terence kawaja pw c presentation
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![Page 1: Terence Kawaja Pw C Presentation](https://reader034.vdocuments.net/reader034/viewer/2022051412/54b78fb14a7959db528b49fd/html5/thumbnails/1.jpg)
2009 Internet Advertising Revenue Report
Rethinking the Market Opportunity
April 7, 2010
Terence Kawaja
GCA Savvian Advisors
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$8.1 $7.1 $6.0$7.3
$9.6$12.5
$16.9
$21.2$23.4 $22.7
$0
$5
$10
$15
$20
$25
$30
$35
$40
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
$ B
illio
ns
Online Ad Spend ($Bn)
CAGR = 12%
Notes:Source: IAB / PricewaterhouseCoopers internet advertising revenue reports.
Interactive Advertising is on a Long Term Growth Pa th…
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0% 10% 20% 30% 40% 50%
Online
Magazines
Radio
Newspapers
TV
% ad spending by media % of time households spend by media
Media Consumption vs. Ad Spend, 2009
Notes:Source: Wall Street research, 2010.(1) As a percentage of ad spending on the media channels indicated above only: TV, Newspaper, Radio, Magazines and Online.
…But Has Much More Upside Potential
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The Crowded Display Ad Tech Landscape
Targeted
Video / Rich Media
Horizontal
Yield Optimization
Ad Networks
Vertical
Performance
Mobile
PUBLISHERS
PUBLISHERS
Data Exchanges / Aggregators
Creative Optimization
Data Optimization
AUDIENCE
ADVERTISERS
ADVERTISERS
Ad Exchanges
DSPsMedia Buying Platforms
Agencies
Publisher Tools
Data Suppliers
Ad Ops / Infrastructure
Ad Servers Ad Servers
Verification / Attribution
Sharing Data / Social Tools
Analytics
Trading Desk
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Deals are Back and Consolidation is Coming
RecentDigital MediaAcquisitions:
$10 $9 $10
$4 $3$4
$7$8
50 4954
3034
45
20
30
$0
$4
$8
$12
$16
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2009
Tra
nsac
tion
Vol
ume
($B
n)
0
10
20
30
40
50
60
Num
ber
of T
rans
actio
ns
Global Tech Transactions $10MM - $1.0Bn (1)
Notes:(1) Source: FactSet as of 2/28/10; Includes global announced acquisitions in the specified range of transaction sizes; excludes minority investments, JVs etc.; includes all transactionswith target in Electronic Technology, Technology Services, and Communications sectors as defined by FactSet.
Transaction Volume ($Bn) Number of Transactions
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Convergence in the Purchase Funnel
Purchase Funnel Metric Example Companies
CPM
CPC
CPL
CPA
Transaction
Customer
Search
Lead
Impression
Sale
Data
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Going After the Elephant in the Room: TV
• Online video is currently a fraction of total TV and online spending
• The holy grail is achieved when digital video is part of the television budget
• Much of the media optimization techniques honed in online can be applied to TV audiences
• Shift in agency dynamic and marketer mindset is key
Notes:Source: VSS Communications, August 2009; eMarketer, December 2009.
$0.5$6.7
$73.2
Television
Display & In-Page Video
In-Stream Video
US Video & Display Advertising, 2009 ($MM)
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Achieving the Holy Grail: Solving for Attribution
� Several links in the attribution chain are missing:– Online to online (the last click phenomenon)– Online to offline– Offline to online
� Technology is improving data collection and analysi s which will allow for the discovery of “digital foot prints”
� Once attribution is achieved, there is no reason al l media cannot be optimized
� Already, several interesting technologies have been deployed:
– TV set top box measurement– Mobile location-based services
TELEVISION
DIGITAL
RETAIL
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Rethinking the Market Opportunity
� Forecasts show the interactive channel growing to $ 50+ billion in 5 years
– Represents an linear, evolutionary approach– The challenge is to think revolution, not evolution– How does interactive get to a $100 billion marketpl ace?– Think new definition for “interactive” to go beyond online
• Digitally-addressable video (aka TV)• Offline commerce enablement• Mobile
� Several reasons for a revolution– Innovation (eg. media optimization, real time pheno menon)– Simplification (less point solutions)– Consolidation (entry of larger players)– Attribution (eg. TV, offline retail)
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Putting $100 Billion in Perspective
� Healthcare reform for one year
� War in Iraq and Afghanistan for a year
� Cost of recent bank failures to the FDIC
� A controlling stake in Google (at market)
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GCA Savvian’s Digital Media Advisory Business
� Leading investment banking firm with over 200 professionals worldwide
� Services include advice on mergers and acquisitions , private capital finance and restructurings
� Advised on over $60 billion in transactions since 2 006
� Advisor to media companies new and old
TOKYO • SAN FRANCISCO • CHICAGO • NEW YORK • LONDON
Terence KawajaManaging Director+1 [email protected]
John LambrosManaging Director+1 212.999.7083 [email protected]
Steven FletcherManaging Director+1 [email protected]