20130423 e mailmarketing market trends +ma + profiles

Research Report

Email Marketing2013

Content

2

I. Market Trends

II. M&A Activity

III. Company Profiles

Mergers Alliance

Market trends

Interactive landscape

Sourc

e:

Chie

fmart

ec

4

Email marketing

5

43%

50%

51%

55%

46%

37%

39%

37%

Email marketing

Online video

Mobile marketing

Created social media

In the next three years, how do you think marketing's effectiveness will change compared

to today for each of the following channels?

Interactive marketing

Interactive embeds Itself in the mix

• Interactive marketing includes Social Media, Email marketing, Mobile Marketing, Display advertising and Search Marketing

• By 2016, advertisers will spend as much on interactive marketing as they do on television advertising today

• Investment in search marketing, display advertising, email marketing, mobile marketing, and social media will near $77 billion and represent 35% of all advertising, by 2016

Growth of interactive media spend is fueled by:

• Interactive marketing effectiveness

• Interactive channels will generate better results over time.

30%

35%

40%

41%

57%

40%

54%

48%

0% 20% 40% 60% 80% 100%

Paid search listings

Display advertising

SEO

Paid placement in social media

Increase Stay same Decrease N/a

Source: Interactive marketing forecast 2011 to 2016 – Forrester

• Interactive channels will generate better results over time.

• Increased measurability

• Bigger interactive teams

• Because of larger teams, programs can be expanded

• Excitement about emerging media

• Customer obsession

• Marketers offer customized experiences across customers’ preferred touchpoints

• Forrester projects that by 2015 smartphone adoption will grow 150%, and 82 million consumers (in the US) will own a tablet

Source: December 2010 US Interactive Marketing Executive Online Survey

6

Average Deliverability

Rate

Average Open Rate

Average Click Through Rate

Average amount of time

typical

Marketing departments

84%

24%

13%

24%

Email marketing in Interactive Mix

• Email marketing is one of the most powerful marketing tools available today. It is easy, affordable, direct, actionable, and highly effective

• Most Email Service Providers (ESPs) are increasingly making use of more sophisticated campaigns and tactics instead of focusing on short term gains (boosting open & click rates)

• Blending email and social media marketing utilizes the strengths of each channel, and also strengthens the capability and value of each individual channel in ways that cannot be achieved by managing these capabilities seperately

• Integration of Social and Email allows ESPs to email

Email Marketing Statistics

departments spend on email

marketing

Source: iContact“2010 Email Marketing Benchmarking Survey,”Eloqua

• Integration of Social and Email allows ESPs to email a promotion to a high-value customer and, with the click of a button (ideally, a button embedded in the email), customers disseminate the same promotion, with the customer’s credible endorsement, to dozens, hundreds or even thousands of individuals in that customer’s social network

• Roughly 80% of marketers indicated that social sharing “extends the reach of email content to new markets” and “increases brand reputation and awareness.”

• Currently, the most important factors in marketing success are delivering value to empowered customers, fostering long lasting relationships with customers and capturing the value by measuring marketing effectiveness

Create and

send your

email

Share your

email across

social

networks

Engage with

an extended

social

network

Attract New

Email List

Subscribers

Track and

analyze

related

activity

7

0

200

400

600

800

1.000

1.200

1.400

1.600

2009 2010 2011 2012 2013 2014

€m

illi

on

s

Forecast: US Email marketing Spend, 2009 -2014

Retention email Acquisition email Transactional emailQuestion: What methods do you currently use to acquire email marketing addresses? Which

method of email acquisition produces your most valuable email subscribers?

How is the budget spend?

Types of emails sent:

• The vast majority of emails sent are used for retention or customer acquisition purposes. It is expected that the share of emails sent to acquire new customers will increase slightly

• Customer retention email campaigns have highest conversion rates, therefore companies spend more resources on these programs

• Transactional emails, such as order confirmations and account updates, hardly generate additional sale, thus little marketing budget is spend on these programs

• Retention email spend: budget spend on emailing existing customers

0% 10% 20% 30% 40% 50% 60%

Not sure

Purchased on CD

SMS text Opt-in Code

mobile ads or co-registration

QR Code

co-registration

email list rental

paid search

website banner ads

call center

append email address

in-store, point of sale

social media

website

valuable email subscribers?

Currently Used Delivers most valuable subscribers

Source: US Interactive Marketing Forecast 2009 2014 – ForresterInteractive marketing forecast 2011 to 2016 – Forrester http://www.clickz.com/clickz/column/2184428/how-to-drive-revenue-from-retention-email-marketing

• Best ways to drive revenue from retention campaigns:

• Birthday mail

• Review Solicitation

• Replenishment Program

• Re-permission

Email acquisition

• Both the method through which email addresses are obtained, as how careful acquisition programs are shaped, determine the successfulness of an acquisition campaign

• The most valuable subscribers to your email program actually come from previous customer interaction moments (website, in-store contact, customer contact centers)

• Current email acquisition methods do not correlate with tactics that produce most valuable subscribers

8

• The global size of the email marketing market is approximately €2.3 bn (2011)

• This amount for the email marketing industry as a whole, representing less than 6% of total direct mail expenditures of € 38,6bn, recorded in 2011 and a mere 0.7% of total global advertizing expenditures of € 342.7bn

• The US market for online marketing is, with annual spend of €24.5,slightly larger than the European annual online marketing spend

60.000

70.000

Forecast: US Interactive Marketing Spend, 2011 - 2016

US & Worldwide market

30

Online ad spend in €bn Europe vs United States

0

10.000

20.000

30.000

40.000

50.000

60.000

2011 2012 2013 2014 2015 2016

€m

illi

on

s

Social Media

Email marketing

Mobile marketing

Display advertising

Search Marketing

Source: http://www.email-marketing-reports.com/basics/why.htmNet Marketing Will Take 18% Of Budget By 2012 – ForresterInteractive marketing forecast 2011 to 2016 – Forrester

0

5

10

15

20

25

2010 2011

Europe US

9

Three major themes are dominating the development of email marketing

• It becomes more common for ESPs to run both regular welcome programs, and coordinate content over multiple channels (email, website, etc)

• In particular Social Media integration has proven synergy benefits

• ESPs focus on integration of mobile

• Specifically targeted campaigns

In addition, the quality offered by ESPs becomes one of their main selling points. Customers are increasingly focused on quality account management offered by ESPs

Trends – three themes

“What are the biggest email marketing challenges you expect to face in the

Vendor Offerings Average RankGood Account management 1,96

Integration with other online tools 3,73

Automation of next-best action 3,85

Support for your database record 3,96

Professional services 4,54

Support for channels outside of email 5,01

International campaign support 5,89

Proprietary offices around the world 7,05

1 = most important, 8 = least important

Please Rank how important the following venor

offerings are to you

n=74

31%

34%

35%

36%

38%

38%

43%

50%

57%

0% 10% 20% 30% 40% 50% 60%

Having adequate staf f ing resources

Retaining current email subscribers

Creating and managing email content

Finding new email subscribers

Increasing open en click-through rates

Managing email f requency and cadence

Leveraging segmentation

Leveraging dynamic content

Integrating email with other channels

Source: The Forrester Wave: email marketing vendors Q1 2012 – Forrester

“What are the biggest email marketing challenges you expect to face in the next two years?”

10

Email marketing – multi channel integration (i)

Multi-channel Integration

• Nearly every enterprise marketer uses email marketing as the workhorse of her interactive mix. But spend on email marketing delivery, analytics, integration, and creative nears just $2.5 billion by 2016 because of its low CPMs

• One of biggest challenges is integrating email marketing with other channels

More email will be sent

• Launch new interactive programs

• For every action on every separate channel, you notify your clients/followers/relations via email. For example: for every entry on a corporate blog, an email is sent to its followers

• The more channels marketers embrace, the more email programs they’ll need to support them• The more channels marketers embrace, the more email programs they’ll need to support them

• Create calculated campaigns

• Further email delivery growth will come as marketers spend to get more specific about what they send to whom and when

• Upgrade email analytics

• ESPs start spending more to send the right message to enrich customer lifetime value. Email marketers are investing in analytics as part of a larger focus on customer relationship management (CRM) and customer intelligence

Source: Interactive marketing forecast 2011 to 2016 – Forrester 11

Email marketing – multi channel integration (ii)

New Trends, New Behaviors. How does a marketing agency adapt?

• ESPs that understand how to integrate the various channels through which a message is spread, are on the right path

• ESPs only offering one or a few services are going to be left behind by the other agencies who can offer a one-stop-shop approach for their clients

Generalist specialists

• Employees at generalist marketing agencies and ESPs that are trained in several areas of marketing are able to accomplish a lot more and a lot faster

• Teams that are well-rounded will have an easier time working to put strategy in place and managing it over time

Measure New Metrics

• Across channels, the holistic agency will have to track new metrics like content reach, traffic, search rankings, social media shares, link-backs, and or leads/sales

Source: Optify

12

71%Use email to promote presence on Twitter,

Facebook and other social channels

Objectives for integrating email and social mediaHow are marketers currently integrating social media?

Email marketing – social media

• The emergence of social media has transformed the way people communicate online, and particularly how companies market their products and services to their target audience

• Businesses use social media in their email marketing campaigns because social media has the capacity to reach a large audience very quickly, providing an opportunity for a company to share content, increase their online following and enhance their brand credibility

• Social media complements email marketing because it provides additional channels for sharing information and engaging readers

91%Facebook

How are marketers currently integrating social media?

5%

17%

35%

48%

63%

71%

0% 20% 40% 60% 80%

Other

Leverage agency services to build an integrated social media program

Integrate user-generated content/reviews into email marketing campaigns

Use email to launch a referral/viral marketing campaign in social media

Enable recipients to share email content with their social networks

Facebook and other social channels

10%

3%

4%

12%

13%

15%

34%

48%

84%

91%

0% 20% 40% 60% 80% 100%

Other

Yelp

Foursquare

Myspace

Digg

Sharethis

YouTube

Linkedin

Twitter

Facebook

Source: http://www.marketingprofs.comhttp://wsiwebvision.com/

10%

3%

4%

12%

13%

15%

34%

48%

84%

91%

0% 20% 40% 60% 80% 100%

Other

Yelp

Foursquare

Myspace

Digg

Sharethis

YouTube

Linkedin

Twitter

Facebook

13

6%

8%

8%

10%

28%

38%

43%

48%

71%

80%

Company's blog

Youtube

Linkedin

Twitter

Facebook

21%

6%

29%

Signif icantly better

Somewhat better

Neutral

Email marketing – effectiveness social media

Social media sites that produced the best email marketing results according to email and online marketers in North America (June 2010)

Change in results from combining social media marketing with email marketing according to email and online marketers in North America (June 2010)

3%

33%

4%

6%

5%

20%

0% 20% 40% 60% 80% 100%

Don't know

Other

Company's online community

Company's blog

Used Produced best result

33%11%

Not any better

Did not use SMM with email marketing / Not applicable

Source:http://www.emarketer.com/

• More than half of email and online marketers (53%) said that combining social media marketing with email marketing generated either significantly better or somewhat better results

• Facebook and Twitter were the most commonly used sites in integrated email-social campaigns, and Facebook integration produced the best results.

Note: in the past year, respondents were asked “if you used social media together with email marketing to get better results this last year, how much better were your results?”

14

Email marketing – mobile

• Over the course of 2011, the number of smart phones sold became larger than PCs sold

• The amount of customers reading their email on mobile device is increasing too

• It is crucial to the success of your campaign that the email content is suited for both PCs and mobile reading

• Mobile email will account for 10 to 50% of email opens, depending on your target audience, product and email type.

• ESPs are developing mobile apps to manage and track mobile campaigns

• Simultaneously, campaigns are tailored to be mutually suitable for PC and mobile

• ESPs start to automatically display campaigns in a mobile friendly way when viewed in a mobile browser

11%

15%

18%

20%

32%

35%

41%

56%

0% 10% 20% 30% 40% 50% 60%

Non-Shopping related application

Location-Based Social Networking

Telephone

Twitter

Shopping related app (eBay, …

Facebook

Text Message

Email

Source: http://www.emailmonday.comhttp://www.electriceasel.com/

Mobile CommerceHow did you receive the message(s) that led to the purchase?

15

Changing Market – targeting and analytics

€ 1.400

€ 1.600

€ 1.800

€ 2.000

What is the email marketing budget spend on

Targeted Emails

• Email marketing becomes more focused. Specific messages are sent to specific groups. Email badges become smaller, and frequency of email sent goes up (both per sub group as well as a total, as a campaign is targeted differently to multiple groups)

Analytics emails

• Email marketers are investing in analytics as part of a larger focus on customer relationship management (CRM) and customer intelligence

• Only 13% of consumers say that the ads they see are relevant to their wants and needs, and even fewer find direct mail and email marketing relevant

€ 0

€ 200

€ 400

€ 600

€ 800

€ 1.000

€ 1.200

€ 1.400

2011 2012 2013 2014 2015 2016

€m

illi

on

Creative

Integration

Analytics

Delivery

• With increasing importance of delivering the right message to the right person at the right time, a larger portion of the email marketing budget will be spend on analytics over the next years

• Also, with the increase of the amount of email sent, spend on ‘delivery’ expenses also increases relatively faster than spend on creation and integration

Source: Interactive marketing forecast 2011 to 2016 – Forrester The intelligent approach to customer intelligence 2009 - Forrester

16

The Netherlands

• In The Netherlands, the total spent on email marketing campaigns during 2011 was € 177 mio.

• Driven by the highest ROI among online marketing instruments, the email marketing market in the Netherlands is expected to increase to € 360 mio in 2016 (CAGR of 15.3%)

• The growth of the email marketing market will outperform the expectations for the online marketing spend as a whole. Whereas thetotal spend on online marketing amounts €1.1 bn in 2011, it is expected to grow 10.2% annually to € 1.7bn in 2016

• The Netherlands are one of the leading European countries on online advertising. Dutch companies are the fifth largest spenders on online advertising in Europe

Dutch email marketing market

€ 0

€ 200

€ 400

€ 600

€ 800

€ 1.000

€ 1.200

€ 1.400

€ 1.600

€ 1.800

€ 0

€ 50

€ 100

€ 150

€ 200

€ 250

€ 300

€ 350

€ 400

2011 2012 2013 2014 2015 2016

on

lin

e m

ark

eti

ng

Em

ail

email marketing spend online marketing spend

CAGR 10,2%

CAGR 15,3%

€ 0

€ 1.000

€ 2.000

€ 3.000

€ 4.000

€ 5.000

€ 6.000

Total online ad spend (€m)

Source: PWC Entertainment & Media Outlook 2012-2016Adex 2011 Online advertising in EuropeNet Marketing Will Take 18% Of Budget By 2012 – ForresterDeloitte & IAB

17

Future role of email marketing

Email marketing is one of the dominant marketing instruments in the mix, and will remain to be so

• 97% of marketers are using or planning to use email marketing this year

• The use of email marketing is growing, and is expected to see an 11% CAGR (globally) over the next five years

• Reasons for increasing use of email marketing:

• A current email renaissance

• Turn on more and smarter programs to boost sluggish sales;

• Shift money to email from direct mail; and

•• Improve email effectiveness by linking it to other channels like search or user-generated ratings and reviews

• Growth in marketing due to the social inbox

• Further decline in email marketing costs – although already low, budget-strapped companies will rely more on email

Source: Interactive marketing forecast 2011 to 2016 – ForresterEloqua

18

Dutch email marketing landscape

Email Service Providers Software Development

19

Lead Generation

M&A Activity

Date Acquirer Country Target Country Pre-deal

Revenue

Pre-deal

EBITDA

Pre-deal

EBIT

Sales

Multiple

EBIT

Multiple

Pending ORACLE INC. US ELOQUA INC. US € 55,1 € -3,9 € -2,5 12,0 n.s.

Oct-12 EXACTTARGET INC. US IGODIGITAL LLC US € 1,8 n.a. n.a. 9,2 n.a.

Oct-12 EXACTTARGET INC. US PARDOT LLC US n.a. n.a. n.a. n.a. n.a.

Oct-12 IZURIUM CAPITAL ADVISERS EUROPE LLP GB EMAILVISION HOLDINGS LTD GB € 66,9 € -11,6 € -23,3 0,3 n.a.

Sep-12 EMAILVISION HOLDINGS LTD GB PREDICTIVE INTENT LTD GB n.a. n.a. n.a. n.a. n.a.

Aug-12 IPO ELOQUA INC. US € 58,3 n.a. n.a. 1,5 n.a.

Jun-12 CONSTANT CONTACT INC. US SINGLEPLATFORM CORPORATION US n.a. n.a. n.a. n.a. n.a.

Jun-12 APRIMO INC. US ECIRCLE GMBH DE € 22,0 € 0,9 € -0,3 n.a. n.a.

May-12 TWITTER INC. US RESTENGINE LLC US n.a. n.a. n.a. n.a. n.a.

Apr-12 MARKETO INC. US CROWD FACTORY INC. US n.a. n.a. n.a. n.a. n.a.

• A selection of recent interesting deals in the email marketing market are:

*

M&A (i)

Apr-12 MARKETO INC. US CROWD FACTORY INC. US n.a. n.a. n.a. n.a. n.a.

Mar-12 IPO EXACTTARGET INC. US € 157,0 n.a. n.a. 0,8 n.a.

Feb-12 VOCUS INC. US ICONTACT CORPORATION US € 37,0 n.a. € -4,6 3,4 n.s.

Jan-12 CONSTANT CONTACT INC. US CARDSTAR INC. US n.a. n.a. n.a. n.a. n.a.

Dec-11 VERTICALRESPONSE INC. US ROOST INC. US € 0,9 n.a. n.a. n.a. n.a.

Dec-11 STERLING INFOSYSTEMS INC. US ACXIOM INFORMATION SECURITY SYSTEMS INC. US n.a. n.a. n.a. n.a. n.a.

Nov-11 BATTERY MANAGEMENT CORPORATION US MARKETO INC. US € 17,7 n.a. n.a. 2,1 n.a.

Sep-11 EXACTTARGET INC. US FRONTIER DIGITAL BR n.a. n.a. n.a. n.a. n.a.

Aug-11 HUBSPOT INC. US ONEFORTY INC. US n.a. n.a. n.a. n.a. n.a.

Jun-11 HUBSPOT INC. US PERFORMABLE US € 74,0 n.a. n.a. n.a. n.a.

Jun-11 LYRIS INC. US COGENT ONLINE PTY LTD AU n.a. n.a. n.a. n.a. n.a.

Jun-11 EMAILVISION HOLDINGS LTD GB SMARTFOCUS GROUP PLC GB € 16,3 € 2,2 € 1,1 1,8 25,8

Feb-11 CONSTANT CONTACT INC. US BANTAM NETWORKS LLC'S ASSETS US n.a. n.a. n.a. n.a. n.a.

Source: ZephyrBlueMind 21

Date Acquirer Country Target Country Pre-deal

Revenue

Pre-deal

EBITDA

Pre-deal

EBIT

Sales

Multiple

EBIT

Multiple

Jan-11 TERADATA CORPORATION US APRIMO INC. US € 59,8 n.a. € 2,4 6,5 164,8

Aug-10 EXACTTARGET INC. US MPATH GLOBAL AU n.a. n.a. n.a. n.a. n.a.

Jul-10 STRONGMAIL SYSTEMS INC. US CONVERSA MARKETING LLC US n.a. n.a. n.a. n.a. n.a.

Jul-10 RESPONSYS INC. US ESERVICES GROUP PTY LTD AU n.a. n.a. n.a. n.a. n.a.

May-10 CONSTANT CONTACT INC. US NUTSHELLMAIL US n.a. n.a. n.a. n.a. n.a.

May-10 LYRIS INC. US INTAFACE MARKETING AR n.a. n.a. n.a. n.a. n.a.

Mar-10 EXACTTARGET INC. US COTWEET INC. US n.a. n.a. n.a. n.a. n.a.

Feb-10 TA ASSOCIATES US ECIRCLE GMBH DE € 18,6 € 5,0 € 4,6 n.a. n.a.

Dec-09 STRONGMAIL SYSTEMS INC. US EMAIL ADVISOR LLC, THE US n.a. n.a. n.a. n.a. n.a.

Dec-09 VIRID INTERATIVIDADE DIGITAL LTDA BR ZARTANA MARKETING DIRETO BR n.a. n.a. n.a. n.a. n.a.

Nov-09 TCMI INC. US EXACTTARGET INC. US € 18,2 n.a. n.a. 2,6 n.a.

M&A (ii)

Nov-09 TCMI INC. US EXACTTARGET INC. US € 18,2 n.a. n.a. 2,6 n.a.

Sep-09 ACXIOM CORPORATION US DIRECT MARKETING SERVICES UAE n.a. n.a. n.a. n.a. n.a.

Sep-09 EXACTTARGET INC. US KEYMAIL MARKETING LTD GB n.a. n.a. n.a. n.a. n.a.

Jun-09 STRONGMAIL SYSTEMS INC. US POPULARMEDIA INC. US n.a. n.a. n.a. n.a. n.a.

May-09 LYRIS INC. US FACULTAS LTD GB n.a. n.a. n.a. n.a. n.a.

May-09 BATTERY MANAGEMENT CORPORATION US EXACTTARGET INC. US € 20,4 n.a. n.a. 2,6 n.a.

Mar-09 E-MARK SOLUTIONS BV NL OSWALD & RUBY BV NL n.a. n.a. n.a. n.a. n.a.

Jan-09 WEST END VENTURES PLC GB DOTMAILER LTD GB € 3,1 € 1,0 € 0,9 2,6 8,9

Jan-09 ONLINE MARKETING GROUP BV NL MAILMEDIA BV NL € 5,0 n.a. n.a. n.a. n.a.

Oct-08 SELLIGENT SA BE OPTIZEN BE € 2,6 € 1,7 € 1,7 n.a. n.a.

Jun-08 PROTUS IP SOLUTIONS INC. CA GOT CORPORATION CA € 4,1 n.a. n.a. n.a. n.a.

Sep-06 BAY PARTNERS LLC US ELOQUA CORPORATION CA € 19,5 n.a. n.a. 0,5 n.a.

Average 3,5 66,5

Median 2,6 25,8

N 13 3

Source: ZephyrBlueMind

*

22

The email marketing market is expected to grow further:

• Foreign investors

The M&A activity within the email marketing market has been an Anglo Saxon play mostly. These players have been looking into expanding to Europe, by opening up local branches. Meanwhile, a number of these foreposts have been closed, and it is expected that globally active, acquisitive email marketing companies will re-enter Europe by acquiring local companies for their expertise, clients and network

• Domestic market

A number of markets show a high number of fragmented players in the email marketing field. Consolidation activity in the market is expected

Growth Potential

• Strategic Partnerships

A number of companies have developed specialized technology that enables its clients to target

consumers in specialized ways. We foresee companies forming partnerships over these

technologies

• Dutch Market

The market in the Netherlands is characterised by many, relatively small, players. There is no

single market leader. There has been a price war, initiated by big international players that

entered the Dutch market. We expect a shake-out that causes small players to

be liquidated, and several M&A transaction in the near future

Source: BlueMind

23

Company Profiles

www.tripolis.com

Location: Amsterdam, Netherlands

Management: Joost Nienhuis, Bas Kuntz

• Founded in 1999

• Offices in the Netherlands, Germany, Turkey, Central America, Argentina and Shanghai

• ISO 9001:2008 and ISO/IEC 27001:2005 certified

Company Status and Situation

FinancialsSector and activities

Tripolis Solutions

• Tripolis is a technology developer in email marketing software

• The company is a pure technology player and does not run email campaigns, like ESPs do.

• Email marketing SW is sold to third parties via partners, either VAR or Full Service Partners

• Users pay via a yearly license, and in addition CPM based on fair use

• Tripolis’ key product is ‘Dynamic Mail’, a solution that fills in email frames at the moment it is opened, allowing to present the latest information, tweets, offers etc depending on the device (including app store) and geo location the email is opened

• Tripolis is active in Europe, Latin America and Asia/Australia. Future roll out plans include Russia

2012

Turnover € 3 m

EBIT ~20%

Employees 40

* Figures estimated by BlueMind Corporate Finance

25


www.blinker.com

Location: Zoetermeer, Netherlands

Management: Marc Schussler

• Blinker has recently separated its services and software activities

• Services to large customers is an increasing source of revenue

• Blinker would consider undertaking an acquisition



Blinker

• Blinker is an ESP, that developed its proprietary SW (mailplus)

• Recently, the services and SW development activities have been split in separate entities

• Blinker = ESP

• Mailplus = SW

• SW is sold as SaaS solution (license fee), in addition a CPM fee is charged for sending out mailings.

• Blinker runs its own hosting (ISP)

• Clients are mostly CRM/LeadGen companies that operate large databases

• The company has an automated survey & form tool that generates sophisticated benchmarking reports (freemiummodel)

26

2012

Turnover € 4,5 m

EBIT n.a.

Employees 50



www.e-mark.nl

Location: Haarlem, Netherlands

Management: Ubbo Waardenberg, Eric Verhage

• Ubbo founded E-mark in 1999 In 2008, he sold the company

• After developing specialized database software tools, Ubbo needed a company that could handle volume for this tool, and he bought back E-mark.

• Recently, ESP Zoomio was acquired

• E-mark would consider undertaking other acquisitions



E-mark

• E-mark is a ESP and SW developer for email marketing campaigns

• The company is essentially a SW manufacturer that distributes to the product to its clients

• Currently the company is working on a switch to service based income model, into performance based

27

2012

Turnover € 4,0 m

EBIT n.a.

Employees 25



www. dm-interface.nl

Location: Almere, Netherlands

Management: Wiebe Barkey,

• DM Interface is shifting its business model from print / email service provider to development of software products

• Currently software is developed for specific clients. All building blocks of the software are reusable

• DM Interface is in the process of implementing a managed services business model



DM Interface

• DM Interface is a cross media solutions bureau.

• The company develops SW tools/applications that are used for segmented communications to specific customers

• DM Interface has a history in handling print mailings and still coordinates print mailings

• DM Interface’s current specialty is handling complex, multi-item mailings to specific subgroups of customers, including specialized follow up actions

• Customers are typically large insurance companies, such as Achmea, Delta Lloyd, Zilveren Kruis, PGGM, etc.

• In addition, DM Interface enriches its clients customer data to enable enhanced targeting

28

2012

Turnover € 6 m

EBIT 20%

Employees 40



www.spotney.com

Location: Houten, Netherlands

Management: Richard Musch, Robbert-Jan Hanse

• Spotney is rapidly developing their services for new channels

• Challenge is to roll this technique out throughout Europe

• Contemplating small acquisition in Western Europe

• The company anticipates rapid growth over the next years



Spotney

• Spotney is founded in 2011 by the founders of E2MA

• Spotney is a lead generation company that intents to revolutionize the concept of lead-gen.

• By enriching email databases with data (big data analysis, real time, chross channel) on specific consumer preferences regarding timing, brand, device, media, message etc, and optimizing commercial messages to the consumers preferences

• Spotney uses the customers email address as cross-device tracing instrument

• Currently implemented in email marketing, will roll out to display, social, search, content etc.

29

2012

Turnover (Gross) € 5,5 m

EBIT 20%

Employees 5



www.yourzine.nl

Location: ‘s-Hertogenbosch, Netherlands

Management: Michiel van Riemsdijk

• Yourzine is changing its customer strategy. Formerly focused on CPM + fee, now changing to performance based (ROI) models

• Organization is changing as well, different skills are needed to advise customers on strategy, instead of developing SW.

• Yourzine recognizes that email plays central theme in interactive marketing. The company starts integrating other channels in their strategy as well, covering al touch-points; DM fulfillment, Customer Contact Centers, etc



Yourzine

• Yourzine is an Email Service Provider, following an omni-channel approach to online marketing

• Customer lifecycle is central concept in Yourzine’s services. Customer contact strategy is key theme .

• Company started as SW provider, soon realised other companies were better utilized to provide those solutions

• Partners with Pitney Bowes, Aprimo, Seligent and Tripolis for technologic solutions

• Customers include Hema, ANWB, Ikea and V&D

30

2012

Turnover € 4,5 m

EBIT ~ 20%

Employees 5



www.omg.nl

Location: Utrecht, NetherlandsManagement: Edwin Basten, Marcel Misdorp

• OMG is focusing on traditional retail clients to increase the use of email marketing in their mix

• The company has developed a specialized tool (MailMaps) that enables local retailers to target only customers that are in the same geographic area

• Provides a channel next to the traditional door-to-door leaflets

• Potential marketsize of € 1b

• The company considers making a move into the French market



Online Marketing Group

• OMG is an Online Direct Media bureau, that focuses on lead generation and maintaining high-value relations with clients and customers

• OMG provides its clients with high-value consumer email addresses, which enables them to send highly targeted emails

• The company has collected a large email addresses database (3-step opt-in) with rich demographic details to every entry

• Clients are able to target specific groups of leads through OMGs database

• B2B: CPM > 100,-

• B2C: CPM > 500,-

31

2012

Turnover € 7 m

EBIT na

Employees 30



www.ematters.nl

Location: Amsterdam, NetherlandsManagement: Wouter Theijsmeijer, Ruben Niet

• Ematters started as ESP, intending to become one of the top players in email marketing

• After becoming the top 3 ESP in several annual lists, Emattersdeveloped additional services to anticipate to the cross-channel development in the market

• Ematters’ intention is to become number 1 digital marketing company

• Wouter is chairman of the DDMA search committee



Ematters

• Ematters is a full service Digital Direct Marketing company, chross channel

• The company started as pure ESP, later developed additional services

• Today, the company offers services in email marketing, search, display and social media

• Ematters uses email marketing SW of Tripolis

32

2012

Turnover € 2 m

EBIT na

Employees 10



www.measuremail.nl

Location: Dordrecht, Netherlands

Management: Martijn Groeneweg, Ronald Dubbeldam

• Measuremail has invested heavily in updating its email software over the last years

• The founders of Measuremail have developed a new SW tool (‘MailMerk’) that identifies unauthorized emails sent from clients’ accounts (i.e. phishing mails etc)

• SW is operated in separate entity

• Shareholders would consider sale of the company



MeasureMail

• Measuremail is a full services email service provider (ESP), active in the Netherlands and Belgium

• Measuremail has developed proprietary SW for its email services

• Measuremail handles relatively many transactional emails for its clients

• These are typically complicated email processes that differ widely in follow up actions

• Measuremail aims at servicing entire email processes for its clients

33

2012

Turnover € 2 m

EBIT na

Employees 15



www.copernica.com

Location: Amsterdam, Netherlands

Management: Michael Linthorst

• Copernica has, since its start, grown through organic growth

• Copernica has overcome the critical phase of being too small

• Expects a shake-out among the smallest companies in the market

• The company intends to exceed its steady growth over the last years

• Focus on organic growth, not via M&A



Copernica

• Copernica is a pure SW developer for the email marketing market

• SW is sold through ~200 partners and resellers who provide added services

• Also, marketing agencies that develop online strategies for their clients use Copernica’s SW

• Copernica has incurred YoY growth in excess of 25% over the last 4 years

• Revenues are mostly recurring (>95%)

• Software is build in a way that makes it easy to add different languages to it.

• Translate agency should be able to deliver in ~60hours

34

2012

Turnover € 2 m

EBIT na

Employees 21



www.e2ma.nl

Location: Houten, Netherlands

Management: Joost van Driel

• The company has grown quickly after its initiation

• In 2008 the shareholders nearly sold the company, when the credit crisis set it and cancelled the deal

• The economic crisis and the introduction of the “Do Not Call Register” in the 2009 have caused the company some trouble

• The founding shareholders have appointed a new CEO to run the company and are no longer involved with day-to-day operations

• The shareholders intend to sell the company in a few years



E2MA Consumer Profiling

• E2MA is a web-based lead generation company

• E2MA excels in questionnaire management – asking the right questions at the right time

• E2MA works with advanced ranking technology, opt-in verification, and active account management

• E2MA delivers leads for‘Direct Response’, ‘List Broking’ and ‘Social Media’ campaigns.

35

2012

Turnover € 4 m

EBIT 20%

Employees 30



www.webpower.com

Location: Barneveld, Netherlands

Management: Jacco Bouw

• After rolling out to China, Webpower has become one of the main players in email marketing software in the Netherlands

• Webpower is currently developing SW that allows customers to take a cross-channel approach to their online marketing

• Integrating CMS/CRM into email platform

• Integrating 3rd party SW, such as ERPs, Salesforce & Magento

• The company is aggressively expanding in China to become the market leader in this region

• Webpower advises the Chinese government on email legislation



Webpower

• Webpower is a developer of an email marketing platform, that allow clients to run email campaigns with Webpower

• In addition, Webpower advises on optimal email strategies and other services

• Value Added Services include:

• Creation

• Planning

• Reporting

• Analysis

• The company is internationally active, and has offices in both the Netherlands and China (Shanghai)

• 69% of revenues come from licenses + CPM

36

2012

Turnover € 9,0 m

EBIT 20%

Employees 120



www.e-village.nl

Location: Zeist, Netherlands

Management: Robert Rebergen

• Around 20% of revenue is from customers outside of the Netherlands

• The shareholders are considering making a move in the email marketing market (sell/buy)



E-village

• E-village is a SW developer and service provider in email marketing

• Services include designing, planning, creation, campaign management and reporting the optimal email / mobile / social media campaigns

• E-village has developed Clang, an email marketing software platform that enables customers to run their online marketing campaigns

• Clang has an API with Magento

• E-village has split the company’s activities between ESP (E-village) and SW (Clang)

37

2012

Turnover € 5,0 m

EBIT 20%

Employees 35



www.ecircle.nl

Location: Utrecht, Netherlands (HQ: Munchen, Germany)

Management: Volker Viewer (Germany)

• Founded in 1999 in Germany

• Acquired by Aprimo (Teradata ), global leader in Integrated Marketing Management (IMM) software

• eCircle is active in Germany, France, Italy, Spain, Netherlands, Denmark, Finland, Sweden and Poland

• The company is about to become the largest European player in the field

• eCircle is considering expanding through acquisitions



eCircle

• eCircle is a full-service digital marketing solutions provider and a provider of email marketing solutions

• Developing email marketing software

• Mail marketing services, including

• Consulting services

• Email Audit

• eCircle is member of DDMA (Dutch Dialogue Marketing Association) and holds several pan-European certificates and memberships

• eCircle typically focuses on the largest customers in the market

38

2011

Turnover € 18,6 m

EBIT € 4,6 m

Employees n.a.


Target Name Website Residence in Netherlands HQ-

country

Countries Category Estimated

Revenues

Global

Estimated

Revenues NL

# Employees

Emailvision www.emailvision.nl Amsterdam UK USA/EMEA/ASIA ESP + SW € 70,0 600

Mail Pepper (Ad pepper) www.adpepper.nl Amsterdam DE USA/DE/AT/DK/CH/

SE/SP/FR/NL

Lead Gen € 55,0 254

Webpower www.webpower.nl/ Barneveld NL NL/DE/SW/SP/CN ESP +SW € 7,0 € 2,5 116

Selligent www.selligent.nl Hasselt BE BE/FR/DE/IT/ SP/CN/PL SW € 15,0 115

Cheetahmail www.experian.nl Den Haag US Worldwide ESP + SW n.a. € 2,5 64

List of email marketing companies active in Holland (i)

Cheetahmail www.experian.nl Den Haag US Worldwide ESP + SW n.a. € 2,5 64

Blinker www.blinker.nl Zoetermeer NL NL ESP + SW € 4,5 € 4,5 50

Veritate www.veritate.nl Amsterdam NL NL ESP + Lead Gen € 3,0 49

DM Interface www.dm-interface.nl Almere NL NL SW € 6,0 € 5,9 40

RapidSugar www.rapidsugar.nl Amsterdam NL NL ESP € 3,0 36

Yourzine www.yourzine.nl/ s-Hertogenbosch NL NL ESP € 4,5 35

39Figures are estimated by BlueMind Corporate Finance

Target Name Website Residence in Netherlands HQ-

country

Countries Category Estimated

Revenues

Global

Estimated

Revenues NL

# Employees

E-Village www.e-village.nl Zeist NL NL ESP + SW € 5,0 € 5,0 28

E2MA Consumer Profiling www.e2ma.nl Houten NL DE/NL Lead Gen € 4,0 € 4,0 23

Copernica http://www.copernica.nl Haarlem NL UK, DE SW € 2,0 21

E-Mark Solutions www.e-mark.nl Haarlem NL NL ESP + SW € 2,5 19

MeasureMail www.measuremail.com Dordrecht NL NL ESP € 2,5 13

List of email marketing companies active in Holland (ii)

MeasureMail www.measuremail.com Dordrecht NL NL ESP € 2,5 13

OMG/Mailmedia www.mailmedia.nl Amsterdam NL NL Lead Gen € 6,0 11

Tripolis Solutions www.tripolis.nl Amsterdam NL NL Software € 3,0 11

eMatters http://www.ematters.nl Amsterdam NL NL ESP € 1,5 € 1,5 9

eCircle http://www.ecircle.com/nl/home

.html

Utrecht DE DE/FR/IT/SP/NL/DK/FI/S

E/PO

ESP + SW n.a. € 3,0 8

GraphicMail www.graphicmail.nl Amsterdam US Worldwide SW n.a. € 3,0 0

40Figures are estimated by BlueMind Corporate Finance

20130423 e mailmarketing market trends +ma + profiles

Economy & Finance

Transcript of 20130423 e mailmarketing market trends +ma + profiles