outlook on online display advertising trends by clipperton finance

© 2012 Clipperton Finance Limited.

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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

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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


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


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


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


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


But…

… Page Views is of course far too

rudimentary as a metric to gauge

the Internet advertising potential

7


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


So…

… Is today’s Internet usage truly

comparable to traditional media

such as TV and radio?

9


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


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


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


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


Although only a portion of the

media time / Ad spending

discrepancy can be addressed, it

still makes a massive opportunity

14


Table of Content

15







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

rga

n, Z

en

itho

ptim

ed

ia

16

1


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)


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


So, what will be done to sustain

and accelerate the growth of

online advertising?

19


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)


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


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:


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?


Table of Content

24







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


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 - -


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


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


Table of Content

29







Clipperton List of Selected European Ad Tech Players

30

Stars & emerging

companies with a

claim on new and

existing online

advertisement

markets


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


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


� 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


� 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.


Selected European Players – Targeting [1/4]

33


� 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



� 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)




34


� 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


� 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



35


� 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


� 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




36


� 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



Selected European Players – Branding

37


� 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


� 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)



Selected European Players – Advertising Platforms [1/3]

38


� 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


� 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



Selected European Players – Ad Network & Analytics [2/3]

39


� 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



� 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



Selected European Players – Advertising Platforms [3/3]

40


� 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



Selected European Players – Ad Serving

41


� Founded:

� Nationality:

� Rev. 2011:

� Rev. 2010:

� Funding:

� Investors:

2008

BE

n.a.

€1-5m (est.)

€2m

Angel

funding


� 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



Selected European Players – Real Time Market Place

42


� 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)



Selected European Players – Format: Video

43


� Founded:

� Nationality:

� Rev. 2011:

� Rev. 2010:

� Funding:

� Investors:

2010

FR

€5-10m (est.)

<€3m (est.)

-

-


� 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.)



Selected European Players – Format: Widgets

44


� 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)



� 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.


2010

€200k

>€1m

Kaj Hed (Rovio’schairman)

Tekes,

€4.5m


Selected European Players – Mobile [1/2]

45


� 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



� 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



Selected European Players – Mobile [2/2]

46


� 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



Selected European Players – DSP/ SSP [1/2]

47


� 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



� 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



Selected European Players – DSP/ SSP [2/2]

48


� 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…



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


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


Table of Content

51







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


What do we do?

Transaction advisory for European growth companies, international

investors and blue-chips

53

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


Technology Vertical Focus

Full coverage and deep knowledge of key technology and cleantech

subsectors

54

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


Value Proposition

Our solid track record illustrates an ability to consistently exceed client

expectations

55

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


Clients: focus on segment leader and best-in-class players

Examples of tier 1 international transactions managed by Clipperton

56

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


Experience in Advisory Services

Over 50 years of experience in Technology advisory services

57

• €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. 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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outlook on online display advertising trends by clipperton finance

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