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OUTLOOK ON ONLINE DISPLAY ADVERTISING TRENDS
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© 2012 Clipperton Finance Limited.
PARIS: 10 Rue Du Mont Thabor, Paris 75001
LONDON: 15 Stratton Street, London, W1J 8LQ
Clipperton Ad-Tech White Paper
PART I:
OUTLOOK ON ONLINE DISPLAY ADVERTISING TRENDS
September, 2012
Nicolas von Bülow, [email protected]
Antoine Ganancia, [email protected]
L O N D O N
P A R I S
Clipperton Finance is a leading European corporate finance
boutique exclusively dedicated to the HighTech and Media
industries. Clipperton Finance advises high growth
companies on financial transactions, fundraisings, capital
increases and Mergers & Acquisitions. With a team based in
London and Paris and an international reach, Clipperton
Finance is a European leader in the sector.
About Clipperton Finance
LONDON: 15 Stratton Street, London, W1J 8LQ
PARIS: 10 Rue Du Mont Thabor, Paris 75001
Disclaimer:This document has been produced by Clipperton Finance (“Clipperton”) and is communicated to you solely for your information and
should not be construed as a solicitation or offer to buy or sell any securities or related financial instruments. See more details page 50.
Clipperton Finance Limited is authorised and regulated by the Financial Services Authority. Registered No. 523695
© 2012 Clipperton Finance Limited.
New Players
Untapped
Potential
2
Executive Summary
� Online Advertising Spending have displayed insolent growth over the last 10 years and analysts
expect this trend to continue
� But a large discrepancy persists between Internet time allocation in total “media time” & online
advertising revenues…
� Online advertising growth has been historically led by performance-based marketing
� We believe that tapping into the huge reservoir of “branding-oriented” marketing spend
will be key in closing the media discrepancy
� This will be done by further blurring the lines between branding & performance marketing
through the use of innovative formats, measuring technologies and improved targeting
We have selected a list of European ad tech companies that will be contenders in the
coming battles. Question is: who will emerge as winners and leverage the vast
inefficiencies of today’s online advertisement market?
Insolent
Growth
© 2012 Clipperton Finance Limited.
Table of Content
3
I. Overview of Internet Display Ad Spending
II. Which Levers to Close the Media Time vs Ad Spend Discrepancy ?
III. Notable Transactions in Ad Tech Landscape
IV. Focus on Key European Players
V. About Clipperton Finance
© 2012 Clipperton Finance Limited.
4
CAGR 02-11:
+24%
� Online advertising spending has grown by a factor of 7x between 2002 and 2011
� Forecasts predict double digit growth in online ad expenditure reaching close to $100B in 2014
� The leading segment in online advertising remains “search” (~60% vs. ~40% for display), a segment dominated by
Google. Analysts expect the current split between search and display to remain constant until 2014
Source: Zenithoptimedia, JPMorgan "Nothing But Net"
CAGR 12-14:
+17%
Online Advertising Spending has exhibited strong growth over recent years
© 2012 Clipperton Finance Limited.
This growth largely stems from strong market pull
5
Internet Smartphones Tablets
>2,2x in 5 years
� Internet audience and usage are growing at a fast pace, a mechanic pull factor on online advertising
� In 2011, 2 billion individuals used the Internet on a regular basis, representing a 30% global online penetration
� The increasingly ubiquitous nature of the Internet supports the growth in time spent online by each individual
Ever more Internet users… … browsing from more devices… … and spending more time online1 32
Source: World Bank Source: Forrester ResearchSource: Clipperton Finance analysis, World Bank, Nielsen
© 2012 Clipperton Finance Limited.
345
100
341
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Internet usage seems to be growing at the same pace as online ad spending
An increasing number of Internet users in the world
A growing number
of access points
An increasing
amount of time
spent online
Ad Spending & Pages Viewed growth is very similar (base 100 in 2002)
Pages Viewed
Display Ad Spending
Source: Clipperton Finance analysis, JPMorgan, Zenithoptimedia
1
3
2
Usage = market pull
6
© 2012 Clipperton Finance Limited.
But…
… Page Views is of course far too
rudimentary as a metric to gauge
the Internet advertising potential
7
© 2012 Clipperton Finance Limited.
How big is the discrepancy between Internet usage time & online advertising
revenue?
8
� Internet displays a low time to
advertising spending ratio
compared to traditional media
� For a given amount of time,
mature media like TV,
newspapers or radio show
higher monetization:
�Newspapers feature a time
to ads spending 5x higher
than Internet
� TV time to ads ratio is 2x
higher
Momentum
2010 Media Time vs Ad Spending discrepancy
Source: Clipperton Finance analysis, Forrester, Magna Global, IAB, Barclays Capital
Discrepancy
© 2012 Clipperton Finance Limited.
So…
… Is today’s Internet usage truly
comparable to traditional media
such as TV and radio?
9
© 2012 Clipperton Finance Limited.
Problem: Internet doesn’t fit the traditional definition of media
� The Internet has long surpassed its initial function as pure “media” delivery tool to become a fully-fledged and
multi-faceted digital replication of the traditional world where one can communicate with friends, networks and
professionals, watch videos, work, spend money, create, learn, consume media and services
Transactions
� E-Commerce mimics/improves the traditional shopping experience
� Advertising is not the business model of transaction sites and their
audience will remain hard to monetize with traditional advertising
Productivity
� Productivity usage doesn’t offer favourable ground for advertisers
� Mail services like Yahoo or Gmail monetize via ad placement but mostly
serve as entry doors to more lucrative adjacent services
Social
Interactions
� Social Networks have enabled and expanded online social interactions of
all types and natures
� Although SNs account for a large amount of online display ads, total time
spent on SN far exceeds the allocated proportion of ad spending
� Value of basic ads on SN is structurally lower than on premium media
� But social targeting can lead to massive conversion value
10
© 2012 Clipperton Finance Limited.
Top sites are not necessarily “advertisable”
One third of Top 50 US sites are not available to advertisers
Top 50 US Properties 2011
� In 2011, as much as 27% of the
top 50 US properties were non
ad-based or marginally only
� Hardly accessible to advertisers
with conventional advertising
� Time spent online is not
necessarily “media-related”
� Users make significantly
broader use of the Internet
and “non-media” time also
needs to be taken into account
Source: Comscore
* Amazon Sites include pure media ad-based
sites + performance based product advertising
A significant portion of
Top 50 sites are not ad-
based (or marginally)
11
Rank Property
1 Google Sites
2 Microsoft Sites
3 Yahoo! Sites
4 Facebook.com
5 Amazon Sites
6 AOL, Inc.
7 Ask Network
8 Turner Digital
9 Wikimedia Sites
10 Glam Media
11 CBS Interactive
12 NYTimes Digital
13 Apple Inc.
14 Viacom Digital
15 eBay
49 WebMD Health
50 Technorati Media
© 2012 Clipperton Finance Limited.
Half of the time spent online is not advertisement friendly
• Internet users are only receptive to ads for
less than 50% of the time they spend online
• Contrary to conventional wisdom, media-
related activity conducted through the
Internet is relatively limited
… and the surge of mobile has a two-fold negative
effect on branding advertising:
1. It drives the amount of time devoted to media-
related activity even lower
2. Screen-size is not well adapted to Branding ads
Source: Clipperton Finance Analysis, Nielsen
12
Ad Friendly Not Ad Friendly
Ad Friendly Not Ad Friendly
© 2012 Clipperton Finance Limited.
Addressable
Discrepancy
So what’s the real opportunity?
13
� Online usage is always expanding to new activities,
meaning new pools and forms of audience
� Successfully bridging the discrepancy will be supported by
technology to better adapt to use cases (multi-device,
video, e-commerce), objectives (Branding/Direct Response)
and consumer experience (far too sacrificed today)
� The opportunity is massive to further pull branding dollars
into online advertising:
� Value: a multi-billion dollar addressable market
� Differentiation: by addressing more effectively the
needs of advertisers and consumers, new business
models and new players will come up, new leaders
will emerge
A golden opportunity to grab
Source: Clipperton Finance analysis
Total
Discrepancy
© 2012 Clipperton Finance Limited.
Although only a portion of the
media time / Ad spending
discrepancy can be addressed, it
still makes a massive opportunity
14
© 2012 Clipperton Finance Limited.
Table of Content
15
I. Overview of Internet Display Ad Spending
II. Which Levers to Close the Media Time vs Ad Spend Discrepancy ?
III. Notable Transactions in Ad Tech Landscape
IV. Focus on Key European Players
V. About Clipperton Finance
© 2012 Clipperton Finance Limited.
ADVERTISER PUSH
Future growth will be driven by 2 key drivers: Market Pull & Advertising Push
MARKET PULL
+
� Strong and robust growth in Internet usage will
continue to create a pull effect on online
advertising investments
� New consumer-led Internet usage (mobile,
video) will open more innovative ad placement
� Push through innovation: tools, exchanges,
measurement and formats
� Will performance and branding grow closer?
� “Branding”: historically less
performance based and home turf of
traditional media and agencies
� “Direct response”: historically brutal
and ROI driven. But consumers grow
more complex
Ad Spending
Internet Usage
Will Ad Spending manage to outgrow usage?
2
� Ad spending and Internet usage have been growing at the same pace
� Push drivers will be key to further fuelling growth in online spend
So
urce
: Clip
pe
rton
Fin
an
ce a
na
lysis, JP
Mo
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en
itho
ptim
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ia
16
1
© 2012 Clipperton Finance Limited.
1- Branding has yet to become a growth driver – The US example
17
Source: Brand.net analysis, Barclays Capital, Think Equity Partners and DMA
$91B(62%)
$55B(38%)
$18B(75%)
$6B (25%)
Bra
nd
ing
Dir
ect
R
esp
on
se
2009 US Total Media Spend: $147B
Online = 6% of Branding spending
Online = 33% of Direct Response
spending
� Internet differs from traditional media in terms of
“Branding” vs. “Direct Response” structure:
� Branding = 60%+ of all ad spending…
� … but only 25% of online ad spending
5%
<4pt
>7pt
16%
2009
Direct Response
Branding
� “Branding” contribution to online penetration is limited
� Growth in online advertising has been historically led by direct
response marketing:
� one to one user link allowed for performance based marketing
� Search as key growth driver, rather than display
2003
Source: Clipperton Finance Analysis, TNS Media Intelligence, IAB, JP Morgan
Online Advertising Penetration Growth Break-down (US)
2009 US
Online Media Spend:$24B (16% of total Ad Spending)
© 2012 Clipperton Finance Limited.
2- Direct Response growth will continue to be challenged by a declining CTRs
0.34%
0.25%
0.20%0.20%
0.12%0.09% 0.09%
0.07%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Standard Banner CTR Evolution
Source: Comscore May 2010
Social Netw. yield poor CPM rates Traditional display out-dated More ads displayed per page
WHY?
$2.43 $2.99
$0.53
Average CPM Avg CPM w/o
Social Networks
� Social networks dragging global
CPM down due to very low CTRs
� Traditional ad formats and
placements have led to increasing
“ad blindness”
� Urgent need to push innovative
formats, placement and targeting
to sustain reasonable CTR
� Endorsement by the market
(advertisers, agencies, etc.) is key
US Growth ‘09-’10
Ad Impressions +23%
Pages Views +10%
� Ad Impressions are growing 2x
faster than content
� Further pushes for lower CTRs
Source: CF analysis, Comscore, Zenithoptimedia
Source: Clipperton Finance Analysis, MediaMind, eMarketer, Pearson
18
© 2012 Clipperton Finance Limited.
So, what will be done to sustain
and accelerate the growth of
online advertising?
19
© 2012 Clipperton Finance Limited.
1- Direct Response: How can advertisers improve CTR ?
0.07% 0.10%0.25%
0.50%
Standard
Banner
Interest-Based Contextual Retargeting
Targeting
Tools
� New ad technology enables advertisers to better target their
audience which ultimately leads to higher CTRs
Sources : Clipperton Analysis, MediaMind Research
DoubleClick for Advertisers, Criteo
1- Direct Response
0.07% 0.19% 0.17%
1.19%
0.16%
Standard
Banner
Expandable
Banner
Expandable
Strip
Floating
Expandable
Push Down
Banner
Ad Formats
� Higher Performance: Rich Media ads outperform standard banner
with higher CTR and engagement rates
� User experience: Rich Media ads do not force the user to leave
the site
Rich Media
0.07%
0.61%
Standard Banner Mobile Standard Banner
Access Points
� Studies have shown that display ads have a much higher CTR on
alternative devices like mobile phones or tablets
� These devices are gaining a lot of traction from users at the
moment but will it be enough to sustain global CTR?
20
Click Through Rate (US)
© 2012 Clipperton Finance Limited.
2- Branding: What are the untapped growth drivers ?
Rich Ad
Formats
Source : Forrester Research
� Higher interaction rate: Increased interaction delivers significant
uplifts in brand awareness, message association and purchase intent
� Brand awareness: Rich Media ads increase brand awareness for
online advertisers more effectively than other online ad formats
� Rich Media ads are measurable and scalable: Rich Media ads can
empower advertisers to track and measure a variety of important
browsing behaviors (beyond traditional CTR & impressions)
New
Measuring
Tools
� Branding campaigns lack adequate measuring tools
� The typical indicators used online (CTR, CPA, conversion rate, etc)
are suited for direct marketing and e-commerce, not for branding
� New branding-focused players are emerging
� Integrated campaigns are becoming common (TV and online). There
is a need for cross-media strategies
2- Branding
“ARS Persuasion Score”
“Netratings measurement”
Innovative
Contextual/
Targeting Tools
� Digital technologies offer more sophisticated targeting
& customization capabilities than traditional media
� Ad Tech players need to leverage these possibilities to
create tailored & highly-focused branding campaigns
21
© 2012 Clipperton Finance Limited.
Conclusion
Take-aways on Online Advertising Trends (1)
22
� Online advertising has been primarily driven by performance-based marketing
� Direct response spending will continue to grow, both mechanically and thanks
to new avenues for innovation and improved, deeper analytics tools
Opportunity � Online video streaming
� Mobile video
� Catch-Up TV
� Commoditisation of IPTV
� Connected TVs (Google TV, Apple TV, proprietary OS, …)
Branding
&
Performance
Convergence
� But Internet will aggressively tap into the huge reservoir of branding-
oriented marketing spend…
� ... and technology will push for refined measurement and
performance-based branding offerings
� Momentum shift: new generations of technologies, improved standardization, decline of
traditional players and maturing executives should further accelerate changes
� As the distinction between TV and the Internet continues to blur, we expect the main
growth driver of this evolution will be video in the broad sense:
© 2012 Clipperton Finance Limited.
Take-aways on Online Advertising Trends (2)
23
Open
Questions
� Closing the media time vs online advertising discrepancy means leveraging new
technologies and formats to further develop and standardize a comprehensive set of
measurement tools. Who will be able to achieve this?
� Will traditional online ad performance tools like CTR, CPC
or CPA slowly be put aside?
� Can branding-based spending ever reach the same
market share as in traditional media?
How blurry will the boundary between performance
and branding be?
� Leaders of the first online advertisement generation or new comers?
© 2012 Clipperton Finance Limited.
Table of Content
24
I. Overview of Internet Display Ad Spending
II. Which Levers to Close the Media Time vs Ad Spend Discrepancy ?
III. Notable Transactions in Ad Tech Landscape
IV. Focus on Key European Players
V. About Clipperton Finance
© 2012 Clipperton Finance Limited.
Selected M&A transactions – 2011/12
Target Acquirer Deal Value
Target Rev
EV/RevDate Rationale
� Leverage Yahoo’s reach with improved targetingtechnologies
� Optimize Yahoo’s advertising strategy with conciseaudience data and analytics
Nov-11 $270m $130m 2xAd network
� Expand Adconion’s inventory with Smartclipnetwork of in-stream and connected TVdistribution partners
� Accelerate Adconion’s deployment in Europeanemerging markets
Video ad network
Nov-11
� Benefit from enhanced multi-channel analyticsand campaigns optimization solutions to challengeComscore offer
� Add social advertising buying capability for FB
Nov-11
Ad exchange / Social Mkt
c$400m $60-80m 5-6x
- - -
- - -
� Build a total customer experience managementsolution to stay competitive after Oracleacquisition of Vitrue
Jun-12 $745m $100m (est. 2012 rev.)
7xSocial marketing
Ad Effectiveness Measurement
� Vizu acquisition will complement Nielsen's cross-platform advertising solutions by adding real-timeonline effectiveness measurement.
� Real-time data will improve advertising efficiencyby enabling in-flight optimization.
Jul-12
� Vitrue offers customers an unified experience forsocial marketing campaigns
� Secure a first-mover position in the socialmarketing space
May-11 $300m 3xSocial marketing
$100m (est. 2012 rev.)
25
© 2012 Clipperton Finance Limited.
Selected M&A transactions – 2011/12
Target AcquirerDate RationaleDeal Value
Target Rev EV/Rev
26
� Consolidate Velti’s mobile advertising dominancein Europe by acquiring MIG rich client base(Vodafone, Skype, M&S …)
� Use Velti’s recent acquisition of Zaypay to leverageMIG m-commerce and billing techs
Nov-11 $59m $20m 3xMobile Solutions
� Build an all-in-one solution for advertisers
� Tap into branding-focus players’ offline spendingby providing them with adequate measuring &verification tools
Aug-11 $30m $5m 6xAd Verification
� Expand TV business online to lever existing client-base
� Generate value by enabling easier cross-mediacampaigns for advertisers
Jun-11 $414m $100m 4xAd Campaign Mngt
� Following Omniture acquisition, Adobe adds abehavioral targeting brick to its Online MarketingSuite
� Compete with Comscore to become a majorplayer in the high-end “Swiss army knife”advertising solution
Jan-11
Behavioral Data
� Strengthen Adobe’s Digital Marketing division(after Omniture acquisition)
� Adobe is able to offer an end-to-end solution onthe video segment (from creation to broadcastingto monetizing)
Nov-11 $120m - -Video Monetization
c$60m - -
© 2012 Clipperton Finance Limited.
Selected European Adtech Fundraisings – 2011/12
27Source : Thomson One Banker, Press Releases >€10m
Invest.
DateCompany Name Nat.
Founded
YearDescription Investors
Sum Invested
(M€)
Sep-12 Mister Bell DE 2010 Ad Network A+ Finance, Omnes Capital 3.5
Sep-12 Gamned FR 2009 Ad exchange platform Individual (Fréderic Chevalier) 1.5
Aug-12 Semasio DE 2010 Ad data platform Bertelsmann DMI, Holtzbrinck, Project A, Gründerfonds n.a.
Jul-12 Widespace SW 2007 Premium mobile advertising network Northzone, Industrifonden 3
Jun-12 Kiosked SW 2010 Content activation platform Individual (Rovio Chairman) 5
Jun-12 Ividence FR 2008 Innovative solutions fo E-mailing Campains Omnes Capital, A Plus Finance 3
Apr-12 Les Nuages FR 2011 Digital and mobile marketing Sigma Gestion, Promelys Participations 2
Apr-12 Adeven DE 2012 Mobile analytics & ad verification Target Partners n.a.
Apr-12 TAPTAP Networks SP 2010 Premium mobile advertising network Nauta Capital, Undisclosed Firm 3.5
Mar-12 MyThings UK 2005 Personalized display advertising T-Venture, Iris Capital, Carmel Ventures, Accel 12
Jan-12 Crossvertise DE 2011 Cross-media advertising marketplace High-Tech Gruenderfonds, Bamboo Ventures 1
Jan-12 Brainient UK 2008 Interactive video advertising platform Credo Ventures, Atlas Venture, Estag Capital, 500 Startups 1.4
Jan-12 StrikeAd UK 2010 Mobile demand side platform DFJ Esprit 2.4
Jan-12 Unruly Media UK 2006 Social video advertising platform Van den Ende & Deitmers, Business Growth Fund, Amadeus 19
Jan-12 VideoPlaza SW 2007 Video ad-serving Innovacom, Qualcomm 10
Nov-11 MNGMobile Network Group FR 2003 Mobile marketing solutions TIME Equity Partners 4
Nov-11 Skimbit UK 2008 Affiliate marketing 500 Startups , Sussex Place Ventures , NESTA, Bertelsman 3.5
Nov-11 MADS BV NL 2006 Targeted campains for mobile OTM Investments BV 1
Oct-11 madvertise DE 2008 Mobile ad network Blumberg Capital Ventures, Earlybird Venture Capital 8
Sep-11 AD4SCREEN FR 2010 Performance network for mobile ads Backbone, Undisclosed Firm 4.5
Sep-11 Apprupt DE 2008 Performance network for mobile ads T-Venture Holding, Neuhaus Partners n.a
Sep-11 Ezakus FR 2010 Audience targeting service Idinvest Partners SA 2
Aug-11 Ebuzzing (former Wikio) LX 2006 Platform for seeding branded content Lightspeed Venture Partners , GIMV, Gemini Israel Funds 17
Aug-11 Brandtone IR 2009 Voice-based mobile platform Enterprise Ireland , Unilever Ventures, Verlinvest, Vision 10
Jul-11 SupersonicAds UK 2008 Social in-game advertising platform Greylock Partners 3
Jun-11 Burt SW 2009 Analytics and data technology Stiftelsen Industrifonden, Undisclosed Firm 1.6
May-11 Next Performance FR 2008 Retargeting Solutions Kennet Partners 16
Mar-11 Qriously UK 2010 Real-time public sentiment Accel Partners, Undisclosed Firms 1.2
Feb-11 SponsorPay DE 2009 Cross-platform advertising solution Hasso Plattner, Kite, Nokia Growth, Team Europe, IBB 4
Feb-11 Applifier FIN 2008 Cross-promotion network for social games & apps Individuals, Lifeline, MHS, PROfounders, Tekes 1.6
Jan-11 Celltick UK 2000 Mobile marketing solutions Amadeus Capital Partners, Elwin Capital, Noventi 6
© 2012 Clipperton Finance Limited.
Listed Advertising Comparables: Aging Models Lead to Low Valuations
amongst Listed Web Medias Companies
28
Scale 1,000,000
Currency USD
Name Ticker Count.Last Period
End Date
Market Cap -
Consolidated
Enterprise
Value
Sales
TTM
Sales
2012E
Sales
Year/Year
EBITDA
TTM
EBITDA
2012E
EBITDA
Margin%¹
EV/Sales
TTM
EV/Sales
2012E
EV/EBITDA
TTM
EV/EBITDA
2012E
GOOGLE GOOG-US USA Jun-12 226,369 189,043 43,018 42,769 29.6% 14,235.00 19,257.2 33.1% 4.4x 4.4x 13x 10x
FACEBOOK FB-O USA Jun-12 41,626 32,144 4,327 4,925 53.2% 1,050.00 2,655.2 24.3% 7.4x 6.5x 31x 12x
BAIDU BIDU-US CHN 37,470 35,470 2,895 3,586 (4.5%) 1,660.00 2,007.2 57.3% 12.3x 9.9x 21x 18x
YAHOO! YHOO-O USA Jun-12 17,959 16,222 4,980 4,445 (10.6%) 1,310.00 1,487.3 26.3% 3.3x 3.6x 12x 11x
Yandex YNDX-O RUS Jun-12 6,892 6,524 748 888 54.7% - 401.9 45.0% 8.7x 7.3x - 16x
TRIPADVISOR TRIP-O USA Jun-12 5,036 5,242 699 758 27.3% 297.54 339.1 42.5% 7.8x 6.9x 18x 15x
IAC/INTERACTIVECORP IACI-O USA Jun-12 4,569 3,825 2,435 2,735 35.8% 346.03 492.6 14.2% 1.6x 1.4x 11x 8x
AOL AOL-N USA Jun-12 3,110 1,763 2,169 2,148 60.0% 302.00 381.3 13.9% 0.8x 0.8x 6x 5x
PANDORA MEDIA INC P-N USA Jul-12 1,674 1,591 338 430 66.4% (26.58) (1.5) (7.9%) 4.7x 3.7x NEG NEG
YELP YELP-N USA Jun-12 1,604 1,481 107 136 67.7% (13.48) 1.0 NEG 13.8x 10.9x NEG -
VALUECLICK VCLK-O USA Jun-12 1,247 1,331 632 685 32.6% 178.79 214.2 26.1% 2.1x 1.9x 7x 6x
ZILLOW Z-O USA Mar-12 1,186 1,103 78 115 113.3% 11.65 22.1 15.0% 14.2x 9.6x 95x 50x
OPENTABLE OPEN-O USA Jun-12 1,063 991 150 162 22.0% 45.47 68.3 30.2% 6.6x 6.1x 22x 15x
MILLENNIAL MEDIA MM-N USA Jun-12 1,041 808 132 178 79.2% (4.06) (1.3) (1.0%) 6.1x 4.5x NEG NEG
DEMAND MEDIA DMD-N USA Jun-12 861 767 345 358 15.9% 58.89 100.0 17.1% 2.2x 2.1x 13x 8x
ANGIE'S LIST ANGI-O USA Jun-12 631 570 119 154 71.1% (55.81) (52.4) (46.9%) 4.8x 3.7x NEG NEG
VELTI LIMITED VELT UK/US Jun-12 524 487 232 - - 31.31 31.0 13.5% 2.1x - 16x -
DIGITAL GENERATION DGIT-O USA Jun-12 304 702 382 396 45.7% 99.23 128.5 26.0% 1.8x 1.8x 7x 5x
Tomorrow TFA-XE DEU Jun-12 250 256 175 197 0.6% 24.56 31.0 14.0% 1.5x 1.3x 10x 8x
TradeDoubler Aktiebolag TRAD-SK SWE Jun-12 98 72 345 366 (18.2%) 11.47 12.7 3.3% 0.2x 0.2x 6x 6x
WEBORAMA ALWEB-FR FRA Dec-11 90 85 29 35 47.5% 6.87 8.3 23.6% 2.9x 2.4x 12x 10x
ADVERLINE ALADV-FR FRA Dec-11 61 63 32 - 6.5% 7.20 6.0 22.3% 1.9x - 9x -
¹TTM Average 27% 19% 5.1x 4.5x 18.2x 12.6x
Sources: Thomson, Yahoo Finance Median 41% 20% 3.8x 3.7x 12.4x 10.0x
© 2012 Clipperton Finance Limited.
Table of Content
29
I. Overview of Internet Display Ad Spending
II. Which Levers to Close the Media Time vs Ad Spend Discrepancy ?
III. Notable Transactions in Ad Tech Landscape
IV. Focus on Key European Players
V. About Clipperton Finance
© 2012 Clipperton Finance Limited.
Clipperton List of Selected European Ad Tech Players
30
Stars & emerging
companies with a
claim on new and
existing online
advertisement
markets
© 2012 Clipperton Finance Limited.
Table of Content: Selected European Ad Tech Players
Measurement
Targeting
Branding
Social Advertising
Ad Network & Analytics RTB
Ad ServingVideo
Mobile DSP/SSP
ADVERTISING TECHNOLOGIESDEVICE & FORMATADVERTISING PLATFORMS
Widgets
31
37
37
40
38
38
39
39
45
45
46
43
43
44
44
32
32
33
33
34
34
35
35
36
42
41
41
48
47
47
© 2012 Clipperton Finance Limited.
Selected European Players - Measurement
32
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Alenty provides ad-exposure
efficiency measurement and
optimization technologies (how
long is the ad viewed, etc.) for ad
networks & agencies
� Strong focus on branding-based
online campaigns
� Competitors include Adxpose
(bought by comScore in 2011)
2007
FR
€1.2m
€800k
€400k
BAs
� Alenty solves a recurring issue that brand advertisers experience: display ads
are priced by impression where TV ads are priced by exposure time.
� The company’s technology enables agencies and ad networks to provide their
clients with insightful reports on campaigns such as how long users have been
exposed to the ad, what’s the optimal exposure time, etc.
� The comScore/Adxpose deal illustrates the importance of the measurement
brick in the consolidating adtech ecosystem.
Context & Positioning
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Analytics and measurement
platform for publishers and brand
advertisers
� Application Suite with 5 apps
� Flagship product is Rich - a web
analytics platform for advertising
allowing publishers to better
monetize content & advertisers to
increase the visibility and impact
of their digital campaigns
2009
SW
n.a.
n.a.
€2.7m
Industrifonden
Founders / Tornstaden
Context & Positioning
� Billed as an “Omniture focused on web ads” not sites, Burt is a SaaS platform
that helps brands and ad agencies measure and analyze online advertising by
looking at where ads are displayed and which ads have been seen by users.
� Measurement technologies will be key: as online advertising shifts away
from pure performance to branding, advertisers expect to have more
qualitative information on their campaigns.
© 2012 Clipperton Finance Limited.
Selected European Players – Targeting [1/4]
33
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Branding-oriented Semantic
Advertising Web Service
� Matches ads with similar
emotional appeal thanks to
content analysis & real-time
monitoring
� As ADmantX provides semantic
analysis on the content of a site
and not the user, the solution is
cookie-less
2010
<€1m (est.)
n.a.
€3.2m
Atlante
Ventures
� One barrier to branding advertising online is the fact that it is
difficult for brands to be sure that their ads appear next to pieces
of content they want to be associated with:� EG: Porsche wants its ads to appear next to « Fashion Week » content, but not
next to an article involving a car crash…)
� ADmantX has developed a leading semantic technology and
seems well positionned to succeed in this new segment
Context & Positioning
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Leading Retargeting Player
� Criteo collects information
about user online behavior
(what product they look at on
retailers sites, etc.) & generates
dynamic banners in real time to
fit a particular customer profile
� Founded in France but now
headquartered in Palo Alto, CA
2005
FR
€150-200m
€50-60m
€17m
Index,
Bessemer, Idinvest,
Elaia, 123Venture
� With its retargeting technology, Criteo is able to achieve very high CTR rates
(4-5x that of traditional banner ads). The company leverages this arbitrage
opportunity by buying ad inventory on an CPM basis & selling on a CPC basis
� Criteo aims to make display advertising perform like search on a pure CPC
pricing model (and not CPM) thus providing an innovative and disruptive
approach to display advertising
� Probably Europe’s fastest growing adtech player (~$400m rev. in 2012) with a
significant opportunity in N. America (75% rev. are still Europe-based)
Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Targeting [2/4]
34
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Predictive targeting using
personalization algorithms
� Matches individual preferences
with content in real time using
artificial intelligence and semantic
technologies
� 3 targeting products: AdMatch,
SiteMatch & Media Solutions
� Founded in London, is now
headquartered in New-York
2009
UK
<£50m (est.)
<£20m (est.)
£6.2m
Dawn Capital,
Antrax capital
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Performance-focused
personalized targeting provider
� Propels acquisition through
retargeting, pre-targeting and
look-alike targeting
� Extensive network of RTB
providers (Google DoubleClick,
Appnexus, Rubicon and AdMeld)
� Top tier clients (PriceMinister,
Orange, Microsoft, etc.)
2005
UK
$30-50m (est.)
$10m (est.)
£22.4m
Accel, Iris,
Dotcorp, Carmel, T-Ventures
�Personalization and automation are two strong underlying trends in
display advertising: publishers started showing the same ad to every
users, then came targeting and retargeting
����Cognitive Match is able to go one step further in personalization
& automation through complex targeting algorithms (that uses
psychology mathematics and semantic technologies)
�MyThings is positioned at crossroad of 3 fast growing segments:
personalized targeting, display advertising & real-time bidding (RTB)
�The company has taken a pure performance-led approach to display
advertising similar to its main competitor Criteo
�With its recent massive round – $15m led by Iris (Orange-Publicis) –
MyThings is in a great position to challenge Criteo internationally
Context & Positioning Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Targeting [3/4]
35
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Dynamic Retargeting Player
� Nextperformance also offers
other value added services such
as social audience or real time
targeting (however dynamic
retargeting still accounts for 70%
of revenue)
� High profile clients (Cdiscount,
Etam, Orange, Spartoo, etc.)
2008
€20-50m (est.)
<€10m (est.)
€16m
Kennet
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Ad Personalization Platform
� Allows advertisers to target new,
prospective and existing
customers with personalized and
relevant advertising messages
that are created and customized
in real time.
� Claims to deliver 12 times higher
click through rates than standard
retargeted ads
2007
UK
<£50m (est.)
£10-15m (est.)
£5.3m
Pentech,
Reed Elsevier & Allen & Co.
� Next Performance is based on the same model as Criteo: buy on a CPM basis &
sell on a CPC basis – monetizing the delta through innovative (re)targeting
technology � The company is able to transform display inventory into
lucrative performance-based inventory
� Aims to rapidly scale internationally – with a strong focus in Europe
� The size of Kennet round shows that investors believe Next Performance can
be a serious contender to Criteo’s dominant position in the retargeting space
� With the declining click-through rate trend, publishers & advertisers
will actively look into new solutions that enable them to maintain
display advertising CTR at a high rate
� Struq’s innovative technology allows advertisers both to create
sharp users profiles and to dynamically create personalized ads in
real-time leading to much higher CTRs than traditional display ads
Context & Positioning Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Targeting [4/4]
36
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
2011
UK
<€1m (est.)
n.a.
€2.2m
IDInvest
� Early-stage funding enabled a significant technological edge in
terms of profiling granularity, a key differentiating factor as
current offerings do not match rising market expectations.
� Audience targeting software
providing precise and real-time
social profiling
� Seasoned entrepreneurial team:
founders also founded Steek, a
Cloud pioneer acquired by F-
Secure in 2009 for $39m
Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Branding
37
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Brand-Oriented Video
Advertising Player (retargeting &
interactive video advertising)
� Tools that help agencies turn
existing video ads into interactive
experiences
� Two flagship products:
o Brainads: personalized video
retargeting
o Brainrolls: interactive video
advertising
2008
RO
n.a.
n.a.
£2.2m
Arts Alliance,
500 Startups, Credo
Ventures, Estag, BAs
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Brand-Oriented Video Ad
Network (focus on social games)
� GlipHippo leverages the rise of
social gaming by distributing pre-
roll video ads embedded in social
games, blogs or casual gaming
sites
� The teams traditional ad agency
roots translate into brand-
oriented analytics for customers
� Strong presence in Scandinavia
2009
DE
<€5m (est.)
n.a.
n.a.
n.a.
� GlibHippo is positioned on a advertising “sweet-spot”, at the
junction of strong secular trends: branding advertising online,
social gaming & video ads
� Audiences that were once captured by TV, in a single location, are
now spreading over multiple sites
� Internet is in the process of becoming the first consumer channel
for video: there is a vast amount of potential advertising
inventory to tap and today’s video adtech is still in it’s infancy
� Brainient intends to play a major role in this transition by offering
clients brand-focused turn-key solutions to make their video ads
more effective (through retargeting & interaction)
Context & Positioning Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Advertising Platforms [1/3]
38
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Web, mobile and social analytics
provider, including real-time and
multi-channel audience
measurement, performance
monitoring, and e-reputation
� Network of 3,500+ customers
and 350,000 audited websites in
more than 20 countries
1995
FR
€10m
€9m
€4m
ICSO/
IRDI Group
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Ad Network with strong tech
components integrating analytics
& audience profiling services, ad
serving & media services
� Leveraged its 90m profiles
database to form a behavioral
targeting ad network of 200,000
sites generating 34M UVs/month
� Mkt Cap (as of 07/12/12): €65m
1998
UK
€22m
€15m
Listed
N.A.
� AT Internet is recognized as a European leader in Web Analytics
solutions, particularly known for the quality of its partnership
network, which forms a community of 350,000 users
� The company expects to double its sales in 2012 with 40% of sales
coming from outside France. They currently have a strong focus on
Germany, Austria and Switzerland with customers including Axel
Springer, Deutsche Telekom, SoundCloud and Netto
� Focus on R&D in behavioral targeting (1st geolocalized service)
� Leveraged its technology through M&A: Acquired ad newtork C-
Marketing in 2007, rich-media solution Adrime in 2010, and merged
with ad exchange Hi-Media in the UK in 2011. The recent (May-12)
acquisition of Datvantage combines Weborama’s user profiling
expertise with a data collection and management platform
� Q2 2012 revenue grew 37% yoy. to €5.6m
Context & Positioning Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Ad Network & Analytics [2/3]
39
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Independent global audience
and content network
(advertising distribution
platform delivering targeted ads
and content across display,
email, social, in-banner and in-
video)
� Reaches nearly 700 million
unique users across 17
countries
2005
UK
£200-300m
~£150m
£70m
Index Venture,
Wellington, S. Valley Bank
� As a holding group, Adconion owns a portfolio of companies
spanning numerous growing segments such as Smartclip (online
video network, all stock acquisition), Joost (video and content
syndication), and Redlever (brand integrated content)
� Adconion is already leveraging it’s acquisitions as Smartclip partners
with Playjam (smart tv gaming platform) to ensure Adconion is also
active in ad distribution for connected TV
Context & Positioning
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� FTEs:
� Funding:
� Investors:
� Preference-based advertising
network (using targeting tools)
� Boasts very high CTR (>7%)
� Strong presence in German
speaking countries (over 40
million visitors per month in the
DACH region alone)
� Experienced founders: Matyka
launched Hiclip.tv (sold to
Adconion in 2008) & is engaged in
a number of DE tech start-ups
2008
DE
€30-50m (est.)
€10-20m (est.)
~80
€2.8m+
CAPE, NWZ,
HTGF, Dumont, BAs
� Plista is building its success thanks to a user-friendly platform,
innovative preference-based display ads as well as a strong
network of advertisers & publishers in German speaking countries
� The use of innovative display ad formats along with precise
targeted preference-based technology allows the company to
display very high CTR rates of 7% - well above industry standards
Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Advertising Platforms [3/3]
40
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Technology platform delivering
social video campaigns for
global brands
� Reaches an audience of over
725m MAUs, distributing
campaigns across platforms
including YouTube, Facebook
and Twitter
� Competitors include GoViral
(acquired by AOL for nearly
$100m) & French eBuzzing
� Video shares are experiencing exponential growth rising from 40m
video shares per month during October 2010 to 270m shares
during October 2011. Branded video content is making up an
increasing proportion of these shares
� Unruly currently has over 14,000 distribution partners globally
launching social video campaigns for blue chip brands including T-
Mobile, Samsung and Skype
2006
UK
£10-20m (est.)
<£5m (est.)
£16m
BGF, Van den
Ende, Amadeus
Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Ad Serving
41
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
2008
BE
n.a.
€1-5m (est.)
€2m
Angel
funding
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Video ad-serving platform
� Enables sales and delivery of
video advertising beyond in-
browser video (PC) to the New IP
delivered TV, whenever and on
whichever devices users wish to
consume it
2007
<€15m
n.s.
€13m
Northzone,
Creandum, Qualcomm, Innovacom
� Adswizz has a strong presence in the online audio marketplace allowing
on-line radios / ad networks to fully monetize their internet radio
audience.
� Ease of use and breadth of content is leading to rapid growth in online
audio positioning Adswizz for strong growth going forward
� Adswizz is currently entering the US and Canadian markets having
recently partnered with online audio streaming service StreamOn
� Television remains the dominant advertising media attracting
$160m of global ad spend in 2010
� Meanwhile, the industry transitions from the linear broadcasting
model to dynamic IP delivered content and Videoplaza intends to
play a leading role in this new IP delivered TV ad server space
� Provides ad serving and audience
measurement technologies to
CDNs, agencies, ad networks and
online audio publishers.
� Adswizz enables the creation of
online ad campaigns across
audio, video and display formats
with social media integration
Context & Positioning Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Real Time Market Place
42
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Online advertising market
enables real-time bidding (RTB)
for ad impressions
� In 2011 sold just under 55bn ad
impressions with it’s online
market reaching 52% utilisation
(5% greater than 2010)
� Currently deal with more than
1,400 advertisers placing ads on
around 5,000 websites
2007
DE
€30-50m (est.)
<€20m (est.)
€5m
Time Equity
Partners
� With CPM’s rising on average 10% between 2010 & 2011, effective
targeting is increasingly important
� RTB will play an important role in this change (estimates
suggesting RTB will account for >20% of display market volume in
the next three years). Adscale already puts two thirds of its
available inventory through its RTB platform (180m ad impressions
per day)
Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Format: Video
43
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
2010
FR
€5-10m (est.)
<€3m (est.)
-
-
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� In-stream ad server providing
multiscreen ads, geolocalization,
ad selection across multiple brand
offers, and interactive ad players
� Connects 150+ premium
publishers to 200+ advertisers,
generating 100m views/month
2009
<€10m (est.)
n.a.
€1.25m
ISAI
� Strong R&D strategy: launched Le Lab in 2011, a center dedicated to
innovative video ad formats
� Rising demand / limited competition: with 75m in-stream ads seen
monthly, already accounts for 10% French video content market
� Advideum is well placed in a growing segment with 63% of advertisers
expecting to use video in 2012 and viewers 20 times more likely to click on
in-stream ads compared to banners (according to Mediamind)
� Tablet, connected TV and social media usage is booming in
Europe, pushing online video market growth
� Meets strong demand for engagement drivers: provides
multiscreen, geolocalized and interactive players, and features ad
selection offer across multiple brands
� Premium multiscreen video ad
network and server, providing
targeting services and analytics
� Targets urban upper class
audience from more than 200
publishers, and provides
verticalized offers (entertainment,
news, youth, men, women etc.)
Context & Positioning Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Format: Widgets
44
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
2008
CH
<€5m (est.)
<€1m (est.)
<€1m
BAs
� Provides Transactional
Advertising Tools for Advertisers
� Platform allows e-commerce
transactions to be conducted
inside banner advertising units
(which can be deployed on
traditional websites, blogs,
Facebook, etc.)
� 6 products in total � Flagship product is nextpromote
(promotion tool in Facebook Fanpage
� Until recently, online transactions were limited to the sole “sandbox” of
e-commerce site.
� NextWidgets is disrupting the market by opening up new online sales
channels for e-retailers:
���� This is done by creating new ad formats that allow e-commerce
transactions to be done “in-banner” (often on social sites thus
maximizing the impact of social media marketing for advertisers)
Context & Positioning
Key Figures Presentation
� Founded:
� Nationality:
� Est. Rev. 2012:
� Rev. 2011:
� Funding:
� Investors:
� Innovative affiliation platform
through e-commerce widget
� Allows advertisers to link their
products to relevant images
and multimedia within online
content, so that consumers can
buy those items directly
� Publishers can monetize their
content by becoming brands
affiliates
� Brands look for new ways to engage consumers through display
advertising
� Publishers are also looking for smarter and innovative ways to
monetize their audience
� Ambition is to turn any media content (image, video…) into a
monetizable digital storefront for consumers.
Context & Positioning
2010
€200k
>€1m
Kaj Hed (Rovio’schairman)
Tekes,
€4.5m
© 2012 Clipperton Finance Limited.
Selected European Players – Mobile [1/2]
45
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Global mobile advertising
marketplace
� Maximises display advertising
campaigns and mobile traffic
results
� Offices in London, New-York,
Paris, San Francisco, Madrid
2008
UK
£1-3m (est.)
£0.8m
£5m
Gordon
Shields
� Strong recent focus on data analytics to monitor and boost ad inventory
performance (for example, providing an engagement score for each ad
based on metrics such as CTR and time spent watching).
� Adfonic has recently launched its first video ad units – unique in that
they play in the native iOS or Android player rather than needing to open
separate apps such as YouTube
� Currently receives 35bn ad requests per month averaging 4000 brand
campaigns p/month, reaching a global audience of 200m mobile users
Context & Positioning
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� The fastest growing mobile
advertising marketplace in the
German-speaking markets
� Targeted advertising – delivers 2
billion ad impressions monthly
across Europe (DACH, FR, UK, SP)
� Successful App Store rankings
booster service
2008
<€5m (est.)
€1m (est.)
€7.3m
EarlyBird,
Team Europe, Blumberg
� A leading European mobile advertising marketplace covering social,
gaming and premium content
� In April 2012, the company acquired Turkish mobile ad company
Mobilike who covers 60% of the Turkish mobile ad market. The
acquisition positions Madvertise to enter the Middle East
� Madvertise also provides app ranking optimisation through the
"Katappult" service which guarantees a top 25 app ranking listing in a
specific category for fixed price within 3 business days
Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – Mobile [2/2]
46
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Mobile performance marketing
solutions for app monetization,
leads and downloads acquisition,
audience retention and global
mobile strategy
� Experienced founders: launched
the online marketing agency
Directinet, sold for $42m in 2006
� Competitors include Velti or Yoc
(UK-based)
2010
UK
<€5m (est.)
n.a.
€4.5m+
Backbone
(Agregator Capital)
BAs
� Aims to be active across the entire mobile marketing value chain:
following the acquisition of app sponsoring network Bemyapp.
Recent funding fuels their external growth strategy, starting with
mobile marketing agency Systeme Polaire in 2012
� Has a total of more than 125 customers including Procter &
Gamble, Yellow Pages, Renault, Orange and Nokia
Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – DSP/ SSP [1/2]
47
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
� Demand-Side Platform (DSP)
integrating campaign planning, ad
serving, optimization, and reporting
� Incorporates rich media, video,
mobile, dynamic ads, and
personalized targeting
� Offices in 18 countries - most
recently entering Portugal (where
the ad space was previously
dominated by Spanish players)
2002
n.a.
n.a.
NA
Via Venture
� First pan-European DSP, with international footprint: delivering
campaigns to over 3,000 clients across 7,500 global web publishers
in more than 35 countries
� Real Time Bidding integration with leading ad exchanges
� Adform has recently partnered with Microsoft to offer its rich
media display ad formats alongside the Microsoft offering
Context & Positioning
Key Figures Presentation
� Founded:
� Nationality:
� Rev. 2011:
� Rev. 2010:
� Funding:
� Investors:
2008
FR
n.a.
n.a.
NA
Van den Ende
& Deitmers
� Audience based media buying methods such as RTB are growing 10 times
faster than standard media buying
� The company claims to be the only platform that has the capability to
combine RTB, non-RTB ad network optimisation and direct performance
campaigns in one environment
� Looking to fundraise in order to improve the platform and expand
geographically (including a new UK sales team)
� Sell Side Platform allowing
publishers to build their own private
ad exchanges
� Automated Real Time Bidding
prioritizes auctions and allocates
views to the best paying buyers
� Works with over 50 website owners
(including RTL, eBay and Sanoma
Media) in 6 languages
� Forecasting 70% growth in 2012
Context & Positioning
© 2012 Clipperton Finance Limited.
Selected European Players – DSP/ SSP [2/2]
48
Key Figures Presentation
� Founded:
� Nationality:
� FTEs:
� Funding:
� Investors:
� Mobile Demand Side Platform
� Enables media planning and
buying agencies to manage their
mobile campaigns effectively
through a single platform
� Two flagship products: StrikeAd
Fusion & StrikeAd Engage
� Recently moved headquarters
from London to New York to
capture fast growing US market
2010
/
~30 FTEs
$3.6m
DFJ Esprit,
US-based BAs
� As one of the first mobile DSP, StrikeAd is strategically placed to
capture a promising mobile marketing market.
� The company has developed a fully-fledged and advanced mobile
DSP with features comparable to its traditional counterparts like
Real Time Bidding, Geo Targeting, API integration with leading ad
servers, etc…
Context & Positioning
© 2012 Clipperton Finance Limited.
Other Interesting European Adtech players
24/7 real media Coull Media Innovation Group
Adfonic Dianomi Mgid
Adconion DirectAgent MyThings
Adgent+ Edatis Path intelligence
AdInsight effective measures Pickmeup
Adnetik Experian Skimbit
AdTaily Five Lead Specific Media
Appealing media Flasma StrikeAd
Askinsight Guava Struq
Azullo Inskin Media Switch
Brainient JemmGroup Theorem
Celltick Technologies Koozai Trustedplace
Clearsaleing m6d Unruly
Cognitive Match Media Ingenuity Limited Vindico
AD4SCREEN Ebuzzing (formerly Wikio) MobPartner
Advideum Ezakus Next Performance
Alenty Innovation Breakfast Smart Ad Server
AT Internet KeyadeS Sticky Ads
Criteo Mobile Network Group Weborama
AD vendio Castaclip Plista
Adcloud GlibHippo RevenueMax
Adscale madvertise Sponsormob
apprupt mexad Trademob
Bidmanagement Mokono Zanox
Adswizz
Brandtone
DotMobi
Adsmarket
Admantx
Crazy4Media
Banner Connect
M4N
MADS BV
O2mcImprove Digital
Adform
Mobiletech
AdtomaBurt Corp
Videoplaza
Media Shaker
Nextwidget
49
© 2012 Clipperton Finance Limited.
50
Clipperton Finance
Antoine Ganancia
Associate, Paris
Nicolas Von Bülow
Partner, Paris
TO BE RELEASED SOON:
PART II: AD TECH ECOSYSTEM DYNAMICS
Clipperton Finance Contacts: Disclaimer:
This document has been produced by Clipperton Finance (“Clipperton”) and is communicated to you solely for your information and should
not be construed as a solicitation or offer to buy or sell any securities or related financial instruments.
This research paper is based on information available to the public and other sources deemed reliable, while every effort has been made to
guarantee exactitude and reliability, Clipperton Finance cannot be held responsible for omissions or errors. The information and analysis
accessible in this presentation speaks to industry trends in general, and should not be construed as providing any particular
recommendations or analysis for any specific company that is mentioned in this presentation. No representation or warranty (expressed or
implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein
and, accordingly, none of Clipperton’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of
this document.
Clipperton Finance has been engaged as an advisor by a company mentioned in this report: Videoplaza.
Clipperton Finance Limited is authorised and regulated by the Financial Services Authority. Registered No. [email protected]@clipperton.net
© 2012 Clipperton Finance Limited.
Table of Content
51
I. Overview of Internet Display Ad Spending
II. Which Levers to Close the Media Time vs Ad Spend Discrepancy ?
III. Notable Transactions in Ad Tech Landscape
IV. Focus on Key European Players
V. About Clipperton Finance
© 2012 Clipperton Finance Limited.
About Clipperton Finance
Mission Statement and Key Facts
52
Leveraging a proven track record of 50+
transactions and seasoned technology
advisory professional's experience to
accompany our clients in their growth and
through all key steps of their financial life,
Clipperton teams strive to provide best-of-
breed services and an extensive network of
decision makers in technology
• Independent merchant bank
‒ Established in 2003
‒ 5 partners
‒ 2 offices: London and Paris
• Focus on technology sector with a selective approach
‒ Working with both emerging European technology leaders and
global blue-chips
‒ 50+ M&A transactions and private placement
‒ Pan-European client coverage and global network of investors
© 2012 Clipperton Finance Limited.
What do we do?
Transaction advisory for European growth companies, international
investors and blue-chips
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Fundraising
StrategyMergers &
Acquisitions
European Tech and Growth
Companies
Early Stage Financing
Growth Financing
Exits (M&A, IPO, Buy-out)
Private Equity
Investors
VCs – International reach
incl. Corporate VCs
Growth Equity –
EU and US Funds
Leveraged Funds –
Buyout, Mid Market
Technology Blue Chips
Sell-side Advisory,
DivestureBuy-side Screening
Minority
Investment
© 2012 Clipperton Finance Limited.
Technology Vertical Focus
Full coverage and deep knowledge of key technology and cleantech
subsectors
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Internet & New Media
Software
CleanTech
Telecom Equipment & Hardware
• E-Commerce
• Lead Generation
• Digital Advertising
• Gaming & Entertainment
• Social Networks
• Mobile Internet
• Consumer Software
• SaaS Vendors
• Cloud Technology &
Infrastructure
• Renewable Energy
• Energy efficiency
• Smart grid
• Green process
Advanced Materials
• Middleware
• Network Systems
• Semiconductors &
Components
© 2012 Clipperton Finance Limited.
Value Proposition
Our solid track record illustrates an ability to consistently exceed client
expectations
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Transaction expertise
Client Expectations Clipperton Finance‘s Fit
Industry knowledge and extensive
experience
Access to investors
Team commitment and senior-level
involvement
Ability to maximize value
• Track record of delivering deals since 2003: 50+ successfully closed transactions as placement agent or M&A
advisor
• Deal negotiation experience and proven process & methodology
• Cutting-edge and extensive domain expertise in TMT and Cleantech
• Strong capabilities in framing and fine-tuning strategic positioning and go-to-market
• Global network of investors and acquirers
• Strong relationships with industrial and financial sponsors, intimate understanding of expectations
• Major success stories within client base
• Strategic approach to financial transactions to position companies to maximize shareholder return
• Partner commitment from conception to closing, deep pool of experienced professionals
• Quality, not volume led – significant resource dedicated throughout
Independent and
trusted advisor
• Unbiased advice with focus on long term value creation
• Long term relationship with clients and exceptional level of client satisfaction
© 2012 Clipperton Finance Limited.
Clients: focus on segment leader and best-in-class players
Examples of tier 1 international transactions managed by Clipperton
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Financing M&A Status
$ 10,000,000
€ 50,000,000+
€ 12,000,000
€ 7,500,000+
$ 150,000,000
$ 12,000,000
Acquisition of UK
competitor
Sale to Orange group
NYSE IPO in April 2011
Revenue > $100m
Aggressive expansion for
Scand. Tech company
Aggressive European
expansion
Digital Media - Video
Electronics – 4G
Social Commerce
E-commerce - Apparel
Video Ad Servinf
Sale to Zoran group
Electronics – video
$ 28,000,000
© 2012 Clipperton Finance Limited.
Experience in Advisory Services
Over 50 years of experience in Technology advisory services
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• €700m raised in Equity (40 operations) ; M&A sell-side & buy-side
• Extensive network of investors and acquirers in Europe, North America and Asia
• Experienced teams, based in London and Paris (pan-European coverage)
• 5 Partners combining 50+ years of experience with prominent Technology firms
© 2012 Clipperton Finance Limited.
© 2012 Clipperton Finance Limited. All rights reserved.
Registered office: Green Park House, 15 Stratton Street, London W1J 8LQ, United Kingdom. Registered in England and Wales No. 07088791.
Clipperton Finance Limited
© 2012 Clipperton Finance Limited. All rights reserved.
Registered office: Green Park House, 15 Stratton Street, London W1J 8LQ, United Kingdom. Registered in England and Wales No. 07088791.
Clipperton Finance Limited
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