1
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
Where technology creates value: an
investment perspective on
programmatic buying
May 2014
#GPBullhound
INDEPENDENT TECHNOLOGY
RESEARCH
2
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
Sources: GP Bullhound, IDC (2013), eMarketer (2013)
THE ‘BIG BANG’ OF ONLINE ADVERTISING
KEY METRICS
$140+ Billion Global online advertising market by 2017
$3.3+ Billion Estimated Western European spend on RTB by
2017
$80+ Billion Global display advertising market by 2017
$21+ Billion Estimated global spend on RTB by 2017
50%+ CAGR Growth of the global market between 2012 and
2017
$1.5+ Billion Invested to date in RTB technologies
3
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
THE REAL-TIME DATA EXPLOSION
1.2bn MAUs
37,000 Comments and
likes per
second
230m+ MAUs
1bn Tweets created
every two days
540m MAUs
1.5bn Image uploads
per week
c. 90% of the world’s data generated in the last 2 years
26m MAUs
350m Average daily
photo uploads
150m MAUs
55m Photos
uploaded per
day
Today advertisers have access to millions of users across multiple
properties and devices where a LOT happens in a SHORT space of time
4
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
Over $1.5bn of Capital Raised to Date
MORE THAN $1.5BN CAPITAL RAISED TO DATE
$8
$104 $60 $47
$141
$87
$145
$75
$163
$576
$248
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD
Other Exchange SSP DSP
5
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
EVOLUTION OF THE RTB LANDSCAPE
Sell-Side
Platforms
(SSPs)
Ad
Exchanges
Ad
Networks
Demand-
Side
Platforms
(DSPs)
Trading
Desks
AD
VE
RT
ISE
RS
PU
BL
ISH
ER
S
FL
OW
OF
MO
NE
Y
6
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
RTB - $21BN GLOBAL MARKET BY 2017
Source: GP Bullhound, IDC
Global RTB Display Ad Spend
$80bn
$34bn
2012 2017
$10bn$2.7bn
Global Share of RTB Display Ad Spend taken by intermediaries
Global Online Display Ad Spend
$21bn
$1.8bn
7
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
MARKET PENETRATION – US LEADING THE WAY
Source: IDC, eMarketer, Magna Global
DISPLAY PENETRATION
POTENTIAL?
52%? Magna Global
41%? IDC
29%? eMarketer
1% 3%
7%
11% 13%
17%
22%
27%
2%
5%
12% 15%
17%
22%
27%
1%
6% 8%
14%
17%
20%
25%
30%
4%
9%
14%
19%
23%
28%
34%
41%
2010 2011 2012 2013 2014 2015 2016 2017
France Germany UK US
GLOBAL RTB MARKET
8
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
0,7
3,3
4,0
2013 2017 (IDC) 2017 (GPB Upside)
UK Germany France Rest of Western Europe
EUROPE TO BENEFIT THE MOST
EUROPEAN RTB – IDC VS UPSIDE CASE ($bn)
Source: IDC
45%
CAGR
9
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
KEY DRIVERS OF GROWTH - MOBILE
MOBILE RTB AD SPEND ($m)
Source: IDC (2013), Facebook company filings, Comscore (2013),
Verve Mobile (2013)
50%+ G5 smartphone
penetration
2.3x CTR from
location-based
campaigns
62
549
2014 2017
Germany France UK
107%
CAGR
10
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
KEY DRIVERS OF GROWTH - VIDEO
Source: IDC (2013), Digital TV Research (2013)
VIDEO RTB AD SPEND ($m)
$3.6bn 2017 global online
video advertising
$219bn 2018 global TV
ad spend
759m 2018 global TVs
connected to the
internet
30
152
2014 2017 Germany France UK
71%
CAGR
11
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
DATA IS KING BUT NOT ALL DATA IS EQUAL
Source: Casale Media Index (2013)
100
78
51
Cookie & 3rd Party Data Cookie & No 3rd Party Data No Cookie
Cookie and Third Party Data Driving the Winning Bid Price
12
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
WHERE TO INVEST NOW?
Sell-Side
Platforms
(SSPs)
Ad
Exchanges
Ad
Networks
Demand-
Side
Platforms
(DSPs)
Trading
Desks
AD
VE
RT
ISE
RS
PU
BL
ISH
ER
S
FL
OW
OF
MO
NE
Y
13
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
INTERNATIONALISATION
CUSTOMERS /
VERTICALS
GROWTH / SCALE
M&A: POISED FOR A NEW WAVE OF CONSOLIDATION
Internet Giants CRM Software
Providers
Global Agencies
& Ad Networks Existing RTB
Players
ADDITIONAL
CAPABILITIES
14
#GPBullhound
LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com
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