Upload
resultsig
View
269
Download
2
Embed Size (px)
DESCRIPTION
As specialist advisers to the marketing communications and technologies industry, we are uniquely positioned to ensure that we are continually on top of key trends in this rapidly evolving landscape.
Citation preview
1
Introduction
1 1
What’s hot in marcoms today?
Q3 2014
2
What’s hot in marcoms?
2
As specialist advisers to the marketing communications and technologies industry, we are uniquely positioned to ensure that we are continually on top of key trends in
this rapidly evolving landscape. One of our key tools is our global deal tracker, which gathers the details of all completed deals in this sector, subcategorised and cross referenced by our team of analysts. This, along with the hundreds of conversations we have each month with both buyers and sellers, enables us to continuously identify emerging M&A trends. With the ever blurring boundaries between “marcoms” and “martech”, it is maybe unsurprising to see that the most talked about subsectors sit at their convergence points, namely : 1. Content marketing 2. Data & analytics,
3. eCommerce 4. Digital marketing; and 5. Mobile marketing This paper examines each subsector, the key trends and deal activity in 2014 YTD using both proprietary and third party data.
Introduction
Mobile Marketing
Sector Overview
Market Overview
4
Mobile Marketing Market Overview
22
36
58
88
127
177
0
20
40
60
80
100
120
140
160
180
200
2013 2014 2015 2016 2017 2018
Co
nn
ec
ted
We
ara
ble
Un
its
(m)
250
315
360
405
455
0
100
200
300
400
500
600
2013 2014 2015 2016 2017
Tab
let
PC
Un
it S
hip
me
nts
(m
)
Global growth of tablets (20) Growth of global connected wearable devices (21)
Growth slowing quarter on quarter, Apple noticeably suffering
Strong price elasticity, cheaper alternatives to high end models are
gaining market share
Dominated by consumers (89% in 2013), enterprise targeted as a
growth sector
Potential high growth sector, currently in the early stages of
adoption
Particular focus in 2014 as Apple announce Watch, Google
Glasses go on sale for the first time and Samsung continue to
develop their range
Mobile redefined
5
Mobile Marketing Market Overview
UK mobile adspend to increase 96% in 2014, an
increase of nearly a £1bn from 2013
This will represent nearly 30% of all digital advertising in
the UK. Mobile adspend is forecast to increase as a
percentage of digital (and total media adspend)
and eventually dominate digital adspend in 2018 with
a 70% share
526
1,031
2,021
3,233
4,462
5,756
6,907
9.7%
16.4%
27.9%
40.6%
51.6%
62.2%
70.4%
3.9%
7.3%
13.4%
20.5%
27.1%
33.7%
39.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2012 2013 2014 2015 2016 2017 2018
% o
f to
tal d
igita
l/m
ed
ia a
dsp
en
d
UK
mo
bile
ad
spe
nd
(£
m)
UK mobile adspend % of total digital adspend % total media adspend
Globally, mobile adspend will increase from an expected $13.1bn in
2013 to $41.9bn in 2017, representing a CAGR of 33.7%. North America
is projected to take the lion’s share of growth. However, the UK is
expected to grow at a CAGR of 53.7% over the same period
Video is expected show the highest growth, with display formats
expected to make up the most revenue. Display is predicted to shift to
mobile web display away from in-app display
UK mobile adspend predictions (22)
6
Mobile Marketing Market Overview
Native Mobile Advertising
Native advertising site examples
• Native advertising is establishing itself as new trend in the mobile
marketing industry
• Difficult to define – “native in the eye of the beholder”
• Small screen means disruptive advertising does not work
• Whether it is in story or video format, the aim is to make an ad
blend inconspicuously into the experience of the consumer.
• Facebook, Twitter and most recently Instagram are pioneers of
the technology
• Future trends for native advertising:
• Standardisation
• Regulation
• Data-driven
IAB’s ‘Core Six Native Ads’
In-Feed Units Paid Search Units Recommendation Widgets
Promoted Listings In-Ad (IAB Standard) with
Naïve Element Units
Custom / “Can’t Be
Contained”
USA native social ad revenues
Mobile - Native Display (21)
1.6
2.9
4.6
0
1
2
3
4
5
2012 2013 2014 2015 2016 2017
USA
na
tiv
e s
oc
iall
ad
re
ve
nu
e (
$b
n)
7
Mobile Marketing Market Overview
Mobile marketing – Video
• Two main uses:
- Within a mobile app install unit to drive app downloads
- Embed into a sponsored post for a page
• Mobile video views increased 300% between 2012-2013
• Tablets are fuelling the growth
• Key driver in the ‘Big Data’ trend
• Content creation that detects the device, delivering the right size
and style of video delivers best growth
• Emerging markets – cheaper average cost per click:
- India, Pakistan and Tanzania: 1 cent
- UK: 5.4 cents
The completion rate of videos by spot position
Completion rate is the single most-important metric when
talking about mobile video
Growth in global mobile video internet traffic
Mobile video consumption has increased 532% since 2012
Facebook – the video pioneer
• October 2013 – Facebook introduces mobile video marketing
• Users will ‘click play’ to watch the video about their app before
being led to the app installation page.
- Increases installation rates and decreases the overall cost per
installation
• December 2013 – In-feed video ads trialled and introduced on
mobile
• Focus on brand promotion and mCommerce
Mobile – Video (23)
0
2000
4000
6000
8000
10000
12000
2013 2014 2015 2016 2017 2018
Pe
tab
yte
s p
er
mo
nth
of
inte
rne
t tr
aff
ic
59% Post-roll
59% Pre-roll
88% Mid-roll
8
Mobile Marketing Market Overview
• There are over a million apps available, which generate over $26 billion of
revenue p.a., and this is constantly growing
• There were 102 billion downloads in 2013
• Money is increasingly made through advertising and in-app purchases, fewer
developers are charging for the initial download to achieve a greater
audience
• Tablet app adspend is catching up with smartphone devices; by 2017, the tablet/smartphone app adspend split will be almost 50/50
• Consumers spend the majority of their time on apps when using their
smartphone devices; the split is 80:20, app:browser
• Strategy around how to climb the app store rankings is becoming a key part of
mobile marketing – high costs associated with climbing the ‘top charts’ have
meant it has become increasingly difficult to promote an app without
significant cost
App advertising Paid for apps
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2011 2012 2013 2014 2015 2016 2017
% o
f a
pp
sto
re r
ev
en
ue
s
Re
ve
nu
e fro
m p
aid
do
wn
loa
ds
($m
)
Paid-for apps % of app store revenues
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2011 2012 2013 2014 2015 2016 2017
% o
f a
pp
sto
re r
ev
en
ue
s
Re
ve
nu
e fro
m in
-ap
p p
urc
ha
ses
($m
)
In-app purchases % of app store revenues
In-app purchases
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
-
2,000
4,000
6,000
8,000
10,000
12,000
2011 2012 2013 2014 2015 2016 2017
% o
f a
pp
sto
re r
ev
en
ue
Ad
ve
rtis
ing
re
ve
nu
e (
$m
)
Advertising Revenue % of App Store Revenues
Mobile apps (24)
9
Mobile Marketing Market Overview
65.6%
17.7%
16.7%
79.5%
11.8%
8.7%
USA digital ad spend 2011-2017 – Search
Global paid search spend by device
Computer
Phone
Tablet
14.4 15.1 15.3 14.9 13.9 12.6 10.3
0.7 2.2 4.3
6.7 9.3 12.2 15.3
0
5
10
15
20
25
30
2011 2012 2013 2014 2015 2016 2017
US S
ea
rch
Ad
Sp
en
d (
$'b
ns)
PC & Laptop Mobile & Tablet
2012 2013
Computer
Tablet
82.8%
68.5% 65.7% 64.1% 64.2%
50%
60%
70%
80%
90%
2012 2013 2014 2015 2016
Phone
Search (25)
Why is search on mobile a good tool?
• Increased mobile usage: Searches on mobile devices are expected to surpass desktop
searches by the end of 2014
• Facilitation of local search: 97% of consumers go online to research products or services in
their local area
• mCommerce on the rise: 74% of mobile users utilise a search engine during their
purchasing process
• Strong conversion statistics: 73% of mobile searches trigger additional action and
conversion (purchase, visit of website, visited store)
• Click through rates second only to video
Mobile Search Marketing – Key Considerations
• 81% of mobile searches are driven by speed & convenience
- Mobile user experience improved through mobile friendly website
- Mobile page load speeds
• Understanding and interpreting mobile user’s intent
• Expanding search mechanisms - augmented reality, conversational and voice
• Google Adwords – shift to integrated (desktop & mobile) search approach
Google losing market share
• Search isn’t restricted to browsers – innovative apps allow consumers new ways to
monetise search
Google as a % of total USA mobile search ad spending
10
Mobile Marketing Market Overview
Key trends
• Definition of “Mobile Marketing” – 2014 is becoming the year of the wearable, with mobile marketing evolving
beyond smartphones and tablets
• Programmatic buying in mobile media is shaping the way marketers are thinking and implementing mobile
campaigns and this will only evolve as technology becomes more sophisticated
• Inevitable innovation of ad formats – Native has been a revelation in 2014 and with the rise of mobile video and
improvements in location targeting tech new ad formats taking advantage of this will undoubtedly follow
• Big data – The increased integration and usage of data in mobile marketing is rapidly quashing the myth that
mobile customers are typically difficult to target
• Increased intelligent in-app marketing – Apps are where the user spends the majority of their time on mobile, and
with Snapchat and Instagram introducing advertising into their apps the bar is being raised as to how to maximise
return on investment, whilst minimising intrusion
• New sensory functionality in apps – Apple’s new health update for example will mean new innovation on a new
mobile platform resulting in a new way for marketers to raise brand awareness
• Mobile first marketing – Budgets will begin to shift to target mobile as a primary marketing route with improved
yields and engagements metrics vs. more traditional channels
Trends
Mobile Marketing
Sector Overview
M&A Market
12
Mobile Marketing M&A Market
Q1-Q3 2014 Mobile Marketing deals (26)
Q3
Deal Volume Target Region
Major Buyers Deal Types
Quarterly Split
Cross Border
PE Backed
18
2 25
11
12
Q2
Q1
21
2 North America
UK
1
South America
Middle East 1
4
2
WPP DMI
48
Total Deals
1
APAC 11
Africa
8
Western Europe
Eastern Europe 3
13
Mobile Marketing M&A Market
Date Buyer Target Target Location Target Description
Aug-14 UK Mobile app development
Aug-14 USA Mobile app development
Jul-14 USA Mobile app development
Jun-14 Australia Mobile sites and app development
Jun-14 Sweden Full service mobile marketing
Jun-14 Hong Kong Mobile advertising
May-14 Turkey Full service mobile marketing
Apr-14 USA Full service mobile marketing
Mar-14 UK Full service mobile marketing
Jan-14 South Africa Full service mobile marketing
Q1-Q3 2014 selected transactions
14
Mobile Marketing M&A Market
References
1) Results Intelligence
2) Advantage Business Media’s digital road map, AdAge
3) Content Marketing in the UK: 2014 Benchmarks, Budgets and Trends: Content Marketing Institute/DMA UK
4) Nativeadvertising.com
5) Content Marketing in the UK: 2014 Benchmarks, Budgets and Trends: Content Marketing Institute/DMA UK
6) Content Marketing in the UK, Content Marketing in North America: 2014 Benchmarks, Budgets and Trends: Content Marketing Institute/DMA
7) CapIQ, 451, OneSource, Results Intelligence
8) ExactTarget Marketing Cloud 2014 State of Marketing Survey, Deloitte Analytics Trends 2014, IBM, TechRepublic
9) CapIQ, 451, MergerMarket, Results Intelligence
10) eConsultancy (January 2014), eMarketer (January & April 2014), International Business Times (October 2013), eCommerce Week (January 2014),
bpost International (January 2014)
11) eConsultancy (January 2014), IMRG (January 2014), eCommerce Week (January 2014), bpost International (January 2014), Statista (2014)
12) The Drum (February 2014), Talk Business Magazine (December 2013)
13) CapIQ, 451, MergerMarket, Results Intelligence
14) eMarketer (March 2014)
15) IAB Digital Adspend 2013
16) eMarketer (June 2014)
17) IAB/PWC Adspend 2013
18) IAB Digital Adspend 2013
19) CapIQ, 451, MergerMarket, Results Intelligence
20) Cisco VNI Mobile (2014), NPD DisplaySearch (February 2014), IDC Worldwide Quarterly Tablet Tracker (2014)
21) IAB Native Advertising Playbook (2013), BIA/Kelsey
22) eMarketer (July 2014), Gartner (2013)
23) Google & Nielsen (March 2013), Cisco VNI Mobile (2014), relevant press, company websites
24) Gartner (September 2014), relevant press, company websites, Results Intelligence
25) eMarketer (August 2013), Kenshoo (December 2013)
26) CapIQ, Companies House documents, Press, company websites, Results intelligence
15
About Results
Corporate Finance Advisors to the Marketing Services & Marketing Technology sectors
Selected clients and transaction counterparties
An established team of sector experts…
• Results International is a market-leading M&A advisory
firm founded in 1991
• Entrepreneurial and owner-managed
• 40 person global team with over 250 completed
transactions
• Senior level attention on all transactions
• Winner of Cross-Border Deal of the Year 2014 (sale of We
Are Social to Blue Focus)
Software
Marketing Services
Marketing Technology
Digital Media
Sector specialism
…with global reach
16
About Results
has been acquired
by has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by has invested in
has been acquired
by
launched a new
global creative
network
has been acquired
by has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired by
Unrivalled expertise in the Marcoms sector
17
About Results
Mark Williams Director
• Joined Results in 2010, with over 15 years of M&A experience
• Prior to joining Results Jim led
European M&A activity for the
marketing services division of
Omnicom (DAS)
• Clients include We are Social,
Blue Rubicon, Virgo Health,
Crayon and Iris
• Joined Results in 2005 - Previously Head of M&A at Ernst & Young
• 20+ years experience in corporate
finance, including M&A,
fundraising, IPOs, JVs, MBOs and
MBIs
• Clients include The Group, Figtree,
Monitor Media, Spannerworks, Flip
Media, Transactis, Punktilio,
Flamingo, Brand X, and AIA
• Joined Results in 2012. He started
his career at KPMG working in
Financial Services M&A and
moved to Ingenious Corporate
Finance in 2010
• Clients include Staffcare, Moonpig, St Ives, and Inflexion
Julia Crawley-Boevey Director
• Joined Results in 2010 having spent
over four years at BDO where she
worked in both Audit and
Corporate Finance
• Clients include The Group, Blue
Rubicon, Virgo Health, Incite, and Crayon
• Joined Results in 2012 to lead the
tech and digital media practice
• 15 years M&A experience at
Broadview then Jefferies, advising
tech and digital media companies
on M&A and fundraising
• Advised on transactions with
Oracle, Microsoft, Experian,
Moody’s, IAC, Axel Springer, DMGT,
and BT
• Joined Results in 2014, with over
15 years M&A experience
• Prior to joining Results, Chris led
the Technology M&A practice at
KPMG. He previously spent 11
years advising tech companies
at Arma Partners and JPMorgan
• Recent clients include Zinc
Ahead, Pushbutton and Irdeto
James Kesner Manager
• Joined Results in 2013 from Kingston
Smith
• ACA qualified, previously worked
as a Finance Director for a London
based brand consultancy
• Clients include ID magazine, Not to
Scale, Writtle, Adam and Eve
Richard Latner Manager
• Joined Results in 2014 after having
spent 9 years at KPMG across
audit, TS & M&A functions
• Clients include: WRG, Irdeto and
neoworks
Selected Team Members
Jim Houghton Partner
Keith Hunt Managing Partner
Julie Langley Partner
Chris Lewis Managing Director
18
About Results
Selected Team Members – International
• Long career in marketing sector
(Ogilvy & Mather, The Ball
Partnership)
• Managed the acquisition of SMART
by McCann Worldgroup, CCG by Publicis Group to establish Digitas
China, CIC by Kantar Media and
The Upper Storey by Isobar
Andrew Kefford Managing Partner –
Asia Pacific & MENA
Chris Beaumont Managing Partner –
North Asia
• 16 years of experience
consulting in Asia
• For 10 years Chris was with
McCann-Erickson in Asia; he was
both Vice-Chairman of its operations in Tokyo and Chief
Strategy Officer for WorldGroup
across Asia
• Has closed over 35
transactions totaling $0.75
billion
• Experience includes advising
Hunt Mobile Advertising on its
transaction with Opera Mediaworks
• Maurice has previously
worked at the Zanett Group,
Morgan Stanley and IBM
Maurice Watkins Partner
• 27 years experience in the
advertising sector, including
as COO of JWT's Middle East
Network
• Joined Results International in
2008 and has since been
engaged in a number of buy
and sell mandates
Imad Kublawi Regional Partner –
MENA
• Spent 24 years at Hindustan Thompson (part of JWT), the
largest ad agency in India
• Other roles include COO at
RK Swamy/BBDO and as
advisor to companies in India,
Pakistan & Dubai
Sunil Gupta Area Liaison –
South Asia
USA
Asia
Pierre-Georges Roy Partner
• Closed $4.0 billion in cross-
border transactions
• Experience includes advising Hunt Mobile Advertising on its
transaction with Opera
Mediaworks and Telesystem
International Wireless (NASDAQ:
TIWI) on its sale to Vodafone
For more information contact:
Jim Houghton Partner
+44 (0) 20 7514 8234
Julia Crawley-Boevey Director
+44 (0) 20 7514 8239
Disclaimer:
This document has been produced by Results International Group LLP (“Results”) and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. 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 Results’ officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.