wepman omma presentation print

8/6/2019 Wepman OMMA Presentation PRINT

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Video / Rich Media

SSPs

Ad Networks

Vertical Custom

P

UBLI

AUDI

A

DVER

AdExchanges

DSPsMedia BuyingDesks

Agencies Sharing Data/Social Tools

Where We Are Today

2

CreativeOptimizationTargeted Networks / AMPs

Performance

Mobile

HERS

NCE

ISER

S

PublisherTools

Ad Operations

Ad Servers

Ad Servers

Data Suppliers

DMPs and DataAggregators

Media Planningand Attribution

Media Mgmt Systems

Verification

Retargeting

Measurementand Analytics


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Video / Rich Media

Horizontal

YieldOptimization

Ad Networks

Vertical

P

UBLI

AUDI

A

DVER

AdExchanges

DSPsMedia BuyingPlatforms

Agencies Sharing Data /Social Tools

Trading Desk

Landscape Observations

3

Targeted

Performance

Mobile

HERS

DataExchanges /Aggregators

CreativeOptimization

DataOptimization

NCE

ISER

S

PublisherTools

Data Suppliers

Ad Ops / Infrastructure

Ad Servers Ad Servers

Verification /Attribution

Analytics

Data Suppliers


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$4

$5

$6

$7

$8

Bn)

Q1 2011 Was Highest Q1 Ever

$7.3 Bn

Online Advertising Accelerating

4

$0

$1

$2

$3($

The display advertising market is forecast to grow over 30% morethan the overall online advertising market from 2009 to 2014

Notes:Source: Interactive Advertising Bureau (IAB).


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Video / Rich Media

YieldOptimization

Ad Networks

Vertical Custom

P

UBLI

AUDI

A

DVER

AdExchanges



$10.0

$12.3

$8.0

$10.0

$12.0

$14.0

$Bn)

Exchange-Based Buying MarketExchange-Based Buying Market

But Exchange-Based Buying is Still a Small Market

CreativeOptimization

Targeted Networks / AMPs

Performance

Mobile

HERS

NCE

ISER

S

PublisherTools

Ad Operations

Ad Servers

Ad ServersData Suppliers



Media Mgmt Systems

Verification

Retargeting


$0.7$1.4

$0.0

$2.0

$4.0

.

2010A 2011E

Display Advertising Exchange-Based Buying

Despite doubling YoY, exchange-based ad buying is expected tocontinue to be a small part of the overall display ad market

5


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Brands increasingly moving their ad spendonline

The rise of private exchanges, proprietarydata sets and premium ad networks

Brands fully embrace digital video and

Notable Trends

6

Google (and others) continue to marchacross the display advertising landscape

Agencies and ad networks recognize thechallenges and respond

Appearance of comprehensive marketing

solutions providers


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High impact formats (video, richmedia and new, engaging formats)

Increasing transparency and

DRIVERS:

Brands Moving Online

sense o ran sa e y

Following the audience (timespent)

Real ROI

7


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40%

50%

60%

pondents

What brandmarketers want

What brandmarketers get

Which metrics are most valuable for brand-building campaigns?Which metrics are most valuable for brand-building campaigns?

But There Are Challenges

0%

10%

20%

30%

PercentofR

e

8Notes:Source: Bain & Company


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AwarenessAwareness

OpinionOpinion

ConsiderationConsideration

Brands focused here Brand Awareness Favorability

Current metrics and newtechnologies focused here

Brands Care About the Top of the Funnel

IntentionIntention

SalesSales

9

Time spent Interaction Conversion / sales

The metrics that brands care about correspond to top of funnel

activities rather than conversion and click throughs


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Brands Care About Inventory Quality

By buying on longer tail sites, audience targeting exposes brands

to the potential to advertise against questionable content

10


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High quality

properties Brand-safe

inventory

Engaging formats

Premium Networks

Professional video

content In-stream ad units

Access to inventoryat scale

Video Networks

Leading publishers

and advertisers RTB capabilities

Proprietary,differentiated data

Private Exchanges

Brand-Oriented Solutions Offer Quality and Safety

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Premium publisherinventory & data

Optimized Pricing

Real time biddableinventory

Transparent

Category 5 Private Exchange

The Rise of Private Exchanges

12

Private exchanges enable brands to buy safe, targeted inventory whileenabling publishers to enter RTB market and protect CPMs


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US Online Video Ad Spending ($Bn) (1)US Online Video Ad Spending ($Bn) (1)

Format2010 Ad

Spend ($Bn)2015 Ad

Spend ($Bn)2010 ~ 2015

CAGR

Search $12.0 $21.5 12%

Banner Ads 6.2 11.7 14%

Classifieds and

$5.6

$7.1

$6.0

$8.0

Video is Growing and Outpacing Other Formats

US Online Ad Spending Growth by Format (1)US Online Ad Spending Growth by Format (1)

13

Directories. .

Rich Media 1.5 1.7 2%

Video 1.4 7.1 38%

Lead Generation 1.3 1.5 3%

Sponsorships 0.7 1.5 15%

Email 0.2 0.2 2%

Total $26.0 $49.5 14%

$1.4

$2.2

$3.1

$4.2

$0.0

$2.0

$4.0

2010 2011 2012 2013 2014 2015

Notes:Source: Wall Street Research.


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Delivery / ContentManagement EnablersContent Creators MonetizationPublishing Tools

Aggregation /Portals

Video Value Chain Fragmented Like Display

Like display, there are several areas across the video value chainthat will benefit from the growth in online brand advertising

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vs.

Online Video Growth Drivers

15

Audience viewing habits changing; moving to time-shifted media consumption

Video streaming represents 32% of time spent online

Online video advertising more engaging than TV

Video advertising promotes greater brand recall

Beginning to draw from TV budgets

Improved targeting technology


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AwarenessAwareness Social media is altering the purchase

funnel and creating a closed loopbetween awareness & branding

Data from Facebook, Twitter, reviews,comments and other social platformsbeing used by marketers to drive

Impact of Social Media

SalesSales

16

Social is a key component of online brand advertising campaigns

branding and conversion

Building a social presence is ofincreasing importance to brands


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Agencies Recognizing the Challenges

17


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Video / Rich Media

SSPs

Ad Networks

Vertical Custom

P

UBLI

AUDI

ADVER

AdExchanges



Google Gets It

18

Creative

OptimizationTargeted Networks / AMPs

Performance

HERS

NCE

ISER

S

PublisherTools

Ad Operations

Ad Servers

Ad ServersData Suppliers



Media Mgmt Systems

Verification

Retargeting


Mobile


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Networks creating new offerings, pivoting oracquiring businesses that bring desiredcapabilities

Some ad networks have attempted to transformtheir core business models to address new needs

Video / Rich Media

Ad Networks

Vertical Custom

So Do Ad Networks

Others have acquired desired capabilities

Networks need to evolve to survive and succeed

19

Targeted Networks / AMPs

Performance

Mobile

Media Mgmt Systems


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Who Else is Meeting the Needs of Brands?

20


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CMO

RTBCreative

OptimizationVendors

RetargetingData Management

Platforms

Display Ad Tech Point Providers

The Quest for Integrated Solutions

21

While the landscape is full of point providers, todays CMO is looking forcomprehensive solutions providers that can drive efficiencies

Integrated Display Advertising Optimization Solution Provider


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Focus has moved from CTOs office to CMOsoffice in quest to grow business while maximizingROI

Ever increasing options for the CMO acrossmultiple channels (TV, radio, print, online display,di ital video search etc.

Decade of the CMO

Increasing complexity and proliferation oftechnologies designed to drive efficiency

Ever-evolving landscape with alphabet soup of

vendors

In todays constrained environment, the CMO is tasked with findingcreative ways to grow top line while maximizing bottom line

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Marketers are demandingcomprehensive solutions to managingtheir online marketing spend

Current landscape is too fragmentedand confusing

$6,000

$8,000

ealValue($MM)(1)

Digital Media M&A TransactionsDigital Media M&A Transactions

Consolidation is Inevitable

23

New entrants, such as large capenterprise software providers and adnetworks, are becoming more active inad tech M&A

Large technology companies haverecord amount of cash on balance sheetand are looking to deploy it for growth

$0

$2,000

4,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

2009 2010 2011

DigitalMedi

aD

Notes:(1) GCAS database.


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Strategic M&A and Investment Activity

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Recently, there has been an up-tick in private-to-private M&Adeal activity

Larger private companies using M&A to:

Increase scale in advance of IPO or other event

Broaden suite of product offerings to meet needs of advertisers

Evolve business

Private-to-Private Transactions Increasing

25

Take advantage of price capitulation

Acquired

October 2010

Acquired

October 2010

Acquired

July 2011

Acquired

February 2011

Acquired

December 2010

Acquired

November 2010

Acquired

November 2010

Acquired

November 2010

Acquired

February 2011

Acquired

April 2011


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Billions invested in ad tech landscape over last few years

Focus on investment returns may drive near-term consolidation

Time is important element of determining investment returns

Return Formula More Important Now

Returnn( )- 1

1

d=

t

26


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MarketingAgency

Targets

Diverse Strategic Interest in Ad Tech Innovators

Network / Data

Technology

27

Ad Networks


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Strategic Fit

Diverse Strategic Interest in Demand-Side Ad Tech

Ability / Willingness to Pay

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Exchange-based buying will be an important component of display but only a component

Real revenue will continue come from direct buys and brand-oriented solutions

Private exchanges and programmatic premium buys will continue to

Key Takeaways

29

Video and social will become dominant branding markets

Maybe agencies and networks will be okay

The CMO needs help and comprehensive solutions

This will continue to be a strategically important market

Thank You


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TOKYO SAN FRANCISCO MENLO PARK CHICAGO NEW YORK LONDON MUMBAI SHANGHAI

GCA Savvians Digital Media Advisory Business

Leading investment banking firm with over 200 professionalsworldwide

Services include advice on mergers and acquisitions, privatecapital finance and restructurings

Advised on over $70 billion in transactions since 2006

Leading advisor to media companies new and old

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Preferred EquityInvestment andCredit FacilityAcquired by

Acquired byAcquiredby

$5.9Bn

Tender Offer

$9Bn

TOB of CommonStock of

Acquired by

Formation ofJV with

Acquisition of

Semiconductor Business

$522MM$150MM

Divestiture ofU.S. Venture

Portfolio

Selected Cross-Border Transactions

Acquired by

Leading Global Independent Advisory Firm

31Offices in San Francisco, Menlo Park, Chicago, New York, London, Mumbai, Shanghai and Tokyo

75MM

$500MM$448MMto

$493MM

o a ein Acquired by

$1.3Bn

Acquired by

$300MM

$10.8Bn $747MM

Acquired by

$1.6Bn

Acquisitionof

GmB H Automotive

ATE Operations

Acquisitionof

$400MM

Acquired byAcquired by

Formation ofJV with

$690MM

Acquisitionof

$1.1Bn

Acquisition of Acquisition of

Next Gen. Mobile Comm.Systems Assets

Select OP-1 Assets &Manufacturing Facility

Acquisition of

Acquisition of

PVOH Business

Acquisitionof

$125MM

Yamakawa Trading Co.

Over 50 successful cross-border transactionsrepresenting nearly 15 different countries


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Acquired By Acquired By Sale of Subscription Acquisition of JV from Sale of Business Unit Secondary Preferred Stock Acquired by Acquisition of

Music Service to Mogae Consultants Six Apart KK to Sale

We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Buyer We Advised the Seller We Advised the Founders Financial Advisor We Advised the Seller We Advised the Buyer

May 2011 April 2011 March 2011 January 2011 January 2011 January 2011 December 2010 December 2010 November 2010

Preferred Stock Acquired by Acquisition of Preferred Stock Acquired by Acquired by Acquired by Acquired by Acquired by

Financial Adviser We advised the seller We Advised the Buyer Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

October 2010 October 2010 October 2010 August 2010 July 2010 June 2010 June 2010 June 2010 January 2010

1UP Digital Networ k

Proven Leadership in Digital Media Transactions

32

Sold Stake in

Preferred Stock Acquired by Preferred Stock Preferred Stock Acquired by Minority Preferred Preferred Stock Preferred Stock

a Subsidiary of Investment in

to

Financial Advisor We Advised the Seller Financial Advisor Financial Advisor We Advised the Seller Financial Advisor Financial Advisor We Advised the Seller Financial Advisor

October 2009 April 2009 February 2009 January 2009 January 2009 November 2008 November 2008 October 2008 August 2008

Preferred Stock Preferred Stock Preferred Stock Preferred Stock Preferred Stock Acquired by Preferred Stock Preferred Stock Acquisition of

& Recapitalization

Mobile Services Business

Financial Advisor Financial Advisor Financial Advisor Placement Agent Financial Advisor We Advised the Seller Placement Agent Placement Agent We Advised the Buyer

July 2008 July 2008 June 2008 April 2008 March 2008 February 2008 January 2008 January 2008 December 2007

Acquired by Acquired by Acquired by Acquisition of Acquired by Senior Credit Facility Preferred Stock Merger with Minority Investment

in

We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Buyer We Advised the Seller Financial Advisor Placement Agent We Advised INTAC Financial Advisor

December 2007 December 2007 December 2007 October 2007 October 2007 October 2007 October 2007 October 2007 August 2007

FRONTLINE

MANAGEMENT

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