terence kawaja's iab orlando presentation - february 2009

Recession 2.0: A Deep Dive Into The 2009 Interactive Economy

Where Are The Investors Going?

February 23, 2009

Terence KawajaGCA Savvian Advisors

http://blog.meebo.com/

http://blog.meebo.com/

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“I’m an investment banker and I’m here to help”

The Preamble For those of you who were disappointed to see an

investment banker on the speaker list at a conference about advertising, I feel your pain. This is not our industry’s finest hour.

But Randall does everything for a reason. In the context of Brands Battle Back, a look at the

investment activity will help shed some light on how the Ecosystem will develop going forward.

Much of the innovation that drives this industry comes from the start-ups, not the incumbents. Names like YouTube, Twitter, Right Media and Kayak come to mind. In fact, it wasn’t that long ago that Google was a start-up.

Valuable insights can be learned from seeing which of these innovators are getting financial backing and which are being acquired.

For the established Brands, these companies are both friend and foe. They represent catalysts, enablers and competition.

I plan to look at the deals of recent years, layer on the effects of the financial and economic crisis and try to discern some themes that will instruct future activity.

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The Pre Roll Message

240 professionals in Tokyo, San Francisco, New York, Chicago and London

Advised on over $50 billion in transactions in last three years The leading advisor in the digital media space

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1st HandExperience

Segmented

Qualified

Raw Data

Insight

All Deal Data

Sort by Time, Sector

Top Investors’ Activity Only

GCA Savvian Deal Experience

What the Investor “Ecosystem” is ThinkingUSER

RELEVANCY

User Relevancy Hierarchy to Drive Insights

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1st HandExperience

Segmented

Qualified

Raw Data

Insight

All Deal Data


Top Investors Activity Only


What the Investor Ecosystem is Thinking


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PRIVATE FINANCING TRANSACTIONS (> $10MM) 2004 to 2009 YTD Most Recent Financing TotalName Macro Industry Industry Segment Business Description (Brief) Round Date Amount Post-$ Raised Lead Investor InvestorsDigital Media Group Shanghai, China www.dmgtv.com

Internet / Digital Media Internet: Digital Media Services Operator of digital media networks inside subway systems Series B 10-Jan-07 $ 30.0 NA NA Oak Investment Partners, Sierra Ventures

NIF SMBC Ventures, Gobi Partners

Brightcove Inc. Cambridge, MA www.brightcove.com

Internet / Digital Media Internet: Content Delivery Online video distribution company NA 18-Jan-07 $ 59.5 NA $ 81.2 AllianceBernstein, Brookside Capital, Maverick Capital

The New York Times Co., Transcosmos Investmetns and Business Development Inc., Accel Partners, Allen and Co., Time Warner's AOL subsidiary, General Catalyst Partners,

Piczo Inc. San Francisco, CA www.piczo.com

Internet / Digital Media Internet: Content Delivery Social networking site for teens NA 19-Jan-07 $ 11.0 NA NA U.S. Venture Partners, Mangrove Capital Partners

Sierra Ventures, Catamount Ventures

LinkedIn Corp. Palo Alto, CA www.linkedln.com

Internet / Digital Media Internet: Online Publications and Content Providers

Online network of more than 9 million professionals from around the world

NA 29-Jan-07 $ 12.8 NA $ 25.0 Bessemer Venture European Founders Fund

Farecast Inc. Seattle, WA www.farecast.com

Internet / Digital Media Internet: Content Delivery Website that helps consumers determine if airline prices will rise, drop or hold steady

Series C 31-Jan-07 $ 12.1 NA $ 20.6 Sutter Hill Ventures PAR Capital Management, Pinnacle Ventures, Erik Blachford, Greylock Partners, Madrona Venture Group, WRF Capital

Digital Railroad New York, NY www.digitalrailroad.net

Internet / Digital Media Internet: Content Delivery Web site that lets professional photographers sell their pictures to image buyers

Series B 5-Feb-07 $ 10.0 NA $ 15.0 DN Capi tal Morgenthaler Ventures, Venrock Associates

SideStep Inc. Santa Clara, CA www.sidestep.com

Internet / Digital Media Internet: Search Engine Travel search company Series C 7-Feb-07 $ 15.0 NA $ 32.0 Norwest Venture Partners

Brickfish San Diego, CA www.brickfish.com

Internet / Digital Media Internet: Content Delivery Brickfish platform allows consumers to engage with advertisers by creating campaigns for their brands

Series A 21-Feb-07 $ 11.2 NA NA DCM Draper Richards LP, Draper Associates, Mangrove Capital, OCA Ventures

ScanSafe Inc. San Mateo, CA www.scansafe.net

Internet / Digital Media Internet: Digital Media Services Web-security company Series B 21-Feb-07 $ 15.0 NA $ 25.0 Venture Partners

ViDeOnline Communications Inc. Redwood City, CA www.videonline.com

Internet / Digital Media Internet: Content Delivery Digital media networking company Series C 27-Feb-07 $ 12.0 NA $ 21.4 Intel Capital Greenwoods Capital Partners

Vantage Media Corp. Venice, CA www.vantagemedia.com

Internet / Digital Media Internet: Search Engine Search-engine marketing company Series A 28-Feb-07 $ 70.0 NA NA Montgomery & Co. Scale Venture Partners, Tudor Ventures, Integral Capital Partners

TicketsNow Inc. Crystal Lake, IL www.ticketsnow.com

Internet / Digital Media Internet: Digital Media Services Sells tickets online to sold-out events in the secondary ticket market

Series A 6-Mar-07 $ 34.0 NA NA Draper Fisher Jurveston, Portage Venture Partners, DFJ Portage Ventures, New World, Adams

Eons Inc. Boston, MA www.eons.com

Internet / Digital Media Internet: Search Engine Operator of search engine for baby boomers Series B 6-Mar-07 $ 22.0 NA $ 32.0 Charles River Ventures Intel Capital, Humana Inc.

Geni.com Los Angeles, CA www.geni.com

Internet / Digital Media Internet: Content Delivery Genealogy Web site that aims to create a family tree of the entire world

Series B 7-Mar-07 $ 10.0 $ 100.0 $ 11.5 Charles River Ventures

UUSee New York, NY www.uusee.com

Internet / Digital Media Internet: Content Delivery Major Chinese site for W eb video NA 7-Mar-07 $ 23.5 NA NA Draper Fisher Jurvetson, Highland Capital Partners

Steamboat Ventures, Sequoia Capital, Susquehanna International Group

Internet REIT Inc. Houston, TX www.iREIT.com

Internet / Digital Media Internet: Digital Media Services Acquires, develops and monetizes domain names and W eb properties

Series B 7-Mar-07 $ 38.0 NA $ 58.0 Perot Investments, Maveron LLC

FreedomPay Inc. Wayne, PA www.freedompay.com

Internet / Digital Media Internet: Digital Media Services Provider of cashless payment and loyalty systems Series D 14-Mar-07 $ 13.0 NA $ 26.0 Core Capital Partners BlueRun Ventures

WhiteFence Inc. Houston, TX http://whitefence.com

Internet / Digital Media Internet: Digital Media Services One-stop online marketplace for consumers looking to compare and order essential home services such as electricity, natural gas, home phone, high-speed Internet,

Series B 15-Mar-07 $ 10.0 NA NA Adams Street Partners, Internet Capital Group Inc.

Zopa Ltd. London, England www.zopa.com

Internet / Digital Media Internet: Digital Media Services Online lending company Series C 20-Mar-07 $ 12.9 NA NA Bessemer Venture Partners Benchmark Capital, Wellington Partners

Eyeblaster Inc. New York, NY www.eyeblaster.com

Internet / Digital Media Internet: Digital Media Services Digital marketing services and technology company Series B 21-Mar-07 $ 30.0 NA $ 40.0 Individuals

Oodle.com San Mateo, CA www.oodle.com


Online classifieds aggregator Series B 22-Mar-07 $ 11.0 NA $ 19.0 Jafco Ventures Greylock Partners, Redpoint Ventures

AdMob Inc. Menlo Park, CA www.admob.com

Internet / Digital Media Internet: Digital Media Services Developed a platform designed to create an open marketplace for publishers and advertisers to incorporate advertising into mobile Web sites

Series B 26-Mar-07 $ 15.0 NA $ 19.0 Accel Partners Sequoia Capital

Beyond.com King of Prussia, PA www.beyond.com

Internet / Digital Media Internet: Digital Media Services Employment software provider Series A 27-Mar-07 $ 13.5 NA NA Safeguard Scientifics Inc.

GoTV Networks Inc. Sherman Oaks, CA www.gotvnetworks.com

Internet / Digital Media Internet: Content Delivery Developer of technology for mobile television Series B 27-Mar-07 $ 12.0 NA NA Motorola Inc., Qualcomm Inc.

Ozon.ru Moscow, Russia www.ozon.ru

Internet / Digital Media Internet: Digital Media Services e-commerce Web site NA 3-Apr-07 $ 18.0 NA NA London's Index Cisco, Holtzbrinck Ventures, Barling Vostok Capital Partners

PandoraTV Inc. Seoul, Korea www.pandora.tv

Internet / Digital Media Internet: Content Delivery Video Web site Series B 3-Apr-07 $ 10.0 NA $ 13.0 DCM Altos Ventures, STIC International , Saehan

HowStuffW orks Atlanta, GA www.howstuffworks.com

Internet / Digital Media Internet: Content Delivery Source of credible, unbiased, and easy-to-understand explanations of how the world actually works

Series B 11-Apr-07 $ 75.0 NA $ 100.0 Carl Ichan, Capital Research & Management, Ashford Capital Management, Chilton Investment Co., Pacific Star Capital, Charwell Investments

Aggregate Knowledge Inc. San Mateo, CA www.aggregateknowledge.com

Internet / Digital Media Internet: Search Engine Search engine that collects and analyzes information based on people's Web surfing habi ts

Series B 11-Apr-07 $ 20.0 NA $ 25.0 DAG Ventures Kleiner Perkins Caufield & Byers

Active Response LLC New York, NY www.activeresponsegroup.com

Internet / Digital Media Internet: Digital Media Services Online marketing company NA 12-Apr-07 $ 10.0 NA NA Hercules Technology Growth Capital

MediaW orks Atlanta, GA www.intentmedianetworks.net

Internet / Digital Media Internet: Digital Media Services Developed a platform to legally monetize content on peer-to-peer networks

Series B 16-Apr-07 $ 10.0 NA $ 14.0 Allen & Co., Greycroft Partners, SoftBank Capital, Bertelsman Digital Media Investments

Reunion.com Inc. Los Angeles, CA www.reunion.com

Internet / Digital Media Internet: Digital Media Services Social networking site Series A 17-Apr-07 $ 25.0 NA $ 26.4 Oak Investment Partners

Avvo Inc. Seattle, WA www.avvo.com


Web site that helps consumers navigate the legal industry Series B 20-Apr-07 $ 10.0 NA $ 13.0 Ignition Partners Benchmark Capital

ChannelAdvisor Corp. Research Triangle Park, NC www.channeladvisor.com

Internet / Digital Media Internet: Digital Media Services Online marketplace and auction management company Series C 2-May-07 $ 30.0 NA $ 66.0 New Enterprise Associates Kodiak Ventuer Partners, Advanced Technology Ventures, Southern Capitol Ventures, eBay Inc.

Delivery Agent Inc. San Francisco, CA www.deliveryagent.com

Internet / Digital Media Internet: Digital Media Services Online shopping technology company Series C 3-May-07 $ 18.5 NA $ 35.0 Bessemer Venture Partners Cardinal Venture Capital, Worldview Technology Partners

PlayPhone Inc. San Jose, CA www.playphone.com

Internet / Digital Media Internet: Digital Media Services Provides a marketplace for mobile content Series C 10-May-07 $ 18.8 NA $ 31.0 Scale Venture Partners Cardinal Venture Capital, Menlo Ventures

Joost New York, NY www.joost.com

Internet / Digital Media Internet: Content Delivery Online video start-up NA 10-May-07 $ 45.0 NA NA Sequoia Capital, Index Ventures Li Ka-shing

EStyle Inc. Los Angeles, CA www.estyle.com

Internet / Digital Media Internet: Digital Media Services Operates maternity retailer BabyStyle NA 18-May-07 $ 11.0 NA $ 146.0 Oak Investment Partners, Global Retail Partners

Undisclosed

Arroweye Solutions Inc. Chicago, IL www.arroweyesolutions.com

Internet / Digital Media Internet: Digital Media Services Gift-card personalization company Series C 22-May-07 $ 14.0 NA $ 28.0 Baird Venture Partners Adam Street Partners

Trulia Inc. San Francisco, CA www.trulia.com

Internet / Digital Media Internet: Digital Media Services Online real estate company Series C 25-May-07 $ 10.0 NA $ 17.7 Sequoia Capital Accel Partners, Fayez Sarofim & Co.

Tumri Inc. Mountain View, CA http://tumri.com

Internet / Digital Media Internet: Digital Media Services Internet advertising network Series B 4-Jun-07 $ 10.0 NA $ 16.5 Lehman Brothers Venture Partners

Shasta Ventures, Accel Partners

Brash Entertainment LLC Los Angeles, CA

Internet / Digital Media Internet: Game Developer Videogame startup NA 4-Jun-07 $ 400.0 NA NA Abry Partners, New York Life Capital Partners, PPM America

Me.dium Inc. Boulder, CO http://me.dium.com

Internet / Digital Media Internet: Digital Media Services Developing an instant message and chat service that enables users to see and interact with others based on common, real-time URL views

Series B 11-Jun-07 $ 15.0 NA $ 20.0 Commonwealth Capital Ventures Spark Capital, Appian Ventures

Bag Borrow Or Steal Inc.Seattle, WAwww.bagborroworsteal.com

Internet / Digital Media Other Allows women to borrow designer handbags and jewelry Series C 18-Jun-07 $ 15.0 NA $ 26.3 Steelpoint Capital Partners, Madrona Venture Group

Madrona Venture Group, Kuwai t Holding Co., Hilltop Investments, Individual Investors, Impact Venture Partners, Valence Capital Management

Pet Food Direct Inc.Harleysville, PAwww.petfooddirect.com

Internet / Digital Media Other Online retailer for pet food and supplies Series F 18-Jun-07 $ 10.0 NA $ 26.0 LLR Partners

MyStrands Inc.Corvallis, ORwww.mystrands.com

Internet / Digital Media Internet: Search Engine Recommendation engine Series D 19-Jun-07 $ 25.0 NA $ 31.0 Antonio Asensio (Individual Investor)

Debaeque Venture Capital, Sequel R&D

K2 Network Inc.Irvine, CAwww.k2network.net

Internet / Digital Media Internet: Game Developer Online gaming Series B 19-Jun-07 $ 16.0 NA $ 20.0 Intel Capital Greycroft Partners, Khosla Ventures, Novel TMT Ventures, BV Capital, mvp Capital

Prosper Marketplace Inc.San Francisco, CAwww.prosper.com

Internet / Digital Media Other Online person-to-person loan Series C 20-Jun-07 $ 20.0 NA $ 40.0 DAG Ventures, Meritech Capital Partners

Meritech Capital Partners, Accel Partners, Benchmark Capital, Fidelity Ventures, Omidyar Network

Emergent Game Technologies Inc. Calabasas, CA www.emergent.net

Internet / Digital Media Internet: Game Developer Provider of video game development applications Series D 5-Jul-07 $ 12.0 NA $ 24.3 Jerusalem Venture Partners, Worldview Technology Partners

Adena Ventures, Cisco Systems Inc., Walker Ventures

Trion World Network Inc. Redwood City, CA www.trionworld.com

Internet / Digital Media Internet: Game Developer Gaming company building a network of online game "channels" that evolve like a television series

Series B 9-Jul-07 $ 30.0 NA NA Rustic Canyon Partners Time Warner Investments, Peacock Equity Fund, GE Commerical Finance, NBC Universal Inc., Bertelsmann Digital Media

Ning Inc. Palo Alto, CA www.ning.com

Internet / Digital Media Other Online platform that lets people develop their own social networks

Series C 11-Jul-07 $ 44.0 $ 214.0 NA Legg Mason

Adap.tv San Mateo, CA www.adap.tv

Internet / Digital Media Internet: Digital Media Services Video advertising platform that attempts to match relevant advertising with online video content

Series A 12-Jul-07 $ 10.0 NA NA Redpoint Ventures, Gemini Israel Funds

TheFind Inc. Mountain View, CA www.thefind.com

Internet / Digital Media Internet: Search Engine Lifestyle goods-focused shopping search engine Series C 12-Jul-07 $ 15.0 NA $ 26.0 Bain Capital Ventures Redpoint Ventures, Lightspeed Venture Partners

Terabitz Inc. Palo Alto, CA www.terabitz.com

Internet / Digital Media Internet: Content Delivery Highly customizable real estate Web site Series A 17-Jul-07 $ 10.0 NA NA

Mark Logic Corp. San Mateo, CA www.marklogic.com

Internet / Digital Media Internet: Digital Media Services Provider of an XML content server Series C 17-Jul-07 $ 15.0 NA $ 33.0 Sequoia Capital, Lehman Brothers Venture Partners

Healthline Networks Inc. San Francisco, CA www.healthline.com

Internet / Digital Media Internet: Search Engine Health information W eb site operator Series B 17-Jul-07 $ 21.0 NA $ 59.0 GE/NBC Universal's Peacock Equity Fund

Aetna Ventures LLC, Kaiser Permanente Ventures, US News and World Report, VantagePoint Venture Partners, Reed Elsevier Ventrues

Tudou.com Shanghai, China www.tudou.com

Internet / Digital Media Internet: Content Delivery Chinese online video company NA 17-Jul-07 $ 19.0 NA NA Capital Today, General Catalyst Partners

Granite Global Ventures, IDG China, JAFCO Asia, KTB Ventures, JAIC

Photoways Inc. London, England www.photoways.com

Internet / Digital Media Internet: Digital Media Services Online photo services company Series B 19-Jul-07 $ 13.8 NA NA HarbourVest Partners LLC Index Ventures, Highland Capital Partners

Redfin Corp. Seattle, WA www.redfin.com

Internet / Digital Media Internet: Content Delivery Real estate site Series C 19-Jul-07 $ 12.0 NA $ 20.8 DFJ Madrona Venture Group, Vulcan Capital, BEV Capital, The Hillman Company

hi5 Networks Inc. San Francisco, CA www.hi5.com

Internet / Digital Media Internet: Content Delivery Social networking site Series A 24-Jul-07 $ 20.0 NA NA Mohr Davidow Ventures

iCrossing Inc. Scottsdale, AZ www.icrossing.com

Internet / Digital Media Internet: Digital Media Services Develops online search campaigns and programs Series E 27-Jul-07 $ 62.0 NA $ 110.0 Goldman Sachs & Co. Oak Investment Partners, RRE Ventures, StarVest Partners LP

NowPublic Technologies Inc. Vancouver, Canada www.nowpublic.com

Internet / Digital Media Internet: Content Delivery Online news network that relies on citizen journalism Series A 30-Jul-07 $ 10.6 NA $ 12.4 Rho Ventures Rho Canada, Brightspark Ventures, GrowthWorks Capital Ltd.

Associated Content Denver, Colorado www.associatedcontent.com

Internet / Digital Media Internet: Digital Media Services Publishes a library of multimedia content on the Web Series B 1-Aug-07 $ 10.0 NA $ 15.4 Canaan Partners Softbank Capital

Compete Inc. Boston, MA www.competeinc.com

Internet / Digital Media Internet: Digital Media Services Web analytics company Series D 6-Aug-07 $ 10.0 NA $ 39.0 Commonwealth Capital Ventures Charles River Ventures, Idealab, North Hill Ventures, William Blair Capital Partners, Split Rock Partners

Adzilla Inc. Vancouver, Canada http://adzilla.com

Internet / Digital Media Internet: Digital Media Services Online advertising company Series A 6-Aug-07 $ 10.3 NA NA Norwest Venture Partners, Alloy Ventures

Viagogo London, England www.viagogo.com

Internet / Digital Media Internet: Other Online Services Provides a platform where consumers can sell unwanted tickets to live events

Series C 7-Aug-07 $ 30.0 NA $ 50.0

Batanga Inc. Miami, FL www.batanga.com

Internet / Digital Media Internet: Content Delivery Online media company aimed at the Hispanic market Series C 14-Aug-07 $ 30.0 NA $ 40.0 Tudor Ventures H.I.G. Ventures

Doppelganger Inc. San Francisco, CA www.doppelganger.com

Internet / Digital Media Internet: Game Developer Web site that allows users to interact in a virtual world consisting of city hotspots

NA 14-Aug-07 $ 11.0 NA $ 25.0 ComVentures Draper Fisher Jurvetson, Trident Capital, Draper Richards, KPG Ventures, Greycroft Partners

KickApps Corp. New York, NY www.kickapps.com

Internet / Digital Media Internet: Digital Media Services Provides free platform for developing social media applications in exchange for places to deploy its advertising inventory

Series B 15-Aug-07 $ 11.0 NA $ 18.0 SoftBank Capital Spark Capital, Prism VentureWorks, Jarl Mohn

Metacafe Inc. Palo Alto, CA www.metacafe.com

Internet / Digital Media Internet: Content Delivery Aggregates and distributes videos online NA 21-Aug-07 $ 30.0 NA $ 45.0 Highland Capital Partners, DAG Ventures

Accel Partners, Benchmark Capital

Building B Inc. Belmont, CA www.building-b.com

Internet / Digital Media Internet: Content Delivery Wireless delivery system for broadcast and broadband video content

Series A 21-Aug-07 $ 17.5 NA $ 17.5 Morgenthaler Ventures, Omni Capital

Index Ventures

Lending Club Sunnyvale, CA www.lendingclub.com

Internet / Digital Media Internet: Digital Media Services Online person-to-person lending service Series A 24-Aug-07 $ 10.3 NA $ 12.3 Canaan Partners, Norwest Venture Partners

Dailymotion SA Paris, France www.dailymotion.com/us

Internet / Digital Media Internet: Content Delivery Video-sharing website like YouTube NA 31-Aug-07 $ 34.0 NA $ 43.5 Advent Venture Partners LLP, AGF Private Equity

Zag.com Inc. Santa Monica, CA www.zag.com

Internet / Digital Media Other: Misc. Online auto sales company Series B 4-Sep-07 $ 13.5 NA $ 68.0 Capricorn Management GRP Partners, Capital One Financial Corp., Anthem Venture Partners, Arcturus Capital

VideoEgg Inc. San Francisco, CA www.videoegg.com

Internet / Digital Media Internet: Content Delivery Provider of video advertising networks for online communities

Series D 6-Sep-07 $ 15.0 NA NA Focus Ventures WPP, August Capital, Maveron

Netviewer GmbH Karlsruhe, Germany www.netviewer.com

Internet / Digital Media Internet: Digital Media Services Provider of Web conferencing services NA 6-Sep-07 $ 12.2 NA NA Invision Private Equity AG, TVM Capital

Quattro Wireless Inc. Waltham, MA www.quattrowireless.com


Company that makes W eb sites mobile-friendly and helps publishers monetize the mobile site

Series B 6-Sep-07 $ 12.3 NA $ 18.0 Globespan Capital Partners Highland Capital Partners

PowerReviews Inc. Millbrae, CA www.powerreviews.com

Internet / Digital Media Internet: Content Delivery Developer of a technology that integrates with "e-tailer" Webt sites and provides a space for customers to post reviews

Series B 11-Sep-07 $ 15.0 NA $ 21.3 Lehman Brothers Venture Partners

Menlo Ventures, Draper Richards

BTI Photonic Systems Inc. Ottawa, Canada www.btiphotonics.com

Internet / Digital Media Internet: Digital Media Services Producer of product that supports high-bandwidth video services

Series D 11-Sep-07 $ 12.0 NA $ 45.0 Vengrowth Private Equity Partners, BDC Venture Capital, GrowthWorks Capital, Kodiak Venture Partners, Primaxis Technology Ventures, Lucent Venture Partners

GeoSentric Oyi Amsterdam, Netherlands www.gypsii.com

Internet / Digital Media Other: Misc. Mobile social networking service NA 11-Sep-07 $ 13.1 NA $ 13.1 Horizon Group, Schroders Private Bank

Vantrix Corp. Montreal, Canada www.vantrix.com

Internet / Digital Media Internet: Digital Media Services Provider of scalable delivery of mobile TV and video on demand, messaging, advertising, and live audio streaming for mobile devices

Series B 12-Sep-07 $ 12.0 NA $ 24.5 JK&B Capital SummerHill Ventures Partners, Entrepia Ventures, BDC Venture Capital, Innovacom

Twistbox Entertainment Inc. Sherman Oaks, CA www.twistbox.com

Internet / Digital Media Internet: Game Developer Mobile-gaming company NA 12-Sep-07 $ 19.5 NA $ 32.3 ValueAct Capital

Sermo Inc. Cambridge, MA www.sermo.com

Internet / Digital Media Internet: Content Delivery Online physician community provider Series C 13-Sep-07 $ 26.7 NA $ 39.2 Legg Mason Capital Management

Allen & Co.

Veoh Networks Inc. San Diego, CA www.veoh.com

Internet / Digital Media Internet: Content Delivery Internet television company Series C 13-Sep-07 $ 25.0 NA $ 37.5 Goldman Sachs Firefly 3 LLC, Jonathan Dolgen, Shelter Capital Partners, Spark Capital, Tornante Company, Time Warner Investments

Oanda Corp. New York, NY www.oanda.com

Internet / Digital Media Other Online foreign-currency exchange Series B 17-Sep-07 $ 100.0 NA $ 117.0 New Enterprise Associates Legg Mason Inc., Cascade Investment LLC, T. Rowe Price

Mimeo Inc. New York, NY www.mimeo.com

Internet / Digital Media Internet: Digital Media Services Provider of on-demand Web-based service for remote document printing and delivery

NA 19-Sep-07 $ 25.0 NA NA Goldman Sachs Principal Strategies Group

Draper Fisher Jurvetson, Draper Fisher Jurvetson Gotham Ventures, HarbourVest Partners LLC, Hewlett-Packard Co.

Nirvanix Inc. San Diego, CA www.nirvanix.com

Internet / Digital Media Other: Misc. Provider of hosted storage specifically designed for digital media Web companies

Series B 19-Sep-07 $ 12.0 NA $ 14.5 Mission Ventures Valhalla Partners, Windward Ventures

Quickplay Media Inc. Toronto, Canada www.quickplaymedia.com

Internet / Digital Media Internet: Content Delivery Mobile phone content delivery company Series C 20-Sep-07 $ 15.0 NA $ 30.0 Ventures West General Catalyst, J.L. Albright Venture Partners, Up Capital Ltd.

Zillow.com Seattle, WA www.zillow.com

Internet / Digital Media Other: Misc. Site that is cutting costs by serving up massive amounts of easily accessible pricing information on real estate

Series C 20-Sep-07 $ 30.0 NA $ 81.0 Legg Mason Capital Management

Benchmark, Technology Crossover Ventures, PAR Capital Management

NebuAd Inc. Redwood City, CA www.nebuad.com

Internet / Digital Media Internet: Digital Media Services Developer of consumer-centric behavioral targeting network for the online advertising industry

Series B 25-Sep-07 $ 20.5 NA $ 30.0 Sierra Ventures Menlo Ventures

Matchmine LLC Needham, MA www.matchmine.com

Internet / Digital Media Internet: Digital Media Services Platform that collects personal-interest data that can be transferred between different online destinations that provide media

Series A 25-Sep-07 $ 10.0 NA NA Kraft Group

Waterfront Media Inc. New York, NY www.waterfrontmedia.com


Health-care media company Series D 26-Sep-07 $ 25.0 NA $ 45.5 Scale Venture Partners Foundation Capital, Rho Ventures, Time Warner Ventures, BEV Capital, Neocrta Ventures

Mindshift Technologies Inc. Waltham, MA www.mindshift.com

Internet / Digital Media Internet: Digital Media Services IT service provider that targets small- and mid-sized business, especially professional-service providers

NA 27-Sep-07 $ 18.0 NA $ 79.0 ORIX Venture Financing

PPLive Inc. Shanghai, China www.pplive.com

Internet / Digital Media Internet: Digital Media Services Chinese Operator of peer-to-peer video site Series B 27-Sep-07 $ 21.0 NA $ 27.0 DFJ DFJ Dragon, BlueRun Ventures

Demand Media Inc. Los Angeles, CA www.demandmedia.com

Internet / Digital Media Internet: Digital Media Services Company that buys up and creates generic Web sites with highly trafficked domain names

Series D 27-Sep-07 $ 100.0 $ 1,000.0 $ 320.0 Goldman Sachs 3i Group, Generation Partners, Oak Investment Partners, Spectrum Equity Investors

Four Interactive Private Ltd. Bangalore, India www.asklaila.com

Internet / Digital Media Internet: Search Engine Business-listing site, Asklaila, lets users search for and review businesses local to Bangalore

Series B 28-Sep-07 $ 10.0 NA $ 12.0 Lightspeed Venture Partners SVB India Capital Partners, Matrix Partners India

MyBuys Inc. Redwood Shores, CA www.mybuys.com

Internet / Digital Media Internet: Digital Media Services Company that tracks what consumers have viewed an bought on a retailer's e-commerce site and displays products on the Web page that suit that customer

Series B 8-Oct-07 $ 10.0 NA $ 13.0 Palomar Ventures Lightspeed Venture Partners

ReachLocal Inc. Woodland Hills, CA www.reachlocal.com

Internet / Digital Media Internet: Digital Media Services Company delivers to small businesses local search engine marketing that links their online advertising spending to their offline sales activities

Series D 10-Oct-07 $ 55.2 NA $ 67.9 Rho Ventures Galleon Crossover Fund, VantagePoint Venture Partners

Catalyst Mobile Inc. Emeryville, CA www.catalystmobile.com

Internet / Digital Media Internet: Content Delivery Provider of a platform for delivering music and entertainment services to mobile phones

Series B 10-Oct-07 $ 10.0 NA $ 14.5 Sofinnova, DCM NA

BlackArrow Inc. San Mateo, CA www.blackarrow.tv

Internet / Digital Media Internet: Digital Media Services Provider of ad-management systems for video content Series B 15-Oct-07 $ 12.0 NA $ 17.0 Comcast Interactive Capital Cisco Systems Inc., Intel Corp., Mayfield Fund, Polaris Venture Partners

WeatherBill Inc. San Francisco, CA www.weatherbill.com

Internet / Digital Media Internet: Digital Media Services Online platform that allows companies to purchase coverage that insures against adverse weather conditions

Series A 17-Oct-07 $ 12.5 NA $ 16.8 New Enterprise Associates, Index Ventures

Allen & Co., Atomic Investments, Sean Park

Facebook Inc. Palo Alto, CA www.facebook.com

Internet / Digital Media Internet: Content Delivery Social networking site NA 25-Oct-07 $ 240.0 $ 15,000.0 $ 280.7 Microsoft Corp. NA














Farecast Inc. Seattle, WA www.farecast.com


Series C 31-Jan-07 $ 12.1 NA $ 20.6 Sutter Hill Ventures PAR Capital Management, Pinnacle Ventures, Erik Blachford, Greylock Partners, Madrona Venture Group, W RF Capital

Digital Railroad New York, NY www.digital rai lroad.net


Series B 5-Feb-07 $ 10.0 NA $ 15.0 DN Capital Morgenthaler Ventures, Venrock Associates





Series A 21-Feb-07 $ 11.2 NA NA DCM Draper Richards LP, Draper Associates, Mangrove Capital , OCA Ventures













Internet / Digital Media Internet: Content Delivery Genealogy Web site that aims to create a family tree of the entire world



Internet / Digital Media Internet: Content Delivery Major Chinese site for W eb video NA 7-Mar-07 $ 23.5 NA NA Draper Fisher Jurvetson, Highland Capital Partners

Steamboat Ventures, Sequoia Capital, Susquehanna International Group


Internet / Digital Media Internet: Digital Media Services Acquires, develops and monetizes domain names and W eb properties




Whi teFence Inc. Houston, TX http://whitefence.com




Internet / Digital Media Internet: Digital Media Services Online lending company Series C 20-Mar-07 $ 12.9 NA NA Bessemer Venture Partners Benchmark Capital, Wellington Partners














Internet / Digital Media Internet: Digital Media Services e-commerce W eb site NA 3-Apr-07 $ 18.0 NA NA London's Index Cisco, Holtzbrinck Ventures, Barling Vostok Capital Partners


Internet / Digital Media Internet: Content Delivery Video Web site Series B 3-Apr-07 $ 10.0 NA $ 13.0 DCM Altos Ventures, STIC International, Saehan

HowStuffWorks Atlanta, GA www.howstuffworks.com


Series B 11-Apr-07 $ 75.0 NA $ 100.0 Carl Ichan, Capital Research & Management, Ashford Capital Management, Chilton Investment Co., Paci fic Star Capital, Charwell Investments


Internet / Digital Media Internet: Search Engine Search engine that collects and analyzes information based on people's Web surfing habits




MediaWorks Atlanta, GA www.intentmedianetworks.net


Series B 16-Apr-07 $ 10.0 NA $ 14.0 Allen & Co., Greycroft Partners, SoftBank Capital, Bertelsman Digital Media Investments



Avvo Inc. Seattle, WA www.avvo.com






Internet / Digital Media Internet: Digital Media Services Online shopping technology company Series C 3-May-07 $ 18.5 NA $ 35.0 Bessemer Venture Partners Cardinal Venture Capital, Worldview Technology Partners







Undisclosed



Trulia Inc. San Francisco, CA www.trulia.com











Internet / Digital Media Other Allows women to borrow designer handbags and jewelry Series C 18-Jun-07 $ 15.0 NA $ 26.3 Steelpoint Capital Partners, Madrona Venture Group

Madrona Venture Group, Kuwait Holding Co., Hilltop Investments, Individual Investors, Impact Venture Partners, Valence Capi tal Management



MyStrands Inc.Corval lis, ORwww.mystrands.com



























Internet / Digital Media Internet: Search Engine Health information Web site operator Series B 17-Jul-07 $ 21.0 NA $ 59.0 GE/NBC Universal's Peacock Equity Fund







Redfin Corp. Seattle, WA www.redfin.com






NowPublic Technologies Inc. Vancouver, Canada www.nowpubl ic.com

Internet / Digital Media Internet: Content Delivery Online news network that relies on citizen journalism Series A 30-Jul-07 $ 10.6 NA $ 12.4 Rho Ventures Rho Canada, Brightspark Ventures, GrowthWorks Capital Ltd.




Internet / Digital Media Internet: Digital Media Services Web analytics company Series D 6-Aug-07 $ 10.0 NA $ 39.0 Commonwealth Capital Ventures Charles River Ventures, Idealab, North Hill Ventures, W illiam Blair Capital Partners, Split Rock Partners





Series C 7-Aug-07 $ 30.0 NA $ 50.0





NA 14-Aug-07 $ 11.0 NA $ 25.0 ComVentures Draper Fisher Jurvetson, Trident Capital , Draper Richards, KPG Ventures, Greycroft Partners



Series B 15-Aug-07 $ 11.0 NA $ 18.0 SoftBank Capital Spark Capital, Prism VentureWorks, Jarl Mohn







Index Ventures








Internet / Digital Media Internet: Content Delivery Provider of video advertising networks for online communities

Series D 6-Sep-07 $ 15.0 NA NA Focus Ventures W PP, August Capital, Maveron





Company that makes W eb sites mobile-friendly and helps publishers monetize the mobile site











Vantrix Corp. Montreal, Canada www.vantrix.com







Allen & Co.











Series B 19-Sep-07 $ 12.0 NA $ 14.5 Mission Ventures Valhalla Partners, W indward Ventures



Zillow.com Seattle, WA www.zillow.com



Benchmark, Technology Crossover Ventures, PAR Capital Management









Health-care media company Series D 26-Sep-07 $ 25.0 NA $ 45.5 Scale Venture Partners Foundation Capital , Rho Ventures, Time Warner Ventures, BEV Capital, Neocrta Ventures









Four Interactive Private Ltd. Bangalore, India www.asklaila.com

































Farecast Inc. Seattle, W A www.farecast.com


Series C 31-Jan-07 $ 12.1 NA $ 20.6 Sutter Hill Ventures PAR Capital Management, Pinnacle Ventures, Erik Blachford, Greylock Partners, Madrona Venture Group, WRF Capital

Digital Railroad New York, NY www.digitalrailroad.net


Series B 5-Feb-07 $ 10.0 NA $ 15.0 DN Capital Morgenthaler Ventures, Venrock Associates





Series A 21-Feb-07 $ 11.2 NA NA DCM Draper Richards LP, Draper Associates, Mangrove Capi tal, OCA Ventures













Internet / Digital Media Internet: Content Delivery Genealogy Web site that aims to create a fami ly tree of the entire world



Internet / Digital Media Internet: Content Delivery Major Chinese site for Web video NA 7-Mar-07 $ 23.5 NA NA Draper Fisher Jurvetson, Highland Capital Partners

Steamboat Ventures, Sequoia Capi tal, Susquehanna International Group


Internet / Digital Media Internet: Digital Media Services Acquires, develops and monetizes domain names and Web properties




WhiteFence Inc. Houston, TX http://whitefence.com




Internet / Digital Media Internet: Digital Media Services Online lending company Series C 20-Mar-07 $ 12.9 NA NA Bessemer Venture Partners Benchmark Capital, Wel lington Partners














Internet / Digital Media Internet: Digital Media Services e-commerce Web site NA 3-Apr-07 $ 18.0 NA NA London's Index Cisco, Holtzbrinck Ventures, Barling Vostok Capital Partners


Internet / Digital Media Internet: Content Delivery Video Web site Series B 3-Apr-07 $ 10.0 NA $ 13.0 DCM Altos Ventures, STIC International, Saehan

HowStuffWorks Atlanta, GA www.howstuffworks.com


Series B 11-Apr-07 $ 75.0 NA $ 100.0 Carl Ichan, Capital Research & Management, Ashford Capital Management, Chilton Investment Co., Pacific Star Capital, Charwell Investments


Internet / Digital Media Internet: Search Engine Search engine that collects and analyzes information based on people's Web surfing habits




MediaWorks Atlanta, GA www.intentmedianetworks.net


Series B 16-Apr-07 $ 10.0 NA $ 14.0 Allen & Co., Greycroft Partners, SoftBank Capi tal, Bertelsman Digital Media Investments



Avvo Inc. Seattle, W A www.avvo.com






Internet / Digital Media Internet: Digital Media Services Online shopping technology company Series C 3-May-07 $ 18.5 NA $ 35.0 Bessemer Venture Partners Cardinal Venture Capital, W orldview Technology Partners







Undisclosed



Trul ia Inc. San Francisco, CA www.trulia.com











Internet / Digital Media Other Allows women to borrow designer handbags and jewel ry Series C 18-Jun-07 $ 15.0 NA $ 26.3 Steelpoint Capital Partners, Madrona Venture Group

Madrona Venture Group, Kuwait Holding Co., Hilltop Investments, Individual Investors, Impact Venture Partners, Valence Capital Management



MyStrands Inc.Corvallis, ORwww.mystrands.com



























Internet / Digital Media Internet: Search Engine Health information Web site operator Series B 17-Jul-07 $ 21.0 NA $ 59.0 GE/NBC Universal's Peacock Equity Fund







Redfin Corp. Seattle, W A www.redfin.com






NowPublic Technologies Inc. Vancouver, Canada www.nowpublic.com

Internet / Digital Media Internet: Content Delivery Online news network that relies on citizen journal ism Series A 30-Jul-07 $ 10.6 NA $ 12.4 Rho Ventures Rho Canada, Brightspark Ventures, GrowthWorks Capital Ltd.




Internet / Digital Media Internet: Digital Media Services Web analytics company Series D 6-Aug-07 $ 10.0 NA $ 39.0 Commonwealth Capital Ventures Charles River Ventures, Idealab, North Hill Ventures, William Blair Capital Partners, Split Rock Partners





Series C 7-Aug-07 $ 30.0 NA $ 50.0





NA 14-Aug-07 $ 11.0 NA $ 25.0 ComVentures Draper Fisher Jurvetson, Trident Capi tal, Draper Richards, KPG Ventures, Greycroft Partners



Series B 15-Aug-07 $ 11.0 NA $ 18.0 SoftBank Capi tal Spark Capital, Prism VentureWorks, Jarl Mohn







Index Ventures








Internet / Digital Media Internet: Content Delivery Provider of video advertising networks for online communi ties

Series D 6-Sep-07 $ 15.0 NA NA Focus Ventures WPP, August Capital, Maveron





Company that makes Web sites mobile-friendly and helps publishers monetize the mobile site











Vantrix Corp. Montreal , Canada www.vantrix.com







Allen & Co.











Series B 19-Sep-07 $ 12.0 NA $ 14.5 Mission Ventures Valhalla Partners, W indward Ventures



Zillow.com Seattle, W A www.zillow.com



Benchmark, Technology Crossover Ventures, PAR Capi tal Management









Health-care media company Series D 26-Sep-07 $ 25.0 NA $ 45.5 Scale Venture Partners Foundation Capital, Rho Ventures, Time Warner Ventures, BEV Capital, Neocrta Ventures









Four Interactive Private Ltd. Bangalore, India www.asklai la.com




















Investor Activity: The Raw Data

7

1st HandExperience

Segmented

Qualified

Raw Data

Insight

All Deal Data






8

Segmenting the Data

Three Categories

1. Public Investors

2. Private Investors

Two Time Periods

3. Strategic Investors

1. Q1 2006 – Q3 2008

2. Q3 2008 – Present

9

Public Investor Activity

10

The IPO Market is Non-Existent

Source: VentureXpert

0

2

4

6

8

10

12

14

16

18

2001 2002 2003 2004 2005 2006 2007 2008

Num

ber o

f IPO

s

93% Decline

11

02/19/08 04/11/08 06/02/08 07/25/08 09/15/08 11/07/08 12/29/08 02/20/0930

40

50

60

70

80

90

100

110

120

130

-55%

-49%

-39%-38%

Source: FactSetNotes:1) Diversified Marketing Composite includes: EFX, ACXM, HHS, IUSA, VCI, WPP, OMC, PIG, PUB, AGS, HAV, MDCA.2) Internet Content Composite includes: BIDU, WBMD, RNWK, KNOT, NAPS, TSCM, DIET, SCOR, WWWW, UNTD, MOVE, DHX, MWW, EHTH, SFLY, RATE, TTGT, INET.

NASDAQ Diversified Marketing(1)

Last Twelve Months

Public Online Advertising Stocks Taking a Beating

Market down over 50%; PIPE investments looking attractive

DJIA

//

Internet Content (2)

12

Private Investor Activity

13

Private Investor Activity (Q1 2006 – Q3 2008)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2006 2007 2008

Priv

ate

Fina

ncin

g Vo

lum

e ($

MM

)

Source: VentureXpert. Disclosed deals only.

14

Source: GCA Savvian databases.

Private Investor Activity by Sub Sector (2006-2008)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

Fina

ncin

g Vo

lum

e ($

MM

)

15

Video12%

Interactive Marketing / LeadGen

9%

Ad Tech / Measurement /

Targeting / Netw orks

14%

Social13%

Content22%

Search/Agencies12%

Gaming5%

eCommerce / Mobile

7%

Infrastructure6%


Private Investor Activity by Sub Sector (2006-2008)

16

Strategic Investor Activity (M&A)

17

M&A Activity (Q1 2006 – Q3 2008)

$0.0$5.0

$10.0$15.0$20.0$25.0$30.0$35.0$40.0$45.0

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2006 2007 2008Inte

rnet

Spe

cific

M&

A D

eal V

alue

($ B

n)

18

M&A Activity Triggered by Spring 2007 Transactions

Date Acquirer Target Aggregate AV / AV / S.F. Value Revenue EBITDA

5/18/2007

5/18/2007

4/30/2007

4/16/2007

$5,782

$649

$850

$3,100

10.7x

3.0x

NA

12.0x

41.4x

31.8x

NA

NM

($MM)

Here at the IAB

Digital Media Spring Fever

http://images.google.com/imgres?imgurl=http://www.ximep2008.org/microsoft-logo.jpg&imgrefurl=http://www.ximep2008.org/&h=686&w=2846&sz=80&hl=en&start=3&um=1&tbnid=qXPGv2e2QgNLeM:&tbnh=36&tbnw=150&prev=/images%3Fq%3Dmicrosoft%2Blogo%26um%3D1%26hl%3Den

19

M&A Activity by Sub Sector (2006-2008)

Content

Video

Gaming

Social Media

Interactive Marketing /Lead Gen

Others

Ad Networks / Exchanges,Targeting and Measurement

Search / Agencies

http://www.neverbluemedia.com/index.html

http://www.plaxo.com/

http://www.howstuffworks.com/

http://www.realage.com/index.aspx

http://www.lonelyplanet.com/

http://www.bodybuilding.com/index.html

20



$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

Social

Search

/Age

ncies

Conten

t

eCom

merce /

Mob

ile

Ad Tec

h / N

etwork

s

Video

Intera

ctive

Mar

ketin

g / Le

adGen

Gaming

Infras

tructu

re

M&

A D

eal V

olum

e ($

MM

)

21



Video10%

Interactive Marketing / LeadGen

13%

Ad Tech / Measurement /

Targeting / Networks

18%

Social14%

Content22%

eCommerce / Mobile

7%

Infrastructure3%

Gaming3%

Search/Agencies10%

22

M&A Activity by Buyer: The Usual Suspects

The top 5 buyers accounted for almost half of all activity by value

http://www.ximep2008.org/microsoft-logo.jpg

http://aviation.beloblog.com/archives/logoFarecastLarge.JPG

http://images.google.com/imgres?imgurl=http://www.sixapart.com/typepad/news/images/feedburner-logo.gif&imgrefurl=http://www.sixapart.com/typepad/news/2006/06/typepad_and_feedburner.html&h=47&w=234&sz=3&hl=en&start=4&um=1&tbnid=A5rU_shBaGt2TM:&tbnh=22&tbnw=109&prev=/images%3Fq%3Dfeedburner%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.lexico.com/graphics/lexico_logo.gif&imgrefurl=http://www.lexico.com/our_brands/index.html&h=63&w=152&sz=3&hl=en&start=3&um=1&tbnid=YwNtTyJwbGRBWM:&tbnh=40&tbnw=96&prev=/images%3Fq%3Dlexico%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://pulse2.com/wp-content/uploads/2006/10/ask_logo.png&imgrefurl=http://eagles.midway.edu/library/searchengines.htm&h=106&w=166&sz=8&hl=en&start=3&um=1&tbnid=Y7afbHksmrgeTM:&tbnh=63&tbnw=99&prev=/images%3Fq%3Dask%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.mediabistro.com/unbeige/original/logo_collegehumor.gif&imgrefurl=http://www.mediabistro.com/unbeige/sxsw/default.asp&h=81&w=376&sz=10&hl=en&start=2&um=1&tbnid=IABozwi8WhYbZM:&tbnh=26&tbnw=122&prev=/images%3Fq%3Dcollegehumor%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.costpernews.com/wp-content/uploads/2007/04/logo_rm.gif&imgrefurl=http://www.costpernews.com/2007/04/30/yahoo-acquires-right-media/&h=43&w=207&sz=3&hl=en&start=8&um=1&tbnid=etBdaDmgoyq8MM:&tbnh=22&tbnw=105&prev=/images%3Fq%3Drightmedia%2Blogo%26um%3D1%26hl%3Den

http://www.postini.com/

23

Digital Media Companies Media Conglomerates Other Strategic BuyersTraditional Media Companies

Expanding Buyer Universe: Beyond the Usual Suspects

http://images.google.com/imgres?imgurl=http://mobilebazaar.files.wordpress.com/2007/12/att-logo.jpg&imgrefurl=http://mobilebazaar.wordpress.com/2007/12/23/att-announces-top-selling-ringtones-of-2007/&h=520&w=900&sz=125&hl=en&start=2&um=1&tbnid=DIdBYZi1xmcSNM:&tbnh=84&tbnw=146&prev=/images%3Fq%3Dat%2526T%2Blogo%26um%3D1%26hl%3Den%26sa%3DN

http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/8/87/Thomson_Reuters_logo.gif&imgrefurl=http://www.qbn.com/topics/549165/&h=76&w=284&sz=6&hl=en&start=3&um=1&tbnid=QRu6INarN8UbVM:&tbnh=31&tbnw=114&prev=/images%3Fq%3D%2522thomsonreuters%2522%2Blogo%26um%3D1%26hl%3Den

http://www.vivendi.com/corp/en/home/

http://images.google.com/imgres?imgurl=http://content.answers.com/main/content/wp/en/thumb/2/2e/150px-Gannett_Logo.jpg&imgrefurl=http://www.answers.com/topic/gannett-company&h=163&w=149&sz=5&hl=en&start=2&um=1&tbnid=YjiZzDY4fk6ygM:&tbnh=98&tbnw=90&prev=/images%3Fq%3Dgannett%2Blogo%26um%3D1%26hl%3Den%26sa%3DN

http://experian.dsvr.co.uk/expconf2005/images/logo.jpg

http://images.google.com/imgres?imgurl=http://www.macquarietelecom.com/customers/case_studies/logo_acxiom.gif&imgrefurl=http://www.macquarietelecom.com/customers/case_studies/case_study_acxiom.htm&h=43&w=118&sz=2&hl=en&start=14&um=1&tbnid=lVIxtf3QAtpa7M:&tbnh=32&tbnw=88&prev=/images%3Fq%3Dacxiom%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.koromoya.jp/img/rakuten_logo.gif&imgrefurl=http://www.koromoya.jp/&h=70&w=200&sz=4&hl=en&start=2&um=1&tbnid=QzHCwH7NDlrwZM:&tbnh=36&tbnw=104&prev=/images%3Fq%3Drakuten%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/thumb/a/a3/Comcast_Logo.svg/800px-Comcast_Logo.svg.png&imgrefurl=http://en.wikipedia.org/wiki/Image:Comcast_Logo.svg&h=205&w=800&sz=20&hl=en&start=1&um=1&tbnid=Tu-Wxwox0UwCVM:&tbnh=37&tbnw=143&prev=/images%3Fq%3Dcomcast%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.primedia.com/includes/static/img/logo-primedia.gif&imgrefurl=http://www.primedia.com/PrivacyPolicy.aspx&h=26&w=199&sz=3&hl=en&start=4&um=1&tbnid=eAf6eDwuQOT_tM:&tbnh=14&tbnw=104&prev=/images%3Fq%3Dprimedia%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.rimamarcel.com/slides/CondeNast_logo.jpg&imgrefurl=http://www.rimamarcel.com/&h=202&w=269&sz=6&hl=en&start=1&um=1&tbnid=4PjOo65730heaM:&tbnh=85&tbnw=113&prev=/images%3Fq%3Dconde%2Bnast%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.amazingtechproducts.com/cms/images/stories/Sony%252520Logo%252520Blk.jpg&imgrefurl=http://www.amazingtechproducts.com/cms/index.php/Unboxing-Product/&h=1200&w=6000&sz=211&hl=en&start=1&um=1&tbnid=2_E4PrG02RyKZM:&tbnh=30&tbnw=150&prev=/images%3Fq%3DSONY%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://blog.wired.com/photos/uncategorized/2007/10/15/discovery_logo.jpg&imgrefurl=http://blog.wired.com/business/2007/10/discovery-expan.html&h=147&w=300&sz=14&hl=en&start=2&um=1&tbnid=Av5AilSo-qDtfM:&tbnh=57&tbnw=116&prev=/images%3Fq%3Ddiscovery%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.fremantlemedia.com/dynamic/vpo/asset1/bertelsmann-logo-br-2.jpg&imgrefurl=http://www.fremantlemedia.com/virtual-press-office/image-library&h=309&w=1177&sz=88&hl=en&start=6&um=1&tbnid=f9utgMPCYhFyiM:&tbnh=39&tbnw=150&prev=/images%3Fq%3Dbertelsmann%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.mediaconv.com/newsletter/issue14/images/Hachette_Filipacchi_Medias_logo.jpg&imgrefurl=http://www.mediaconv.com/newsletter/issue14/tigers.htm&h=40&w=160&sz=4&hl=en&start=2&um=1&tbnid=dV-OzZRhFj14zM:&tbnh=25&tbnw=98&prev=/images%3Fq%3Dhachette%2Bfilipacchi%2Blogo%26um%3D1%26hl%3Den%26sa%3DX

http://images.google.com/imgres?imgurl=http://www.bonniercorp.com/images/bonnier_corp_logo.gif&imgrefurl=http://www.bonniercorp.com/news/bonnier-companies-win-big-at-the-tellys-1000060582.html&h=49&w=195&sz=5&hl=en&start=4&um=1&tbnid=cNkYUHxZgRyUzM:&tbnh=26&tbnw=104&prev=/images%3Fq%3Dbonnier%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.vfic.org/scholarship/images_scholarship/Logo,%2520Landmark%25202005.jpg&imgrefurl=http://www.vfic.org/scholarship/scholarships_vfic.html&h=108&w=117&sz=22&hl=en&start=2&um=1&tbnid=3TUDXI2uK-15KM:&tbnh=81&tbnw=88&prev=/images%3Fq%3Dlandmark%2Bcommunications%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.spaceandtech.com/spacedata/orgs/logos/corporate-logos/news-corp_logo.gif&imgrefurl=http://www.spaceandtech.com/digest/sd2001-03/sd2001-03-003.shtml&h=64&w=389&sz=5&hl=en&start=5&um=1&tbnid=6eprEP9ueUEF1M:&tbnh=20&tbnw=123&prev=/images%3Fq%3Dnews%2Bcorp%2Blogo%26um%3D1%26hl%3Den%26sa%3DX


http://images.google.com/imgres?imgurl=http://opinion.latimes.com/bitplayer/images/2007/03/13/viacom_logo.jpg&imgrefurl=http://opinion.latimes.com/bitplayer/2007/03/viacom_sues_you.html&h=150&w=200&sz=13&hl=en&start=5&um=1&tbnid=stD4DVOIyIXQ0M:&tbnh=78&tbnw=104&prev=/images%3Fq%3Dviacom%2Blogo%26um%3D1%26hl%3Den

http://news.aol.com/the-rewind

http://images.google.com/imgres?imgurl=http://www.shorecliffcommunications.com/images/logo_amdocs.jpg&imgrefurl=http://www.shorecliffcommunications.com/telcotv05/default.asp%3Fshowid%3Db074%26info%3D1428&h=50&w=130&sz=20&hl=en&start=3&um=1&tbnid=3Z_yn5gBYprUmM:&tbnh=35&tbnw=91&prev=/images%3Fq%3Damdocs%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.cox.com/about/images/logo_coxenterprises.gif&imgrefurl=http://www.cox.com/about/othersites.asp&h=85&w=150&sz=5&hl=en&start=2&um=1&tbnid=Qfe7-_liIzshVM:&tbnh=54&tbnw=96&prev=/images%3Fq%3Dcox%2Benterprises%2Blogo%26um%3D1%26hl%3Den%26sa%3DX

http://images.google.com/imgres?imgurl=http://www.sustainablelifemedia.com/files/images/publicis%2520red%2520logo.jpg&imgrefurl=http://www.sustainablelifemedia.com/events/sustainablebrands&h=604&w=1649&sz=316&hl=en&start=4&um=1&tbnid=El-ov2gDFJbHdM:&tbnh=55&tbnw=150&prev=/images%3Fq%3Dpublicis%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.ieee-nca.org/images/Akamai%2520Logo.jpg&imgrefurl=http://www.ieee-nca.org/title_frm.html&h=420&w=887&sz=118&hl=en&start=1&um=1&tbnid=GkPkIDvNHIXYKM:&tbnh=69&tbnw=146&prev=/images%3Fq%3Dakamai%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.segok.com:800/cs/FRONT/LAGARDERE_CORPORATE/images/logo_lagardere.gif&imgrefurl=http://www.segok.com:800/cs/index.htm&h=65&w=200&sz=2&hl=en&start=4&um=1&tbnid=Q5Gm-xpvpNRa0M:&tbnh=34&tbnw=104&prev=/images%3Fq%3Dlagardere%2Blogo%26um%3D1%26hl%3Den%26sa%3DN

http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/thumb/1/10/Dentsu_logo.svg/800px-Dentsu_logo.svg.png&imgrefurl=http://en.wikipedia.org/wiki/Image:Dentsu_logo.svg&h=177&w=800&sz=16&hl=en&start=1&um=1&tbnid=_sOixHO3caJfEM:&tbnh=32&tbnw=143&prev=/images%3Fq%3Ddentsu%2Blogo%26um%3D1%26hl%3Den

http://thefullblog.files.wordpress.com/2007/12/wpp_logo_image01.jpg

24

Getting it Right is Paramount

Proven Strategic Deals Yet to be Proven Strategic Deals

//

///

//

//

The beta on Interactive Advertising acquisitions is high given the potential downside is 100 cents on the dollar

/

http://www.tripadvisor.com/

http://www.about.com/

http://images.google.com/imgres?imgurl=http://www.noellehannibal.com/logo_myspace_edit.jpg&imgrefurl=http://www.noellehannibal.com/&h=675&w=2493&sz=123&hl=en&start=17&um=1&tbnid=IU5Jt7M5DZDXUM:&tbnh=41&tbnw=150&prev=/images%3Fq%3Dmyspace%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.spaceandtech.com/spacedata/orgs/logos/corporate-logos/news-corp_logo.gif&imgrefurl=http://www.spaceandtech.com/digest/sd2001-03/sd2001-03-003.shtml&h=64&w=389&sz=5&hl=en&start=5&um=1&tbnid=6eprEP9ueUEF1M:&tbnh=20&tbnw=123&prev=/images%3Fq%3Dnews%2Bcorp%2Blogo%26um%3D1%26hl%3Den%26sa%3DX


http://images.google.com/imgres?imgurl=http://www.cox.com/about/images/logo_coxenterprises.gif&imgrefurl=http://www.cox.com/about/othersites.asp&h=85&w=150&sz=5&hl=en&start=2&um=1&tbnid=Qfe7-_liIzshVM:&tbnh=54&tbnw=96&prev=/images%3Fq%3Dcox%2Benterprises%2Blogo%26um%3D1%26hl%3Den%26sa%3DX

25

But Then The World Changed

26

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2Q 3Q 4Q YTD

2008 2009

Priv

ate

Fina

ncin

g Vo

lum

e ($

MM

)Private Investor Activity (Q2 2008 – Present)


27

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

2Q 3Q 4Q YTD

2008 2009

Inte

rnet

Spe

cific

M&A

Dea

l Val

ue ($

Bn)

M&A Activity (Q2 2008 – Present)


28

The Current Investment Environment

Public Investors No public demand, low valuation levels All fear, no greed

Private Investors Fund proclivities depends on:

– Stage of investor– Lifestage of fund

Deals can still get done

Strategic Investors Most buyers on sidelines

– Many still in shock– Own business dismal (and currency gone)– Looking to pick up companies when the price is cheaper

We expect to see increased activity in the 2H 09

29

05/30/08 07/07/08 08/14/08 09/19/08 10/29/08 12/05/08 01/13/09 02/20/0940

50

60

70

80

90

100

110

Inde

xed

Pric

e

Gap in Perceived Valuations

Notes: Source: FactSet.

NASDAQ Performance – Since 6/1/2008

GAP

(43%)Buyer’s Perception Developed

Seller’s Perception Developed

30

1st HandExperience

Segmented

Qualified

Raw Data

Insight

All Deal Data






31

$0

$5

$10

$15

$20

$25

$30

Fina

ncin

g Vo

lum

e ($

MM

)

Private Investments by “Leading” Funds

Source: GCA Savvian databases. Benchmark indexed by deal count.

http://images.google.com/imgres?imgurl=http://www.generalatlantic.com/images/i.logo.gif&imgrefurl=http://www.generalatlantic.com/&h=47&w=263&sz=4&hl=en&start=8&um=1&tbnid=3uwC7bjTul_fjM:&tbnh=20&tbnw=112&prev=/images%3Fq%3D%2522general%2Batlantic%2522%2Blogo%26um%3D1%26hl%3Den

32

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

Conten

t

Social

Video

Ad Tec

h / N

etwork

s

Search

/Age

ncies

Intera

ctive

Mar

ketin

g / Le

adGen

Gaming

eCom

merce /

Mob

ile

Infras

tructu

re

Ben

chm

ark

Inde

x (T

op V

C /

Tota

l VC

)

Source: GCA Savvian databases. Benchmark indexed by deal count.

“Leading” Funds vs. Total Private Investments

Over-indexed on Agencies and Performance

Under-indexed on Gaming, Mobile and Infrastructure

33

1st HandExperience

Segmented

Qualified

Raw Data

Insight

All Deal Data






34

Content

Ad Networks / Exchanges

Agencies

Social / Blogs

Performance Marketing

Mobile

Preferred Stock

Financial AdvisorJanuary 2008

Placement Agent

October 2007

Preferred Stock

Acquired byInnovation Interactive

Management and

We Advised the BuyerJune 2007

Acquired by

We Advised the SellerJanuary 2009

1UP Digital Network

Acquired by

We Advised the SellerDecember 2007

Acquired by


Acquired by

We Advised the SellerMay 2007

PreferredStock

Financial AdvisorJune 2007

Minority PreferredInvestment by

Financial AdvisorNovember 2008

Merger with

We Advised INTACOctober 2007

Preferred Stock

Financial AdvisorMarch 2008

Acquired by


Preferred Stock

Financial AdvisorApril 2008

Preferred Stock


Acquired by

We Advised the SellerOctober 2007

Senior CreditFacility

Financial AdvisorOctober 2007

PreferredSecurities

Financial AdvisorSeptember 2006

Acquisition of

We Advised the BuyerOctober 2007

PreferredStock

Financial AdvisorAugust 2008

Sold Stake in

to


Preferred Stock andRecapitalization in


Preferred Stock


Preferred Stock

Financial AdvisorApril 2008

Preferred Stock

Financial AdvisorJuly 2008

Acquired by

We Advised the SellerFebruary 2008

Acquired by

Financial AdvisorDecember 2007

Acquisition of

Mobile ServicesBusiness Unit

We Advised the BuyerDecember 2007

Acquired by

We Advised the SellerNovember 2007

Preferred Stock


Acquired by


Subscriber Management Business

GCA Savvian Transactions by Subsector

Preferred Stock


Acquired by

We Advised the SellerJanuary 2009

1UP Digital Network

Minority PreferredInvestment by

Financial AdvisorNovember 2008

Sold Stake in

to


Post Meltdown Deals

http://images.google.com/imgres?imgurl=http://media.marketwire.com/attachments/200701/307707_NewHearstCorp.Logo.jpg&imgrefurl=http://www.marketwire.com/press-release/Hearst-Corporation-NYSE-HTV-928484.html&usg=__sHXlr5O_GUAbXzGr1mLMCN8NI1Q=&h=31&w=300&sz=3&hl=en&start=4&um=1&tbnid=x7OoRVv2F8YixM:&tbnh=12&tbnw=116&prev=/images%3Fq%3Dhearst%2Bcorporation%2Blogo%26um%3D1%26hl%3Den%26sa%3DN

http://images.google.com/imgres?imgurl=http://media.marketwire.com/attachments/200701/307707_NewHearstCorp.Logo.jpg&imgrefurl=http://www.marketwire.com/press-release/Hearst-Corporation-NYSE-HTV-928484.html&usg=__sHXlr5O_GUAbXzGr1mLMCN8NI1Q=&h=31&w=300&sz=3&hl=en&start=4&um=1&tbnid=x7OoRVv2F8YixM:&tbnh=12&tbnw=116&prev=/images%3Fq%3Dhearst%2Bcorporation%2Blogo%26um%3D1%26hl%3Den%26sa%3DN

35

1st HandExperience

Segmented

Qualified

Raw Data

Insight

All Deal Data






36

Dialogue Driving Insight

Online Media

Private EquityTraditional Media

http://images.google.com/imgres?imgurl=http://proto.in/proto2008/image/logo/logo_sequoia.PNG&imgrefurl=http://proto.in/proto2008/vcfirms_details.shtml&h=120&w=120&sz=5&hl=en&start=16&um=1&tbnid=sldvt7W3Dv5nqM:&tbnh=88&tbnw=88&prev=/images%3Fq%3D%2522sequoia%2Bcapital%2522%2Blogo%26um%3D1%26hl%3Den

http://www.orqis.com/images/investors/rho.gif

http://images.google.com/imgres?imgurl=http://www.saga.vn/Saga_Gallery/Thuonghieu/Amazon/logo_amazon.gif&imgrefurl=http://www.zuneboards.com/37.html&h=260&w=260&sz=5&hl=en&start=2&um=1&tbnid=ppEuq3fq2K4mfM:&tbnh=112&tbnw=112&prev=/images%3Fq%3Damazon.com%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.ximep2008.org/microsoft-logo.jpg&imgrefurl=http://www.ximep2008.org/researchSession.html&h=686&w=2846&sz=80&hl=en&start=3&um=1&tbnid=qXPGv2e2QgNLeM:&tbnh=36&tbnw=150&prev=/images%3Fq%3Dmicrosoft%2Blogo%26um%3D1%26hl%3Den%26sa%3DN

http://images.google.com/imgres?imgurl=http://www2.dac.com/data2/42nd/42exhibitorArea.nsf/0/57ee595f3ce816ae87256fb7006a50bd/%24FILE/Monster%2520logo.jpg&imgrefurl=http://www2.dac.com/data2/42nd/42exhibitorArea.nsf/0/57EE595F3CE816AE87256FB7006A50BD&h=234&w=600&sz=16&hl=en&start=12&um=1&tbnid=LQ6_HBb5SHfNnM:&tbnh=53&tbnw=135&prev=/images%3Fq%3Dmonster%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/thumb/3/37/Viacom_logo.svg/726px-Viacom_logo.svg.png&imgrefurl=http://en.wikipedia.org/wiki/Image:Viacom_logo.svg&h=123&w=726&sz=17&hl=en&start=2&um=1&tbnid=tlpLqReBdt6drM:&tbnh=24&tbnw=141&prev=/images%3Fq%3Dviacom%2B%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.spaceandtech.com/spacedata/orgs/logos/corporate-logos/news-corp_logo.gif&imgrefurl=http://blognetwork.poynter.org/media/feed.php%3Fchannel%3D40%26y%3D2008%26m%3D04&h=64&w=389&sz=5&hl=en&start=5&um=1&tbnid=6eprEP9ueUEF1M:&tbnh=20&tbnw=123&prev=/images%3Fq%3Dnews%2Bcorp%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.cox.com/about/images/logo_coxenterprises.gif&imgrefurl=http://www.cox.com/about/othersites.asp&h=85&w=150&sz=5&hl=en&start=2&um=1&tbnid=Qfe7-_liIzshVM:&tbnh=54&tbnw=96&prev=/images%3Fq%3Dcox%2Benterprises%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.ta.com/images/talogo.gif&imgrefurl=http://www.ta.com/home_windows/terms.asp&h=54&w=180&sz=2&hl=en&start=13&um=1&tbnid=b_AygyJZKMtW4M:&tbnh=30&tbnw=101&prev=/images%3Fq%3D%2522ta%2Bassociates%2522%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.tcv.com/gfx/tcv_logo.gif&imgrefurl=http://www.tcv.com/&h=78&w=180&sz=3&hl=en&start=1&um=1&tbnid=-WfJZsHRYvGSIM:&tbnh=44&tbnw=101&prev=/images%3Fq%3D%2522tcv%2522%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.generalatlantic.com/images/i.logo.gif&imgrefurl=http://www.generalatlantic.com/&h=47&w=263&sz=4&hl=en&start=8&um=1&tbnid=3uwC7bjTul_fjM:&tbnh=20&tbnw=112&prev=/images%3Fq%3D%2522general%2Batlantic%2522%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://media.marketwire.com/attachments/200707/353966_SummitLogo_2955JPG.jpg&imgrefurl=http://www.marketwire.com/mw/release.do%3Fid%3D755591&h=106&w=300&sz=5&hl=en&start=1&um=1&tbnid=Hiz6ZIRMASVgIM:&tbnh=41&tbnw=116&prev=/images%3Fq%3D%2522summit%2Bpartners%2522%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.bizzuka.com/Images/Interior/blog/omniture_logo.gif&imgrefurl=http://www.bizzuka.com/Blog/BlogDetail.asp%3Fp1%3D7006%26p2%3D33%26p7%3D3000&usg=__Ox4-D3umi-CbcvCE5tYCiGaTxTg=&h=45&w=147&sz=1&hl=en&start=2&um=1&tbnid=duY-KpfBY9a92M:&tbnh=29&tbnw=95&prev=/images%3Fq%3Domniture%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.mayfield.com/images/mayfield_fund_logo.gif&imgrefurl=http://www.mayfield.com/&usg=__0Abr7MbcE56a7Lsotlz8ALrKElE=&h=82&w=217&sz=3&hl=en&start=3&um=1&tbnid=cgSBiTMt7fMsUM:&tbnh=40&tbnw=107&prev=/images%3Fq%3D%2522mayfield%2Bfund%2522%2Blogo%26um%3D1%26hl%3Den

37

Investment Spectrum; Balancing Risk and Reward

Out There

New Paradigm

PlatformEnabler

Problem Solver

Proprietary Network

Defensible Models

RakingIt In

Big Potential, High Beta Lower Beta, Big Profits

Example Companies:

38

Investment Assessment Criteria

The Value Drivers

1 Growth Usage and revenue momentum

2 Profitability Gross, EBITDA margins

3 Scalability Operating leverage

4 Sustainability Barriers to entry, advantage

5 Strategic Value Who needs to own it

39

Solving Existing Problems

Analytics

Enablement

Optimization

Targeting

Monetization

40

Content

Networks

Social

Commerce

Horizontalcirca 2005

Verticalcirca 2008

Search

Verticalization Across the Digital Media World

http://images.google.com/imgres?imgurl=http://www.noellehannibal.com/logo_myspace_edit.jpg&imgrefurl=http://www.noellehannibal.com/&h=675&w=2493&sz=123&hl=en&start=17&um=1&tbnid=IU5Jt7M5DZDXUM:&tbnh=41&tbnw=150&prev=/images%3Fq%3Dmyspace%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://seanbyrnes.com/blog/wp-content/uploads/2007/07/windowslivewriterlinkedout-11d12logo2.gif&imgrefurl=http://seanbyrnes.com/blog/%3Fp%3D294&h=178&w=640&sz=10&hl=en&start=1&um=1&tbnid=UAKrrmW4w-Jc9M:&tbnh=38&tbnw=137&prev=/images%3Fq%3Dlinkedin%2Blogo%26um%3D1%26hl%3Den

http://www.netshops.com/

http://images.google.com/imgres?imgurl=http://static.seekingalpha.com/wp-content/seekingalpha/images/addotcom.jpg&imgrefurl=http://seekingalpha.com/article/21211&h=51&w=260&sz=7&hl=en&start=58&um=1&tbnid=1Uw1YMA_-qvbuM:&tbnh=22&tbnw=112&prev=/images%3Fq%3Dadvertising.com%2Blogo%26start%3D40%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DN

http://images.google.com/imgres?imgurl=https://www.thankyounetwork.com/images/rewards/detail/amazon.com%2520logo%2520high.jpg&imgrefurl=http://mblog.lib.umich.edu/~willmoon/index.rdf&h=260&w=260&sz=32&hl=en&start=18&um=1&tbnid=Rd737SnXqkUwoM:&tbnh=112&tbnw=112&prev=/images%3Fq%3Damazon.com%2Blogo%26um%3D1%26hl%3Den%26sa%3DN

http://www.kayak.com/

41

Performance is Back; Only It’s New and Improved

Performance Pyramid

Lead

Impression

Click

Audience

Sale

Metric Example Companies

CPA

CPL

CPC

CPM

Unique Users

Brand-oriented, performance-based customer acquisition “agencies” are in the business of “selling profits”

Bob Carrigan of IDG called

it “Sales Enablement”

http://www.quinstreet.com/index.jsp

42

The Pyramid Works For Brands Too

Brand Pyramid

Insights

Impression

Engagement

Audience

Sale Marketer Goals

Publisher Capabilities

Brand = Performance; It’s just not that immediate

Wenda is right – it’s

AND, not OR

Howard Draft nailed it.

43

Mismatch of Supply and Demand

It’s the demand, dummy

Focus should be on how ads are bought, not sold

Brand marketers want engagement (actually, they just want TV)

Publishers and networks are selling audience and clicks

Publishers / Networks

Brand Marketers

“Engagement”

“Uniques, Clicks”

44

Chasing the 30 Second Spot; A Crowded Landscape

VIDEO PORTALS / SHARING

VIDEO SEARCH

MOBILE / PLACESHIFTING

VIDEO eCOMMERCE

VIDEO CREATION / EDITING

VIDEO STREAMING / CDN

INTERMEDIARIES / MEDIA PUBLISHING

RICH MEDIA ADVERTISING /VIDEO AD NETWORKS

VLOG-O-SPHERE

OTHER SERVICES

*

P2P / IPTV

*

http://www.vibrantmedia.com/

http://www.tveyes.com/

http://images.google.com/imgres?imgurl=http://mashable.com/wp-content/uploads/2008/01/tremor-media-logo.png&imgrefurl=http://mashable.com/2008/03/28/tremor-media-podcast/&h=70&w=200&sz=11&hl=en&start=1&um=1&tbnid=iMO1BWm8FUVAPM:&tbnh=36&tbnw=104&prev=/images%3Fq%3Dtremor%2Bmedia%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.spotrunner.com/CMS/ClientWebsite/Images/PR/logo_sr.gif&imgrefurl=http://www.spotrunner.com/pr/pr.aspx&h=57&w=155&sz=3&hl=en&start=2&um=1&tbnid=dybU0xOPZdTUrM:&tbnh=36&tbnw=97&prev=/images%3Fq%3Dspotrunner%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.bizreport.com/2008/04/28/scanscout/logo_scanscout.gif&imgrefurl=http://www.bizreport.com/2008/04/scanscout_broadband_enterprises_partner_for_video_overlay_ad.html&h=44&w=226&sz=4&hl=en&start=3&um=1&tbnid=e_kaiqexjzJI8M:&tbnh=21&tbnw=108&prev=/images%3Fq%3Dscanscout%2Blogo%26um%3D1%26hl%3Den%26sa%3DN

http://www.digitalsmiths.com/images/Digitalsmiths_Logo.jpg

http://images.google.com/imgres?imgurl=http://www.sasinvestors.com/ptv.jpg&imgrefurl=http://www.sasinvestors.com/portfolio.html&h=61&w=254&sz=5&hl=en&start=3&um=1&tbnid=fN5XxWBWTPcGuM:&tbnh=27&tbnw=111&prev=/images%3Fq%3Dpermissiontv%2Blogo%26um%3D1%26hl%3Den

http://www.extendmedia.com/images/logo.gif

45

Chasing the 30 Second Spot; Applying a Filter

http://images.google.com/imgres?imgurl=http://mashable.com/wp-content/uploads/2008/01/tremor-media-logo.png&imgrefurl=http://mashable.com/2008/03/28/tremor-media-podcast/&h=70&w=200&sz=11&hl=en&start=1&um=1&tbnid=iMO1BWm8FUVAPM:&tbnh=36&tbnw=104&prev=/images%3Fq%3Dtremor%2Bmedia%2Blogo%26um%3D1%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.spotrunner.com/CMS/ClientWebsite/Images/PR/logo_sr.gif&imgrefurl=http://www.spotrunner.com/pr/pr.aspx&h=57&w=155&sz=3&hl=en&start=2&um=1&tbnid=dybU0xOPZdTUrM:&tbnh=36&tbnw=97&prev=/images%3Fq%3Dspotrunner%2Blogo%26um%3D1%26hl%3Den

http://www.vibrantmedia.com/

46

Competition for the Winning Platform

So far (and it’s way early), Hulu seems to have found a monetization strategy that’s working,

despite it’s miniscule size relative to YouTube.

47

Social is Going Corporate, Corporate is Going Social

Licensed Software SAAS Social

Based Tools

Business

Consumer

48

International Opportunities – BRIC Countries

49

And Now for Some Provocation

“I want you to be provocative”

Provocative is my middle name

50

Pork Bellies and the Efficient Markets Thesis

Brand publishers are upset that ad networks and exchanges are cheapening their “premium” inventory, reducing their once robust CPMs

There is a glut of online inventory that is causing havoc on the display business

You can hear the battle cries:– “Brand marketing is dead”– “Those technologists are ruining our business”

51

What if the networks and exchanges are simply technology which brings efficiency and transparency to the marketplace?– After all, don’t marketplaces bring market prices?

What if the low CPMs are the real “value” of the ad inventory?– Reflecting low click-through rates, clutter and a

perception that advertising is not working

What if advertising pricing has been artificially high until now?

Was Wannamaker onto something bigger?


52


What if Madison Avenue has been one giant deception for the last 100 years?– Duping corporate America into overpaying for advertising

Could it be that Madison Avenue has perpetrated a fraud larger than Enron, WorldCom, Stanford, Madoff and the Subprime crisis put together?

53

And Now for Some Provocation

“I said provocative, not heretical”

54


While some of you will undoubtedly see the irony in a Wall Streeter challenging other industries at this time – Maybe this outsider perspective is instructive– Maybe it’s cocktail reception fodder– Maybe I won’t get dinner tonight

Wall Street, while imperfect, is an instructive analogy

From 6¢ per share stock trades to a fraction of a cent due primarily to technology

Wall Street and Madison Avenue are more alike than you think

55

Wall Street and Madison Avenue; Separated at Birth?

NameNamed after a street in Manhattan

UnitStandardized, high volume

BuyersLooking for a good ROI

SellersLooking for the highest price

Agent IntermediariesHandful of global firms in New York, Europe

Rating AgenciesProvide “independent” third party measurement

Distribution ChannelsPartner sales channel which aggregates demand

Industry AssociationIndustry lobby

56

The Good News: Interactive is the Only Bright Spot

Total Advertising

Spend

~$300 Billion

57

~$300 Billion


Traditional

Digital

Total Advertising

Spend

58

~$300 Billion


Traditional

Digital

Total Advertising

Spend

$250 ?$200 ?

59

The Good News: Digital Can Deliver Value to Brands

Technology will drive targeting and relevancy to new levels, increasing ad value

Interactive consumer behavior will allow for engagement that TV could only dream of

Brands can finally use advertising as a transparent sales tool– Strengthening the “R” in ROI

And yes, it’s not all math– Relationships matter– Creative matters

Democratized publishing is opening up a whole new world with endless possibilities– We’re all “brands” now

Conclusion: In digital,

brands can battle back

“The art and science of persuasion

and participation”Wenda Harris Millard

David Payne is on to this

60

The Reality

The fate of the industry is in this room

61

Lastly, It’s All About the Brand

62

Terence KawajaManaging Director

GCA Savvian [email protected]

+1 212 999 7082

The Call to Action

I welcome discussing your needs and opportunities.

TOKYO • SAN FRANCISCO • CHICAGO • NEW YORK • LONDON

terence kawaja's iab orlando presentation - february 2009

Economy & Finance

efficient

gca savvian

brands battle

private investor

economic crisis

investment

established

investor ecosystem