INDEPENDENT TECHNOLOGY RESEARCH SECTOR UPDATE NOV 2013 DIGITAL MEDIA
REAL-TIME BIDDING IN ONLINE ADVERTISING
THE DEATH OF THE MAD MEN
The big bang of online advertising is taking place right now Just as the financial sector transitioned from trading via hand signals and slips of paper to automated buying and selling, Real-Time Bidding (RTB) is rapidly transforming the online advertising market, by enabling automated and transparent trading of display inventory, eyeball by eyeball.
Efficiency gains driving substantial market growth Both buyers and sellers will ultimately benefit from efficiency gains and we expect as a result that online advertising will steal a greater share of the advertising pie than previously anticipated. Global RTB ad spend is expected to grow at over 50% per annum to over $20 billion in 2017.
On the cusp of the next market phase – the ramp-up to mass market adoption Over $1.3 billion has been invested into RTB platforms with over half of this in the last two years. With the infrastructure now in place, we expect that online display sales via RTB could increase towards 50% of the market in the US over the next 5 years, with key Western European economies catching up quickly.
Europe currently lags behind the US but could benefit the most Europe is a fragmented digital media market, but RTB enables advertisers to efficiently buy across publishers audiences in different geographies and languages. While US entrants are first movers in scalable tech platforms, we see a significant opportunity for customised technology, data analytics and service layers in Europe as the ‘one-size fits all’ platform technologies commoditise. We expect European RTB penetration rates will start to catch up with the US and that Western Europe could see RTB ad spend reach $4bn in 2017.
Data is king, but not all data is made equal The availability of quality data is key on both sides of the market. Advertisers that can leverage their first party data will have an advantage over those reliant on third party data sources, whilst publishers that use data to better understand their audience will be able to maximise their yields.
Mobile and Video are key drivers of growth Mobile RTB is exploding due to the rich data now being provided on users and significant investments in tracking technology. Video RTB is also growing rapidly and cross device campaigns will have a significant impact on the landscape as brand SIMON NICHOLLS [email protected] advertisers adopt RTB as a method of delivery. London: +44 207 101 7574 Consolidation is coming ALISTAIR MALINS As RTB now ramps up to mass-market adoption, and increasingly well-funded RTB [email protected] players jockey for position, we expect to see a wave of consolidation. M&A will be London: +44 207 101 7587 driven by the need for scale, customers, multi-channel capability, internationalisation MALCOLM HORNER and late entrants acquiring RTB expertise. [email protected] London: +44 207 101 7573
Important disclosures appear at the back of this report GP Bullhound LLP is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
GP BULLHOUND – REAL-TIME BIDDING: THE DEATH OF THE MAD MEN
Table of Contents
INTRODUCTION ...... 3 The ‘Big Bang’ of the advertising marketplace...... 3 RTB is driving huge efficiencies in the ad marketplace ...... 3 Benefits to both buyers and sellers can drive the overall market ...... 3 The ‘Rise of the Machines’ ...... 3 The ‘Death of the Madmen’? ...... 6 TECHNOLOGY AND APPLICATIONS ...... 7 How does RTB work? ...... 7 It’s all about the data ...... 7 Cookie monsters ...... 7 Not all data is created equal ...... 7 Demand Side Platforms ...... 8 Agency Trading Desks ...... 9 The ‘Publisher’s Dilemma’ ...... 10 Sell Side Platforms ...... 10 Private Exchanges ...... 11 A DYNAMIC GLOBAL MARKET ...... 13 Key geographies in focus ...... 15
NEW MARKETS AND TECHNOLOGIES ...... 19 Mobile: real-time location-based advertising...... 19 Video advertising: the big prize for RTB ...... 21 CAPITAL INVESTMENT AND CONSOLIDATION ...... 23 Investment into RTB ...... 23 Venture and growth capital ...... 23 Europe in focus ...... 24 Recent IPOs and potential candidates for the future ...... 25 M&A and consolidation in the sector ...... 26 Where next for M&A? ...... 27 APPENDICES ...... 28
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GP BULLHOUND – REAL TIME BIDDING: THE DEATH OF THE MAD MEN
INTRODUCTION
The ‘Big Bang’ of the advertising marketplace The ‘big bang’ of the advertising market place is taking place right now in real-time bidding for online and mobile display inventory.
Real-time Bidding (or RTB) is an automated method of buying digital-display advertising in real-time via an auction between buyer and seller on an Ad Exchange for individual impressions eyeball-by-eyeball. Our report focuses on RTB and also address the wider programmatic buying market where trades can be automated but not necessarily in real-time or on an impression-by-impression basis.
Not that long ago the Square Mile and Wall Street transitioned from trading via hand signals and slips of paper to automated buying and selling. The online advertising market has undergone a similar transformation in recent years. Up until relatively recently, online advertising has been bought and sold in a surprisingly similar way to traditional media. The norm was for agreements in advance to acquire packages of ad inventory based on limited data about the actual audience that will see the ads. However, trading in online inventory via RTB is now becoming increasingly automated, liquid, transparent and efficient as RTB gains momentum in both web and mobile advertising.
RTB is driving huge efficiencies in the ad marketplace With substantial advances in liquidity, as more publishers adopt RTB, and in the sophistication of ad- trading platforms, advertisers are gaining the ability to assess and reach their target audience far more effectively than ever before.
Real-time audience data including location, age, gender and so on, married to real-time pricing, provides greater transparency in the underlying market. Through impression-level real-time auctions, advertisers are coming closer than ever before to solving the conundrum of knowing what half of their advertising money is being wasted. By transitioning from manual media buying to automated or programmatic platforms, participants are also able to recognise significant cost efficiencies.
Benefits to both buyers and sellers can drive the overall market Whilst there will initially be losers as well as winners, ultimately buyers and sellers of online advertising should both benefit from a more efficient marketplace.
The benefits to advertisers are widely recognised and Demand Side Platforms (or DSPs) have proliferated to drive this side of the marketplace. Publishers, in particular ‘premium’ publishers, have been more reluctant to accept RTB, but Sell Side Platforms (or SSPs) have helped overcome initial barriers and drive wider adoption. In our view these new online advertising models will further the transition from offline to online, with online stealing a greater share of the advertising pie than perhaps previously anticipated.
The ‘Rise of the Machines’ RTB has grown rapidly in a relatively short period of time. The landscape emerged in the early noughties as publishers increasingly moved audiences online and sought to monetise their digital inventory (or impressions) via display advertising. Initially this was all done manually by hard-coding ads onto the publisher’s sites and the whole landscape was slow, inefficient and difficult for advertisers to navigate.
With technological advances in ad serving, Ad Networks soon emerged to aggregate inventory from publishers and sell it on to advertisers. They would deliver ad impressions through a centralised Ad Server responding to a website once a page is called. However, advertisers would need to manually optimise and
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rate the performance of their ads based on the responses they received. They had a limited understanding of the audiences they were accessing and, as a result, the success of their campaigns couldn’t be measured in a very reliable manner.
Ad Exchanges eventually emerged as tech-enabled marketplaces allowing the trading of ad impressions between buyers and sellers in real-time. The first large Ad Exchange was launched by RightMedia (now part of Yahoo) and matched buyers and sellers with a bid and ask much like you would on a stock exchange. DSPs emerged soon after, allowing advertisers to acquire this inventory in increasing scale and in real-time using programmatic bidding strategies.
Initially RTB was limited to lower quality inventory as premium publishers were mindful of potential erosion in CPMs (see The ‘Publisher’s Dilemma’). It wasn’t, however, until SSPs became widespread that publishers were able to actively manage their ad inventory and the market started to see significant growth. SSPs are now providing much needed inventory and liquidity to stimulate growth in the underlying market.
F I G U R E 1 – E VOLUTION OF RTB
Early Tech Buy-side Growth Supply-side Growth Mainstream Adoption
. RTB starts to ramp to mass-market adoption and multi-channel in . Mass-market liquidity starting to be Europe as well as US provided by SSPs . Industry consolidation as multiple . Premium publishers adopt RTB ad-tech platforms scale and late and programmatic sell-side entrants to the market acquire . Proliferation of DSPs as advertisers techniques as they seek to capabilities look to take advantage of preserve and optimise yields . IPOs and exits for major DSPs, technological advances . Initial growth in Direct SSPs and tech providers . Initial development of RTB . “Publisher’s Dilemma” limits the Programmatic sales channels . Non-RTB ad networks and ad-tech technology through growth of Ad availability of premium inventory . Growth of new channels as mobile intermediaries suffer from pricing Exchanges . SSPs emerging but RTB focused and video formats standardise pressure and lack of growth . Development of initial DSPs to on non-premium inventory . First IPOs (e.g. Rocket Fuel, serve advertisers (e.g. [X+1], Turn) Criteo)
2000-2006 2007-2010 2011-2013 Soon
Source: GP Bullhound
The landscape has become increasingly sophisticated with significant growth in the number of DSPs and the increasing adoption of SSPs by mainstream publishers. Media trading has evolved towards RTB as advances in technology have allowed the matching of buyers and sellers in a matter of milliseconds, with billions of ads traded every day. RTB has rocketed in popularity as advertisers have sought to bypass the ‘black box’ of the Ad Networks, which have historically occupied a profitable niche in the value chain by arbitraging between buyer and seller in an inefficient market. Figure 2 illustrates the perceived value leakage historically due to the number of intermediaries between buyer and seller in the market.
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F I G U R E 2 – V A L U E L E A K A G E I N T H E D I S P L A Y A DVERTISING M ARKET
6.00 $5.00 5.00 4.00 $0.50 3.00 $1.80 2.00 $2.00 $0.25 $0.35 $0.10 1.00 0.00 Advertiser Agency Ad Network Data Ad Exchange Ad serving / Publisher Provider Rich Media
Source: IAB (2010)
Despite the disintermediation of some of the Ad Networks by RTB platforms forcing them to rethink their business models, the landscape remains bewilderingly complex with many intermediaries remaining between publishers and advertisers. Although there is more transparency in the system, many participants are still acting like Ad Networks and arbitraging between buyer and seller. We only see this as sustainable where real competitive advantage has been created and a clear ROI for advertiser and/or publisher is being demonstrated.
Figure 3 shows a basic summary of the RTB ecosystem and examples of some of the key players with the flow of advertising dollars running from left to right.
F I G U R E 3 – T HE RTB E COSYSTEM , I LLUSTRATED W ITH S E L E C T E D P LAYERS
Ad Exchanges
Trading Desks DSPs SSPs ADVERTISERS
Ad Networks
Data Partners Retargeting Optimisation Tools
Source: GP Bullhound
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The ‘Death of the Madmen’? So will RTB cause the ‘Death of the Madmen’? Well it’s clear these developments are driving greater efficiency in the system at the expense of human-based interaction. Advertisers are increasingly relying on independent specialists (e.g. Infectious Media, YD), agency trading desks (e.g. Xaxis, Accuen) or even buying in their own talent to run programmatic buying strategies. There will always be a need for strategic thinking in the direct sales force but as the ecosystem becomes increasingly connected we anticipate that the majority of global online display advertising will eventually be traded programmatically with more than 50% via RTB.
We’re anticipating a step-change in the industry as more and more devices are connected to the mobile Internet and IP Connected TVs and outdoor displays deliver customised ad formats at the right time, to the right person in the right location. Mobile and video RTB are exploding as more inventory is pushed towards Ad Exchanges and increasing amounts of premium inventory are traded programmatically. We’re not quite there yet but the era of data-led marketing is dawning. Don Draper take note. The marketing geeks will inherit the earth.
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TECHNOLOGY AND APPLICATIONS
How does RTB work? The market for RTB is facilitated by a series of transactions which take place in fractions of a second between the time you click on a link to a website and when the page loads onscreen. Online users generate data about their browsing history and preferences which can be recorded using cookies and shared with third parties. This data can be used in isolation or combined with additional data (whether owned or bought) to determine whether an advertiser wants to target that user with an ad and how much they want to pay to do so. Where impressions are made available via an Ad Exchange, advertisers can place bids on these impressions based on specific criteria including not only cost, but, age, location, gender and so on. The highest bidder for an impression gets the placement so the quality and accuracy of data is key to ensuring the right price is paid.
It’s all about the data RTB enables marketers to apply algorithmic buying strategies in their purchasing decisions. Rather than accessing an audience en-masse via a publisher or network using large bulk ordering and broad targeting parameters, RTB technologies allow a buyer to pick and choose impressions as they come in. A key benefit of this is the ability to learn, optimise and change a campaign instantly through a programmatic buying strategy. A large portion of RTB spend is based around such strategies using proprietary first party data alongside data acquired from third parties or picked up from cookies.
Cookie monsters Cookie data is intrinsically important to the RTB process. By using cookie IDs advertisers can find out if that user has recently been on the publisher’s site, how often and where they have visited. The cookie data can be combined with other information about the user from third party data sources (e.g. Experian, Callcredit) as well as with their own first party customer data allowing for highly targeted programmatic trading strategies. Advertisers can also match this with cookie data generated from recent campaigns so that, for example, they have an indication of whether that user has clicked on a particular advert in the past. As a result, Data Management Platforms (or DMPs) have emerged to help advertisers merge and manage data in large volumes in order to make better buying decisions. Publishers are also increasingly using third party data providers and DMPs to better understand the value of their inventory.
Not all data is created equal Views diverge, but arguably the most valuable data to advertisers currently is their own first party customer data. For example, when targeting an audience with a particular campaign incorporating first party customer data will ensure you’re not targeting individuals that are already customers with offers that they already have and that existing customers can be targetted with offers that are relevant on past behaviour or buying patterns.
Cookie data declines rapidly in value, often in the space of a couple of days, as it becomes obsolete as soon as users refresh their browser history. Proprietary customer data is more valuable as it has a much longer effective shelf life than cookie data, which is based on media inventory that is burned through relatively quickly. There is then a raft of third party data available, some of which can be very valuable, but one issue is that the real value of much of this data is often not transparent until it has been applied at scale, tested and learned from.
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Demand Side Platforms DSPs allow advertisers to use data to target their desired audience more effectively using algorithims to optimise buying strategies and bid on the most relevant impressions, at the right time, in scale and across multiple devices, formats and properties. DSPs interface with inventory sources like Ad Exchanges to provide advertisers with the ability to run programmatic bid strategies.
There are three key characteristics of a DSP that determine its value to advertisers:
(i) Usability – all about the functionality and ease of use of the software user interface for the advertiser or agency; (ii) Reach – the extent and breadth of acess to media sources (whether desktop, mobile or video); and (iii) Data – integration with data providers and applications that can assist with programmatic buying strategies.
We see DSPs as broadly split between two types: the first is a one-size-fits-all interface that is all about the scale and breadth of both media and data integrations. The other is a specialist DSP offering a customised interface with deep first party data integration for its clients. The former approach requires scale to succeed and is exemplified by large players such as Turn, MediaMath, and AppNexus that operate a ‘platform approach’ and are increasingly looking to offer an end-to-end solution across the stack. The specialist DSP approach involves building bespoke buying platforms to satisfy individual client or industry segment needs with a more significant managed service layer on top, and has been successfully championed by European players such as Infectious Media in the UK and YD in the Netherlands. The rationale is that not only does this allow valuable first party data to be fully utilised but the third party data integrations and tools provided can focus on specific data sets relevant for optimisation in certain industries (e.g. online travel). While arguably less scalable, this model has the benefit of significant integration and ‘stickiness’ with its clients.
The implication for the ‘platform approach’ is that DSPs that don’t achieve scale or offer technology across the stack will struggle to succeed due to increasing competition and the commoditisation of the technology over time. The DSP arena is becoming a relatively crowded space and this report lists more than eighteen significant players that are already operating in Europe (see Figure 15). The fragmented European market will ensure smaller localised platforms with local media sources and data integrations will be able to compete with the larger US entrants on local ground.
Figure 4 illustrates the dominance of the larger DSPs in the US market with the top three commanding 50%+ of the market. It also indicates how quickly things can change with a significant fluctuation in market share over the course of just two quarters.
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F I G U R E 4 - DSP M A R K E T S HARE B Y S PEND (US)
Q1Q1 2013 2013 Q2Q2 2013 2013
Other DSP 10 DSP 10 DSP 9 3% Other 1% 3% 4% 6% DSP 8 DSP 9 4% 4% DSP 7 DSP 1 DSP 8 4% 21% 5% DSP 6 DSP 1 6% 35% DSP 7 6% DSP 5 DSP 6 7% 7% DSP 2 17% DSP 4 DSP 5 11% 7% DSP 2 DSP 4 DSP 3 DSP 3 13% 12% 13% 12% Top 3 DSPs = Top 3 DSPs = 60% of market 51% of market
Source: Casale Media Index (2013)
Agency Trading Desks The first agency trading desks emerged as Ad Exchanges became common place, providing access to inventory in greater scale and with greater transparency. The trading desks have reduced the inefficiencies in the complex and costly task of media planning and buying, by pooling consumer and media data at scale and using sophisticated analytics to execute more ‘informed’ trades.
The major global agencies (e.g. WPP, Publicis, Omnicom, Dentsu/Aegis, Interpublic) have all developed agency trading desks (Xaxis, Vivaki, Accuen, Amnet, Cadreon) to aggregate their RTB activities. Earlier this year, Maurice Levy, CEO at Publicis, highlighted the importance of economies of scale in media buying as a strong rationale for the proposed Publicis/Omnicom merger. If the ‘Publicom’ merger completes, the combined entity could represent up to 40% of digital media volumes (according to RECMA) which could provide a meaningful competitive advantage. However, some industry participants think that there is a potential conflict of interest as the global agencies act simultaneously as both buyers and sellers. Since the trading desks earn a margin on CPMs, whilst the media agencies earn volume-based rebates, this has also led to concerns in some quarters over the pricing dynamic. Trading desks claim that such issues are more perception than reality.
Another interesting trend is that some very large advertisers have started to set up their own trading desks (e.g. P&G, Unilever) and are now competing with the agency trading desks for talent to build their own in- house RTB capabilities. The advantages for these ‘super advertisers’ are that they can keep their proprietary data confidential, reduce costs (which for large media campaigns can be significant) and take ownership of the media data produced via each campaign. While most advertisers will not want to invest in an in-house capability in a market moving so rapidly, the desire for retention and protection of proprietary data is a factor that could play into the hands of the independent trading desks and specialist DSPs with real expertise in data-driven buying. This could in turn provide a counterpoint to the power and scale of the big agency trading desks.
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While a number of larger US-based players are focusing on providing technology at an industrial scale there is likely to be real value created by specialist RTB service providers aiming to get the most out of the available technology for their clients. We expect to see strong growth for tech-enabled service providers that focus on customised data integrations and analytics to differentiate from one-size-fits-all tech providers.
The ‘Publisher’s Dilemma’ In contrast to the push from a fully data-enabled demand side keen to utilise the power of RTB, many publishers have initially been reluctant to release their inventory into the market for fear of declining CPMs. While publishers have been quick to use RTB to improve the yield on their tier 2/3 inventory, their concern in relation to tier one inventory has primarily been around erosion of CPMs and, particularly for premium publishers, brand safety from undesired advertisers buying inventory on their site.
Arguably, premium publishers have historically benefited from a less liquid and transparent market that allowed them to bundle and sell large chunks of their inventory at premium prices. One of the risks of impression-level buying is that buyers will ‘cherry-pick’ the best inventory and leave some audience as remnant that was hitherto sold as premium. As a result large swathes of inventory have been witheld from these markets, decreasing liquidity from some key media sources. This is now starting to change, thanks in part to the development of SSPs, Private Exchanges and Direct Programmatic Sales.
Sell Side Platforms SSPs first emerged to help to improve the ability of publisher’s to categorise, segment and sell their ad inventory via Ad Exchanges and maximise CPMs. SSPs provide software that analyses and categorises the publishers properties to better understand audience data and actively manage and optimise the yield on their ad inventory in an automated (or programmatic) way, just as DSPs do for advertiser buying strategies.
The key battleground today is over the source and analysis of data with ownership of rich audience data providing a significant advantage for publishers. Advertisers are willing to pay a premium for transparency and rich data as illustrated by Figure 5 which shows that inventory sold with cookie and third party data can command a premium of up to twice that sold without. This bodes well for data-rich sellers (e.g. Facebook) who control access to, and have a high degree of understanding of, their audiences.
F I G U R E 5 – P R E M I U M P A I D F OR T RANSPARENCY
Winning bid price index 100
78
51
Cookie & 3rd Party Data Cookie & No 3rd Party Data No Cookie
Source: Cookie State (2013), cited in Casale Media Index (2013)
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Through algorithmic analysis of audience data, SSPs help publishers determine which channel their inventory should be sold through, whether it be actively through direct sales, via a private exchange or RTB exchange or passively through an Ad Network in order to optimise the yield of the portfolio (see Figure 6).
F I G U R E 6 – MARKETPLACES IN THE RTB ECOSYSTEM
SPONSORSHIP SALES
PRIVATE EXCHANGES
Above the Auction the Above ACTIVE ACTIVE SALES
REAL-TIME BIDDING
Programmatic Auction
REMNANT AD NETWORK
SALES PASSIVE PASSIVE
Source: PubMatic (2011)
Private Exchanges Private Exchanges have played a key role in the publisher adoption of RTB as they enable publishers to sell their inventory programmatically but with a greater element of control over the marketplace. Private Exchanges (or Private Marketplaces) allow publishers to make a portion of their inventory available to a restricted set of advertisers and to set controls on pricing (e.g. pricing floors). By controlling these parameters and participants in the market, publishers can better protect pricing of their premium inventory and optimise yields.
As a result, the lines between direct and indirect sales are beginning to blur. The distinction is becoming less about premium inventory versus remnant inventory, and more about active selling versus passive selling.
IDC estimates that 1% of global premium ad revenue was traded in Private Exchanges in 2013. Figure 7 illustrates the slow initial growth of ‘Direct’ RTB sales in comparison to the more mature ‘Indirect’ sales market, with rapid growth expected over the next four years. The majority of growth in the market over the next four years will come from ‘Direct’ sales executed programmatically as the market matures and becomes more sophisticated.
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F I G U R E 7 – ‘ I NDIRECT ’ V S ‘ D IRECT’ RTB -B A S E D O N L I N E D I S P L A Y S A L E S IN FOUR KEY
GEOGRAPHIES ($M )
2013-17 CAGR 'Indirect' Display Sales 2013-17 CAGR 'Direct' Display Sales 174% 15% 5,305 5,790 15% 144% 5,317 4,777 13% 148%
4,128 18% 157%
3,338 2,625
2,258
15% 176% 1,259 1,085
390 368 - - 39 95 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 UK France Germany US
Source: IDC (2013), Excludes Mobile and Video RTB and includes US, UK, Germany and France
Figure 8 illustrates the emerging publisher models as they progress towards RTB adoption across all of their inventory. In phases four and five we see increasingly smart, multi-channel sales techniques as publishers increasingly adopt RTB technology and more multi-channel active management of their inventory.
F I G U R E 8 – P U B L I S H E R A D O P T I O N C YCLE
Publisher RTB Maturation Spectrum
Phase 5: Publisher looks Phase 4: holistically at all Publisher actively sales channels manages smart, and optimises Phase 3: variable price yield across Publisher floors informed both direct and consolidates by data; managed indirect/RTB vendor strategy by strategic team sales channels and executes within publisher Phase 2: private deals organisation Publisher and/or sales with incorporates arbitrary price multiple RTB floors vendors into monetisation Phase 1: partner suite No active publisher participation Emerging models
Current models
Source: Forrester 2011
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A DYNAMIC GLOBAL MARKET Global spend on online display advertising via RTB was estimated by IDC to be $2.7bn in 2012 and is now expected to grow at a 50% CAGR between 2012 and 2017. Global growth has been significant in the last three years averaging 159% per annum 2010-12. This is significantly above growth rates forecast in the global online display advertising market. This growth is principally being driven by three key areas:
. Growth of online display – Online display is forecast to grow at a CAGR of 19% 2012-171 and RTB will ride this wave. . Online Mobile and Video – Mobile and Video RTB ad spend are both forecast to grow at around or in excess of 100% p.a. over the next few years across the US, UK, France and Germany, as smartphone penetration rates continue to rise and 4G network speeds aid rapid video streaming. This will drive further RTB-traded inventory. . Publisher adoption – Increasing adoption of programmatic selling by publishers via SSPs and Private Exchanges (see Figure 8).
F I G U R E 9 – G L O B A L RTB D I S P L A Y A DVERTISING M ARKET ($M )
20,820
14,498
9,865
6,726
4,488 2,697 1,382 404
2010 2011 2012 2013 2014 2015 2016 2017
Source: IDC (2013), Includes Rich Media, Mobile and Video display
1 IDC (2013)
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F I G U R E 10 – G L O B A L RTB D I S P L A Y A DVERTISING M ARKET I N C ONTEXT ($BN)
2012 2017
$80bn
$34bn
$1.8bn $2.7bn $21bn $10bn
Global Online Display Ad Spend Global RTB Display Ad Spend Global Share of RTB Display Ad Spend taken by intermediaries
Source: IDC (2013), GP Bullhound (2013)
Figure 10 illustrates the global opportunity in online display, with a global market of $34bn in 2012 and $80bn by 2017. IDC forecast the $2.7bn of RTB-based ad spend in 2012 will increase to $21bn by 2017. In 2010, industry estimates 2 suggested that around 65% of online ad spend was being retained by intermediaries between advertiser and publisher. If we assume the same percentage of RTB ad spend is retained as net revenue by RTB platforms and service providers then the market share for these players was around $1.8bn in 2012. If we estimate that the percentage retained by intermediaries will then decrease to 50% in 2017, as greater efficiencies are generated between publisher and advertiser, then consequently the market size for intermediaries would be approximately $10bn globally in 2017.
2 IAB (2010)
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Key geographies in focus
F I G U R E 11 – US RTB D I S P L A Y P ENETRATION F ORECASTS
41%
34%
29% 28% 28% 25% 23% 19% 22% 19%
14% 13%
2012 2013 2014 2015 2016 2017
eMarketer IDC
Source: eMarketer (Aug-13), IDC (2013)
Forecast penetration rates can vary significantly between industry experts. IDC and eMarketer both estimate penetration of RTB as a percentage of overall display in the US to be 19% in 2013 but forecast 29% and 41% respectively in 2017. Magna Global recently forecast an RTB display penetraton rate of 52% in 2017 for the US3, reflecting increasingly bullish views on the potential of RTB. If the current trend in publisher adoption continues we can foresee the UK reaching similar levels (i.e. 40-50%) over the next five years.
F I G U R E 12 – RTB D I S P L A Y A DVERTISING BY G EOGRAPHY ($BN)
2012-17 CAGR 51% 20.8
58%
14.5 54%
9.9
6.7 49% 4.5 2.7 1.4 0.4
2010 2011 2012 2013 2014 2015 2016 2017 ROW Western Europe US
Source: IDC (2013) Includes Online Display, Mobile and Video
As the largest market worldwide, the US has the highest penetration rate for RTB, as a percentage of online display advertising. Higher growth rates in Western Europe and the Rest of World illustrated in Figure 12 indicate these markets are starting to catch up with the US. The UK is considered the leading geography for RTB in Europe, with the remainder of Europe also experiencing rapid growth rates and rising penetration.
3 Magna Global (2013)
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F I G U R E 13 – E U R O P E A N RTB A D S PEND A N D P ENETRATION
30%
25% 27% 27% 22% 20% 22% 17% 17% 17% 14% 15% 12% 13% 8% 11% 5%6% 7% 1% 3% 2% 1% 2010 2011 2012 2013 2014 2015 2016 2017 France Germany UK
3.3 2012-17 CAGR 54%
46% 2.3
49% 1.5
1.1 50% 0.7 0.4 0.2 0.0 72%
2010 2011 2012 2013 2014 2015 2016 2017
UK Germany France Rest of Western Europe
Source: IDC (2013)
With growth at over three times that of the overall online display market, European RTB penetration is forecast to increase dramatically over the next four years as the fragmented media landscape provides a long tail of inventory ripe for monetisation. The fragmented and disparate market of publishers and advertisers in Europe makes for substantial potential cost savings from consolidation onto public exchanges. RTB opens up the opportunity to buy inventory across multiple geographies and languages in real-time and for advertisers to target pan-European consumers based on relevance.
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We see significant potential in Western Europe for further growth in RTB as publishers adopt RTB-enabled trading technologies from the US and drive more inventory into the system. We can see a potential ‘upside case’ for penetration rates in the UK, France and Germany where they start to catch up with those in the US and reach 30-40% in the next few years, as premium ‘direct’ sales take off and mobile and video RTB start to gain traction. This will likely be lead by the UK, which has already demonstrated its propensity to adopt advertising technologies and catch up and even overtake the US in digital penetration rates. The UK currently has the highest proportion of digital ad spend as a percentage of total ad spend in Europe4 (40% in 2012) and this is expected to reach 51% by 2017. France and Germany are expected to increase to 25% and 27% respectively over the same period (currently 18% and 20%) whilst digital ad spend as a share of total ad spend in the US is expected to increase from 25% to 31%. If we assume the RTB penetration rates under the ‘upside case’ as set out in Figure 14 below, then this would result in a Western European market totalling $4bn by 2017.
F I G U R E 14 – E STIMATES OF THE S I Z E O F T HE E U R O P E A N RTB M ARKET ($BN)
IDC Forecasts GPB Upside Case
2017 Penetration (%) 2017 Penetration (%)
UK 1.0 29% 1.4 40%
France 0.4 27% 0.5 32%
Germany 0.6 27% 0.7 32%
Rest of Western Europe 1.2 - 1.4 -
Western Europe 3.3 - 4.0 -
Source: IDC (2013) GP Bullhound.
The UK is the largest market outside of the US and currently represents 38% of the Western European RTB. IDC forecast the UK RTB market to be worth $1bn by 2017 and 29% of UK display ad spend. The UK is well-suited to rapid adoption of RTB which is evident in both the number of players setting up in the UK (Figure 15) and market penetration second only to the US globally. Several large US players have been attracted by the size of the UK digital market and economy and additionally we are seeing the emergence of some innnovative UK-born players such as Infectious Media, Switch and Grapeshot.
RTB penetration in Germany has lagged behind much of Western Europe with only 7% in 2012, primarily due to a legacy of independent direct sales houses. These sales houses have consolidated the number of buying points for advertisers making it is easier for publishers to sell direct to advertisers than in otherEuropean markets. As a result there is less of an incentive for publishers to sell off inventory via RTB. The German market is reaching an inflection point for RTB penetration with RTB-based spending anticipated to hit $157m in 2013 (an 82% increase on 2012) and a penetration rate of 12%.
France is also growing rapidly with RTB penetration up to 11% in 2013 from 7% in 20125. Local publishers are staking their claim in the space with the collaborative joint ventures La Place Media which launched in May 2013 and Audience Square in 2012. The joint ventures provide sell-side services, acting as a form of
4 eMarketer (2013) 5 IDC (2013)
17 GP Bullhound LLP
sales house plugging into the major exchanges and trading platforms. This could be considered a step in the right direction with regards to RTB adoption in France
F I G U R E 15 – E U R O P E A N RTB M AP – S E L E C T E D P LAYERS
UK US 1 AdJug (Dentsu) 9 [x+1] 1 GDM Digital 3 Accordant Media 1 Glow Digital Media 4 Accuen 1 Grapeshot 5 Adap.tv 2 Infectious Media 5 Amnet 2 Iponweb 10 AppNexus 3 myThings 9 AudienceScience 3 StrikeAd 6 Brightroll 1 Switch 6 Cadreon 4 VisualDNA 11 DataXu Netherlands 7 Digilant 4 161 Media 7 7 Doubleclick 3 7 5 FlxOne 4 8 8 FBX 2 Improve Digital 4 4 9 Liverail 2 YD 13 8 12 MediaMath Germany 6 MoPub (Twitter) 5 Adnologies 10 OpenX 2 AdScale 7 PubMatic 3 RevenueMax 11 PulsePoint 10 4 7 7 9 6 12 Right Media (Yahoo) 6 Sociomantic 6 11 3 17 7 6 8 6 7 4 13 Rocket Fuel France 3 1 9 1 5 16 9 4 2 5 11 8 Rubicon Project 6 AdXperience 3 1 12 2 13 5 10 1 2 16 9 13 3 13 SpotXchange 15 1 7 3 4 Audience Square 2 10 1 5 1 5 6 10 The Trade Desk 7 Criteo 10 2 7 11 3 3 8 5 7 7 4 1 7 13 4 11 9 14 Triggit 5 La Place Media 12 2 2 10 8 6 5 5 15 TubeMogul 13 10 8 Norway 4 7 16 16 TURN 3 Opera Media Works 16 9 8 Varick 13 7 2 11 Sweden 17 Videology 5 3 6 6 4 Admeta 12 9 Vivaki 4 6 10 4 8 Delta Projects 4 8 7 10 Xaxis 17 Denmark 9 7 Adform Google 9 Admeld Spain 16 9 14 Doubleclick 8 MediaSmart 3 11 11 Invite Media 7 7 Legend 2 8 7 13 4 5 6 11 5 Exchange 3 4 Other 7 7 18 Brandscreen DSP 9 13 17 15 Casale MEDIA SSP Trading Desk Other Video specialist Mobile specialist
Source: GP Bullhound
Figure 15 reflects the substantial presence of both home-grown and US RTB players in Europe with a concentration in the larger economies, particularly the attractive UK market.
We see Europe as a hotbed of activity in RTB and, although somewhat behind the US in terms of market size and adoption, there is potential for rapid expansion of RTB. With large-scale technology infrastructure for RTB already imported from the US, we expect to see European success stories come from the application of innovative additional technologies, predictive data analytics and specialised service providers that generate further optimisation and efficiencies for both buy and sell-side.
18 GP Bullhound LLP
NEW MARKETS AND TECHNOLOGIES
Mobile: real-time location-based advertising Mobile RTB is rapidly gaining traction in the US and is forecast to explode into Western Europe over the next few years. Smartphone penetration rates in the G5 economies are forecast to top 50%6 this year, driving an increasing amount of inventory on mobile devices and interest from advertisers in running mobile campaigns as a result. Smartphones and tablets are generating vast amounts of data about consumer behaviour which can be used to target an audience, and investment in new tracking technologies is enabling media campaigns to be executed across multiple devices and targeted in real- time.
F I G U R E 16 – US M O B I L E RTB S ALES ($M )
3.0
1.9
1.1
0.4 0.1
2013 2014 2015 2016 2017
Source: IDC (2013)
It is estimated that location-based targetting through mobile is up to 2.3x more effective than the industry average click through rate (CTR)7. Mobile RTB is a huge opportunity, which is evident in forecast growth rates over the next few years of over 100% p.a. in the US and nearly 200% p.a. in Western Europe (from a smaller base), illustrated in Figure 16 and Figure 17 respectively.
F I G U R E 17 – M O B I L E RTB S ALES IN T HREE K E Y E U R O P E A N G EOGRAPHIES ($M )
549 2013-17 CAGR 184%
191% 344
191% 150
62 170% 8
2013 2014 2015 2016 2017 Germany France UK
Source: IDC (2013)
The market for mobile inventory is distinctly different from desktop. Cookies aren’t enabled in 90% of mobile devices so tracking users has been a problem for the industry. A number of tracking technologies
6 Comscore (2013) 7 Verve Mobile (2013)
19 GP Bullhound LLP
have now emerged to provide a solution using device fingerprinting and in-app analytics (e.g. Drawbridge, HasOffers, Ad-X (acquired by Criteo) and Somo’s mobile ad-tech suite).
Most publishers have traditionally lacked scale in mobile inventory so have historically delegated sales to a mobile Ad Network to aggregate inventory and sell it on their behalf. This is almost a carbon copy of the online display market in the last decade where there wasn't enough individual reach from publishers to justify a marketplace. However publishers are experiencing rapidly growing traffic on their properties, particularly from in-app browsing which is now driving a rapid move into mobile RTB.
The few companies that have the scale and cross-platform user base to be able to track across devices using login details (e.g. Facebook, Twitter and Apple) are also at a competitive advantage as their vast collection of rich audience data across channels drives higher CPMs, and therefore mobile ad revenues.
Facebook and Google top the US display advertising revenue charts and the FB-X (Facebook’s Ad Exchange) is becoming a de facto destination for sophisticated mobile RTB campaigns. The secret sauce is Facebook’s rich pool of social audience data combined with a mobile first understanding of audience monetisation which is evident in its explosive growth over just five quarters where mobile has gone from 14% to almost half of Facebook’s ad revenue illustrated in Figure 18.
F I G U R E 18 – F A C E B O O K M O B I L E A D R E V E N U E ($M )
882
49% 656 41% 30% 23% 375 306 14% 152
Q3 2012 Q4 2012 Q1-2013 Q2-2013 Q3-2013
Facebook mobile advertising revenue Mobile % of total ad revenue
Source: Company filings (2013), includes all mobile ad revenue
With circa 40% of tablet and smartphone users using their devices when watching television, the potential reach of the ‘second screen’ is vast. In the US During the last Super Bowl over 100 million people were estimated to have watched the half-time ads, with tens of millions checking their mobile devices providing a significant audience for targetted campaigns. We believe the convergence of mobile, locational and cross-device technologies with the digitisation of the TV and outdoor markets is one of the most exciting trends in the market
20 GP Bullhound LLP
Video advertising: the big prize for RTB The online video display advertising market is also growing rapidly. Consumers are spending an increasing amount of time watching online video content, particularly on mobile devices. As a result, viewer impressions are growing rapidly along with the amount of advertising dollars spent on video ad inventory. Global online video advertising is expected to reach $3.6bn in 20138, growing at 26% p.a. from 2011 to 20178. Online video represents a big prize for RTB because it has the potential to unlock large brand advertising budgets into RTB. This is primarily because brands are attracted to rich media formats which provide a more engaging advertising experience. Video RTB will also be driven by advances in ad serving technology and investment in the video RTB infrastructure.
F I G U R E 19 – US V I D E O RTB G ROWTH ($BN)
1.7
1.3
0.8
0.4 0.1
2013 2014 2015 2016 2017
Source: Forrester (2013)
RTB video advertising spend is greatest in the US, however Europe is expected to catch up, growing at 127% p.a. across UK/France/Germany in the next few years compared with the US at 88%.
F I G U R E 20 – V I D E O RTB A DVERTISING R EVENUE FOR S OME K E Y E U R O P E A N G EOGRAPHIES ($M )
2013-17 CAGR 127% 152
111 138%
58 131% 30 6 109%
2013 2014 2015 2016 2017 Germany France UK
Source: IDC (2013)
Advertisers are increasingly using programmatic trading to buy online video advertising but there is a reluctance for premium publishers to ‘play ball’. Buyers are seeking video advertising at real-time prices but, as with standard display formats, publishers are reluctant to allow buyers to ‘cherry-pick’ their inventory. As a result the market is bifurcating with a split into bid-based public marketplaces for non- premium inventory and private market places for premium inventory.
8 Forrester (2013)
21 GP Bullhound LLP
F I G U R E 21 – B U Y E R M O D E L S F O R B U Y I N G V I D E O A DVERTISING V IA RTB
Bid-based Public Market places Direct Deals and Private Market places
• Prevalent among mid-to-long-tail inventory • Growing among premium publishers as a way to automate buys and maximise sell- • Premium publishers testing RTB bids in through competition with traditionally sold inventory
• Pricing being determined dynamically via • Pricing being determined through a bidding combination of pre-negotiated rates and dynamic bidding • Optimised based on audience, engagement, and direct-response metrics • Optimised based on cost audience reach and brand survey metrics
Source: Forrester (2013)
Video adtech players (e.g. Liverail) have designed the infrastructure to publish inventory at scale and in real-time. As a result of these advances, advertisers are now able to reach a targeted, brand-receptive audience across a wide range of devices. This, combined with social media activity, means RTB can be used to target an engaged audience in real-time when they are interacting with brands.
Global TV advertising net revenue is forecast to hit $219bn by 20189, and with such high budgets at stake, IP connected television could drive the potentially game-changing phenomenon of RTB TV advertising in due course. Why should you be served the same advert in your living room at half time during Manchester United vs Arsenal, as your neighbour in his?
9 Digital TV Research (2013)
22 GP Bullhound LLP
CAPITAL INVESTMENT AND CONSOLIDATION
Investment into RTB With such a large market migrating to and being enabled by RTB technologies, it is no surprise to see significant capital inflows into the sector. We estimate over $1.3bn has been invested in RTB over the last ten years of which more than half has been invested in the last two years alone as the RTB market has started to gain critical mass and 2013 has seen the IPOs of Criteo and Rocket Fuel (raising a combined $367m).
F I G U R E 22 – S E L E C T E D F UNDRAISING IN THE RTB S P A C E ($M )
$538
$163 $141 $145 $104 $87 $75 $60 $47 $8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Other Exchange SSP DSP
Source: Capital IQ, Crunchbase, GP Bullhound Note: Includes Criteo and Rocket Fuel IPOs
Venture and growth capital DSPs have consistently attracted investment since 2008 with AppNexus ($75m), DataXu ($27m) and OpenX ($25m) ensuring 2013 is set to be a record year for VC funding. In contrast, SSPs have only begun to receive really substantial funding in more recent years, with 2012 a record year including a $45m raise by Pubmatic.
23 GP Bullhound LLP
F I G U R E 23 – S E L E C T E D P R I V A T E P LACEMENTS I N T HE RTB S PACE F R O M T H E L A S T T HREE Y EARS
($M )
$77 19%
$57 14% $228 56% $45 11%
DSP SSP Exchange Other
Source: Capital IQ, Crunchbase, GP Bullhound
Only three SSPs have raised substantial (>$10m) capital in total compared with seven DSPs, which may explain why there is such competition on the demand side as mentioned earlier in this report. Independent Trading Desks have also gained traction with funders in recent years as investors see value in sectors outside the now hyper-competitive DSP space, closer to the advertiser data.
Europe in focus Fundraising in the sector has been dominated by the US players, with significant sums raised to date. It is notable that over the last four years Europe has seen increased activity relative to the US in terms of volume of companies funded, up to 35% from 26% of fundraisings by volume (see Figure 24). This is due to a drop in the number of transactions in the US coinciding with an increase in European volumes, indicating a maturing of the funding market in the US, whilst Europe has been woken up by the arrival of well-funded US tech platforms driving wider spread RTB penetration. The average size of fundraising in the US has been two-and-a-half times that of Europe over the same period.
F I G U R E 24 – S E L E C T E D P RIVA TE P LACEMENTS B Y G EOGRAPHY
AMOUNT RAISED VOLUME OF RAISES
15% 18% 26% 35%
78% 71% 67% 56%
7% 11% 7% 9% 2004-2009 2010-2013YTD 2004-2009 2010-2013YTD
2004-2009Europe US 2010-2013YTDOther
$7m $16m Average Raise in Average raise in US Europe 2010-13YTD 2010-13YTD
Source: GP Bullhound, Capital IQ, Crunchbase
24 GP Bullhound LLP
Recent IPOs and potential candidates for the future On top of substantial private capital inflows, there have been a number of IPOs in the Ad-Tech space in recent months. The recent IPOs of Criteo and Rocket Fuel have been well received as their scale, proprietary technology capabilities, and positioning in the disruptive and rapidly growing RTB market are seen as key competitive differentiators. Combined, they have raised $367m of capital in 2013 taking the total capital raised in 2013 to $538m in public and private markets combined.
F I G U R E 25 - R E C E N T A D -T E C H IPOS
Company Investors Raised Description Recently Announce / Completed IPOs . Leading global retargeting platform . Floated Oct-13 with an offer price of $31 per share, above its . Adams Street, Bessemer, Elaia, Private: $60m upwardly revised $27-29 range and providing a market cap of Fourvest, IDInvest, Index, SAP, IPO: $251m approximately $1.7bn SoftBank , YJ . Share price rose 40% from its debut and was approximately $36 a share as at 18-Nov-13 and 16% up on the IPO . Leading Demand Side Platform . Floated Sep-13 at a share price of $29 valuing the company at . Northgate, Summit, Cross Creek, Private: $77m close to $1bn Nokia Growth Fund, Labrador IPO: $116m . Share price doubled in its first week of trading and as at 18-Nov- 13 was $54.20 approximately 90% up on the IPO
Source: Capital IQ, Crunchbase, GP Bullhound
The warming of the IPO markets and recent success of Criteo and Rocket Fuel will have been watched with a keen eye by a spate of other adtech companies in the RTB ecosystem, who may be potential IPO candidates.
F I G U R E 26 – P O T E N T I A L A D -T ECH IPO C ANDIDATES
Candidate Investors Raised Description IPO Candidates . Real time ad exchange/deliver system . First Round, Khosla, Kodiak, $140m . Rumoured to have been approached by AOL and Microsoft in Venrock, Microsoft, Tribeca, TCV Aug-10
. Real-time campaign management platform across mobile and . Atlas Venture, Flybridge, Menlo $45m video channels Ventures, Thomvest Ventures . Acquired MexAd in Sep-12
. Clearstone, IDG, Mayfield, . Sell side platform Standford, Berkeley, Peacock, $50m . Acquired Others Online, SiteScout, Fox Audience Network and Fox MobSmith
. Trident, Scale, Adams Street, True ventures, Comerca Bank, $46m . Video ad network and demand side services KPG
. Accel, Samsung, Cox Media, . Audience targeting and data/ media management $56m iNovia, Greycroft, Comerica Bank . Acquired Tumri, OggiFinogi, and Personifi
. Supply side platform helping publishers automated selling of . DPJ, Helion, Nexus, August, SVB $63m inventory . Acquired MobiPrimo and ReviNet
. European Founders, QED, . Large scale demand side platform Safeguard, SVB, SJF, Catalyst $24m . Acquired TapMe Investors
. Norwest, Shastra, Trident, Focus $61m . Large scale demand side platform
Source: Capital IQ, Crunchbase, GP Bullhound
25 GP Bullhound LLP
M&A and consolidation in the sector We see an oncoming wave of consolidation in the market which will help to drive a series of transactions over the next few years. With substantial growth in RTB ad spend still to come, a fragmented European market and the need for differentiated technologies and capabilities, we believe the market is ripe for consolidation, which will be a further key driver of scale and efficiency in the market.
F I G U R E 27 – S E L E C T E D M&A V OLUME IN THE RTB S PACE
11
9 9
7
1
2009 2010 2011 2012 2013 DSP SSP Exchange Other
Source: Capital IQ, Crunchbase, GP Bullhound
M&A activity has picked up considerably in the space in the last three years as strategically important capabilities are acquired (e.g. Twitter’s recent acquisition of MoPub), or as a consolidation play with players such as Google, AOL and Yahoo looking to own the entire value chain.
F I G U R E 28 - G O O G L E & Y A H O O S H O W I N G A H I G H L E V E L O F A CTIVITY
Source: Capital IQ, GP Bullhound
Yahoo and Google have been two of the most active acquirors in the sector in recent years and have been making a play to own large parts of the value chain given the strategic importance of advertising revenue to both.
26 GP Bullhound LLP
Where next for M&A? M&A activity has been fairly muted in Europe compared with the US. We see M&A activity picking up with a number of potential drivers of consolidation:
. Scale – as the technology commoditises, additional M&A will be required to leverage efficiencies from owning the full ‘stack’ of technologies and client data at scale. . Customers – M&A could be driven by the acquisition of customer concentrations and proprietary technologies in individual verticals (e.g. ecommerce, online travel). . Multi-channel – as the market matures and new high growth areas emerge (e.g. direct, mobile and video) larger acquirors may look to add to their cross-channel capabilities. . Internationalisation – a key driver to penetrate new markets especially where the barriers to entry are high or scale is difficult to achieve organically.
F I G U R E 29 – P O T E N T I A L S T R A T E G I C A CQUIRO R S I N T HE A DTECH S PACE
CRM Software Global Agencies Internet Giants Existing RTB Players Providers & Ad Networks
Source: GP Bullhound – Example companies are illustrative only
Potential future acquirors include the following:
. Internet Giants – those heavily reliant on ad revenues will look to ensure they have the core competencies and technology stack in-house. The importance of RTB in mobile advertising was evident in Twitter’s recent acquisition of Mo-Pub (Sep-13). Google has made a big play on the space with its acquisitions of Doubleclick, Invite Media and Admeld ensuring it has coverage across the technology stack. We expect more from the likes of AOL, Microsoft, and Yahoo. . Global Agencies and Networks – we expect the global agencies will look to ensure they are well positioned in the space and we see them as key potential acquirors. We also expect to see Ad Networks acquiring technology and skills as the pace of change in the sector continues unabated, exemplified by Millenial media’s acquisition of Jumptap (Aug-13). . Software providers – M&A activity has been high in the CRM software space with Adobe’s acquisition of Neolane (Jun-13) and Salesforce’s acquisition of ExactTarget (Jun-13). These software providers may now look to integrate these platforms with RTB capabilities. The benefits to such organisations could be big, with a fully integrated RTB-enabled display advertising and CRM platform, providing a single dashboard for multiple advertising channels. . Consolidation of existing RTB players – in a market with competing technology platforms we expect to see significant consolidation as business models evolve to compete. Early examples of this include Criteo’s acquisition of Ad-X (Jul-13), Rubicon Project’s acquisition of mobile capabilities in MobSmith (Mar-12), and DataXu’s acquisiton of Mexad (Dec-11). We expect to see mergers and acquisitions of complementary technology capabilities and local customers driving internationalisation. Finally we see data players (e.g. Experian) as a further key category of acquirors as they seek to leverage their data assets and analytics capabilities across the landscape.
27 GP Bullhound LLP
APPENDICES
SELECTED COMPANY PROFILES – D E M A N D S IDE
HQ: New York Founded: 2010 HQ: Copenhagen Founded: 2002 Investors: Privately Held Investors: Via Venture Partners
Rev: N/A Raised: N/A Rev: €30m Raised: N/A Employees: 50 Employees: 200
. Independent media trading desk . Multiscreen DSP incorporating display ad serving, rich media, video, mobile, . Display, video, mobile, social, email, in- dynamic ads, personalised targeting, stream audio and out-of-home channels and real-time bidding through . Co-founded by digital agency execs Art integrations with major inventory Muldoon and Matt Greitzer players
HQ: New York Founded: 2007 HQ: Paris Founded: 2009 Investors: First Round, Khosla, Kodiak, Investors: Privately Held Venrock, Microsoft, Tribeca, Crossover
Rev: N/A Raised: $141m Rev: N/A Raised: N/A Employees: N/A Employees: N/A
. Platform for buying real-time online . Mobile media trading desk advertising . In-house bidding and optimisation . Offers a proprietary gateway to premier system ad exchanges and ad inventory . 95% of its activity outside of France aggregators . Completed $75m series D in May-13
HQ: Boston Founded: 2009 HQ: Sweden Founded: 2002 Investors: Atlas Venture, Flybridge, Investors: ND Menlo Ventures, Thomvest Ventures
Rev: N/A Raised: $45.8m Rev: N/A Raised: N/A Employees: N/A EBITDA: N/A Employees: 55
. Real-time campaign management . Efficiency-focused online advertising platform for digital advertising campaigns solutions with real-time planning, buying, across online, mobile and video channels optimisation and reporting. . Combines automated media buying, . DSP and DMP technology solutions and optimization and analytics a managed buyside service . Raised $27m in Series C funding in Feb- 13 . Acquired MexAd in Sep-12
Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ
28 GP Bullhound LLP
SELECTED COMPANY PROFILES ( CONT.) – D E M A N D S IDE
HQ: London Founded: 2007 HQ: Netherlands Founded: 2012 Investors: Privately Held Investors: Greenhouse Group
Rev: N/A Raised: N/A Rev: N/A Raised: $900k Employees: N/A EBITDA: N/A Employees: N/A
. Marketing intelligence and media trading . Empowers real time advertising company specialists with analytics and . Produces market intelligence that optimization technology to buy and sell identifies the strengths and weaknesses ads more effectively of each individual platform in market . Integrated with Doubleclick and . Benchmarks across both price and AppNexus performance metrics
HQ: London Founded: 2007 HQ: London Founded: 2010 Investors: - Investors: Private individuals
Rev: N/A Raised: N/A Rev: N/A Raised: N/A Employees: 50 EBITDA: N/A Employees: 70
. Delivers customised real-time advertising . Next generation performance trading campaigns for leading advertisers specialist . Combines analytics with proprietary . Empowers agency partners with targeting and optimisation tools to power predictive analytics in big data for online real-time display advertising display inventory trading . Customised DSP to maximise benefit of first party advertiser data
HQ: New York Founded: 2007 HQ: Germany Founded: 2012 Investors: European Founders, QED, Investors: ZANOX.de Safeguard, SVB, SJF, Catalyst Investors
Rev: $50m Raised: $24.4m Rev: N/A Raised: N/A Employees: 125 EBITDA: N/A Employees: N/A
. Offers cross-exchange advertising . RTB buyside platform management services and technology . Allows advertisers to make impression- . Media buying service provides the based marketing decisions technology, strategy, services and . Provides flexible and customised insights to trade effectively across the solutions for intelligent and highly- leading display advertising exchanges personalized digital marketing strategies and supply sources on behalf of agencies . Acquired Tap.Me in Dec-12
Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ
29 GP Bullhound LLP
SELECTED COMPANY PROFILES ( CONT.) – S U P P L Y S IDE
HQ: Memphis Founded: 2007 HQ: Berlin Founded: 2009 Investors: Mohr (35%), Nokia (8%), Investors: - Nothgate (6%), Public (28%)
Rev: $159.6m Raised: $77m* Rev: N/A Raised: N/A Employees: 465 Employees: N/A
. Data-focused programmatic media . Develops RTB solutions for advertisers buying platform . Platform that enables users to bid for . Went public on Sep-13 and sold 4 million individual user impressions in real-time shares at a price of $29, raising a total of auctions $116 million at a valuation of nearly $1 billion * Pre-IPO
HQ: New York Founded: 2010 HQ: Redwood City Founded: 2004 Investors: eValue, DFJ Esprit, Karlin Investors: Greenspring Assoc, Norwest, Ventures, SoftTech Trident, Shasta, Focus Ventures
Rev: N/A Raised: $9.1m Rev: N/A Raised: $57m Employees: 55 Employees: N/A
. Leading mobile DSP providing a single . Integrated, end-to-end platforms for data console through which users can run and media management global mobile RTB campaigns . Offers media expertise, client services . Three Series A funding rounds since and a geographically distributed Jun-12 for a total raised of $9.1m infrastructure . Raised $20m in Jan-12 in a round led by Greenspring Associates
HQ: New York Founded: 1999 HQ: Amsterdam Founded: 2008 Investors: Echelon, Hudson, Blue Chip, Investors: TOHARU Ventures, Partech WS, WallerSutton, Advanced, Intel Ventures, Active Venture Partners
Rev: N/A Raised: $39m Rev: N/A Raised: $5.9m Employees: 60 Employees: 60
. Data-driven multi-channel platform . DSP providing bespoke software offering based on its Predictive allowing advertisers to optimise ads Optimization Engine based on real-time insights into . Raised $17m of debt from Ares capital audience reach, acquisition price, in Apr-13 revenue and conversion attribution . Acquired UberTags in Feb-13 and WDA in Jul-13
Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ
30 GP Bullhound LLP
SELECTED COMPANY PROFILES ( CONT.) – S U P P L Y S IDE
HQ: Amsterdam Founded: 2008 HQ: Paris Founded: 2012 Investors: PubliGroupe (85%) Investors: Amaury Medias, FigaroMedias, Lagardère Publicité and TF1 Publicité
Rev: N/A Raised: N/A Rev: N/A Raised: N/A Employees: 60 Employees: N/A . Provides a real-time advertising platform . SSP/ Private Adexchange founded by to the owners of digital media four French media leaders . Enables media owners to build, grow, . 120+ premium publishers’ partnerships manage, control, and optimize their own for a specific audience target environment driving revenues . Partnership with Microsoft Advertising . PubliGroupe acquired 85% stake in Oct- since Nov-12 12 . Launched a mobile Adexchange in May- 13
HQ: San Francisco Founded: 2010 HQ: Redwood City Founded: 2006 Investors: Twitter (100%) Investors: DPJ, Helion, Nexus, August, SVB
Rev: N/A Raised: $18.5m Rev: N/A Raised: $63m Employees: 45 Employees: 380
. Operates as a mobile monetization . Helps publishers automate the process platform, providing ad serving, of evaluating and selling their advertising optimization, and new ad experiences inventory for mobile applications . Real-time media selling platform for . Had over 250 active publishers in July managing revenue and brand strategy 2011 . Raised $45m in Series D funding Jun-12 . Closed $18.5m series B round in Sep- 12 . Acquired by Twitter Sep-13 for $350m
HQ: Los Angeles Founded: 1998 HQ: Southampton Founded: 2008 Investors: Clearstone, IDG, Mayfield, Investors: Privately Held Standford, Berkeley, Peacock, Fox
Rev: N/A Raised: $51m Rev: N/A Raised: N/A Employees: 300+ Employees: 60
. The largest independent supply-side . Digital advertising solutions for RTB trading platform for digital publishers advertising used by more than 500 of the . Single platform adserver, RTB and data world’s premium publishers to transact driven optimisation with over 100,000 advertising brands . 2nd fastest growing UK tech company, globally (Sunday Times Hiscox TechTrack 100) . Acquisitions include SiteScout, Fox . Innovation in partnership with Audience Network and MobSmith Southampton University's Web Science Faculty
Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ
31 GP Bullhound LLP
SELECTED COMPANY PROFILES ( CONT.) – A D E XCHANGES
HQ: Gothenburg Founded: 2002 HQ: New York Founded: 2005 Investors: Chalmers Innovation AB, KL Investors: Google (100%) Ventures, Layline Partners
Rev: N/A Raised: $5m Rev: N/A Raised: N/A Employees: 40 Employees: 1,541 . Private Ad Exchange offering online . Provides digital ad serving technology advertising platform solutions for and services advertisers and publishers in Europe . Services display, video, search and . Provides a yield optimization platform for affiliate marketing publishers and a networks Web based . Acquired by Google in Apr-07 for $3bn campaign management platform for agencies and advertisers
HQ: Pasadena Founded: 1998 HQ: Menlo Founded: 2012 Investors: First, Index, Mangrove, Investors:- Mitsui, Accel, DAG, SAP, AOL, Cyber
Rev: N/A Raised: $50m Rev: N/A Raised: N/A Employees: 305 Employees: N/A . Independent provider of digital . Allows marketers to use their own real- advertising technology that enables time consumer insight data to reach an businesses to manage and maximize audience on Facebook their ad revenue . Advertisers and agencies use cookie- . Comprehensive revenue generation based targeting through DSPs to reach platform by combining ad serving with a their audience on Facebook in real time unique ad exchange . Closed $25m Series E funding in May-11
HQ: New York Founded: 2011 HQ: New York Founded: 2003 Investors: DFJ, Gold Hill, Investor Investors: Yahoo! (100%) Growth Capital, New Atlantic, Updata
Rev: N/A Raised: $3m Rev: N/A Raised: $45m Employees: 150 Employees: 134 . Ad exchange and SSP providing a . Digital advertising exchange platform spectrum of services including data . Auction marketplace for buying and management, media mix optimisation, selling online inventory content distribution, and contextual ad . Connects digital advertising companies exchange capabilities and provides an opportunity for these . Formed in 2011, from a merger between participants to reach their audiences on Contextweb and Datran Media their own terms . Acquired by Yahoo! In Apr-07 for $850m
Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ
32 GP Bullhound LLP
SELECTED COMPANY PROFILES ( CONT.) – C R O S S P L A T F O R M T E C H N O L O G Y / T ARGETING
HQ: Hamburg Founded: 2006 HQ: Bellevue Founded: 2003 Investors: ViewPoint Capital Partners Investors: 19
Rev: N/A Raised: N/A Rev: N/A Raised: $100m Employees: N/A Employees: 135
. Provides a full stack of RTB-enabled . Offers online behavioural targeting technologies platforms and marketplace for the digital . Functions and services include DSP, media industry DMP, Ad Serving, Data Exchange, SSP, . Targets relevant audience for advertisers dynamic creative and dynamic video that through its data-driven platform fully integrate into the first end-to-end data-driven advertising platform
HQ: Paris Founded: 2005 HQ: London Founded: 1992 Investors: VCs (34%), Individuals (16%), Investors: IQ Capital Partners LLP Corporations (11%), Public (39%)
Rev: N/A Raised: $60m* Rev: N/A Raised: $2.45m Employees: 700 Employees: N/A
. Provides pay-per-click performance . Contextual advertising tool for display display advertising solutions in France media and internationally . Uses probability algorithms to optimise . Platform leverages large data sets to the placement of content and target relevant users in real time advertisements online . Went Public on Nasdaq in Oct-13 . Helps publishers to create virtual * Pre-IPO channels specific to each advertiser’s contextual needs.
HQ: London Founded: 2000 HQ: London Founded: 2003 Investors: Privately Held Investors: Iris, Accel, t-ventures, Carmel
Rev: N/A Raised: N/A Rev: N/A Raised: $37m Employees: 140 Employees: 17
. RTB infrastructure and technology . Performance based display advertising provider solutions for online advertisers in Europe . Provides real time data analysis for and internationally targeting consumers through custom . Enables merchants to stay in touch with engineered, intelligent, scalable, media prospects after they leave the site, and trading platforms delivers an optimized message for each . Powers over 40 online ad platforms user across the world . Winner of the 2011 E-consultancy Innovation in Affiliate Marketing Award
Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ
33 GP Bullhound LLP
SELECTED COMPANY PROFILES ( CONT.) – V I D E O A D E X C H A N G E S / A D S ERVERS
HQ: New York Founded: 2006 HQ: San Francisco Founded: 2006 Investors: AOL (100%) Investors: Trident, Scale, Adams Street, True ventures, Comerca Bank, KPG
Rev: N/A Raised: $48.5m Rev: N/A Raised: $46m Employees: 205 Employees: 70
. Online video advertising platform . Online video advertising platform . Provides buyers and sellers with . Enables advertisers to execute digital automated tools to plan, buy and video campaigns across a pool of web measure across linear TV and online and mobile video inventory video . 100 million monthly unique viewers . Acquired by AOL for $405m in Aug-13 . Raised $30m in Series C Funding in Nov-11
HQ: Austin Founded: 2009 HQ: San Francisco Founded: 2008 Investors: Videology (100%) Investors: Cleartide Limited, Pond Ventures
Rev: N/A Raised: €2.88m Rev: N/A Raised: $8.5m Employees: Employees: 110
. Mobile marketing platform . Online video advertising . Provides media optimization services to . The company’s platform provides publishers and advertising networks for solutions that range from RTB and on- enabling targeting on mobile devices boarding custom data to campaign . Was acquired by Videology in Jun-12 management, analytics, and streamlined client billing . Raised $4m in Series C funding in Jun- 13
HQ: Emeryville Founded: 2006 HQ: Baltimore Founded: 2007 Investors: NSV, Bee, Knight Bridge, Investors: Boulder, New Enterprise, Trinity, Foundation, Northgate, SingTel Valhalla, Comcast, Catalyst, Pinnacle
Rev: N/A Raised: $53.2m Rev: N/A Raised: $134m Employees: N/A Employees: 180
. Online video ad buying platform . Online video advertising platform . Advertisers only pay when someone . Predictive targeting product that chooses to watch their video and they improves advertisers' ability to reach see which sites their ads ran on, how their intended audience their ads performed and who watched . Acquired ColliderMedia Jun-12 and them LucidMedia Oct-12 . Raised $10m in Series C Funding in . Raised $60m in May-13 Jun-13
Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ
34 GP Bullhound LLP
SELECTED FUNDRAISING TRANSACTIONS
Funds Date Target Target HQ Raised($m) Investors
Sep-13 Action Exchange US 3 SoftBank Capital; AOL Ventures; Lerer Ventures; Verizon Ventures; Golden Venture Partners, Inc. Sep-13 StrikeAD UK 7 DJF Esprit, Siemer Ventures, SoftTech VC Sep-13 YD Netherlands 6 Partech International; Active Venture Partners, SGECR, S.A May-13 Triggit US 6 Foundry Group, North Atlantic Capital, Spark Capital May-13 TubeMogul US 8 Singtel Apr-13 AudienceScience US 9 ND Feb-13 DataXu US 27 Atlas Venture, Flybridge Capital Partners, Infocomm Inestments Pte, Menlo Ventures, Thomvest Ventures Jan-13 AppNexus US 75 TCV, Venrock, Tribeca Jan-13 Glow Digital Media UK 1 Avonmore Developments Ltd , Project A Ventures GmbH & Co. KG Jan-13 OpenX Canada 25 Accel, Cyber Communications, Index, Mitsui & Co, Presidio STX, Samsung Venture, SAP Ventures Jan-13 PulsePoint US 3 DFJ, Investor Growth Capital, Vantagepoint, Updata Dec-12 TubeMogul US 29 Northgate, Trinity, Foundation Nov-12 Triggit US 7 Foundry Group, Spark Capital Oct-12 Brandscreen Singapore 11 Macquarie Capital Grup, SingTel Ventures, Southern Cross Venture Partners Sep-12 Criteo France 40 Adams Street Partners, Bessemer Venture Partners, Index Ventures, SAP Ventures, SoftBank Capital, YJ Capital Jun-12 PubMatic US 45 August Capital, Draper Fisher Jurvetson, Helion Venture Partners, Nexus Venture Partners, SVB Silicon Valley Bank Mar-12 MyThings UK 15 Accel Management, Carmel Ventures, GP Bullhound, Iris Capital, T-Venture Holding, Viola Private Equity Feb-12 XPLUSONE US 5 Hudson Ventures Jan-12 Visual DNA UK 10 ND Dec-11 RevenueMax Germany ND High-Tech Gruenderfonds Management GmbH May-11 OpenX Canada 20 Accel, AOL Ventures, DAG Ventures, Index, Mitsui & Co, Global Investment, Presidio STX, SAP Ventures Apr-11 PulsePoint US 9 ND Apr-11 Improve Digital Netherlands ND Van den Ende & Deitmers Mar-11 MediaMath US 14 Safeguard Scientifics, Inc Jan-11 StrikeAD UK 1 eValue AG Jan-11 XPLUSONE US 10 Advanced Technology Ventures, Blue Chip Venture Company, Hudson Ventures, Intel Capital Jan-11 Turn US 20 Focus Ventures, Greenspring Associates, Norwest Venture Partners, Shasta Ventures, Trident Capital Dec-10 Brandscreen Singapore 3 Adventure Capital Pty Dec-10 SpotXchange US 12 H.I.G. Growth Partners LLC Dec-10 Admeta Sweden ND Chalmers, KL Ventures, Layline Partners Nov-10 MyThings UK 6 Accel Management , Carmel Ventures, GP Bullhound, T-Venture Holding, Dotcorp Nov-10 Admeta Sweden ND Chalmers, KL Ventures, Layline Partners Nov-10 The Rubicon Project US 18 Clearstone Venture Partners, IDG Ventures, Mayfield Fund, News Corporation, Peacock Equity Fund Oct-10 AppNexus US 50 First Round Capital, Kodiak Venture Partners, Microsoft Corporation, Venrock Sep-10 TubeMogul US 10 Foundation Capital, Knight's Bride Capital Partners, Trinity Ventures Jun-10 Triggit US 4 Foundry Group, Spark Capital Jun-10 adscale Germany 6 TIME Equity Partners May-10 AudienceScience US 8 ND May-10 Criteo France 6 Bessemer Venture Partners Apr-10 PubMatic US 8 Draper Fisher Jurvetson, Helion Venture Partners, Nexus Venture Partners Mar-10 The Trade Desk US 3 Founder Collective, IA Ventures, Wider Wake Networks Mar-10 DataXu US 11 Atlas Venture, Flybridge Capital Partners, Menlo Ventures Jan-10 Adform Denmark ND Via Venture Partners A/S, Via Venture Partners Fund I Dec-09 Grapeshot UK 2 IQ Capital Partners Nov-09 AppNexus US 5 Kodiak, Venrock, First Round Capital Oct-09 AudienceScience US 15 Integral Capital Partners, Mayfield Fund, MeriTech Capital Partners, Mohr Davidow Ventures Sep-09 The Rubicon Project US 9 Clearstone Venture Partners, Mayfield Fund, Peacock Equity Fund Aug-09 MediaMath US 13 SVB, European founders fund, QED, Safeguard Scientifics May-09 OpenX Canada 10 Accel Management, DAG Ventures, First Round Capital, Index Ventures, Mangrove Capital Partners Apr-09 DataXu US 8 Atlas Venture, Flybridge Capital Partners, Menlo Ventures Apr-09 The Rubicon Project US 5 Clearstone Venture Partners, IDG Ventures, Mayfield Fund Mar-09 TubeMogul US 3 Trinity Ventures Mar-09 PubMatic US 4 Draper Fisher Jurvetson, Helion Venture Partners, Nexus Venture Partners Feb-09 Visual DNA UK 14 Northzone, Atomico, Horizons Ventures Sep-08 AppNexus US 8 First Round Capital, Khosla Ventures, Kodiak, Venrock Sep-08 MyThings UK 8 Accel Management, Carmel Ventures, GP Bullhound, Dotcorp Aug-08 Turn US 15 Focus Ventures, Norwest Venture Partners, Shasta Ventures, Trident Capital May-08 XPLUSONE US 16 Advanced Technology Ventures, Blue Chip Venture Company, Hudson Ventures Mar-08 AdJug UK 7 Balderton Capital, Tomorrow Focus AG (DB:TFA) Mar-08 Turn US 15 Norwest Venture Partners, Shasta Ventures, Trident Capital Mar-08 Unica US 18 Balderton Capital, Tomorrow Focus AG (DB:TFA) Feb-08 YD Netherlands ND Toharu & Angel Feb-08 SpotXchange US ND Angel Investors Feb-08 TubeMogul US 2 Knight's Bride Capital Partners Jan-08 The Rubicon Project US 15 Clearstone Venture Partners, IDG Ventures, Mayfield Fund, Stanford University, University of California Berkeley Jan-08 adscale Germany ND European Founders Fund Magagement GmbH, Holtzbrinck Ventures GmbH Jan-08 Triggit US 1 Bay Partners Jan-08 OpenX Canada 16 Accel Management Co, First Round Capital, Index Ventures, Mangrove Capital, O'Reilly Alpha Tech Ventures Jan-08 Criteo France 10 AGF Private Equity, Elaia Partners, Index Ventures Jan-08 PubMatic US 7 Draper Fisher Jurvetson, Helion Venture Partners, Nexus Venture Partners Jan-08 Admeta Sweden 5 Sjaette AP-fonden Dec-07 AppNexus US 3 First Round Capital, Khosla Ventures, Various Angels Oct-07 TubeMogul US ND NetService Ventures Oct-07 The Rubicon Project US 4 Clearstone Venture Partners Jun-07 OpenX Canada 5 First Round Capital, Index Ventures, Mangrove Capital Partners, O'Reilly SlphaTech Ventures May-07 Visual DNA UK 5 Northzone Mar-07 MediaMind Technologies US 30 BRM Group Oct-06 Right Media US 45 Redpoint Ventures, Yahoo! Inc. (NasdaqGS:YHOO) Apr-06 MyThings UK 8 Accel Management, Carmel Ventures Mar-06 Criteo France 7 AGF Private Equity, Elaia Partners Nov-05 AudienceScience US 24 Integral Capital, Mayfield Fund, MeriTech , Mohr Davidow, Second Avenue Jun-05 Right Media US 12 Redpoint Ventures Apr-05 PulsePoint US 60 VantagePoint Venture Partners (nka:VantagPoint Capital Partners) Jan-05 Turn US 8 Norwest Venture Partners, Trident Capital Aug-04 XPLUSONE US 8 Blue Chip Venture Company, Echelon Ventures, Hudson Ventures, WS Capital Dec-03 MediaMind Technologies US 8 Insight Venture Partners Mar-02 AudienceScience US 15 American Express, Angel Investors, Cedar Grove , Deutsche Bank, Gulf International, Kellett, Mayfield, Mohr Jan-02 XPLUSONE US 1 ND Apr-01 XPLUSONE US 3 Echelon Ventures, Hudson Ventures Sep-00 AudienceScience US 20 Cedar Grove Investments LLC, Kellett Investment Corporation, Mayfield Fund, Second Avenue Partners Apr-00 AudienceScience US 5 Angel Investors, Cedar Grove, Deutsche Bank, Investment Arm, Kellett, Madrona Venture, Second Avenue Jun-97 DoubleClick US 40 ABS Capital Partners, Bain Capital Private Equity, Canaan Partners, Greylock Partners, Venrock, Peck & Greer Venture
Source: GP Bullhound, Capital IQ, Company press releases, ND = Not Disclosed
35 GP Bullhound LLP
SELECTED M&A TRANSACTIONS
Target Date Target Geography Acquirer EV ($m) Target Description
Nov-13 Tedemis US Criteo 20 Email re-targeting Nov-13 Sitescout US Centrico 40 RTB demand side platform Sep-13 Mopub US Tw itter 350 Supply side platform for mobile adds Sep-13 Gradient X US Amobee (Singtel) ND RTB platform for mobile ads Aug-13 Jumptap US Millenial Media 209 Mobile DSP Aug-13 Adap.tv US AOL ND Full RTB technology stack for video Jul-13 AdMovate US Yahoo ND Mobile ad targeting platform Jul-13 Ad X Tracking UK Criteo ND Mobile ad tracking platform Jul-13 Matiro France 1000mercis 3 Media trading platform for online advertisements Jul-13 IgnitionOne, Inc. US ABS Capital Partners, Persimmon Capital Partners ND Digital marketing technology Jan-13 Akamai Decisions Solutions US MediaMath ND Advertising decisions platform Jan-13 Mobvalue France Prisma Media ND Mobile advertising netw ork and platforms Dec-12 adscale Germany Stroer ND Platform for buying real-time online advertising Dec-12 TapMe US MediaMath ND Mobile and video in-game ad platform Oct-12 JumpTime US OpenX Technologies ND Content optimisation technology Oct-12 Improve Digital Netherlands PubliGroupe ND Supply Side Platform Jun-12 Collective intellect US Oracle ND Automated real-time mining & analytics softw are for social CRM Apr-12 Peer39 US DG MediaMind 16 Data provider to improve relevance and effectiveness of online display advertising Mar-12 MobSmith US the Rubicon Project 10 Location-based mobile advertising platform Mar-12 Amobee US Singtel 321 Mobile advertising solutions for operators Jan-12 Mexad Germany DataXu ND Demand Side Platform Nov-11 Interclick US Yahoo! 273 Data management and analytics platform Oct-11 Smartclip Germany Adconion 168 Online video advertising netw ork Aug-11 AdJug UK IgnitionOne / Dentsu ND Platform for buying real-time online advertising Aug-11 Dotomi US ValueClick 295 Interactive digital marketing Jun-11 Mediamind US DG Fastchannel 414 Digital advertising campaign mgt infrastructure Jun-11 Admeld US Google 400 Digital advertising platforms May-11 ReviNet US PubMatic ND Netw ork optimization services for online publishers Apr-11 Adbuyer.com US MediaBank ND Platform for buying real-time online advertising Apr-11 Adenyo US Motricity (nka Voltari) 140 Digital and mobile marketing Feb-11 Oggifinogi US Collective Media ND Real time video ad platform Feb-11 Transpera US Tremor Media ND Mobile video technology Nov-10 ScanScout US Tremor Video 65 Streaming ad server Nov-10 FAN US the Rubicon Project ND Online marketplace for digital advertising Oct-10 MobClix US Velti 54 Mobile Ad Exchange Jun-10 Invite Media US Doubleclick 40 Buying platform for display media May-10 SiteScout US the Rubicon Project ND Cloud-based publisher protection platform Mar-10 adscale Germany Various investors ND Exchange platform for buying real-time online advertising Jan-10 AdMarvel US Opera Softw are 23 Mobile advertising platform services Jan-10 Quattro US Apple 275 Mobile advertising netw ork Aug-07 Chintano US Datran Media (nka PulsePoint) 20 Ad server May-07 Right Media US Yahoo 850 Display advertising exchange Apr-07 DoubleClick US Google 3,110 Platform for buying real-time online advertising
Source: GP Bullhound, Capital IQ, Company press releases, ND = Not Disclosed
36 GP Bullhound LLP
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38 GP Bullhound LLP