1

Introduction

1 1

What’s hot in marcoms today?

Q3 2014

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What’s hot in marcoms?

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As specialist advisers to the marketing communications and technologies industry, we are uniquely positioned to ensure that we are continually on top of key trends in

this rapidly evolving landscape. One of our key tools is our global deal tracker, which gathers the details of all completed deals in this sector, subcategorised and cross referenced by our team of analysts. This, along with the hundreds of conversations we have each month with both buyers and sellers, enables us to continuously identify emerging M&A trends. With the ever blurring boundaries between “marcoms” and “martech”, it is maybe unsurprising to see that the most talked about subsectors sit at their convergence points, namely : 1. Content marketing 2. Data & analytics,

3. eCommerce 4. Digital marketing; and 5. Mobile marketing This paper examines each subsector, the key trends and deal activity in 2014 YTD using both proprietary and third party data.

Introduction

Data & Analytics

Sector Overview

Market Overview

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Data & Analytics Market Overview

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Data Quality Management Data Driven Marketing Database Marketing Agency

Full Service Agencies with Specialist Data Services

Marketing Performance Data & Analytics

Market landscape: Illustrative

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Data & Analytics Market Overview

Key trends & challenges (8)

• Visualisation technologies Low cost visualisation applications have made data reporting and business intelligence understandable and easily accessible to almost everyone

• Machine learning

Semi-automated development of predictive and prescriptive models are getting better over time – software learns how to better fit the data, separating meaningful signals from meaningless noise

• Rise of Chief Analytics Officers, Chief Data Officers, Heads of Big Data There are many examples of organisations that have successfully folded analytics into other C-level jobs and are increasingly creating dedicated roles for analytics e.g. Facebook, AIG, Chubb and XL Group

• Development of data products running amok

For online companies such as Google every offering is a data product. However, the development of data products and services is taking place even in industrial and manufacturing organisations (e.g. embedded sensors in gas, turbines and medical devices)

• Hadoop products overtaking enterprise data warehouses Hadoop platforms, an open source software framework for data storage, offer a much cheaper alternative to

traditional enterprise data warehouses. In addition, Hadoop platforms can perform substantial process tasks and analytics besides data storage

Trends

Challenges

• Talent – companies are struggling at almost every level of analytics recruiting today

• Keeping pace with the ever-increasing changes in the market landscape

Data & Analytics

Sector Overview

M&A Market

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Data & Analytics M&A Overview

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1

Q1-Q3 2014 Data & Analytics deals (9)

Deal Volume Target Region

Major Buyers Deal Types

Quarterly Split

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1

3

5

North America

UK

APAC

Western Europe

Cross Border

PE Backed

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6 8

4

10

1

1 1

1

Ebiquity Dentsu Aegis GTCR Teradata

1 Eastern Europe

Q2

Q1

Q3

22

Total Deals

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Data & Analytics M&A Overview

Date Buyer Target Target Location Target Description

Sep-14 USA Data analytics marketing agency

Sep-14 USA Provider of data science and engineering

services

Aug-14 USA Analytics and database integration agency

for financial institutions

Jul-14 New Zealand Provider of database resources for marketing,

research and analysis

Jul-14 Australia

Business marketing database offering lead

generation, sales prospects and marketing

support data

Jun-14 USA Real-time predictive analytics and

personalisation

Apr-14 USA Data and intelligence platform

Mar-14 Canada Web analytics across media buying, SEO and

social media

Feb-14 UK Provider of consumer data solutions, software

and analytics

Jan-14 Hong Kong Media buying agency engaged in KPI data

measurement and continuous improvement

NexGraph

Q1-Q3 2014 selected transactions

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Mobile Marketing M&A Market

References

1) Results Intelligence

2) Advantage Business Media’s digital road map, AdAge

3) Content Marketing in the UK: 2014 Benchmarks, Budgets and Trends: Content Marketing Institute/DMA UK

4) Nativeadvertising.com

5) Content Marketing in the UK: 2014 Benchmarks, Budgets and Trends: Content Marketing Institute/DMA UK

6) Content Marketing in the UK, Content Marketing in North America: 2014 Benchmarks, Budgets and Trends: Content Marketing Institute/DMA

7) CapIQ, 451, OneSource, Results Intelligence

8) ExactTarget Marketing Cloud 2014 State of Marketing Survey, Deloitte Analytics Trends 2014, IBM, TechRepublic

9) CapIQ, 451, MergerMarket, Results Intelligence

10) eConsultancy (January 2014), eMarketer (January & April 2014), International Business Times (October 2013), eCommerce Week (January 2014),

bpost International (January 2014)

11) eConsultancy (January 2014), IMRG (January 2014), eCommerce Week (January 2014), bpost International (January 2014), Statista (2014)

12) The Drum (February 2014), Talk Business Magazine (December 2013)

13) CapIQ, 451, MergerMarket, Results Intelligence

14) eMarketer (March 2014)

15) IAB Digital Adspend 2013

16) eMarketer (June 2014)

17) IAB/PWC Adspend 2013

18) IAB Digital Adspend 2013

19) CapIQ, 451, MergerMarket, Results Intelligence

20) Cisco VNI Mobile (2014), NPD DisplaySearch (February 2014), IDC Worldwide Quarterly Tablet Tracker (2014)

21) IAB Native Advertising Playbook (2013), BIA/Kelsey

22) eMarketer (July 2014), Gartner (2013)

23) Google & Nielsen (March 2013), Cisco VNI Mobile (2014), relevant press, company websites

24) Gartner (September 2014), relevant press, company websites, Results Intelligence

25) eMarketer (August 2013), Kenshoo (December 2013)

26) CapIQ, Companies House documents, Press, company websites, Results intelligence

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About Results

Corporate Finance Advisors to the Marketing Services & Marketing Technology sectors

Selected clients and transaction counterparties

An established team of sector experts…

• Results International is a market-leading M&A advisory

firm founded in 1991

• Entrepreneurial and owner-managed

• 40 person global team with over 250 completed

transactions

• Senior level attention on all transactions

• Winner of Cross-Border Deal of the Year 2014 (sale of We

Are Social to Blue Focus)

Software

Marketing Services

Marketing Technology

Digital Media

Sector specialism

…with global reach

11

About Results

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Unrivalled expertise in the Marcoms sector

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About Results

Mark Williams Director

• Joined Results in 2010, with over 15 years of M&A experience

• Prior to joining Results Jim led

European M&A activity for the

marketing services division of

Omnicom (DAS)

• Clients include We are Social,

Blue Rubicon, Virgo Health,

Crayon and Iris

• Joined Results in 2005 - Previously Head of M&A at Ernst & Young

• 20+ years experience in corporate

finance, including M&A,

fundraising, IPOs, JVs, MBOs and

MBIs

• Clients include The Group, Figtree,

Monitor Media, Spannerworks, Flip

Media, Transactis, Punktilio,

Flamingo, Brand X, and AIA

• Joined Results in 2012. He started

his career at KPMG working in

Financial Services M&A and

moved to Ingenious Corporate

Finance in 2010

• Clients include Staffcare, Moonpig, St Ives, and Inflexion

Julia Crawley-Boevey Director

• Joined Results in 2010 having spent

over four years at BDO where she

worked in both Audit and

Corporate Finance

• Clients include The Group, Blue

Rubicon, Virgo Health, Incite, and Crayon

• Joined Results in 2012 to lead the

tech and digital media practice

• 15 years M&A experience at

Broadview then Jefferies, advising

tech and digital media companies

on M&A and fundraising

• Advised on transactions with

Oracle, Microsoft, Experian,

Moody’s, IAC, Axel Springer, DMGT,

and BT

• Joined Results in 2014, with over

15 years M&A experience

• Prior to joining Results, Chris led

the Technology M&A practice at

KPMG. He previously spent 11

years advising tech companies

at Arma Partners and JPMorgan

• Recent clients include Zinc

Ahead, Pushbutton and Irdeto

James Kesner Manager

• Joined Results in 2013 from Kingston

Smith

• ACA qualified, previously worked

as a Finance Director for a London

based brand consultancy

• Clients include ID magazine, Not to

Scale, Writtle, Adam and Eve

Richard Latner Manager

• Joined Results in 2014 after having

spent 9 years at KPMG across

audit, TS & M&A functions

• Clients include: WRG, Irdeto and

neoworks

Selected Team Members

Jim Houghton Partner

Keith Hunt Managing Partner

Julie Langley Partner

Chris Lewis Managing Director

13

About Results

Selected Team Members – International

• Long career in marketing sector

(Ogilvy & Mather, The Ball

Partnership)

• Managed the acquisition of SMART

by McCann Worldgroup, CCG by Publicis Group to establish Digitas

China, CIC by Kantar Media and

The Upper Storey by Isobar

Andrew Kefford Managing Partner –

Asia Pacific & MENA

Chris Beaumont Managing Partner –

North Asia

• 16 years of experience

consulting in Asia

• For 10 years Chris was with

McCann-Erickson in Asia; he was

both Vice-Chairman of its operations in Tokyo and Chief

Strategy Officer for WorldGroup

across Asia

• Has closed over 35

transactions totaling $0.75

billion

• Experience includes advising

Hunt Mobile Advertising on its

transaction with Opera Mediaworks

• Maurice has previously

worked at the Zanett Group,

Morgan Stanley and IBM

Maurice Watkins Partner

• 27 years experience in the

advertising sector, including

as COO of JWT's Middle East

Network

• Joined Results International in

2008 and has since been

engaged in a number of buy

and sell mandates

Imad Kublawi Regional Partner –

MENA

• Spent 24 years at Hindustan Thompson (part of JWT), the

largest ad agency in India

• Other roles include COO at

RK Swamy/BBDO and as

advisor to companies in India,

Pakistan & Dubai

Sunil Gupta Area Liaison –

South Asia

USA

Asia

Pierre-Georges Roy Partner

• Closed $4.0 billion in cross-

border transactions

• Experience includes advising Hunt Mobile Advertising on its

transaction with Opera

Mediaworks and Telesystem

International Wireless (NASDAQ:

TIWI) on its sale to Vodafone

For more information contact:

Jim Houghton Partner

+44 (0) 20 7514 8234

jhoughton@resultsig.com

Julia Crawley-Boevey Director

+44 (0) 20 7514 8239

jcrawley-boevey@resultsig.com

Disclaimer:

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