digital brief market report 2016 q1 vfinal€¦ · 02/04/2016 · § smb marketing and content...

1

Q1 2016 Market Report

Digital Brief 007

2

Mobile

LUMA’s Singular Focus on Digital Media

Technology

Media

Marketing MarTech

DigitalContent

AdTech

Ø LUMA’sexpertiseisattheintersectionofMedia,MarketingandTechnology

Ø Atthisintersectionexists:§ DigitalContent: contentsites,MCNs,gamepublishers,aggregators

§ AdTech: display,search,video,mobile,social,contentmarketing/native,connectedTV

§ MarTech: data,analytics,salesandmarketingautomation,email,predictivetools,commercetechnology,shoppermarketing,payments

Ø Mobile proliferationhasamajorimpactonthesemarketsandLUMAisdeeplyknowledgeableonmobile

3

Overall Commentary on ConsolidationØ Inourlastend-of-yearMarketReport,we

reported209acquisitionsduring2015indigitalmediaandmarketing

Ø Thedealswetrackinthisreportfallintooneoffourcategories:§ Large(over$500mm)§ Medium($100– $500mm)§ Small($20– $100mm)§ Sub$20mmexitsareconsideredtechandteamdeals,

capitulations,orundisclosed

44

U.S. Digital Media M&A Activity by Sector

Source: LUMA Partners

#ofTransactions

Ø DigitalmediaandmarketingM&Aactivityisofftoanotherfaststartthisquarter,outpacinglevelsfromQ12015.

Ø DespitethemarketvolatilityearlyinthequarterandoveralllowerM&Aactivityglobally,strategicandfinancialbuyerscontinuetobeveryactiveinthedigitalspace.

18 16 14 1120

11 21 2218

14

1818 23

19

28

0

10

20

30

40

50

60

70

Q12015 Q22015 Q32015 Q42015 Q12016

AdTech MarTech DigitalContent

55

MARKETINGTECH

CRMSOFTWARE

INTERNETORIGINALS TELCO

MARKETING

MEDIA

DATA

CONSUMERINTERNET

TECHSERVICES

COMMERCE

Right Time Decisioning of

Consumer Data

(Ad Tech and MarTech)

A Growing Robust Pool of Strategic Buyers

Ø Softwaresolutionsthatenabledecisioningofconsumerdataisacapabilitythatattractsdeeppocketedstrategicsfromawidevarietyofindustries

Ø ManycompaniesfromAdTechandMarTechhavedevelopedthesecapabilities

66

10%

17%

7%

34%

3%

3%

10%

10%

3%3% ConsumerInternetCommerceTelcoMediaMarketingTechTechServicesInternetOriginalsCRMSoftwareMarketingData

Digital Media M&A Activity by Strategic Buyers


Q12016StrategicBuyersTransactions

Ø Inthefirstquarteroftheyear,wesawstrongactivityfromstrategicbuyersinMediaandCommerce

Ø StrategicbuyersfromMediaandTelcoincludingRTLGroup,TimeInc.,AOL(Verizon)andTelenorGroupcontinuetoacquirecompaniesfocusinginAdTechastheybuildoutmoreadvancedmonetizationandtargetingcapabilities

7

Ad Tech M&A Activity

Ø Observations§ AdTechM&Aactivitybeganthe

newyearabovethepacewithQ12015with20transactions

§ Nearlyhalfofthedealsfocusedonmobilemonetizationandcross-devicetargeting

Ø MovingForward– NativeAdvertising§ Theevolutionofprogrammatic

technologyisenablingnewformsofnativeadvertisingfromapp-installadstolong-formcontentadsthatblendinwithdifferentenvironmentsatscale

#ofTransactions


3 1 3 1 1

1515 11

10

19

0

5

10

15

20

25

Q12015 Q22015 Q32015 Q42015 Q12016

+$100M <$100M

8

Ad Tech – Notable DealsAcquirer Capital

RaisedEnterprise

Value Comments

N/A $56M WiththeacquisitionofSmartclip,RTLGroupenhancesitsvideoadvertisingofferingsbyaddingSmartclip’s digitalvideoandconnectedTVtools

$34M $360M NorwegiantelecomoperatorTelenoracquiredcross-deviceadvertisingcompany Tapad tobolsteritsdigitalmarketingcapabilities

N/A N/A ByacquiringViant,TimeInc. combinesViant’s AdvertisingCloud withitspremiumcontenttocreatea“people-based”marketingplatform

Source: Capital IQ; Crunchbase

9

MarTech M&A Activity#ofTransactions

Ø Observations§ SMBmarketingandcontent

marketingwerekeytargetareastobegintheyear

§ FinancialbuyeractivitywasstrongthisquarterwithHGGC,MarlinEquityPartners,andVistaEquityPartnersmakingmoves

Ø MovingForward– ABMMarketing§ Webelievestronglythataccount-

basedmarketingwilltakeoffthisyearasmoreB2Bmarketersrecognizethevalueofdeliveringtherightmessageattherighttimetotherightaccount


05 3 3 2

10

16 1915

12

0

5

10

15

20

25

Q12015 Q22015 Q32015 Q42015 Q12016

+$100M <$100M

10

MarTech – Notable DealsAcquirer Capital

RaisedEnterprise

Value Comments


$73M $200M WithAddThis,Oraclebringsthecompany’sdataandinsightsfrom15millionwebsitestoOracle’sDataCloudandIDGraph

FormerlypartofIntuit N/A AftersellingtoIntuit for$424millionin2012,marketingautomationfirmDemandforce

wasacquiredbyInternetBrandstogrowitshealth-relatedmarket

$39M $135M NICESystemsacquiredcustomeranalyticscompanyNexidia toexpanditsanalyticsofferingtoincludeadvancedbusinessintelligence,compliancesolutionsandmore

$40M $342M Web.com,aproviderdigitalmarketingsolutionsacquiredYodle,aprovideroflocalbusinessmarketingtoolswhichgenerated$200millioninrevenuelastyear

11

Digital Content M&A Activity

Ø Observations§ WarnerBros’acquisitionof

DramaFever andFilmOn’sacquisitionofCinemaNowhighlighttheM&AactivityintheSVOD/OTTspacethisquarter

Ø MovingForward– MessagingPlatforms§ Popularmessagingappslike

FacebookMessengerandKik arebuildingplatformsthatenableuserstodonewthingsoutsideofmessaginglikerequestingcarservicetotalkingtobusinesses

§ Messagingplatformsarebecomingnewdistributionchannelsforcontent,apps,andservices

#ofTransactions


73

72

6

1115

16

17

22

0

5

10

15

20

25

30

Q12015 Q22015 Q32015 Q42015 Q12016

+$100M <$100M

12

Digital Content – Notable DealsAcquirer Capital

RaisedEnterprise

Value Comments

$11M $100M Snapchat acquiredBistrips,themakeroftheemoji-creator Bitmoji app,as itcontinuestoinvestincreatingmoreinteractiveexperiencesforitsusers

N/A $155M ChinesegamingcompanyBeijingKunlunTechCo.acquiredamajoritystakeinGrindr,thepopulargaydatingappwithover10millionusersworldwide

N/A N/A Mediagiant,Univision, acquiredacontrollingstakeofTheOnion,thesatiricaldigitalmediacompany,toreachandengagemoreofmillennialaudiences


13

Ad Tech – Q1 2016 Stocks Performance

Ø AdTechWeatherstheStorm§ AdTechstocksweatheredthe

marketstorm,growingby9%invaluebytheendofQ1

§ AdTechstocksaccomplishedararefeat,outperformingbothMarTechstocksandtheNASDAQ

Ø Highlights§ RUBIsoared15%afterbeating

earningsexpectationsfromQ42015andhittingover$1Binmanagedrevenuefortheyear

§ Afterfalling82%lastyear,MXPTendedQ1up9%thankstoQ4earningsandFY16guidancethatsurpassedanalystestimates

Market Data as of 3/31/16

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

1/4/16 1/18/16 2/1/16 2/15/16 2/29/16 3/14/16 3/28/16

TUBE RUBI TRMR MXPT YUME FUEL CRTO NASDAQ

14

MarTech – Q1 2016 Stocks Performance

Ø MarTechOfftoaRockyStart§ MarTechstocksonaveragelost

nearly15%ofvaluethisquarter§ Bymid-February,MarTechstocks

felltoitslowestpointinthequarter,downover33%

Ø Highlights§ SaaSleaderswerehithardas

MKTOandDWREcollectivelyshed25%oftheirmarketcapbytheendofQ1

§ SHOPwastheonlyMarTechstockwetrackthatoutperformedtheNASDAQ,growingnearly20%inthequarter

Market Data as of 3/31/16

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

1/4/16 1/18/16 2/1/16 2/15/16 2/29/16 3/14/16 3/28/16

CRM MKTO HUBS BV CTCT DWRE

JIVE MRIN LPSN SHOP NASDAQ

15

Q1 Key Startup Financings to WatchLead Investor Capital Raised Valuation Comments

Source: Crunchbase

N/A $56M N/A Bloomreach,ane-commercepersonalizationplatform,workswithmorethan175customersandcollectsdatafrom21%ofallU.S.e-commerce

N/A $100M $400M OnlineretailerBoxedhasraisedatotalof$132millionoffundingtocompetehead-to-headwithwholesaleclubslikeCostcoandSam’sClub

$48M N/A BusinessintelligencecompanyLookerhasgrown itscustomerbase,whichincludeeBayandKohler,to450 since lastyear

$794M $4.5B Augmentedreality (AR)startupMagicLeap’slatestSeries Croundoffundingwillenablethesecretivecompanytobringitsfirstproducttomarketsoon

$50M N/A Moat, amarketinganalyticsandintelligenceplatform,ismovingpublishersandmarketerstowardusingattentionasthenewdigitalmarketingcurrency

$60M N/A TheTradeDesk,anindependentadvertisingtradingdesk,raisedanotherroundoffundingforitssharebuybackandlong-termgrowthstrategies

$430M $16B WeWork,thepopularco-workingspacestartupthathas50,000membersin21cities,raisedfundingtoentertheAsianmarketasitcontinuestogrow

1616

LUMA’s Recent Content

TheFutureofTVPresentedatUpfrontSummit

Ø AttheUpfrontSummit,wepresentedtheFutureofTV,whereweexplainedtheconvergenceofTVanddigitalvideoandwheretheindustryisheadednext

StateofDigitalMarketingPresentedatDMSWest15

Ø AtourinauguralDigitalMarketingSummit,wepresentedtheStateofDigitalMarketing,whichprovidesourviewsonthemarketandsignificanttrendsinthedigitalmarketingecosystem

DigitalBrief004BacktoMadMen

Ø InourfourthDigitalBriefweexplainedwhatthefutureholdsforadagenciesandfivestrategiestheymaketakeinacompetitivemarketplace

1717

December 2011 February 2016

has been acquired by

The undersigned acted as co-advisor to Tapad, Inc.

LUMA’s Recent Deals

December 2011 March 2016

has been acquired by

The undersigned acted as co-advisor to Smartclip’s shareholders

18

acquiredby

February2016

Tapad to be Acquired by TelenorLUMA Partners acted as Co-Advisor to Tapad, Inc.Announced February 1, 2016

StrategicRationaleØ ThroughtheacquisitionofTapad,Telenorwilladdadvanceddigitalcapabilitiestoitscore

telecombusinessandsecureafootholdinthegrowingadvertisingandmarketingtechnologyindustry.

Ø Themobileadvertisingmarketisgrowingrapidlyasmarketingspendcontinuestoshiftwiththechangeinconsumerbehavior.Thegrowingnumberofdevicesandtimespentacrossthemismakingidentityandcross-devicecapabilitiesanecessityindigitalmarketing,drivingthedevelopmentofbettertoolsthataddressdevicefragmentation.

Ø Tapad hasbecometheleaderinthisspacewithitsDeviceGraphtechnologythatconnectsuserbehavioracrossscreensandenablesmeasurementandmonetizationfromtheseaudiences.

Ø WithTelenor’s200millionmobilesubscriberbaseacross13markets,thecombinationofTelenorandTapad’s innovativetechnologyopensuplargeopportunitiesacrossestablishedandemergingmarketsaroundtheworld.

Ø Tapad,aNewYork-basedstartup,wasestablishedin2010byNorwegianentrepreneurAreTraasdahl,thecompany’sChiefExecutiveOfficer.Thecompanydeliversunifiedcross-devicemarketingtechnologysolutionsthatgivepublishers,marketersandtechnologyprovidersaholisticviewofconsumersacrossdevicesandscreens,includingsmartphones,tablets,homecomputersandsmartTVs.

Ø TelenorGroupASA(OB:TEL)engagesintheprovisionoftelecommunications,data,andmediaservices.Itoperatesthroughthefollowingsegments:MobileCommunication,FixedLineCommunication,Television-BasedActivities(Broadcast),andOtherOperations.Thecompanywasfoundedin1855andisheadquarteredinFornebu,Norway.

$ OverviewØ On2/1/2016,TelenorGroupannounced

thatitwouldacquireTapad for$360millionincash

Ø Tapad co-foundersAreTraasdahl andDagLiodden haveretaineda5%stakeinthecompany

Ø Dealterms:Ø Enterprisevalue:$360millionØ EV/LTMRevenue:6.3xØ EV/2015Revenue:6.3xØ EV/2016ERevenue:4.0x

Cross-ScreenMarketing

Algorithmic match

Probabilis)c Matching

Device Matching

19

acquiredby

March2016

Smartclip to be Acquired by RTL GroupLUMA Partners acted as Co-Advisor to Smartclip’s ShareholdersAnnounced March 21, 2016

StrategicRationaleØ WiththeacquisitionofSmartclip,RTLGroupbroadensitsdigitaladvertisingcapabilitiesby

addingSmartclip’s digitalvideoandconnectedTVsolutions.

Ø TheconvergenceofTVanddigitalvideoisquicklybecomingareality.Thegrowingnumberofscreensusedforvideoviewinghassparkedtheneedforcompletesolutionproviders.

Ø Smartclip offersdigitalvideoadvertisinginventoryfromover700publishersandadservingcapabilitiestoInternet-connecteddevices.

Ø Smartclip willstrengthenRTLGroup’svideomonetizationstrategybycomplementingSpotX,aprogrammaticdigitalvideocompany.

Ø ThecombinationofSmartclip andRTLGroupgivesthemediacompanythetoolstogainmarketshareinthefastgrowingvideoadvertisingmarket.

Ø Smartclip deploysproprietary,custom-developedtechnologytodistributevideoadvertisingacrossallplatformsanddevices,controlledbyadservers.Whetheronlineusersconsumevideoontheweb,onmobiledeviceslikesmartphonesandtablets,oronconnectedTVplayersadvertisersandtheirmediaagenciescanreachtheexacttargetaudiencestheyseekfortheirbrandmessage.

Ø RTLGroupistheleadingEuropeanentertainmentnetwork,withinterestsin57televisionchannelsand 31radiostationsandcontentproductionthroughouttheworld.RTLGroup’sfamiliesofTVchannelsareeitherthenumberoneornumbertwoineightEuropeancountries. Withcurrently5.3billionmonthlyvideoviews,RTLGroupistheleadingEuropeanmediacompanyinonlinevideo.

$ OverviewØ On3/21/2016,RTLGroupannouncedthatit

wouldacquireSmartclip forabout$52.6millionincash

Ø RTLGroupwillacquirea93.75%stakeinSmartclip

Ø Dealterms:Ø Enterprisevalue:~$56million

ConvergentTV&Video

Partnerships “Netflix + Disney”

2020

LUMA’s Differentiated Value Proposition

1. UnparalleledIndustryKnowledge

2. StrategicApproach

3. ExecutionExcellence

2121

acquired by

March 2015

merged with

May 2015

acquired by

September 2015

a division of

acquired by

September 2015 December 2015

acquired by acquired by

March 2016 February 2016

acquired by acquired

December 2014

acquired by

September 2014

acquired by

November 2014

acquired by

July 2014

a subsidiary of

acquired by

November 2012

= merged with

March 2012

to form

December 2011

acquired by

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December 2011

LUMA’s Content-Driven, Expert-Based Approach

ConferenceKeynotes

Publications(over2millionviews)

CorporateTeach-ins

LUMAscapes(over5millionviewsfrom211countries)

DISPLAY MOBILE VIDEO SOCIAL NATIVE SEARCH MARTECH COMMERCE GAMING STRATEGICBUYERS

CompletedDeals

DigitalBriefs

2222

Access. Insights. Execution.New York | San Francisco | Palo Alto

digital brief market report 2016 q1 vfinal€¦ · 02/04/2016 · § smb marketing and content...

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