Results recently celebrated its twenty-first anniversary; we took theopportunity to have a party and to lookback at how much the industry haschanged since we started out. Now isthe time to look ahead and to gaze intoour crystal ball to see what lies in store.

We’ve asked a group of some of the best qualifiedpeople we know to do this. Each is a leader in theirfield and we are delighted that they have agreed toshare their thoughts on how our industry is likely toevolve over the next couple of decades. Theirexpertise covers some of the technologies that arepredicated to shape our future as consumers.

Holition are big players in augmented reality and it’smore than likely that you’ll have seen their work withluxury brands and retailers. NeuroFocus, owned byNielsen, are market leaders in consumer

neuroscience. They work globally with some of theworld’s largest brands who are increasingly tuninginto the potential of this technique to betterunderstand consumers. Mike Ryan of FusionFutures is one of the best respected digitalfuturologists with an excellent track record ofpredicting some of the tumultuous changes thathave torn apart industries including music, film,telecoms and publishing.

We complete our panel of experts with Adrian Leuof Parity and Jason Pinto of PE firm, AmadeusCapital Partners. Jason focuses his attention oninvestment opportunities in the technology sectorand therefore has a great perspective on where thevalue is in that marketplace. Meanwhile in his role atParity, a leading business solutions and IT provider,Adrian is head of innovation, responsible for theresearch and development of emerging technologyand bringing IP to market.

ResultsINTERNATIONAL

www.resultsig.com ONE

Continued on page two

Contents:

What lies ahead? .........................1, 2 & 3

2012 trends .......................................4 & 5

In the hot seat ..........................................5

Private equity ...........................................6

2012 Q1 deal statistics.............................7

It’s time to experiment with mobile .........8

Making the most of market access ........9

2012 charity ............................................10

M&A opportunities ........................10 & 11

The team ...............................................12

BulletinIssue 58

2nd Quarter

What lies ahead?

The leading adviser to companies seeking to build and realise value in the global marketing, technology and communications industry.

Jonathan Chippindale:HolitionWhenever I’m asked thisquestion I like to start withKubrick’s 2001: A SpaceOdyssey. Made in 1969its vision of the future

looks dated. Today, technology is acceleratingexponentially and this means predicting the outlyingfuture is a tough call.

Holition works in the premium retail space, integratingtechnology into marketing, merchandising and otherrelevant areas for retailers. Until recently manypremium and luxury retailers saw online as a threatbut they now understand that it can communicatecore brand values such as quality of product andexquisite service.

They also understand that technology can sitcomfortably with traditional values and heritagebrands.

The blurring of the lines between online, in store andmobile has just begun and retailers are learning howto maximise each channel. Online delivers superbstorytelling and narrative - used well it can convey abrand’s history, tradition and craftsmanship. In storeworks brilliantly on a sensory level and mobile canbring everything together.

But technology for its own sake is doomed to failure.The most expensive plasma screen will add nothing ifthe content is poor. I like to think of tech as anenabler with creativity in the driving seat. Technologyis a blank canvas to be treated as another marketingdiscipline just like PR, SP or DM. Content is king and,for the sector we work in, crafting ingenious digitalcontent as well as having a great conversation withconsumers is what will continue to count.

The other trend that will continue to grow isgamification and the flipping of message from brandto consumer and back again and from consumer toconsumer. Hermes has understood this beautifullyand created “j’aime mon carre” - a website wherethose who purchase the iconic silk scarf can sharestories.

In a landscape where brands are giving us more andmore information on the go - “info snacking” - thereally big future tech story will be about filteringmechanisms and who can simplify this cacophony ofinformation.

Mike Ryan: Fusion FuturesPredicting the next five to tenyears can be done, but anyfurther out, and frankly, it’sanyone’s guess.

High speed internet is alreadyhere and what we’ll see in the next decade isembedded GPS and abundant connectivity. We’retalking about augmentation of the High Street andanywhere else people are out and about. GoogleGoggles have hit the news and there’s interestingwork happening at Stanford on digital contact lensescontaining nano-LED screen technology. Theoverlaying of the digital world on the physical world issomething we will see more of.

Facial recognition is starting to be used in a variety ofmarketing contexts such as display ads and evenshop windows. Currently it can register male/femaleand mood states. However, 10 years from now suchsystems are likely to be able to scrape informationabout an individual from his/her social media profile.In turn, data partnerships between the likes ofFacebook and Tesco will form creating highly relevantmarketing. A ticking social time bomb if ever therewas one, but the cynic inside me also believes thatas long as consumers are getting a good deal theymight not object too much.

By 2040 I predict a world of no more secrets andcomplete transparency around every aspect of ourlives. By then familiar corporate names who don’tadapt to this highly personalised and targeted worldwill have disappeared. Kodak is a recent victim andthere will be more.

Imagine data alliances between credit agencies orfinancial institutions and digital and real world brands.Imagine a retailer knowing your credit limit or ability tobuy an object and denying you access to their onlineor real world shop before you enter it. I've seen a testof this involving CCTV in a shopping centre taggingshoppers with information about their financialcapabilities or criminal past. You can see how easy itwould then be to remove the social underclass froma digitally sanitised world! It’s a step beyond theluxury brand doorman who patrols shop entrancesdenying entry to those who are not dressedappropriately to enter. It could quickly produce adigital chasm in our society that admittedly alreadyexists but ironically this technology would make ithighly visible.

TWO www.resultsig.com

Continued from page one

Thom Noble:NeuroFocus (Europe)Big innovative globalbrands have quietly beenusing consumerneuroscience techniquesfor over 5 years. I believewe are at a turning point in the history of this stillrelatively incipient marketing Over the next 5 to 10years I believe it will become increasingly mainstreamand an everyday part of the marketing mix; we willarrive at a point where companies will wonder whythey aren't using it rather than the other way round. Itwill become embedded in the research frameworksof organisations who are serious about customer-focused marketing.

Simply put, consumer neuroscience providesmarketers with greater, deeper understanding of howthe brain responds to all kinds of stimulus....and sowhat really makes people tick. Rather than the "whatpeople say they feel or think" deliverable of traditionalmarket research techniques, it allows us to evaluatehow that person is actually responding, withouthaving to ask questions. As we all know, the askingof questions creates unavoidable distortions inanswers, whether intended or unintended. Thinkingabout a feeling, changes that feeling...and the moreyou think about it, the more it changes it! Armed withthe insights consumer neuroscience can deliver andthe ability to understand what excites and stimulatespeople, both at a multi-sensory and experiential level,marketers we will be able to create and deliver moreengaging experiences and enjoyable, intuitiveproducts. Product 'neuro-design' in particular isalready proving to be an important new interest areafor R+D departments (be it fashion, food, autos orsmart-phones) seeking to create the ideal look,aroma, taste or tactile sensation for their innovations.

While FMCG and Consumer Electronics areamongst the biggest users of the technology, in futurewe may see an ever greater range of entertainmentand leisure businesses getting in on the act. Filmmakers, TV producers, Gaming designers arealready starting to get involved in all kinds ofconsumer neuroscience projects; from castings, toplot and storyline testing, through to pilot programmeand sequence testing. And, I'd expect to see themtake a lead from TV advertisers and adopt consumerneuroscience to new levels, making their action anddialogue sequences even more gripping and theirsoundtracks more deeply emotionally resonant.

What lies ahead?

In fact sound design is one of the areas in which I'd

expect to see some particularly significant advances

through consumer neuroscience research. The ability

to better understand moment by moment audio

response patterns to specific passages of sounds

and music, and how then to enhance and amplify the

intensity of specific emotions, is something very

exciting indeed. Linked to this, I'm convinced there

remains a huge opportunity for brands to use sound

in a far more intelligent and strategic fashion as a

core component of brand identity to strengthen image

perception and create brand experience; consumer

neuroscience research can play a key role here.

Consumer neuroscience is already a big user of

augmented reality environments and stimuli to test

consumer responses. The development of

increasingly sophisticated AR techniques and the rise

and rise of consumer neuroscience as a core market

research discipline will go hand in hand. We will see

virtual reality centres become commonplace,

focusing on the whole end to end experience of how

someone might research, purchase and consume a

product.

Quite simply, by allowing marketers to better

understand people's emotional responses, consumer

neuroscience will play a key role in boosting ROI;

improving accuracy of forecast performance,

increasing efficiency of business activity and reducing

unwanted, poorly targeted messaging. This will

ensure that new products that flop shortly after launch

and irrelevant, ineffective communications or brand

experiences are a thing of past. The future looks like

a really exciting place.

Adrian Leu: Parity Much of the future is

already with us, albeit in a

somewhat nascent form.

The traditional marketing

funnel is being turned upside down - mass

communication has given way to one on one

communication. The future will continue down this

path with a focus on localisation and personalisation.

If CMOs are already bewildered by the speed of

change, they’ve got more of the same ahead.

Marketing will need to learn to adapt and move

quickly to capitalise on opportunities. It will also have

to become much more subtle and work to an ‘on-

demand’ model.

Mobile in all its formats - handsets, tablets and

glasses - will become the norm and the dominant

deployment platform in tandem with technologies such

as NFC, mobile payment systems, biometrics, etc.

Data will of course continue to play an increasingly

important role. The ‘internet of things’ will provide huge

quantities of data around customer experience and

intelligence and the art will be in bringing this together

to aid and predict the understanding of customer

behaviour. Similarly, big data crunching will show

marketers where to invest and decision-making will

depend on reliable data of this kind being available.

Bringing together pockets of data from different

sources will provide whole new vistas of insight.

Admittedly long overdue, I believe we will finally see

the term digital become redundant to be replaced by

words such as immersive.

In the future, augmented reality will become THE

reality. The way an individual views his/her reality will

be informed, not only by what he/she sees, but by

what other sources of information bring to the party.

But significantly, AR will also be used to filter reality

and strip out irrelevancies. For example an individual

might only be interested in Chinese restaurants in the

local area and AR will shape reality accordingly. The

same trend can be seen in the growing popularity of

niche social media sites and vertical search engines.

The high street is already changing and I believe its

traditional role is likely to disappear for ever as

ecommerce eats away at its transactional role. It will

have to focus on experience; shops will need to

communicate the world of the brand, allowing trial and

interaction. While retailers are obsessed with

multichannel strategies, the consumer really doesn’t

see the difference or indeed care very much. Quite

simply he/she demands seamless access to the

information, experience and action that he/she wants

at a time and place of his/her choosing.

Crowd sourcing of digital content will be a huge trend.

Brands will increasingly crowdsource for big

innovative ideas. While 3D printing, augmented reality,

stereoscopic displays and Kinect based applications

are still looking for market niches, it won’t be long until

they will play a more mainstream part. Yet the big

question will be around how brands keep a modicum

of control over their IP in the face of increasing DIY-

isation of content production.

My final thought concerns that big word, creativity. It’s

a term that is massively over used. In the future, for

any experience to be deemed successful, it will need

to demonstrate the ‘golden triangle’ of quality

interactive content, an engaging user experience and

a back end supported by robust data. Collecting data

www.resultsig.com THREE

for producing quantifiable ROI leading to predictive

marketing attribution is just another piece of the puzzle

that needs to be brought together. This spans both the

enterprise and the consumer markets.

Jason Pinto: Amadeus Despite all the talk, digital

is still a very small part of

the media mix - there’s still

a long way to go when you

compare it to the spend on

traditional media. However,

mobile and video are fast growing and the future will

be about location-based rich media services that

combine mobile and social.

That means brands will be able to target consumers

even more effectively based on location and their

social graph. We’re also only just beginning to learn

how to effectively mine the large volume of data that

will allow marketers to contextually and behaviourally

target consumers. As a result, marketing will be micro

targeted and incredibly personal but could also

become increasingly intrusive. If we are not careful

this could lead to consumer backlashes on privacy

issues, but the benefits to the consumer will eventually

outweigh these concerns.

If you’ve seen the film Minority Report, you have an

idea of where all these technologies could be applied

in retail stores - an advert that knows who you are and

shows you on screen with new clothes already fitted

on your avatar. The components are already there to

do exactly this: digital signs with integrated cameras

enabling audience measurement for identification and

gaze-tracking to know where on the screen you’re

looking and so on.

Again, it’s very powerful for targeting but there are

huge privacy issues. Pieces of this technology are

available now, but no one has taken it hook, line and

sinker into the market as a single offer as consumers

probably just aren’t ready yet.

For now, consumers should expect to see this soon

on their mobile screen - even if targeted location-

based marketing is a bit ad hoc and reactive at

present. Consumers slightly dread that dreaded text

message but with targeting it will increasingly become

an opportunity as well.

If you know the consumer likes Caffe Nero, that he or

she likes cappuccinos and that it’s currently cool

outside, offer them the hot drink they want!

If you would like to discuss this article, please contact

Keith Hunt at keithhunt@resultsig.com

FOUR www.resultsig.com

The next couple of decades will see atransformation in marketing andrelated technology services, but it alsoseems that some of that evolution isalready taking place. We thought wewould balance our lead article on longterm trends forecasting with thoughtsfrom a range of marcoms and relatedtechnology agencies/businesses onthe major trends likely to affect the restof 2012 and beyond.

We’ve chosen to talk to a broad spectrum ofbusinesses in our sector; experts in video, data,digital, apps and plenty in between. The Statesideview from our partners GroupArgent on US techstock prices also makes for interesting reading.

Trend trepidations

Every year agencies publish trend reports with theirpredictions about what will be 'big' over the next 12months. There is almost a competitive elementamongst agencies to be the first to share their pearlsof wisdom.

These reports may be intended to educate andinspire the reader but how many clients actually readthem with a sense of confusion or even fear?

In the ever-evolving digital world we live in it's clearthe gap between leading edge tech consumers andthe general public is as wide as ever. This isn't dueto the lack of connectivity or prohibitive data costs,as was once the case, it's because people areincreasingly skeptical of trends becoming fads.

How many people (outside agencies) do you knowwho still check-in on foursquare, have bought agroupon deal recently, converted to google+ or

created a pinterest account?

Clients are expected to integrate digital technologiesin their businesses and marketing strategies, butthey may not necessarily understand, or believe in,all the benefits they can bring.

Agencies have reacted to these trends by offeringniche services and hiring experts with fancy titles (Ishould know, I used to have one of the fanciest). Butclients aren't always best placed to get the most outof these people. You'd be amazed at the breadth inscope of some procurement questions.

Too many companies expect their marketingdepartments to be experts in digital.

We prefer working with people who are experts inunderstanding their customers’ behaviour and theirbusiness and marketing objectives. And then wework together to determine the most appropriateways to connect with their audience.

All client/agency relationships to be trulycollaborative, trusting in each others skills andstraight talking; now that would be a good trend for2012.

Barnaby Ellistwentyfoursquare

Video-commerce

No longer is online video considered a second-classcitizen; 2012 is the year it will firmly take its positionwithin marketing strategies. Its share-ability,engagement levels and persuasive abilities make themedium incredibly powerful, but most importantly forbrands, video has the ability to drive an increase in sales.Video-commerce enables customers to buy directly

from the content they’re watching, either directing acustomer to a specific product page or adding to thebasket immediately.

Online video ensures that brands not only engageand build customer loyalty across a variety of devicesand channels, but influences purchasing behaviour.

As we inexorably march towards the world ofconnected TVs, the ultimate home of video content,video-commerce’s importance will only get stronger.

Chris Gorell BarnesAdjust Your Set

US Tech Outlook:Optimism in the Markets

As we head into Summer expectations remain highfor the U.S. tech sector.

The NASDAQ Composite Index, driven by its largetech companies, has steadily risen to pre-recessionlevels and has consistently outperformed the DowJones Industrial Average and the S&P 500 so far this year.

The performance of the S&P Tech sector is startingto resemble that of its 2007 heyday as technologycompanies have reclaimed a hefty 20% weighting inthe S&P 500 index with five leading tech companies(Apple, Google, IBM, Microsoft and Intel) making upover half of that amount.

Apple’s market cap recently surpassed $500 billion,an amount greater than that of Walmart, PepsiCo,McDonald’s and Disney combined! Apple’s strongperformance this year is indicative of technology’sdominance in the U.S. marketplace and is likely aharbinger of good things to come from the techsector throughout the year.

2012 Trends2012

Technology M&A activity has continued at ameasured pace in 2012. On a positive note, over 600tech deals have been announced in 2012; however,the 257 tech acquisitions in February was one-thirdless than January’s total and 17% less than thetrailing 12-month average.

Large tech companies have been active acquirersthis year highlighted by Oracle’s $1.9 billionacquisition of Taleo and Cisco’s $271 millionpurchase of Lightwire in February. Due to the evergrowing demand for products by digital consumersand the sizable cash war chests currently held by bigtech companies we can expect more strategic dealsbeing sought by U.S. corporations to integratemobile, wireless and cloud technologies.

A desire by purchasers to acquire social-mobilitystrengths will also be a driving factor in spurring dealactivity this year.

In the IPO market, after a flurry of activity to close out2011, the market was primed for a number of bigname tech offerings to start off 2012. Investors arelikely to be more cautious when participating in techIPOs this year as a number of high profile 2011 IPOs (including Groupon, LinkedIn, Pandora andZynga) failed to live up to the market’s loftyexpectations.

That situation notwithstanding, Yelp still received awarm reception from the market upon its IPO inMarch as it priced above its proposed range at $15and traded up almost 64% on its first day of trading.

That positive momentum will likely continue in thecoming months as the market awaits the high valued IPO candidates in the pipeline includingTwitter, Kayak, LivingSocial and Tumblr just to name a few.

Maurice WatkinsGroupArgent

Digital Revolution

The digital revolution, offering unparalleledopportunities within internet retailing, shows no signof abating.

Knowledge of key internet technologies will allowbrand, values and personality to be maintainedacross every channel, while ensuring a seamlesscustomer experience. Marketers who use thesenew technologies in combination with data analysisand appropriate targeting will drive better results.

At Essence, we believe there are three digital trendsthat are set to make a huge impact on internetretailing in 2012. These are big data and attribution,the evolution of display advertising technology andfinally f-commerce.

All of these trends offer retailers the chance tointeract in a more informed, personal andimmediate way with their customers.

Joseph LeonEssence

Companion Apps

Broadcasters and production companies areincreasingly realising the opportunities presented bymobile “companion apps” that boost viewers’engagement with the original transmitted content.

These “second screen” apps can provide exclusivecontent, interactive features, social mediaintegration and even content that’s synchronised tobe relevant to what's occurring on the televisionscreen.

But sophisticated companion apps cannot be boltedon to TV programming as an afterthought. Theyrequire careful planning if they are to be successful;indeed, app strategy must be a part of programmeplanning from the very start.

Well-thought-out apps can deliver valuable newrevenue streams, sponsorship opportunities, andmuch greater viewer engagement and retentionwhilst enhancing the overall viewing experience.

Ryan HallNice Agency

If you would like to discuss this piece, please contactMiles Welch at mwelch@resultsig.com

www.resultsig.com FIVE

In the hot seat

Scott ButtonFounder & Group CEO

Unruly

Q: Best online campaign/video ever?A: Will It Blend?

Q: What makes you tick?A: New stuff.

Q: Best way to travel? A: Teleportation.

Q: Hot or cold & why?A: Fire & Ice.

Q: Your personal motto?A: #WINNING with integrity.

Q: Best pet ever?A: Tabby cat.

Q: 2012 challenge?A: Going global.

Q: Best moment to date?A: Getting into the Guinness Book of records with

Evian Roller Babies.

Q: How Unruly Media came about?A: Chucking algorithms at decentralized

pop culture.

Q: 5 words on the culture?A: Passionate, ambitious, supportive,

demanding, fun.

Q: What will you be doing in 2022?A: Holidaying on the international space station.

Q: Advice to your 17 year old self? A: Go see the Wedding Present before they

get crap.

www.unrulymedia.com

SIX www.resultsig.com

Whilst ‘venture investing’ in technologybusiness (early stage minority interestsfollowing the Hollywood model of oneblockbuster paying for the next twentyloss-makers) is a well-established anduniversally accepted model for growingcompanies, the subject of private equity(PE) investing in the marketing servicesworld is generally pretty divisive. It’s theage old cliché of businesses whoseassets go up and down in the lift and gohome at the end of each day beingwidely held not to make goodinvestments for money men.

When considering this subject it is essential to firstdefine the industry. The convergence of creativeservices, digital media and technology gathers moremomentum with every passing week, and themarketing services industry that we focus on atResults International is one where marketingtechnologies and science are as integral to theindustry as a martini to a Don Draper lunch.

Brilliant creative people are the key to success intechnology businesses just as they are in traditionalcreative services, but the increasing opportunities fordifferentiated product-based revenues in marketingservices allows PE another angle to explore whenconsidering risk and return equations that simply didn’t exist in any meaningful way more than a fewyears ago.

Obviously, investing relies not only on a willing buyerbut also a willing seller and the marketing servicesindustry has had its fair share of well-documentedissues with over-leveraged buy outs that have leftmany management teams nervous about financial

backers, particularly where their funding is reliant uponbank borrowing. We should, of course, poseourselves the question of which sector hasn’t sufferedfrom this before we convince ourselves that this is anissue unique to us.

In our experience, most agencies seeking a sale oftheir business are looking to realise capital value forthe owners, secure funding for growth and createopportunity for successor management. Often, theseobjectives are framed by a strong desire for continuedoperational autonomy and brand independence.Partly driven by the continuing lack of available bankfinancing but more importantly due to a permanentlychanged investment approach by PE to marketingservices businesses, where shareholder value isdriven by real growth rather than financial engineering,the structuring concerns that made many marcomsleadership teams discount PE from their thinking aregradually being unwound.

We tracked 56 PE deals completed in the marketingservices sector globally during 2011, ignoring out andout technology plays, and these were predominantlyin businesses focused on creative services disciplines.

Of these completed investments, only seven were inbusinesses with a heavy advertising technology bias,whereas the largest grouping was of ‘classical’marketing businesses (indeed to the extent that it ispossible to apply such a label any longer) with twentytransactions, eighteen in the pure digitalcommunications space and eleven in content focusedbusinesses. These deals were completed across theglobe, in both emerging and established markets.

Of course there is also another factor influencingthese activity levels. If strategic partnerships are themore common route to shareholder value realisationin our industry, it is also critical to look at theinvestments being made by strategics. In the last fewyears we have seen convergence drive the entry into

marcoms of various substantial publishing groups,data businesses and technology firms which hascreated some fascinating opportunities for growth.

The major international advertising groups havebecome ever clearer and more focused in theirapproach to digital and emerging markets. Thenetworks are heavily invested in mature markets,often with multiple competing brands in the samedisciplines and will only consider investment in thosemarkets and disciplines around very specific in-fills.

This clearly makes the seller objectives ofindependence and brand autonomy extremelychallenging for all parties in these markets, whereas inemerging markets the landscape is totally differentand much more likely to yield the alignment ofinterests required.

At Results International we are fortunate to enjoy aprivileged insider’s view of the market. From thisposition we have been tracking with great interest theplans, some of which are now beginning to becomepublic, of multiple PE players looking to build positionsin the marketing services industry. These vary inshape and type from single investments to substantialbuy-and-build platforms that, given time andconsistent funding, could turn into major internationalforces. Like all M&A, as confidence and familiarityestablishes itself around this type of investing,conversations become easier and more engaging.

We believe that this phenomenon will lead to acontinuing increase in the number of PE deals in theindustry, particularly in the more established markets,over the course of the next 24 months against amacro economic backdrop pointing towards the earlystages of recovery; text book conditions for valuecreation for both buyer and seller.

If you would like to discuss this article, please contactJim Houghton at jhoughton@resultsig.com

Private Equity

We chose Results International due to its impressive list of relationships on a global scale, and the success stories behind many acquisitions in the marcom sector. The Results team managed the handholding during the entire process in a very professional manner, and despite a long road we actually enjoyed the process with them and are delighted about the outcome.

Results is a very experienced M&A partner to have on board and we wish them further success in the Middle East and beyond with hopefully many more success stories to come.

Martin Diessner Co-Founder,Flip Media

www.resultsig.com SEVEN

The year kicked-off to a flying start with11 deals announced in the first weekand 144 deals in total for Q1 of 2012,with a disclosed value of USD $1.9bn.

By comparison, there were 61 deals with a disclosed

value of USD $4.2bn in Q1 2011, which includes

eBay’s USD $2.4bn acquisition of GSI Commerce.

Excluding the GSI Commerce transaction, the total

for the quarter would stand at US$1.8bn.

Deals in Q1 2012 highlights strategic buyers, over

private equity, as the driving force behind M&A in the

marketing services and related technologies sectors.

One of the most interesting trends being the

emergence of new strategic buyers from the world of

publishing, consultancies, software/tech and

telecoms, seeking to acquire new skills in digital,

social, mobile and data. We will have to wait and see

if the pace of M&A activity will continue.

If you would like to discuss this article, pleasecontact Afsor Miah at amiah@resultsig.com

2012 Q1 M&A:Summary Highlights

2012 Q1

10

85

433

Soci

al M

edia

Dat

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naly

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PR

Mob

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pp D

evel

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Deal Statistics

geographical split

North America

AfricaSouthAmerica

UK

47

1 1

MiddleEast

5

35Europe

23

APAC

30

Canada

2

by month

60

43

41

Jan

Feb

Mar

3most active sectors

WPP

PUBLICIS

CHIME

AEGIS

IPGMDC PARTNERS

by company deal type

PE/VC backed deals12

Cross border deals53

50

by disclosed value

US$1.9bn

£ new emerging buyers?

Serv

ices

volume of deals

144

EIGHT www.resultsig.com

Whilst digital has transformed the waywe live our lives and disruptedcountless industries, you could arguethat its effect on marketing has beenrelatively muted.

Of course every client and every agency now has a

focus on getting digital right, but the money hasn’t

followed the audiences - yet. Morgan Stanley have a

chart showing that the underspend on digital when

compared to share of time spent is around $50 billion

globally. Talking about the Q1 WPP results, Martin

Sorrell told of the significant spend with Google ($2bn)

and Facebook ($400m) - but that is only around 3% of

WPP $70bn+ media spend globally.

But we’re convinced this is about to change and that

marketing is about to be totally transformed by digital.

Why? Because now hundreds of millions of people

have the internet in their pocket. Smartphones,

connected to cloud computing, are changing the way

people live their life once again. Google talk about

being Mobile First. Apple see themselves as mobile

business. Facebook talk of reaching a billion users

through mobile. Amazon have transformed their

business with the Kindle - their first mobile device.

In the UK around 10 million people have iPhones and

around 20 million have Android smartphones. Most

content websites are seeing between 10% and 20%

of their traffic is from smartphones - and we’ve seen it

as high as 40%. Apps have become a part of life -

now included in the basket of products used to

calculate the official cost of living data.

Just looking at retail, we are seeing huge disruption as

shoppers read reviews, compare prices and check

stock levels using their smartphones to enhance their

shopping experience. Booz Allen estimated that

$110bn of retail spend was influenced by mobile in

Europe last year. The growth forecasts in every

market suggest this move from desktop internet to

mobile internet is going to continue. We are now in

the Decade of Mobile.

So how are marketers reacting to this substantial shift

in consumer behaviour? We’re seeing that brands

now do get the size and significance of the mobile

opportunity, but many are unsure about how to react.

Or where to go for credible advice. The majority of

brands still haven’t yet made their websites usable by

mobile visitors and lots of the brand apps developed

are languishing in the appstore with few downloads.

The key to mobile is understanding how it can

connect every element of a marketing strategy.

Millions of people are using these devices to read

newspapers and magazines, watch catch up (and

live) TV as well videos on YouTube and listen to radio

stations.

A huge proportion of social media time is on mobile

devices. On the same devices we can see where

people are, which shops they are in, what they search

for and what they buy. As mobile coupons grow in

popularity, we can see what they bought in the real

world too.

Smart brands are looking at how they can connect

this data trail to get true accountability. Whilst there is

a lot of work to do on the mobile plumbing that will

enable end to end tracking - not to mention the work

on new attribution models - brands will be able to

connect sales to actual media exposure. New

techniques are emerging all the time to build on these

possibilities - Shazam was used by a third of all this

year’s SuperBowl advertisers to give their TV ads a

mobile response mechanic.

It’s time to experimentwith mobile

Whatever marketing discipline you specialise in

(brand awareness advertising, response, promotions,

CRM, social, etc) mobile is now a key factor and is

going to grow in importance. Digital, essentially, is

going to be subsumed in mobile.

Consider that in 12 months time we’ll have a bigger

user base and the devices will be even more

powerful, with the iPhone 5, next generation Android

smartphones and the new iPad all being used by

millions of people. The network connections will be

faster as wifi becomes available everywhere and 4G

is launched.

The software gets cleverer too - with visual and voice

search going mass market. People are educating

each other - they’re showing off their apps to their

friends and sharing tips on how to shop smarter with

mobile.

McKinsey wrote a great paper a few years ago called

Boosting Returns on Marketing Investment where

they argued that marketers should invest 80% of their

budget in ‘bankers’ - things they know worked - and

the other 20% should be invested in well structured

tests. We think this is perfect advice for dealing

with mobile.

We’re totally convinced that mobile is the most

significant development in marketing since the launch

of commercial television. Those brands - and

agencies - that seize the opportunity can profit from

these changes - at the expense of those that are

slower to adapt. It’s time to experiment.

If you would like to discuss this article, please contact

Angela Lurssen at alurssen@resultsig.com

Simon AndrewsAddictive Mobile

With Results, we entered into conversations and negotiations with the confidence that comes with experienced counsel.

Results helped us understand how best to leverage our unique position in the Chinese communications landscape for full advantage as well as helped us ensure each step of the deal was handled with professionalism and effectiveness.

Sam FlemmingFounder & Chairman,CIC

www.resultsig.com NINE

Once relatively unknown marketaccess has truly stepped forward inthe healthcare marketing services. So much so that in recent years it hasspawned an industry of specialist firms.These players support pharmaceuticaland med-tech businesses seekingresearch, consultancy andcommunications solutions to get theirproducts to market.

In the last two to three years the demand for theseservices has rocketed, spurred by ever-tighteninghealth regulations and growing recognition bypharmaceutical companies of the value in investingin these outsourced solutions. And this in turn hasled to consolidation as healthcare research andconsulting firms look to build their own marketaccess offers, primarily by acquisition. Recent dealssuch as the sale of PriceSpective to Icon andBridgehead to GfK demonstrate the continuingdemand for quality providers in this sector.

So what are the main drivers behind this demand?Firstly, it is increasingly challenging forpharmaceutical companies to commercialise theirproducts. It is no longer enough to demonstrateefficiency to prescribers; it’s also necessary toinfluence the payers - market access stakeholderssuch as governments, healthcare providers andinsurance companies. The latter are increasinglyrelevant in the US where pricing and reimbursementcontrols are used to contain health care costs whichhave spiralled with an ageing population, medicaladvancement and better informed consumers.

In addition, increasingly complex factors aroundsafety, effectiveness and particularly cost mean agrowing need for specialist guidance to navigate thecomplex environment to strengthen the case forpayers. Patent expiries on current product lines arebringing this into further focus for the Pharma /

biotech sector, thanks to the significant costrequirement to bring new drugs to market -everything from clinical trials (recruiting patients andmonitoring them over extended periods) toproducing documentary evidence of success.

Healthcare services businesses are increasinglytasked with developing a wider value strategy fortheir clients, as pharmaceutical companies seek anintegrated solution, to ensure effective value driverdevelopment through the entire product life cycle(early stages, pre-launch and post-launch).

Market access businesses can add value indeveloping broad commercialisation strategies, notjust at the time of product launch but before andafter as well. Working with a CRO they canincreasingly be looked to, to inform the clinical trialphase, to support quantification and articulation ofvalue that the product will add.

Greenfield, ‘pharmemerging’ markets are anotherarea where market access capability addsconsiderable value. The hugely divergent growthrates in these economies can lead to bigopportunities for pharma companies, even wherethere is the same rigour surrounding the regulatoryenvironment as is found in the UK or US. Theseterritories offer a good springboard, although overthe coming months and years emerging marketswill be the hot spot for potential acquisitions. Thisputs a premium value on a market access businessif it already has offices around the world.

And on top of this growing demand, other factorsare driving value for market access firms. In the UKthere is a real scarcity of independent, establishedbusinesses remaining in this space, particularlysizeable ones. As a result, quality players can beexpected to attract strong multiples in the upper endof the spectrum for marcoms/research businesses -the more dynamic healthcare climate displacing anydampening from the general macro economicclimate.

However, do the market access firms themselves

know that this scarcity exists and that they are

attracting higher multiples than other businesses?

Ultimately, in trying to get a product onto a GP’s

formulary list, market access is the most

fundamental step. Providers in this space who

realise just how in-demand they are - and have the

business to back it up - can expect premium

valuations.

The buyer landscape is wide as businesses seek

to add their high value expertise within their own

service offering. Vendors can expect interest from a

range of businesses from CROs to marketing

communications businesses, generalist

consultancies and research houses and broad PE-

backed healthcare services groups - on both sides

of the Atlantic.

Like digital marketing, it’s a new space. Many of the

market access pioneers began in the late 1990s

and most of the relatively established businesses

are now 10 to 15 years old. However, some of the

larger ones may have only started up in the last

five years and others are emerging even now.

Many will have had multiple approaches from

would-be buyers in any given year so they will

know that the M&A market is currently very

buoyant. But what they should bear in mind is that

a timely exit is vital if they want to leave while the

business is still on a growth trajectory.

Fundamentally, market access is an area of

genuine opportunity. Many different types of buyers

are looking to add it to their portfolio of services

and good businesses are scarce enough that

multiples are buoyant. Little wonder new ones are

starting up all the time.

If you would like to discuss this article, please

contact Hemavli Bali at hbali@resultsig.com

Making the most of market access

Bridgehead chose Results to represent it in the sale process because of the professional approach of the Results team, theirimpressive track record and extensive networks.The team provided fantastic support throughout the sale process and enabledthe company to achieve a much better outcome than was originally thought possible. The founders of Bridgehead would haveno hesitation in selecting Results for future transactions and would recommend them very highly to others.

Dr Fiona PatonCo-Founder & Director,Bridgehead

This year the team at Results havedecided to support an incredible charity– Centrepoint. This organisation isbased close to our new London officein Soho Square and we are reallyimpressed with the work that they do tosupport homeless young people.

This year, as usual, the Results team will betaking part in some insane sporting activities toraise funds for Centrepoint but also going alongto the comedy nights and other fundraisingevents that Centrepoint organise in order to helpraise funds. We encourage you to visitwww.centrepoint.org.uk and read through thetruly inspiring case studies of young people who,through the practical support given by the team atCentrepoint, have transformed their lives andovercome severe deprivation and adversity.

If you would like to join us for the London to Parisbike ride please contact Hannah Joneshjones@resultsig.com

TEN www.resultsig.com

ASTEROID UK-based market leading healthcare market access consultancy with top pharma clientele. EBITDA £1m.

BISHOP A unique well established and profitable outsourced marketing fulfilment and logistics business with total turnover approaching £25m, seeks a partner who can capitalise on the opportunities it has for further growth in specific markets and in its digital and ecommerce activities.

The following summary is a sample of the range of companies seeking trade buyers currently represented by Results International. If there are other sectors or areas ofopportunity not indicated here that interest you, please contact us at the earliest opportunity. If you'd like to discuss the opportunities below in more detail, please contactAngela Lurssen at alurssen@resultsig.com.

M&A Opportunities

UK & Europe:

2012 Charity

AUG

SEPT OCT

JULMiles will take on the

Thunder Run.A team are cyclingfrom London to Paris.

Keith and Angela are

tackling the Challenge

Henley Iron ManChallenge (again!)

Jim is doing the Pilgrim

Half Marathon.

Julia's braving the

Great North Run.

CYRUS Swedish based B2B specialist agency with international client portfolio and high margins. EBIT €800k.

Angela will becompleting a doubleRobben Islandcrossing.

Conditions:1. Respondents will be expected to sign a confidentiality letter before any information will be provided.

2. Important note: the information contained in this document does not constitute an offer or invitation to subscribe for shares. Every reasonable effort has been made to ensure the reliability of the information contained herein, but no warranty is given as to its accuracy or completeness.

Authorised and approved by the Financial Services Authority (FSA).

Central & Eastern Europe:

Asia-Pacific:

MENA:

Latin America:

NOBLE Leading Istanbul integrated agency, highly profitable with EBIT level of €1.2m.

TESLA Leading Istanbul PR consultancy with top international brands and €6.5m fee income.

XENON Istanbul based media sales agency with revenue €2.5m and EBIT of €0.8m.

ARUBA India based independent experiential, activation, retail merchandising & promotions agency.

BARBUDA Leading independent full service agency in Pakistan, one of the fastest growing ‘N11’ markets.

CASCADE Leading independent, integrated direct marketing services firm headquartered in HK with EBITDA of US$1m (approx).

FRANKLIN Independent, high profile PR consultancy headquartered in Hong Kong with offices in Shanghai and Beijing. Positioned for accelerated growth advising MNCs and Mainland Chinese firms alike.

GRENADA Brand strategy, brand experience, events, retail activation, graphic design and CRM agency.

OLYMPIC Fast growing full service digital solutions agency, Singapore based with additional offices in China, Hong Kong, Malaysia and Vietnam. Revenue of $5m.

ST JOHNS India based integrated communications agency.

ST KITTS Leading India based, well established integrated software solutions provider specialising in web design, CRM, online advertising and email marketing with a blue-chip client base. Revenue of $2.5m.

AQUA Dubai based experiential marketing agency with young and creative management team. PBT over $1m.

BAHRI A fully integrated and award winning mini network with 27 employees and head office in UAE.

CHARLESTON São Paulo based digital PR, media relations and reputation management agency. Impressive annual growth +70% in the last 3 years. Among 15 largest corporate communications agencies in Brazil. Revenue $7m. Multi-disciplinary profile.

CONGA Leading Brazilian production company, market leader in digital content development for mobile and new media formats, seeks an investor to help to establish a footprint and expand through the exploitation of new franchises in global markets.

MAMBO Sports marketing/entertainment company based in São Paulo. Over 35 years operating in sports in Brazil and internationally. Owner of some of the most renowned sports events properties. Seeks a strategic investor.

TANGO Digital agency founded in 2000, with offices in São Paulo and Porto Alegre and one of the leading independent digital agencies. The agency has a blue chip/multinational client list, is innovation driven with solid social media expertise. The agency has enjoyed a 70% plus growth rate year-on-year for the last 4 years.

www.resultsig.com ELEVEN

www.resultsig.com

27 Soho Square, London W1D 3AYTel: +44 (0)20 7629 7575

Authorised and approved by the Financial Services Authority (FSA)

Andrew KeffordRegional Director,Asia Pacific & MENA

David BloisRegional Director,Eastern and CentralEurope

Jim BellRegional Director,Western Europe

Dan EgertonConsultant

David CoppManager

Hemavli BaliDirector

Keith HuntManaging Partner

Andy CollinsSenior Partner

Julia Crawley-BoeveyManager

Eduardo SteinerRegional Director, Latin America & Managing Partner,Brazil

Arne TödtManaging Partner,Germany

Richard EyreNon-ExecutiveDirector

Chris JonesNon-ExecutiveChairman

Angela LurssenBusinessDevelopmentDirector

Imad Kublawi Partner, MENA

Chris BeaumontRegional Director, North Asia

Sunil GuptaManaging Partner,South Asia

Pierre-Georges RoyPartner,GroupArgentUSA

Graham BeckettFounding Partner & Non-ExecutiveDirector

Jim HoughtonPartner

UK

Hannah JonesMarketing Assistant

International

Miles WelchPartner

Jamie KeffordManager,South East Asia

Afsor MiahKnowledge Manager

Alison AustenHR Manager

Sheungyu ChoAnalyst

ResultsINTERNATIONAL

Maurice WatkinsPartner,GroupArgentUSA

Andrew DyschHead of Finance

Drew MeyersPartner,GroupArgentUSA

The team

David FeldgajerManager

Charly WarrenOffice Manager / PA

Toni RannoojeeTeam Assistant