[Master Class Programmatic Trading May 2014] Keynote by Simon Nicholls Partner at GP Bullhound

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LONDON | SAN FRANCISCO | STOCKHOLM | BERLIN www.gpbullhound.com

Where technology creates value: an

investment perspective on

programmatic buying

May 2014

#GPBullhound

INDEPENDENT TECHNOLOGY

RESEARCH

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Sources: GP Bullhound, IDC (2013), eMarketer (2013)

THE ‘BIG BANG’ OF ONLINE ADVERTISING

KEY METRICS

$140+ Billion Global online advertising market by 2017

$3.3+ Billion Estimated Western European spend on RTB by

2017

$80+ Billion Global display advertising market by 2017

$21+ Billion Estimated global spend on RTB by 2017

50%+ CAGR Growth of the global market between 2012 and

2017

$1.5+ Billion Invested to date in RTB technologies

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THE REAL-TIME DATA EXPLOSION

1.2bn MAUs

37,000 Comments and

likes per

second

230m+ MAUs

1bn Tweets created

every two days

540m MAUs

1.5bn Image uploads

per week

c. 90% of the world’s data generated in the last 2 years

26m MAUs

350m Average daily

photo uploads

150m MAUs

55m Photos

uploaded per

day

Today advertisers have access to millions of users across multiple

properties and devices where a LOT happens in a SHORT space of time

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Over $1.5bn of Capital Raised to Date

MORE THAN $1.5BN CAPITAL RAISED TO DATE

$8

$104 $60 $47

$141

$87

$145

$75

$163

$576

$248

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD

Other Exchange SSP DSP

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EVOLUTION OF THE RTB LANDSCAPE

Sell-Side

Platforms

(SSPs)

Ad

Exchanges

Ad

Networks

Demand-

Side

Platforms

(DSPs)

Trading

Desks

AD

VE

RT

ISE

RS

PU

BL

ISH

ER

S

FL

OW

OF

MO

NE

Y

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RTB - $21BN GLOBAL MARKET BY 2017

Source: GP Bullhound, IDC

Global RTB Display Ad Spend

$80bn

$34bn

2012 2017

$10bn$2.7bn

Global Share of RTB Display Ad Spend taken by intermediaries

Global Online Display Ad Spend

$21bn

$1.8bn

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MARKET PENETRATION – US LEADING THE WAY

Source: IDC, eMarketer, Magna Global

DISPLAY PENETRATION

POTENTIAL?

52%? Magna Global

41%? IDC

29%? eMarketer

1% 3%

7%

11% 13%

17%

22%

27%

2%

5%

12% 15%

17%

22%

27%

1%

6% 8%

14%

17%

20%

25%

30%

4%

9%

14%

19%

23%

28%

34%

41%

2010 2011 2012 2013 2014 2015 2016 2017

France Germany UK US

GLOBAL RTB MARKET

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0,7

3,3

4,0

2013 2017 (IDC) 2017 (GPB Upside)

UK Germany France Rest of Western Europe

EUROPE TO BENEFIT THE MOST

EUROPEAN RTB – IDC VS UPSIDE CASE ($bn)

Source: IDC

45%

CAGR

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KEY DRIVERS OF GROWTH - MOBILE

MOBILE RTB AD SPEND ($m)

Source: IDC (2013), Facebook company filings, Comscore (2013),

Verve Mobile (2013)

50%+ G5 smartphone

penetration

2.3x CTR from

location-based

campaigns

62

549

2014 2017

Germany France UK

107%

CAGR

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KEY DRIVERS OF GROWTH - VIDEO

Source: IDC (2013), Digital TV Research (2013)

VIDEO RTB AD SPEND ($m)

$3.6bn 2017 global online

video advertising

$219bn 2018 global TV

ad spend

759m 2018 global TVs

connected to the

internet

30

152

2014 2017 Germany France UK

71%

CAGR

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DATA IS KING BUT NOT ALL DATA IS EQUAL

Source: Casale Media Index (2013)

100

78

51

Cookie & 3rd Party Data Cookie & No 3rd Party Data No Cookie

Cookie and Third Party Data Driving the Winning Bid Price

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WHERE TO INVEST NOW?

Sell-Side

Platforms

(SSPs)

Ad

Exchanges

Ad

Networks

Demand-

Side

Platforms

(DSPs)

Trading

Desks

AD

VE

RT

ISE

RS

PU

BL

ISH

ER

S

FL

OW

OF

MO

NE

Y

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#GPBullhound


INTERNATIONALISATION

CUSTOMERS /

VERTICALS

GROWTH / SCALE

M&A: POISED FOR A NEW WAVE OF CONSOLIDATION

Internet Giants CRM Software

Providers

Global Agencies

& Ad Networks Existing RTB

Players

ADDITIONAL

CAPABILITIES

http://www.google.co.uk/url?sa=i&rct=j&q=mediamath+logo&source=images&cd=&cad=rja&docid=6clEd3xTeRyp8M&tbnid=vj1rMshU_ZrhwM:&ved=0CAUQjRw&url=http://www.knowledgenetworks.com/accuracy/fall-winter2010/media-math-fall2010.html&ei=2yVLUfu8Bcjt0gXO-ICICQ&bvm=bv.44158598,d.d2k&psig=AFQjCNFJmvL4SeW1dv4_aXu9zcST8_fK9Q&ust=1363965785210598

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[Master Class Programmatic Trading May 2014] Keynote by Simon Nicholls Partner at GP Bullhound

Technology

Transcript of [Master Class Programmatic Trading May 2014] Keynote by Simon Nicholls Partner at GP Bullhound