Current M&A Perspectives - JEGI...Emerging Trends & Strategies •In 2016, the battlefield for payments and loyalty will be centered around mobile •Payment companies will become

Current M&A PerspectivesJEGI Media & Technology Conference:

Transformational Growth through Innovation + Change

Time Warner Center, January 14, 2016

2

JEGI Introduction

The Data & Marketing Tech Ice Cream SandwichAmir Akhavan & Joseph Sanborn

Data Tech & Marketing Tech Converge Through Acquisitions

4

Acquisitions Landscape

M&

AD

ata

Tech

Mar

keti

ng

Tech

Data & Analytics for Closed-Loop Marketing

VIMS Marketing Platform

Data & Marketing Cloud

Massive Behavior Data & Intelligence

CRM, Marketing Tech & Intelligence

Marketing Cloud &Audience Manager

Audience Platform & Engagement

Marketing Tech & Consumer Data

The Ice Cream – Sales Enablement

5

Strategic Transactions

Innovative Independents

Emerging Trends & Strategies

• Convergence of CMO and CRO –taking place faster then expected

• Highly-coordinated communication and multi-touch attribution

• Open data strategy across the organization

• Integrate technology stack

CollaborationAutomation Analytics

Automation Analytics Data

The Ice Cream - Payments and Loyalty

• Designed for physical retail; now adapting to mobile

• Goal of driving higher-value/ more transactions w/o need for cash

• Loyalty initiatives shifting to aid merchant efforts

• Revenue primarily driven by transaction fees

• Historically high fees for merchants

6

Traditional

Payment Leaders

Next Generation

Payment Solutions

Technology Giants

Moving into Payments

• Focus on the digital world; often architected as “mobile first”

• Payments as a means to create “stickier” customer relationships

• Emphasis on leveraging transaction data to drive ecosystem engagement

• Transaction fees from payments currently a fraction of revenues

• Offering lower fees in exchange for data/cross-selling opportunities

Characteristics

The Ice Cream - Payments and Loyalty


• In 2016, the battlefield for payments and

loyalty will be centered around mobile

• Payment companies will become the “loyalty

glue” between merchants and clients

• A few of the larger tech companies will pull

back from their new payment offerings

• More SMBs will offer compelling loyalty

programs by leveraging mobile solutions

• Brisk M&A apace, as both incumbents and

new entrants look to capture an advantage

7



The Ice Cream - Personalization


The One to One Relationship

Ambient User Experience

• Personal experience across all devices

• Ongoing interaction, as users move

through physical & virtual environments

Data Driven Engagement

• Union of first-party and third-party data

• Continual conversation informed by

Location + Vertical + Persona + Behavior

8



9

Lessons from a Great Ice Cream Sandwich Maker

• Commitment to a Data First Strategy – capture and analyze data to drive engagement and personalization

• Completely reimagine the customer experience by leveraging the always-on/ubiquitous nature of mobile

• Leverage data across all organizational functions, with multi-touch attribution and measurement

“No single competency is enabling us to elevate the Starbucks brand

more than our global leadership in mobile, digital and loyalty”

– Howard Schultz

The Importance of Face-to-Face

Scott Peters & Sam Barthelme

Face-to-Face “F2F”: Massive and Growing Market

• 1-3% of a corporation’s total revenue is spent on meetings and events

• Events are the largest portion of the $60 billion B2B marketing budget, accounting for 24% of spend ($14 billion)

• Event spending is growing 6% per year, and after a company’s website, is the most effective B2B marketing channel

• Event Management Software is a $6 billion market, expected to grow at a 10% CAGR through 2019

Sources: Aberdeen Group, Forrester Research, Markets and Markets

11

Innovative F2F Models are Disrupting Markets

F2F models align with each part of the sales funnel; link to CRMs to drive ROI

F2F is the most effective means to engage & develop employees

Customer Marketing Employee Development

Peer Engagement

IncentivesBest Practices

Brand Awareness

Customer Acquisition

Customer Engagement

12

JEGI: Leading M&A Advisor to F2F Companies

More F2F Transactions Than Any Other Investment Bank

Innovative F2F Business Models

Event Technology Leaders

Technology Driving Value to F2F Ecosystem

Venue Sourcing

Event Marketing

Event Management

Event Engagement

End-to-End Event Management Software

Value To:

ROI:

30% Overall Cost Savings

20% Increase in

Event Attendance

27% Increase in

Productivity

Hotels Organizers Attendees

Organizers; Exhibitors; Attendees

Source: Frost & Sullivan

Event ExecutionHospitality

14

Event Tech Addressing Two Massive Markets

Venue Sourcing

Event Marketing

Event Management

Event Engagement

End-to-End Event Management Software

Source: Frost & Sullivan

$9 Billion Total Addressable Market

$4B Hotel

Marketing

$103B Meeting Spend on

Hotels

$5B Event

Management Software

$27B Manual Processes and Software for

Event Management

15

Event Tech Intersects Massive Software Markets

Marketing Tech

Event TechHospitality Tech

16

Key Takeaways & Predictions

• Massive, important, and growing market

• Crucial to customer marketing and employee development

• Innovative models redefining markets and capturing share

• F2F participants adopting technology at an increasing pace

• Nascent $9B event tech TAM: $5B software + $4B hotel marketing

• Large F2F providers acquire point solutions to expand end-to-end services

• Private Equity firms acquire innovative F2F models, as platforms

• Event technology companies receive increasing attention from VC/PE

• Within 18 months, hospitality and marketing tech firms battle to acquire leading event technology providers, to own this important channel

JEGI Predictions

F2F State of Play

17

Key Takeaways & Predictions

Consolidators

Event Tech Targets

$9bn Market

Marketing TechHospitality Tech

• Within 18 months, hospitality and marketing tech firms battle to acquire leading event technology providers, to own this important channel

18

Global M&ATolman Geffs & Paul Cooper

It’s Always Sunny Somewhere –The Virtues of a Geographically Balanced Business

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

Ch

ange

in G

DP

Gro

wth

Note LTM vs prior LTM change in GDP. Source: Trading Economics

GDP Volatility 1997-2015US EUR China

20

Recent Cross-Continental M&A Transactions

B2C & B2B Media Marketing Services & Tech

Software & Tech-Enabled ServicesBusiness Info & Intelligence

21

North America

Rest of World

Europe

B2B MediaMarketing Technology

Marketing Services

B2C Media

Business Information

Tech-Enabled Services

Business Intelligence

Software

Global Buyers Are More Active Than Ever

Premium

Company

NORTH AMERICAN BUYERS

EUROPEAN BUYERS

“REST OF WORLD” BUYERS

22



B2B Media

B2C Media



Software

Premium Company

Representative Examples

North America

Rest of World

Europe

23



B2B Media

B2C Media

Tech Enabled Services


Software

Premium Company

Marketing Technology

Marketing Services Representative Examples

North America

Rest of World

Europe

24



B2B Media

B2C Media



Software

Premium Company


Marketing Services


North America

Rest of World

Europe

25



B2B Media

B2C Media

Tech Enabled Services


Software

Premium

Company


Marketing Services


North America

Rest of World

Europe

26

B2B Media Marketing Technology

Marketing Services

B2C Media




Software

Premium Company



North America

Rest of World

Europe

and Premium Assets will Attract 360o Interest…

…

27

Documents

Current M&A Perspectives - JEGI...Emerging Trends & Strategies •In 2016, the battlefield for payments and loyalty will be centered around mobile •Payment companies will become