 2008 2009 2010 2011 2012
1 6 6 5 3 5 3 3
19
39 52 57
31
51
62
35
… Which in turn Led to Sustained Investments (but subject to economic stress)
Q4’12 Est.
Private Placements in Digital Advertising Businesses (number of $10m+ transactions)
20
45
58 62
34
56
65
51
N.. America Europe
… AND An ever more
COMPLEX ECOSYSTEM!
Advertisers Publishers
Publishers
Publishers
Age
ncie
s
Ad Networks
Yesterday’s Ad Tech Ecosystem
Advertisers Publishers
Publishers
Publishers
Age
ncie
s
Ad Networks
Ad Exchanges
DSPs
Today’s Ad Tech Ecosystem
DMP
Ana
lytic
s
SSPs
Ad
Serv
ers
Ana
lytic
s
Ana
lytic
s
What Happens
NOW ?
INNOVATION Innovative tools
New formats
New devices
AUTOMATION Strong demand for automated solutions that increase overall market efficiency
CONSOLIDATION Ad tech space features active consolidation mechanics
What Trends are Driving the Market?
CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline”
CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline”
INNOVATION Innovative tools
New formats
New devices
AUTOMATION Strong demand for automated solutions that increase overall market efficiency
CONSOLIDATION Ad tech space features active consolidation mechanics
What Trends are Driving the Market?
New Tools Empower Advertisers
Sophisticated targeting & customization capabilities
Create tailored & highly-focused branding campaigns
Need for cross-media strategies
Branding campaigns lack adequate measuring tools
The typical indicators are suited for direct marketing, less for branding
TARGETING & Customization
Measurement & Analytics
New Formats: Video running the Show
Total InternetBrightRoll
Specific MediaADAP.TV
Google SitesTubeMogul
Tremor VideoVideology
SpotXchangeAuditude
Hulu
54% 42%
34% 31% 30%
24% 21% 20% 20%
17% 7%
… a segment in which Start-Ups have a card to play
Total Internet
/
$0
$5
$10
$15
$20
$25
$30
2010 2011 2012 2013 2014 2015 2016 2017
Video Rich media (excl. video)
Static image Text ads
Source: Forrester Research Online Display Advertising Forecast,
Display Advertising Market will be led by Video & Rich Media…
($B, 2010-2017) Video ad reach in the US – oct. 12
Source: Comscore
New Devices enable New Possibilities
Smartphone Tablet Connected TV
1.6 3.3
6.8
11.3
15.6
20.6 Rest of the world
+66% 5yr-CAGR
Source: Gartner, Deutsche Bank
Geo-localized Ads Interactive Formats LOCAL Ads In-App Display
New Possibilities in Sight
Augmented Reality …
Mobile Advertising Market ($B, 2010-2015)
INNOVATION Innovative tools
New formats
New devices
AUTOMATION Strong demand for automated solutions that increase overall market efficiency
CONSOLIDATION Ad tech space features active consolidation mechanics
What Trends are Driving the Market?
CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline”
Advertisers need greater confidence that their online investments are helping them achieve their brand goals. ”
“ Nielsen, “Beyond click & impressions”
“Interactive Is Ready To Lead Brand Campaigns”
It's time for marketers to wake up to the brand building potential of interactive channels because:
1. Interactive marketing is proven to create brand impact
2. Interactive tools offer marketers new ways to tell stories
3. People trust what they learn about brands online
“
”
Nate Elliott, Forrester:
The old model of branding revolves around TV*
TV
Performance Radio
Print Branding
Tomorrow’s branding model will be interactive
TV Performance
Radio Print
Branding Website
Internet Advertising
Internet Advertising
Source : Adaption of Nate Elliott’s diagram published in “The Interactive Brand Ecosystem”
INNOVATION Innovative tools
New formats
New devices
AUTOMATION Strong demand for automated solutions that increase overall market efficiency
CONSOLIDATION Ad tech space features active consolidation mechanics
What Trends are Driving the Market?
CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline”
The adoption of automated solutions
will wreak havoc on existing media-buying economics. ”
“ Shar VanBoskirk, FOrrester
Reallocation of Advertising Dollars: towards the Death of Ad Networks?
$5.00
$0,50
$2.00 $0.25 $0.35 $0.10
$1.80
Advertiser Agency AdNetwork
DataProvider
AdExchange
AdServing
Publisher
Current Value breakdown
(CPM, $)
An $10B+ opportunity?
Future breakdown: ad networks are gone ? (CPM, $)
$4,20
$0,40 $0.50
$0.75 $0.30 $0.10 $2,15
Advertiser Agency DSP DataProvider
AdExchange
AdServing
Publisher
Source : Tradedoubler “Digital Day”
Ad networks will transform or die. […] We bet broad, mass-reach ad networks will disappear as DSPs crush ad network margins.
“ ” Shar VanBoskirk, Forrester
INNOVATION Innovative tools
New formats
New devices
AUTOMATION Strong demand for automated solutions that increase overall market efficiency
CONSOLIDATION Ad tech space features active consolidation mechanics
What Trends are Driving the Market?
CONVERGENCE Convergence between “Performance” & “Branding” , Devices & Consumer “timeline”
Advertisers Publishers
Publishers
Publishers
Age
ncie
s
Ad Networks
Ad Exchanges
DSPs
Today’s Ad Tech Ecosystem
DMP
Ana
lytic
s
SSPs
Ad
Serv
ers
Ana
lytic
s
Ana
lytic
s
Publishers
Advertisers Publishers
Publishers
Age
ncie
s
Ad Networks
Ad Exchanges
DSPs
Today’s Ad Tech Ecosystem
DMP
Ana
lytic
s
SSPs
Ad
Serv
ers
Ana
lytic
s
Ana
lytic
s
1st Wave: 2007-2008
Ad Networks buy Ad Exchanges
2007
2008
2007
Publishers
Advertisers Publishers
Publishers
Age
ncie
s
Ad Networks
Ad Exchanges
Today’s Ad Tech Ecosystem
SSPs
Ad
Serv
ers
Ana
lytic
s
Ana
lytic
s
2nd Wave: 2009-2012
External Software Vendors Enter the Ad tech game
2009
2012
2012
Trad. Software Vendors
DSPs
DMP
Ana
lytic
s 2011
2009
Publishers
Advertisers Publishers
Publishers
Age
ncie
s
Ad Networks
Ad Exchanges
Today’s Ad Tech Ecosystem
SSPs
Ad
Serv
ers
Ana
lytic
s
Ana
lytic
s
DSPs
DMP
Ana
lytic
s 3rd Wave: 2013-2015
Vertical Consolidation Strategy?
Transversal Integration (mobile, video, …) ?
Continued Consolidation of Tools, SSPs/DSPs by Traditional Software Vendors. And more?
Total Funding (Venture, $m)
DEAL VALUE ($m)
CASH on CASH
buys 90 689
buys 18
buys 38 414 11x
buys 15 38 120 buys
Source: Thomson One, Venture Source, Crunchbase, Clipperton Finance estimates
Selected M&A transactions in Social Web
buys 33 300
- 59 buys
400 270
3x 27x 15x
9x 8x
buys 14 350 25x
buys 54 321 6x
-
Panel discussion
Jonathan Wolf Chief Product Officer
Martijn Hamann Partner - Board Director of Unruly,
Smartclip & Improve Digital
Mark Read CEO WPP Digital
Sorosh Tavakoli CEO