According to the 2017 report published by the Winterberry Group and Global Data & Marketing Association (GDMA), titled “Global Review of Data-Driven Marketing and Advertising“, companies around the world are becoming more dependent on data to market to consumers.
MediaMath also helped with this report, which surveyed more than 3,000 marketers in 18 global markets. The full report can be downloaded here. Some highlights:
- First party customer and prospect data is critical to marketing and advertising efforts and so is the maintenance these databases.
- Spending in data driven marketing and advertising is increasing year over year.
- Marketers are becoming adept at measurements for both cross- and single-channel campaigns
In addition to than these findings, one other takeaway from this survey of marketers is there are still many challenges to practicing data driven marketing and advertising and their biggest worry is from potential regulations on data usage, with ad blocking and lack of expertise being other top-of-mind concerns. Click on image to zoom in.
A trend that has been more and more noticeable the past couple of years is where companies from Asia are investing and acquiring established and maturing ad tech companies to add to their own expertise. Supporting that trend, Turn announced today that it is to be acquired by Amobee for $310 million. Amobee is a digital marketing firm owned by Singtel, a telco from Singapore.
This deal is expected to complete within the next few months.
Turn’s CEO Bruce Falck explained in a company blog post that the combined Turn/Amobee company will have the resources and scale for further global expansion and to evolve their mobile, data management, and analytics products. Amobee will complement Turn by integrating its social media platforms into Turn’s omnichannel DSP.
Another trend that is becoming clearer now is that telcos are acquiring ad tech companies in various parts of the world to build on their own ad tech expertise. Singtel acquired Amobee in 2012 and Adconion and Kontera in 2014. Verizon bought AOL and is buying Yahoo. Other less prominent acquisition activities include Norwegian telco Telenor buying Tapad and Australian telco Telstra buying Ooyala.
After this Turn acquisition, only MediaMath, DataXu and AdForm are left as privately-owned independent DSPs.
With earnings season currently underway (The Trade Desk Reports Q4 Earnings Beating Estimates) and IPOs in the AdTech sector starting to ramp up (Snapchat, AppNexus), it might be useful to take a look at some of the mergers and acquisitions and fundraising activities that took place last year, and also review what 2017 would look like.
Results International, a global M&A advisor recently released their annual review report on the state of the global advertising and marketing technology sectors focussing on investment fundraising and exits. You can download their 2016 Annual Review edition of the AdTech & MarTech Barometer.
- M&A in 2016 only lagged behind 2014 in the number of deals (412 vs 428)
- M&A in 2017 will continue to be strong due to:
- Buyers/Investors are from diverse sectors
- Private Equity interest increasing
- New platforms and technologies being built to solve actual problems
- Traditional media & telecom giants looking to monetize content better
- Buyers from Asia investing in already proven technology in the West
LA AdTech Partner Company, The Trade Desk (TTD) reported Q4 earnings after close of market today. The Trade Desk posted revenue of $72.4 million for the fourth quarter of 2016 alone. Full year revenue for 2016 was reported as $202.9 million.
Highlights from today’s earnings call:
- Over $1 billion in gross spend in 2016.
- Mobile, video, and global expansion are largest growth factors.
- Addressable and connected TV will lead to programmatic buying.
- 2016 gross spend with non-display campaigns increased to more than half of gross spend.
- Mobile in-app and mobile video revenue grew about 400% and 300% respectively year-over-year, while native spending jumped 700% over the previous quarter..
The Trade Desk said it expects revenue in the range of $43 million for the current quarter ending April and estimated a full year revenue of $270 million. 2017 Total Gross Spend is estimated at $1.45 billion.
- The Trade Desk Passes $1 Billion In Platform Spend As Non-Display Products Gain Steam – Adexchanger
- The Trade Desk sees quarterly revenues top $72m, bets big on connected TV and Asia – The Drum
The Trade Desk’s reported earnings today beat Factset consensus revenue estimates of $62.1M. TTD‘s stock price closed at $33.36 also beating the $33.13 consensus price estimates from equity analysts coverage the stock.
Publishers Clearing House (PCH) announced on Monday that their partnership with OpenX, an LA AdTech Partner Company, resulted in a 26% increase in revenue across desktop on PCH.com.
OpenX’s Bidder and private marketplaces had been integrated into PCH’s online monetization strategy since last summer. PCH is leveraging their own first-party data that includes “people-based” profiles, where users are identified by name, to increase the value of their unique inventory to advertisers targeting specific audiences. This large repository of data reaches into about 73 million US household. Combining this database with OpenX’s technology, PCH is able to optimize viewability, video completion rate, and on-target delivery for their advertisers
This 26% ad revenue increase on PCH.com is primarily attributable to the OpenX header bidding integration. The revenue lift brought about an average daily increase of nearly $10,000 per day.
Congratulations to CitizenNet and Dan Benyamin.
Condé Nast announced last week that it will acquire social data and marketing platform CitizenNet. Condé Nast intends to combine CitizenNet with its data product “Condé Nast Spire,” to expand its audience targeting capabilities beyond Condé Nast’s owned and operated sites to its social platforms with over 174 million social followers..
With this acquisition, Condé Nast will be able to target the right audience at scale and across platforms for its advertising and marketing partners. On its own, Condé Nast’s online and offline first party data is combined with online behavioral data to personalize real time campaigns. When integrated with CitizenNet’s social-data sets and predictive behavioral targeting, Condé Nast will be able to offer its advertising and marketing partners a way to target the right audience at scale and across platforms.
A year ago, Condé Nast had acquired another ad tech firm, Poetica, which owns a real-time content editing system.
CitizenNet has never raised a VC round of financing.
With Snap Inc.’s (the parent company of Snapchat) recent IPO filing, there has been a flurry of articles and analyses from everywhere. So, we are trying to collate some of the more relevant trends and summaries.
Come celebrate 2017 with LA AdTech at a low-key networking mixer at Busby’s West. It is the location where it call began over 3 years ago.
DATE: February 15th, 2017 (Wednesday)
TIME: 6:30pm – 8:30pm
PLACE: Busby’s West
3110 Santa Monica Blvd
Santa Monica, CA 90404
As usual, Busby has happy hour drinks from 4pm-8pm.
Also, mark your calendars for our next event on March 1st with LA AdTech Partner Company, Pathmatics. Pathmatics also recently released a report on digital marketing spend by the Financial Services industry.
Future event topics to include Investment Outlook, VR advertising, Mobile and Emerging Platforms.
Please RSVP so that we have a headcount.
Rubicon Project announced Monday (February 6th) that it is partnering with Integral Ad Science (IAS) to provide third-party viewability scores for display and video advertising on both desktop and mobile web, per a joint press release.
By applying viewability scores at the individual ad placement level and delivering them within the auction bid request, marketers should find it easier to measure the ROI of their display and video ads. Publishers can also use these granular level viewability data to evaluate and optimize their ad inventory to drive performance and pricing.
By leveraging Integral Ad Science‘s Media Ratings Council (MRC) accreditation, Rubicon Project offerings will gain headways into concerns around media transparency in the online media space, specifically those in programmatic media transactions. A concern about ad fraud was brought up by Proctor & Gamble’s Marc Pritchard at a recent Interactive Advertising Bureau’s Annual Leadership Meeting.
Additional reading: Rubicon Project & Integral Ad Science ink viewability deal to assure advertisers over independent measurement
According to a recently released report from Forrester Research detailing media spend from 2016-2021, digital media spending in the US is predicted to go $70 billion in 2016 to almost $120 billion in 2021. However, year-over-year spending in digital marketing is expected to slow down as marketers will emphasize quality over quantity.
Some key points:
- Digital marketing component such as paid search, display, social media, online video and email marketing, will make up to about 46% of all advertising by 2021 from about 36% in 2016.
- Digital marketing is no longer considered experimental but as mature investments that come with goals setting and measurement practices as well as waste combating. Amidst this spending growth, there is also a shift to increasing investments in data, technology and particularly, improving customer experience such as store layouts, mobile apps and marketing technology that make personalization.
- Millennial consumers will be in a high spend life stage as they establish careers, homes and families, boosting their collective spending to over $600 billion annually, according to a report from Accenture.
- Spending on online video advertising has grown 114% since 2014 as as advertisers like its reach and targetability. Online video advertising allows brand advertisers, to extends their existing reach with marginal incremental costs while smaller advertisers can achieve a TV-quality advertising presence with less cost.