JEGI SIIA Presentation June 2013

June 21, 2012www.jegi.com

Since 1987


2013 SIIA Strategic and Financial ConferenceNew York, NY

The Coming Shift in Digital Marketing: “Always‐On CRM”

CONFIDENTIAL 2

Discussion Agenda

2

Shifting Model, Enabling Technologies

M&A Heating Up in Marketing Technology

Emergence of the Enterprise Marketing Management Stack

Implications

CONFIDENTIAL 3

State of M&A Market

3

Key drivers in 2012:• Rising corporate investment

• Rush to beat changes in US tax code

• Pace picking up in Q2 2013 after Q1 lull

Strategic buyers continue to be active• Accelerating growth via acquisitions

• Strong balance sheets – as of Q4, U.S. non‐financials held $2+ trillion in cash

• Retooling models to leverage technology and new platforms/channels

Strong PE activity• Race to invest $600+ billion raised ‘07‐08

• Lender activity picking up, rates low, greater comfort in marketing services

Shortage of high‐quality available assets

2012 US volume and value surged, up 50% and 43% over 2011

CONFIDENTIAL 4

M&A Volume and Value by Sector

4

Despite Q1 ‘13 calm after Q4 ’12 M&A bulge, Marketing Services & Technology remains most active segment

Industry SectorNo. of Deals

Value (millions)

No. of Deals

Value (millions)

No. of Deals

Value

B2B Online Media & Technology 21 $198 19 $201 11% (1%)

B2C Online Media & Technology 53 $1,218 70 $1,537 (24%) (21%)

Business‐to‐Business Media 8 $102 9 $63 (11%) 61%

Consumer Magazines 11 $183 16 $83 (31%) 120%

Database & Information Services 12 $481 20 $3,862 (40%) (88%)

Education Information, Technology & Training 21 $238 12 $516 75% (54%)

Exhibitions & Conferences 16 $164 15 $263 7% (38%)

Healthcare Information & Technology 52 $1,596 46 $2,058 13% (22%)

Marketing Services & Technology 118 $2,539 136 $2,961 (13%) (14%)

Mobile Media & Technology 41 $819 31 $697 32% 17%

Total 353 $7,537 374 $12,242 (6%) (38%)

Marketing Services & Technology ‐ % of Total 33% 34% 36% 24%

Source: JEGI Transaction Database

Media, Information, Marketing & Technology M&A Activity

2013 2012

January ‐ March January ‐ March % Change

CONFIDENTIAL 5

Strategics Snapping Up Technology‐Driven Marketing

5

Expanding functionality through acquisition

Cross‐channel, interactive marketing SaaS solution

SaaS‐based B2B marketing automation software solutions

Develops, hosts, and supports database software and hardware

SaaS -based marketing automation platform with revenue performance management

Provides enterprise cloud computing and CRM solutions

Provides social media marketing platform

Provides advertisement planning and placement services

Global provider of media and digital services

Multi‐channel market data and measurement solutions

Measurement solutions for analyzing the TV and radio markets

Provides multi‐channel advertising solutions

Enables brands to better acquire and engage customers through digital channels

Provides enterprise cloud computing and CRM solutions

Cross‐channel, interactive marketing SaaS solution

Provides search, advertising and analytics solutions

Social media marketing management tools

Database marketing and marketing services company

Provides a suite of integrated performance marketing solutions

Online real estate database with residential market data

Online marketing solutions for real estate professionals

CONFIDENTIAL 66

Target Acquirer

PE Also Very Active In Technology‐Driven Marketing

Over the last 12 months, ~40% of 17 JEGI sale transactions have closed with PE buyers

Ecommerce + shopper marketing software

Content marketing and development

Custom marketing research for consumer brands

Sales enablement and BI SaaS

Digital promotions across mobile, social and web

CONFIDENTIAL 7

Discussion Agenda

7




Implications

CONFIDENTIAL 88

Technology Impact on Marketing Budgets

“…by 2017, the CMO will be spending more on IT than the CIO…”

‐‐ Gartner

CONFIDENTIAL 9

Top of the EMM Stack Recent M&A

9

Enterprise software companies acquiring for growth to keep pace with customers’ marketing needs and the unprecedented rate of technology adoption by CMOs

$22+ billion in M&A value 2010‐2012

CONFIDENTIAL 10

Enterprise Marketing Management (EMM) Stack

10

Breaking Down the Stack

CONFIDENTIAL 11


11

What is it?

Repositories for marketing content for use across all marketing activities

You know its DAM / MAM / PDM when you hear…

“Let’s make sure our logos look the same on our direct mail package as well as our mobile marketing campaigns”

Digital Asset (DAM) / Marketing Asset (MAM) / Product Data Management (PDM)

COMPANIES IN SECTOR

CONFIDENTIAL 12


12

What is it?

Software that enables websites to serve rich, dynamic and personalized messages to visitors, responsively and at scale

You know its MOM / WCM when you hear…

“Let’s serve our ad campaign to customers who have recently searched for our product…”

Marketing Operations (MOM) / Web Content Management (WCM)

COMPANIES IN SECTOR

CONFIDENTIAL 13


13

What is it?

CRM systems enable businesses to manage customer relationships and the data and information associated with them

You know its CRM when you hear…

“Show me a list of customers who have purchased more than one of our products in the last 6 months…”

Customer Relationship Management (CRM)

COMPANIES IN SECTOR

CONFIDENTIAL 14


14

What is it?

Software that coordinates and tracks marketing executions across channels

You know its MRM when you hear…

“We need to do a better job of integrating our B2B email acquisition campaigns with our other lead gen activities…”

Marketing Resource Management (MRM)

COMPANIES IN SECTOR

CONFIDENTIAL 15


15

What is it?

Customer satisfaction on steroids ‐‐ what makes individual customers “tick”

You know its CEM / CIM when you hear…

“Why are we seeing a spike in customer complaints about our new product…”

Customer Experience Management (CEM) / Customer Interaction Management (CIM)

COMPANIES IN SECTOR

CONFIDENTIAL 16


16

What is it?

Data and dashboards and decision support for media and marketing investments

You know its Media and Marketing Analytics when you hear…

“Should I spend more on search or social to drive eCommerce revenue…”

Media and Marketing Analytics

COMPANIES IN SECTOR

CONFIDENTIAL 17


17

What is it?

Predictive business insights for multiple data sets

You know its BI when you hear…

“Looking at our recent campaign results what customer segments responded to our last campaign…”

Business Intelligence (BI)

COMPANIES IN SECTOR

CONFIDENTIAL 18


18

EMM dramatically impacting how large organizations invest in marketing

Marketing assets, channels, data sources, third‐party APIs increasing in number and complexity

Connect and synchronize end‐to‐end marketing and sales activities…

Brand / creative

Media planning / buying

Field and channel

Online ad ops and campaign execution

Acquisition / eCommerce

Offer management and optimization

Customer care and loyalty

Marketing ROI measurement

CONFIDENTIAL 1919

Presenting Companies in the EMM Ecosystem

Company Company Description

Technology that maximizes online advertising effectiveness

SaaS sales intelligence solutions

SaaS digital transformation platform

Mobile apps market leader in nature and wildlife

Actionable agriculture market data

Full‐service content marketing agency

Email intelligence for marketers

Behavioral online reference software for efficient recruiting

SaaS data driven marketing automation platform

CONFIDENTIAL 20

Discussion Agenda

20




Implications

CONFIDENTIAL 2121

Customer Segmentation

Who are your customers?

How do you reach them?

CONFIDENTIAL 2222

Identify and Connect Customer Across All Channels

HubHub

Click streamSearch

Social interactions

Online shopping

E‐commerce transactions

Email registrationsCatalog/direct

transactions

Print subscriptions

Retail transactions

Financial transactions

Membership/loyalty

Call center

CONFIDENTIAL 2323

Traditional model

Target audience segments Context / endemic sites

Premium sites

Retargeting

BT segments (low effectiveness)

Run campaign

Measure results CTR (weak or negative proxy)

Engagement, attitude lift

Stare at data, repeat

Emerging model

Target best current / next customers Relationship / transactional / CRM data Model at individual level Cross channel data

Web, mobile, social On‐site, Off‐line, In‐store

Dynamic, continuous communication Cross channel (ditto) Dynamic messaging at individual level

Measure results Closed‐loop from desired event Feedback into CRM system At massive scale

Advertising Becoming “Always‐On CRM”

CONFIDENTIAL 24

Always‐On CRM Enabling Technologies

24

Additional Strategic

InitiativesDaaS Product Offering

Identify:Best

customers and prospects

Reach:Across web, mobile, email, offline, and in‐store platforms

Measure:Closing the loop

on result / conversion

measurement

Connect:Link digital

identities across channels

Optimize Message:Message and frequency

EMM Stack Enables Always‐On CRM at Massive Scale

End to end, closed loop, measured and managed ROI

25

MyWebGrocer: Online Driving In‐store Shopping

Transaction/Close the Loop

Add to Shopping List

26

Sociomantic: Real Time Bidding on a Global Scale

Real Time Bidding

– Enables bidding for individual ad impressions in real-

time auctions

– Bids are calculated in milliseconds

Impressions at the Perfect Price

– Range of factors determines a precise value of

impressions for advertisers

Personalized Creatives

– Deep layers of intelligence show best possible

ad for every impression, boosting conversions

27

The Trade Desk: Empowering 170+ media buyers with proprietary RTB platform

MANAGEMENT & SERVICE

TRAFFICKING & OPTIMIZATION

DATA VISUALIZATION

CLIENT REPORTING

ANALYTICS & DATA MGT (CRM INTEGRATION)

AUDIENCE INSIGHTS

USER LEVEL DECISIONING

ATTRIBUTION

CHANNEL INTEGRATIONS (ALL SOURCES IN DISPLAY, SOCIAL, SEARCH, EMAIL, ETC)

DYNAMIC CREATIVE OPTIMIZATION

TAG MANAGEMENT

DATA MARKETPLACE

DATA MANAGEMENT PLATFORM

PERFORMANCE REPORTING

BI AND DATA PROCESSING

REAL‐TIME ADSERVER

REAL‐TIME BIDDER

core tech

service

OPTIONAL FOR SERVICE LAYER, ALSO PROVIDED BY PLATFORM

SERVICE LAYER (TTD CLIENTS)

THE TRADE DESK PLATFORM

28

Discussion Agenda

28




Implications

CONFIDENTIAL 2929

Technology Impact on Services Marketplace

“…despite all of this technology at work, the most critical element in our evolving service mix is world class creative capabilities…”

‐‐ Chief Marketing Officer Global IT Services Firm

“Our role is to serve as a systems integrator for our clients…to help brands tell their stories via marketing technologies and API’s”

‐‐ Chief Strategy OfficerGlobal Agency Group

30

Converging Services Market

30DAM/MAM

WCM

CRM

MCM

CEM

Analytics

BI

Point Apps, Platforms and APIs

EMM Stack

IT/ Consulting Services


Agency/ Creative Services


31

EMM Stack

Converging Services Market

31





32

Content Marketing Ecosystem

32

Textual Content

Interactive Tools

Email

White Papers

Video

Webinars/Event Marketing

Blogs

Digital Point of Purchase

Social Media

Search Marketing

Direct Marketing

Websites

Mobile / Tablet Applications

Webisodes

Podcasts PublicationsContent Marketing

3333

Looking Ahead

What’s Next?

Wearable Technologies

3434

Next Marketing Channel ‐Wearable Technology?

Connected consumer devices proliferate –each a data machine

Marketers can annoy consumers at home, at the gym, while sleeping,

while driving…

Tweeting with your eyes

Dividing your attention

35

Recent JEGI Transactions

35In each transaction JEGI client is mentioned first.

20 transactions in 2012 & 2013 for over $1 billion in enterprise value

Since 1987


150 East 52nd Street 18th FloorNew York, NY 10022

Phone: (212) 754‐0710Fax: (212) 754‐0337

The Coming Shift in Digital Marketing: “Always‐On CRM”

JEGI SIIA Presentation June 2013

Business

Transcript of JEGI SIIA Presentation June 2013