Mobile App Monetization · AGC’s Mobile App Monetization Report 2015 2 Source: 451 Research Daily...

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Robert Buxton, Partner APRIL 2015 INSIGHTS Mobile App Monetization

Transcript of Mobile App Monetization · AGC’s Mobile App Monetization Report 2015 2 Source: 451 Research Daily...

Page 1: Mobile App Monetization · AGC’s Mobile App Monetization Report 2015 2 Source: 451 Research Daily Insight Source: 451 Research, ‘Daily Insight: Mobile App Usage Up 76% in 2014’

Robert Buxton, Partner

APRIL 2015 INSIGHTS

Mobile AppMonetization

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Source: Good Technology, Mobility Index Report Q4 2014

The first key to monetizing mobile applications

is the design and the development of the actual

app, a process that we outlined in our Mobile

Application Development thought piece (Link:

http://agcpartners.com/insights/mobile-

application-development-report-2014/). The

second step is acquiring users. The third step

in developing and sustaining a winning mobile

app is user engagement, marketing and the

analytics that support these efforts. The App

Monetization industry is best described as the

interconnected network of technology

companies that offer a wide range of

capabilities focused on extrapolating value

from mobile users. The technologies range

from mobile analytics to location based

advertising, but all work together to help app

developers gain traffic, engage users and

make sales or drive value from their mobile

apps. We have identified the participants in

the mobile app ecosystem in the Appendix on

pages 16 and 17. As with any effort at industry

taxonomy, we caveat that we may have

overlooked a few vendors and the subsector

alignment could be argued for a few

companies as they may likely participate in

more than one clearly defined segment of the

market. As always, we welcome your input to

make this listing as comprehensive and

accurate as possible.

Mobile apps are one of the hottest markets in

all of technology. Of the roughly 100

“unicorns” – private companies with a valuation

over $1 billion – at least one-third are mobile

only or mobile first companies such as Uber,

Line, DropBox, Square, Good, and SnapChat.

Furthermore, Box recently completed its IPO in

January 2015 and maintains a $2 billion market

valuation. As the experiences of these

companies suggest, when success does come,

it comes faster than any other industry we’ve

experienced. App publishers have been able to

monetize their mobile platforms while helping

spawn the birth of countless firms that provide

the analytics and marketing services needed

for successful apps. By providing a wide range

of services that support mobile apps, these

firms are establishing themselves as key

business partners to app developers/publishers

and as indispensable pieces of the App

Monetization industry.

Mobile apps for enterprises are becoming the

new battleground for user and customer

loyalty, as companies look to fortify their brand

names by developing applications to keep

customers engaged while creating new

marketing and sales opportunities. As one

point of reference, Good’s Q4 2014 Mobility

Index Report shows that organizations

continued to mobilize content and apps at a

rapid pace, with overall app adoption

increasing 65% quarter-over-quarter and 300%

year-over-year in 2014, as shown in Table 1.

During the same time period, custom-business

Executive Summary

Table 1: Enterprise Mobile App Use

Growth in 2014

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Source: 451 Research Daily Insight

Source: 451 Research, ‘Daily Insight: Mobile App Usage

Up 76% in 2014’

Source: Flurry, ‘Shopping, Productivity and Messaging

Give Mobile Another Stunning Growth Year’

apps grew 26% quarter-over-quarter.

Meanwhile, according to research by

Enterprise Mobility Exchange (EME), nearly

two-thirds of businesses invested in mobile

apps last year and the momentum is set to

continue in 2015. Companies are looking at a

broader array of processes to mobilize, such

as core employee and customer-facing apps

(e.g., CRM, field service) to general

productivity apps (e.g., content,

communication, task management, forms,

etc.), finance, HR, BPM, supply chain and

partner apps.

In addition to being embraced by enterprises,

mobile apps have experienced exponential

growth with individual consumers. Mobile

analytics firm, Flurry, reports that mobile app

usage increased 76% in 2014, with lifestyle

and shopping increasing 174%, utilities and

productivity app usage increasing 121% and

messaging/social app usage shooting up

103%. As might be expected, early adopter

mobile apps such as gaming and music have

slowly reached a more mature phase, but have

nonetheless still increased by more than 30%,

as can be seen in Table 2.

Further, 451 Research predicts global app

store revenue will exceed $27 billion by 2018,

up from $15 billion in 2014, a compound

annual increase of approximately 16%, as

seen in Table 3.

However, particularly in the consumer sector,

the unfortunate truth is that most apps fail.

Almost 70% of apps will generate less than

5,000 downloads and 60% will never be

updated after release. As a result, it is

becoming increasingly more important for app

publishers to leverage the far reaching

capabilities of marketing, analytics and user

engagement firms in order to increase sales

and boost profitability.

Given this dynamic market backdrop, it is not

surprising that a number of established

companies have invested heavily in the sector

as have a growing list of privately funded

companies in order to capitalize on the

opportunity. There are roughly over 40 private

companies in the app analytics and marketing

sectors having raised $600 million in aggregate

from 2011-2014, with over $100 million raised

Table 3: Global App Store Revenue by 2018

Table 2: Mobile App Use Growth in 2014

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Table 4: M&A Transactions Annually 2011 2012 2013 2014

Analytics 1 2 7 3

Engagement/Marketing 2 2 3 5

Total Transactions 3 4 10 8

Source: CapIQ, Various Internet Resources

2011 2012 2013 2014*

Analytics $65M (5) $109M (9) $95M (9) $155M (9)

Engagement/Marketing $75M (2) $39M (3) $65M (4) $39M (7)

Total Raised $140M $148M $160M $194M

Number of Transactions 7 12 13 16

* Number of Transactions in Parentheses

year-to-date 2015. Likewise, M&A activity has

picked up as larger companies look to bolster

their presence in the space, with approximately

8-10 transactions completed in each of the

past two years.

In this paper we will explore the trends

fostering the growth of the mobile app

monetization industry, in particular the

analytics and user engagement/marketing

sectors, as well as highlight the companies that

are vying for a piece of the market and how

that is translating to capital markets and M&A

activity.

The app economy is generating significant

new opportunities around analytics

platforms, which are a key component to

the monetization of the industry as they

provide valuable information about

behaviors and metrics associated with

users of apps.

Although Google analytics dominates the

Android segment, developers use more

than one tool, allowing for the emergence of

a host of startups focused on helping

evaluate a number of key user and app

metrics such as active users, installs,

average revenue per user, life time value,

cost per acquisition, and cost per

engagement.

We have seen increased M&A activity in

the mobile app analytics space, with large

technology vendors picking up analytic

startups to bolster their mobile analytic

capabilities, and stand-alone analytic

providers expanding via acquisitions.

Recent deals in the space include Yahoo’s

acquisition of Flurry for $270M; Apple’s

acquisition of Topsy Labs for $200M;

Facebook’s acquisition of Onavo for

$150M; App Annie's takeout of Distimo; and

the launch of mobile analytics and user

engagement firm Upsight, which was

formed from the merger of mobile analytics

vendor, Kontagent, with mobile advertising

firm, PlayHaven, which was then

subsequently spun off and acquired by

Science Media.

Vendors in this segment raised

approximately $400M from 2011-2014,

which should result in innovation and

potential acquisitions, particularly once

mobile is more naturally integrated into

digital marketing strategies.

Mobile analytics is a relatively new area of

innovation for analytics vendors as the surge in

usage of mobile devices boosts revenue

opportunities, especially for publishers and

advertisers. According to Frost & Sullivan, the

total mobile analytics market reached $337M in

Mobile App Analytics

Table 5: Private Capital Raised

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2014 and is expected to surpass $1.2B by

2020, or a compound annual growth of 19.3%,

as seen in Table 6.

Mobile app analytics explore the unique

attributes of measuring and monitoring what’s

being done in the mobile world to get a better

sense of the customer experience, good and

bad. Analytics are a key to effective

monetization and provide valuable information

about the behaviors and metrics associated

with the users of the app.

The importance of analytics in advertising is

growing as big data gives marketers an ever-

expanding ocean of infromation that can be

used to deliver highly targeted ads. As well,

analytics is becoming a more powerful tool in

mobile marketing because as smartphone

users produce more data not only can

marketers track their demographics and online

behavior, they can access location information,

app usage and even address books.

There are scores of mobile analytic vendors,

providing dozens of different KPIs and reports

that can look to understand user behavior

better. Some of more prevalent include:

conversion/track revenue (in the funnel, how

many people take the actions that give them a

better experience and have meaning for the

business); engagement (how frequently they

are using the app, how long in use, LTV,

ratings, downloads; active user growth; active

engagement; what defines use of the product);

Table 6: App Analytics Market by 2020

Source: Frost & Sullivan, ‘Global Web and Analytics Market’

Table 7: KPIs Developers Value the Highest

Source: VentureBeat, ‘App Analytics: What Winning

Developers Use’

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and user fall off (what and why causes the

user to stop using the app). According the VBI

Research, the most common metrics are

shown in Table 7.

Google analytics dominates the Android

ecosystem, but it is not a zero sum game for

the analytics industry – publishers and

developers use more than one analytics tool as

each vendor is a bit unique and offer different

KPI strengths (measuring usage, reliability,

user engagement, etc.). Others provide limited

or point capabilities, such as Facebook’s SDK,

which really only monitors the health of

Facebook integrations.

Of all the mobile app sub segments, analytics

has garnered the greatest source of funding in

the past four years, and likely has the ability to

develop a number of sizable private,

standalone companies. We also see analytics

as an essential element of any mobile app

lifecycle, and as a result, sector consolidation

is a likely continued trend. Page 12 provides a

snapshot of App Analytics M&A since 2011

while page 11 shows a listing of private

companies and amount of capital raised.

Mobile Analytics- Notable Transactions Yahoo/Flurry

In July 2014, Yahoo acquired Flurry for $270M,

or an estimated 5x trailing twelve month

revenue. Flurry offers an app analytics service

and generates revenue through an ad network

that leverages the data and publisher

relationships from the service. Flurry's

business is operating a mobile ad network.

Those companies have traditionally not

achieved high multiples because the business

is driven by individual ad campaigns, rather

than long-term subscriptions or licenses. In

Flurry's sale, however, the value of the its deep

mobile audience data may have driven the

multiple above a traditional range.

Unlike Google, Yahoo does not have an OS

platform with an app store and access to

thousands of developers; thus, it makes sense

that its mobile strategy is based on cross-

platform user engagement, and analytics is a

key component of the equation. The purchase

of Flurry should help Yahoo catch up with

Google and Facebook, its main competitors in

the mobile advertising space. In addition, even

though Google boasts the largest share of

mobile advertising revenue, its mobile ad

business comes largely from search. Flurry's

data comes directly from users' devices via

mobile apps.

Apple/Topsy Lab

In December 2013, Apple acquired Topsy Labs

for $240M. Topsy analyzes Twitter feeds and

conversations between individuals, groups and

business to determine influence, campaign

exposure probability and event success. Topsy

has gathered about 425 billion data points to

analyze influential trends from conversations.

Topsy then sells those services to advertisers.

Topsy’s strength is in real-time parsing of

enormous data sets. The ability to track and

analyze mobile app trends across social

networks would allow Apple to fine tune

categories and collections of apps.

Facebook/Onavo

In October 2013, Facebook acquired Onavo for

an estimated $150M. Onavo, which was

founded in 2010, has two parts to its business:

a consumer-facing app to help optimize device

and app performance and battery life on iOS

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and Android devices and an analytics business

for mobile publishers to chart how well its own

apps are performing, and to chart that against

apps of its competitors. The company had

raised approximately $13M in venture funding.

This transaction is a continuation of

Facebook’s building up its mobile business,

which is seeing the most growth and is the

platform that most users in developing markets

are turning to first when signing up for and

using the social networking service. Today,

Onavo’s technology is focused on helping

users track how well those devices work, in

terms of battery life and so on. Onavo will also

give the company a much deeper technology

bench (in Israel) to measure how those mobile

services are working — who is using them, as

well as how to make them work in the most

optimized way on mobile devices. This can be

applied in a number of areas both for basic

user experience and commercial ends.

Kahuna’s website describes mobile marketing

automation as “the technology that allows

mobile-focused companies to automate,

personalize, and measure mobile marketing

activities so they can efficiently increase

revenue and user engagement while

simultaneously enhancing the user experience.

Mobile marketing automation allows

companies to meet concrete business goals

through intelligent messaging, enabling

businesses to reach consumers across all

platforms, channels, and levels of engagement.

The technology is characterized by an intuitive

understanding of each individual mobile user

and the ability to engage in an automated,

personalized, and optimized way.”

Sample business goals that mobile User

Experience/Marketing can help achieve:

Activation: onboard new users and reduce

user churn

Reactivation: re-engage dormant users

and increase user lifetime value

Monetization: cultivate top users and

increase purchases

User engagement/marketing solutions help

developers that want to know who is in their

app; what people are doing in the app; what

appeals most to them; how they can

communicate best with them; how you can

personalize the app to different users; and

provide the right offers to the right people at

right time and test and analyze. While these

business initiatives sound similar to mobile app

analytics, there are some significant

differences. Developers/publishers use big

data analytics to infer user behavior while

marketing solutions focus on the user first and

what publishers can do to deeply engage and

monetize them. The marketing aspect focuses

on using real time data to make personalization

and future engagement decisions. The

analytics component is more about what is

your user behavior while marketing is more

about who is in your app and then allows you

to do something about it.

There are four core components behind the

design of mobile user engagement/marketing

automation technology. These components

create a system that can effectively

communicate with mobile users where the goal

is to drive increased engagement, higher

retention/better conversion, and increased

LTV:

Mobile App User

Engagement/Marketing

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Understand: components that ensure the

system is able to understand your mobile

users across devices and platforms.

Engage: components that allow the system

to intelligently engage users wherever they

are—mobile apps, mobile web, social

networks, and wearables. Communication

channels include push notifications, in-app

messages, web messages, email, and

more.

Automate: components that enable the

system to send personalized and

automated messages based on a set of

campaign rules and real-time user

behavior.

Optimize: components that allow the

system to track and optimize campaign

results to achieve specific goals.

Mobile user engagement/marketing solutions

are most penetrated in gaming, but are

increasingly being used by large enterprises.

The vendors in the sector can be generally

divided between niche solutions (those that

have targeted a narrower or more clearly

defined space in which to compete) and those

with a more feature rich solution. In addition,

several of the vendors have purpose built

solutions (designed to work from the user level

up) whereas several others come at it from

such areas as the app analytics world (with a

strong foundation in big data), ad networks,

web optimization, and push messaging. Page

14 shows a listing of private companies and

amount of capital raised. Use of mobile app

marketing is early in adoption, but judging by

the number of companies emerging and the

investor funding it is a sector that is getting

solid traction.

Legacy marketing systems focused on email,

the first form of electronic communication. As

the mobile consumer engages electronically in

a more complicated and personal way and the

areas for messaging and optimization increase,

older marketing systems are unable to adjust

to understand and engage users. As such,

mobile user engagement/marketing solutions

could become part of marketing tech in

general, with Oracle (Responsys), Salesforce

(ExactTarget), IBM, Constant Contact,

Marketo, SAP, Callidus, etc. as possible

acquirers. As well, we should see cross

pollination consolidation among mobile user

engagement/marketing vendors with ad

networks and analytics companies to bring

about a more complete mobile monetization

solution. Page 15 provides a snapshot of App

User Engagement/Marketing M&A since 2011.

User Engagement/Marketing - Notable

Transactions:

Microsoft/Capptain

In May 2014, Microsoft acquired Paris-based

Capptain for an undisclosed amount. Capptain

had raised approximately $2 million in venture

funding. Capptain provides app developers

with analytics and the ability to send push

notifications based on customer usage

patterns. Microsoft’s press release stated that

they “will integrate Capptain’s solution with the

wider Azure suite of services so that

enterprises can not only build mobile apps to

engage customers and employees, but also

analyze and optimize that engagement.

Capptain will bring a vital new element to our

end-to-end story for mobile app development –

real time user and push analytics. With

Capptain’s solution, organizations can analyze

customer and employee behavior in real time,

and respond by push targeted messages,

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announcements, information or offers. This

information empowers organizations to provide

personalized, specific content to their clients in

order to maximize business opportunities.”

Blackstone/Velti

In November 2013, Blackstone acquired Velti’s

mobile marketing business in the U.S, UK and

India for $40 million as part of Velti’s

bankruptcy proceedings. Much of the mobile

marketing business is built around the former

Air2Web, which Velti purchased in September

2011 for $19 million, and Mobile Interactive

Group, which Velti purchase in November 2011

for $62 million. This transaction is small but

may be indicative of a coming trend toward

consolidation in mobile marketing and

messaging. The space is very fragmented

between mobile advertising networks, mobile

website and content creators, mobile payment

firms, aggregators, mobile publishing and

application development providers, and mobile

analytic vendors.

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Appendix

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Source: Various Company Websites

Mobile App Analytics Market Participants

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(US $ Millions)

Company Capital Raised Investors

1. AppAnnie $93IDG Capital Partners, Greycroft Partners, Sequoia Capital, Institutional Venture Partners,

e.ventures, Infinity Venture Partners, Strive Capital 

2. Applause 73

Longworth Venture Partners, Egan-Managed Capital, Mesco, Investment Arm, Mass

Ventures, Scale Venture Partners, QuestMark Partners, Goldman Sachs Group, Merchant

Banking Division

3. Appsee 12 Giza Venture Capital, Flint Management 

4. Appsflyer 27 Magma Venture Partners, Pitango Venture Capital, Fidelity Growth Partners Europe

5. Apptentitve 9 Golden Venture Partners, Founder's Co-op, SurveyMonkey, Origin Ventures

6. Apsalar 15 Thomvest Ventures, DN Capital, DCM, Correlation Ventures, 500 Startups, Seraph Group

7. Artisan Mobile 9 FirstMark Capital

8. Audience Science 101 ND

9. Chartboost 21 TransLink Capital, SKT Ventures, Sequoia Capital, XG Ventures, SKT Ventures

10. Countly ND Seedcamp

11. Dyn 38 North Bridge Ventures Partners, Borealis Ventures, Borealis Granite Fund

12. Fiksu 20 SVB Silicon Valley Bank, CRV, QUALCOMM Ventures

13. Flurry 64Draper Fisher Jurvetson, Draper Richards, InterWest Partners, Menlo Ventures,

CrossLink Capital, Union Square Ventures, First Round Capital

14. iJento 20MMC Ventures, Nauta Capital, Oxford Capital Partners, Nauta Tech Invest III, SVB Silicon

Valley Bank

15. Kontagent 23 Altos Ventures, Maverick Capital, Battery Ventures

16. Localytics 26Polaris Partners, Foundation Capital, Launchpad Venture Group, Hub Angels Investment

Group, Polaris Partners, Progress Ventures, TechStars

17. Medialets 34 Gotham Ventures, Greenspring Associates, Foundry Group

18. Mixpanel 12 Andreessen Horowitz, Sequoia Capital

19. Pontis 99Accel Partners, Evergreen Venture Partners, Norwest Venture Partners, QUALCOMM

Ventures, Sequoia Capital Israel, Western Technology Investment

20. Zettics 27North Bridge, Voyager Capital, Steamboat Ventures, Emergence Capital Partners,

Excelestar Ventures, OPENAIR Equity Partners

Source: CapIQ, Various Company Websites

Mobile App Analytics Private Companies

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Mobile App Analytics Recent M&A Activity

(US $ Millions)

Date Target Acquirer Name EV LTM Rev EV/LTM Rev Business Description

1. Jul-14 Flurry Yahoo $270 $50 5.4 xProvides analytics for businesses to monitor  and understand the

trends and habits of mobile users across multiple mobile

applications.

2. May-14 Distimo App Annie ND ND ND Provides insight into the application store market for developers,

carriers, and device manufacturers worldwide.

3. Feb-14 Simplytics Integral Ad Science ND ND NDProvides ad serving software for mobile channels for content

providers and advertisers. Software enables advertising delivery

and measurement for mobile marketing campaigns.

4. Dec-13 Topsy Labs Apple 200 ND NDProvides social media search and text and trend analytics SaaS

for businesses and consumers, with an emphasis on Twitter

search and analytics.

5. Oct-13 Onavo Facebook 150 ND NDProvides mobile-focused web analytics SaaS and mobile

applications for businesses and developers. Also provides iOS

apps that enable application usage tracking and data compression.

6. Oct-13 The Now Factory IBM ND ND NDProvides real-time mobile device customer analytics software for

communication service providers. The software enables

companies to track and analyze mobile usage with cloud services.

7. Jul-13 AD-X Limited Criteo 12 ND NDProvides iPhone and Android mobile application tracking and

analytics solutions that provides insights into the effectiveness of

advertising.

8. May-13 Trendslide Dyn ND ND NDProvides a mobile business intelligence analytics application for

use on iOS devices that analyzes data from both websites and

applications.

9. May-13 Lucky Sort Twitter ND ND NDProvides online business intelligence analytics and visualization

software that enables businesses to monitor market data in real

time. Also provides an application for use on iOS devices.

10. Feb-13 Metaresolver Millenial Media 16 ND NDProvides a platform that analyzes volumes of data from real-time

mobile bidding exchanges to help brands and agencies optimize

their promotions.

11. Jun-12 UMeng Alibaba 80 ND ND Provides mobile analytics solutions for mobile development teams

and individual investors.

12. May-12 Tealeaf Technology IBM 500 50 10.0 x Provides online and mobile customer behavior analytics and call

center performance optimization software for businesses globally.

13. Jul-11 Umber Systems Zettics ND ND ND Provides mobile data and application usage analytics software for

wireless telecom service providers.

Source: CapIQ, 451 Research’s M&A Knowledge Base

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App User Engagement & Marketing Market Participants

Source: Various Company Websites

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App User Engagement & Marketing Companies

Source: CapIQ, Various Company Websites

(US $ Millions)

Company Capital Raised Investors

1. AppBoy $23Rally Ventures, IDG Ventures, Blumberg Capital, T5 Equity Partners, Bullpen

Capital, Accelerator Ventures, Metamorphic Ventures, InterWest Partners

2. Appiterate 0.5 SAIF Partners

3. DeltaDNA 4The Scottish Investment Bank, Par Equity, STV Group, E-Synergy, Edge

Performance VCT Public Limited Company, Edge Investment Management

4. Fuse Powered 2 Information Venture Partners, Relay Ventures, NFQ Ventures

5. Intercom 31The Social+Capital Partnership, Bessemer Venture Partners, Freestyle Capital, 500

Startups, Digital Garage

6. Kahuna 13 Sequoia Capital, SoftTech VC, Costanoa Venture Capital

7. Optimizely 91Bain Capital Ventures, Benchmark Capital, Andreessen Horowitz, Battery

Ventures, Google Ventures, InterWest Partners

8. Swrve 24

Enterprise Ireland, Investment Arm, Dublin Business Innovation Centre, Investment

Arm, Intel Capital, Delta Partners, ACT Venture Capital, SV Angel, Atlantic Bridge

Capital, Acero, Mianach Venture Capital

9. Tapjoy 51North Bridge Venture Partners, D.E. Shaw Venture Capital, InterWest Partners, Rho

Capital Partners, J.P. Morgan Asset Management

10. Upsight 17 Maverick Capital, GGV Capital, Altos Ventures, Battery Ventures

11. Urban Airship 61True Ventures, Foundry Group, August Capital, Verizon Ventures, Franklin Park

Associates, Investment Arm, QuestMark Partners, salesforce.com, Intel Capital 

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App User Engagement & Monetization Recent M&A Activity

Source: CapIQ, 451 Research’s M&A Knowledge Base

(US $ Millions)

Date Target Acquirer Name EV LTM Rev EV/LTM Rev Business Description

1. Sep-14 Nexage Millenial Media $119 $34 3.5 xProvides mobile advertising solutions including a programming

platform, location-based advertising, and brand safety controls for

publishers.

2. Sep-14 Upsight (Payhaven) Science Media ND ND NDProvides an analytics platform that enables users to create

targeted in-application and out-of-application campaigns as well as

provides critical success metrics.

3. Jun-14 Ad Colony Opera Software 350 53 6.6 x Operates a mobile video advertising and monetization platform that

plays crystal-clear HD videos.

4. May-14 Capptain Microsoft ND ND ND Offers an analysis, real-time monitoring, and customer relations

management solution for iPhone and Android mobile applications.

5. Feb-14 Burstly Apple ND ND ND Provides a platform for mobile developers to maximize their

marketing and revenue opportunities.

6. Nov-13 Velti Blackstone 40 ND NDOffers a platform that enables brands to build, plan, execute and

measure integrated marketing campaigns across mobile

platforms.

7. Sep-13 Mopub Twitter 350 15 23.0 xProvides an ad serving and monetization platform that helps

clients with ad management, optimization, and reporting

capabilities.

8. Aug-13 JumpTap Millenial Media 245 64 3.8 x Operates a mobile audience targeting platform that provides

audience-centric advertising solutions to reach mobile users.

9. May-12 Ad Shark Monster Offers ND ND NDConstructs media and delivery systems for smartphone and tablet

application developers, including the delivery of mobile banners,

video, text messaging and email ads.

10. Mar-12 Amobee Singapore Telecom 321 35 9.2 xProvides mobile advertising solutions including a programming

platform and analytics to help track marketing campaign

effectiveness.

11. Sep-11 Air2Web Velti 19 ND ND Provides mobile marketing solutions to connect consumers with

brands via mobile devices to promote products and brands.

12. Jan-11 Adenyo Motricity 143 13 11.0 xDevelops mobile marketing software which offers branded mobile

services and SMS direct marketing services to organizations

selling to retail clients. Also creates and maintains social networks.

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16

Mobile App Ecosystem

Source: Various Company Websites

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Mobile App Ecosystem Continued

Source: Various Company Websites

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AGC’s Mobile App Monetization Report 2015

18

Relevant Experience

Culture of teamwork, creativity, passion, tenacity, community and integrity

A reputation for closing deals large and small at premium valuations

History of completing 25 to 30 transactions per year – volume brings market knowledge, experience and deep worldwide technology contacts

50 person global team with offices in Boston, Silicon Valley, New York City, Minneapolis and London

Strong technology sector expertise lead by 15 AGC Partners with average banking experience of 20 years – mobility/communications, security, cloud infrastructure, SaaS, digital media, consumer / enterprise application and more

451 Group ranks AGC as the leading technology boutique – 12 years in business and 40 consecutive quarters of profitability

Rob Buxton Partner Investment Banking

Rob is a Partner at AGC Partners and is based out of the firm’s Silicon Valley office, where he focuses on the Communications and Software sectors

Before joining AGC, Rob was Managing Director and Co-Head of Technology Investment Banking for CIBC World Markets from 1999-2008

Rob was most recently Managing Director and Head of Technology, Media, and Telecom at Yorkville Advisors, a $1 billion fund focused on structured finance investments

Rob began his career on Wall Street with Dean Witter Reynolds and later moved to Oppenheimer/CIBC; he has more than 20 years of experience, having completed over 200 financing and M&A transactions

AGC Today

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*This document is intended to serve as information only, and to suggest that further analysis and

consideration may be warranted. Unless otherwise indicated, AGC does not believe that the

information contained herein is sufficient to serve as the basis of an investment decision. There can

be no assurance that these statements, estimates or forecasts will be attained and actual results may

be materially different. Only those representations or warranties which are made in a definitive

purchase agreement will have any legal effect. To learn more about the company/companies that

is/are the subject of this commentary, contact one of persons named herein who can give you

additional information.