2013 SIIA Strategic and Financial Conference New York, NY

Transcription

1 Since 1987 The Coming Shift in Digital Marketing: Always On CRM 2013 SIIA Strategic and Financial Conference New York, NY June 21, 13,

2 Discussion Agenda M&A Heating Up in Marketing Technology Emergence of the Enterprise Marketing Management Stack Shifting Model, Enabling Technologies Implications 2 CONFIDENTIAL 2

3 State of M&A Market 2012 US volume and value surged, up 50% and 43% over 2011 Key drivers in 2012: Rising corporate investment Rush to beat changes in US tax code Pace picking up in Q after Q1 lull Strategic buyers continue to be active Accelerating growth via acquisitions Strong balance sheets as of Q4, U.S. nonfinancials held $2+ trillion in cash Retooling models to leverage technology and new platforms/channels Strong PE activity Race to invest $600+ billion raised Lender activity picking up, rates low, greater comfort in marketing services Shortage of high quality available assets 3 CONFIDENTIAL 3

4 M&A Volume and Value by Sector Despite Q1 13 calm after Q4 12 M&A bulge, Marketing Services & Technology remains most active segment Industry Sector Media, Information, Marketing & Technology M&A Activity January March January March % Change No. of Deals Value (millions) No. of Deals Value (millions) No. of Deals B2B Online Media & Technology 21 $ $201 11% (1%) B2C Online Media & Technology 53 $1, $1,537 (24%) (21%) Business to Business Media 8 $102 9 $63 (11%) 61% Consumer Magazines 11 $ $83 (31%) 120% Database & Information Services 12 $ $3,862 (40%) (88%) Education Information, Technology & Training 21 $ $516 75% (54%) Exhibitions & Conferences 16 $ $263 7% (38%) Healthcare Information & Technology 52 $1, $2,058 13% (22%) Marketing Services & Technology 118 $2, $2,961 (13%) (14%) Mobile Media & Technology 41 $ $697 32% 17% Total 353 $7, $12,242 (6%) (38%) Marketing Services & Technology % of Total 33% 34% 36% 24% Value Source: JEGI Transaction Database 4 CONFIDENTIAL 4

5 Strategics Snapping Up Technology Driven Marketing Expanding functionality through acquisition Provides enterprise cloud computing and CRM solutions Online real estate database with residential market data Cross channel, interactive marketing SaaS solution Online marketing solutions for real estate professionals Multi channel market data and measurement solutions Provides search, advertising and analytics solutions Measurement solutions for analyzing the TV and radio markets Social media marketing management tools Database marketing and marketing services company Provides a suite of integrated performance marketing solutions Develops, hosts, and supports database software and hardware Cross channel, interactive marketing SaaS solution Provides multi channel advertising solutions SaaS -based marketing automation platform with revenue performance management SaaS based B2B marketing automation software solutions Enables brands to better acquire and engage customers through digital channels Provides advertisement planning and placement services Global provider of media and digital services Provides enterprise cloud computing and CRM solutions Provides social media marketing platform 5 CONFIDENTIAL 5

6 PE Also Very Active In Technology Driven Marketing Target Acquirer 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 Over the last 12 months, ~40% of 17 JEGI sale transactions have closed with PE buyers 6 CONFIDENTIAL 6

7 Discussion Agenda M&A Heating Up in Marketing Technology Emergence of the Enterprise Marketing Management Stack Shifting Model, Enabling Technologies Implications 7 CONFIDENTIAL 7

8 Technology Impact on Marketing Budgets by 2017, the CMO will be spending more on IT than the CIO Gartner 8 CONFIDENTIAL 8

9 Top of the EMM Stack Recent M&A 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 CONFIDENTIAL 9

10 Enterprise Marketing Management (EMM) Stack Breaking Down the Stack 10 CONFIDENTIAL 10

11 Enterprise Marketing Management (EMM) Stack Digital Asset (DAM) / Marketing Asset (MAM) / Product Data Management (PDM) 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 COMPANIES IN SECTOR 11 CONFIDENTIAL 11

12 Enterprise Marketing Management (EMM) Stack Marketing Operations (MOM) / Web Content Management (WCM) 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 COMPANIES IN SECTOR 12 CONFIDENTIAL 12

13 Enterprise Marketing Management (EMM) Stack Customer Relationship Management (CRM) 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 COMPANIES IN SECTOR 13 CONFIDENTIAL 13

14 Enterprise Marketing Management (EMM) Stack Marketing Resource Management (MRM) 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 acquisition campaigns with our other lead gen activities COMPANIES IN SECTOR 14 CONFIDENTIAL 14

15 Enterprise Marketing Management (EMM) Stack Customer Experience Management (CEM) / Customer Interaction Management (CIM) 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 COMPANIES IN SECTOR 15 CONFIDENTIAL 15

16 Enterprise Marketing Management (EMM) Stack Media and Marketing Analytics 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 COMPANIES IN SECTOR 16 CONFIDENTIAL 16

17 Enterprise Marketing Management (EMM) Stack Business Intelligence (BI) 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 COMPANIES IN SECTOR 17 CONFIDENTIAL 17

18 Enterprise Marketing Management (EMM) Stack 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 18 CONFIDENTIAL 18

19 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 intelligence for marketers Behavioral online reference software for efficient recruiting SaaS data driven marketing automation platform 19 CONFIDENTIAL 19

20 Discussion Agenda M&A Heating Up in Marketing Technology Emergence of the Enterprise Marketing Management Stack Shifting Model, Enabling Technologies Implications 20 CONFIDENTIAL 20

21 Customer Segmentation Who are your customers? How do you reach them? 21 CONFIDENTIAL 21

22 Identify and Connect Customer Across All Channels Call center Click stream Search Membership/ loyalty Social interactions Financial transactions Hub Online shopping Retail transactions E commerce transactions Print subscriptions Catalog/direct transactions registrations 22 CONFIDENTIAL 22

23 Advertising Becoming Always On CRM 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 23 CONFIDENTIAL 23

24 Always On CRM Enabling Technologies EMM Stack Enables Always On CRM at Massive Scale Identify: Best customers and prospects Connect: Link digital identities across channels Reach: Across web, mobile, , offline, and in store platforms Optimize Message: DaaS Product Offering Message and frequency Measure: Additional Strategic Initiatives Closing the loop on result / conversion measurement End to end, closed loop, measured and managed ROI 24 CONFIDENTIAL 24

25 MyWebGrocer: Online Driving In store Shopping Add to Shopping List Transaction/ Close the Loop 25

26 Sociomantic: Real Time Bidding on a Global Scale Real Time Bidding Enables bidding for individual ad impressions in realtime 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 26

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, , ETC) DYNAMIC CREATIVE OPTIMIZATION TAG MANAGEMENT DATA MARKETPLACE DATA MANAGEMENT PLATFORM PERFORMANCE REPORTING BI AND DATA PROCESSING REAL TIME ADSERVER REAL TIME BIDDER service core tech SERVICE LAYER (TTD CLIENTS) OPTIONAL FOR SERVICE LAYER, ALSO PROVIDED BY PLATFORM THE TRADE DESK PLATFORM 27

28 Discussion Agenda M&A Heating Up in Marketing Technology Emergence of the Enterprise Marketing Management Stack Shifting Model, Enabling Technologies Implications 28 28

29 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 Officer Global Agency Group 29 CONFIDENTIAL 29

30 Converging Services Market Agency/ Creative Services EMM Stack Point Apps, Platforms and APIs BI Analytics CEM MCM IT/ Consulting Services CRM WCM DAM/MAM 30 30

31 Converging Services Market Agency/ Creative Services EMM Stack IT/ Consulting Services 31 31

32 Content Marketing Ecosystem Video Social Media Textual Content Direct Marketing Websites Podcasts Mobile / Tablet Applications Content Marketing Webisodes Publications White Papers Search Marketing Digital Point of Purchase Blogs Webinars/Event Marketing Interactive Tools 32 32

33 Looking Ahead What s Next? Wearable Technologies 33 33

34 Next Marketing Channel Wearable Technology? Tweeting with your eyes Connected consumer devices proliferate each a data machine Dividing your attention Marketers can annoy consumers at home, at the gym, while sleeping, while driving 34 34

35 Recent JEGI Transactions 20 transactions in 2012 & 2013 for over $1 billion in enterprise value In each transaction JEGI client is mentioned first

36 Since 1987 The Coming Shift in Digital Marketing: Always On CRM 150 East 52 nd Street 18th Floor New York, NY Phone: (212) Fax: (212) June 13, 2013