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INDEPENDENT TECHNOLOGY RESEARCH

SECTOR UPDATE  NOV 2013  DIGITAL MEDIA

REAL-TIME BIDDING IN ONLINE ADVERTISING
THE DEATH OF THE MAD MEN
The big bang of online advertising is taking place right now Just as the financial sector transitioned from trading via hand signals and slips of paper to automated buying and selling, Real-Time Bidding (RTB) is rapidly transforming the online advertising market, by enabling automated and transparent trading of display inventory, eyeball by eyeball. Efficiency gains driving substantial market growth Both buyers and sellers will ultimately benefit from efficiency gains and we expect as a result that online advertising will steal a greater share of the advertising pie than previously anticipated. Global RTB ad spend is expected to grow at over 50% per annum to over $20 billion in 2017. On the cusp of the next market phase – the ramp-up to mass market adoption Over $1.3 billion has been invested into RTB platforms with over half of this in the last two years. With the infrastructure now in place, we expect that online display sales via RTB could increase towards 50% of the market in the US over the next 5 years, with key Western European economies catching up quickly. Europe currently lags behind the US but could benefit the most Europe is a fragmented digital media market, but RTB enables advertisers to efficiently buy across publishers audiences in different geographies and languages. While US entrants are first movers in scalable tech platforms, we see a significant opportunity for customised technology, data analytics and service layers in Europe as the ‘one-size fits all’ platform technologies commoditise. We expect European RTB penetration rates will start to catch up with the US and that Western Europe could see RTB ad spend reach $4bn in 2017. Data is king, but not all data is made equal The availability of quality data is key on both sides of the market. Advertisers that can leverage their first party data will have an advantage over those reliant on third party data sources, whilst publishers that use data to better understand their audience will be able to maximise their yields. Mobile and Video are key drivers of growth Mobile RTB is exploding due to the rich data now being provided on users and significant investments in tracking technology. Video RTB is also growing rapidly and cross device campaigns will have a significant impact on the landscape as brand advertisers adopt RTB as a method of delivery. Consolidation is coming As RTB now ramps up to mass-market adoption, and increasingly well-funded RTB players jockey for position, we expect to see a wave of consolidation. M&A will be driven by the need for scale, customers, multi-channel capability, internationalisation and late entrants acquiring RTB expertise.

SIMON NICHOLLS simon.nicholls@gpbullhound.com London: +44 207 101 7574 ALISTAIR MALINS alistair.malins@gpbullhound.com London: +44 207 101 7587 MALCOLM HORNER malcolm.horner@gpbullhound.com London: +44 207 101 7573

Important disclosures appear at the back of this report GP Bullhound LLP is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority

GP B ULLHOUND – REAL-T IME B IDDING : T HE DEATH OF T HE MAD M EN

Table of Contents INTRODUCTION ..................................................................................................................................3 The ‘Big Bang’ of the advertising marketplace...................................... 3 RTB is driving huge efficiencies in the ad marketplace ........................ 3 Benefits to both buyers and sellers can drive the overall market .......... 3 The ‘Rise of the Machines’ ................................................................... 3 The ‘Death of the Madmen’? ................................................................ 6 TECHNOLOGY AND APPLICATIONS ................................................................................................7 How does RTB work? ........................................................................... 7 It’s all about the data ............................................................................ 7 Cookie monsters................................................................................... 7 Not all data is created equal ................................................................. 7 Demand Side Platforms ........................................................................ 8 Agency Trading Desks ......................................................................... 9 The ‘Publisher’s Dilemma’ .................................................................. 10 Sell Side Platforms ............................................................................. 10 Private Exchanges .............................................................................. 11 A DYNAMIC GLOBAL MARKET .......................................................................................................13 Key geographies in focus ................................................................... 15 NEW MARKETS AND TECHNOLOGIES ........................................................................................... 19 Mobile: real-time location-based advertising....................................... 19 Video advertising: the big prize for RTB ............................................. 21 CAPITAL INVESTMENT AND CONSOLIDATION ............................................................................23 Investment into RTB ........................................................................... 23 Venture and growth capital ................................................................. 23 Europe in focus................................................................................... 24 Recent IPOs and potential candidates for the future .......................... 25 M&A and consolidation in the sector .................................................. 26 Where next for M&A? ......................................................................... 27 APPENDICES ....................................................................................................................................28

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GP B ULLHOUND – REAL TIME BIDDING : THE DEATH OF THE MAD MEN

INTRODUCTION The ‘Big Bang’ of the advertising marketplace
The ‘big bang’ of the advertising market place is taking place right now in real-time bidding for online and mobile display inventory. Real-time Bidding (or RTB) is an automated method of buying digital-display advertising in real-time via an auction between buyer and seller on an Ad Exchange for individual impressions eyeball-by-eyeball. Our report focuses on RTB and also address the wider programmatic buying market where trades can be automated but not necessarily in real-time or on an impression-by-impression basis. Not that long ago the Square Mile and Wall Street transitioned from trading via hand signals and slips of paper to automated buying and selling. The online advertising market has undergone a similar transformation in recent years. Up until relatively recently, online advertising has been bought and sold in a surprisingly similar way to traditional media. The norm was for agreements in advance to acquire packages of ad inventory based on limited data about the actual audience that will see the ads. However, trading in online inventory via RTB is now becoming increasingly automated, liquid, transparent and efficient as RTB gains momentum in both web and mobile advertising.

RTB is driving huge efficiencies in the ad marketplace
With substantial advances in liquidity, as more publishers adopt RTB, and in the sophistication of adtrading platforms, advertisers are gaining the ability to assess and reach their target audience far more effectively than ever before. Real-time audience data including location, age, gender and so on, married to real-time pricing, provides greater transparency in the underlying market. Through impression-level real-time auctions, advertisers are coming closer than ever before to solving the conundrum of knowing what half of their advertising money is being wasted. By transitioning from manual media buying to automated or programmatic platforms, participants are also able to recognise significant cost efficiencies.

Benefits to both buyers and sellers can drive the overall market
Whilst there will initially be losers as well as winners, ultimately buyers and sellers of online advertising should both benefit from a more efficient marketplace. The benefits to advertisers are widely recognised and Demand Side Platforms (or DSPs) have proliferated to drive this side of the marketplace. Publishers, in particular ‘premium’ publishers, have been more reluctant to accept RTB, but Sell Side Platforms (or SSPs) have helped overcome initial barriers and drive wider adoption. In our view these new online advertising models will further the transition from offline to online, with online stealing a greater share of the advertising pie than perhaps previously anticipated.

The ‘Rise of the Machines’
RTB has grown rapidly in a relatively short period of time. The landscape emerged in the early noughties as publishers increasingly moved audiences online and sought to monetise their digital inventory (or impressions) via display advertising. Initially this was all done manually by hard-coding ads onto the publisher’s sites and the whole landscape was slow, inefficient and difficult for advertisers to navigate. With technological advances in ad serving, Ad Networks soon emerged to aggregate inventory from publishers and sell it on to advertisers. They would deliver ad impressions through a centralised Ad Server responding to a website once a page is called. However, advertisers would need to manually optimise and

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rate the performance of their ads based on the responses they received. They had a limited understanding of the audiences they were accessing and, as a result, the success of their campaigns couldn’t be measured in a very reliable manner. Ad Exchanges eventually emerged as tech-enabled marketplaces allowing the trading of ad impressions between buyers and sellers in real-time. The first large Ad Exchange was launched by RightMedia (now part of Yahoo) and matched buyers and sellers with a bid and ask much like you would on a stock exchange. DSPs emerged soon after, allowing advertisers to acquire this inventory in increasing scale and in real-time using programmatic bidding strategies. Initially RTB was limited to lower quality inventory as premium publishers were mindful of potential erosion in CPMs (see The ‘Publisher’s Dilemma’). It wasn’t, however, until SSPs became widespread that publishers were able to actively manage their ad inventory and the market started to see significant growth. SSPs are now providing much needed inventory and liquidity to stimulate growth in the underlying market.
FIGURE 1 – EVOLUTION OF RTB
Early Tech Buy-side Growth Supply-side Growth
       
Proliferation of DSPs as advertisers look to take advantage of technological advances “Publisher’s Dilemma” limits the availability of premium inventory SSPs emerging but RTB focused on non-premium inventory Mass-market liquidity starting to be provided by SSPs Premium publishers adopt RTB and programmatic sell-side techniques as they seek to preserve and optimise yields Initial growth in Direct Programmatic sales channels

Mainstream Adoption
RTB starts to ramp to mass-market adoption and multi-channel in Europe as well as US

Industry consolidation as multiple ad-tech platforms scale and late entrants to the market acquire capabilities
IPOs and exits for major DSPs, SSPs and tech providers Non-RTB ad networks and ad-tech intermediaries suffer from pricing pressure and lack of growth

 

Initial development of RTB technology through growth of Ad Exchanges Development of initial DSPs to serve advertisers (e.g. [X+1], Turn)


Growth of new channels as mobile and video formats standardise
First IPOs (e.g. Rocket Fuel, Criteo)

2000-2006

2007-2010

2011-2013

Soon

Source: GP Bullhound

The landscape has become increasingly sophisticated with significant growth in the number of DSPs and the increasing adoption of SSPs by mainstream publishers. Media trading has evolved towards RTB as advances in technology have allowed the matching of buyers and sellers in a matter of milliseconds, with billions of ads traded every day. RTB has rocketed in popularity as advertisers have sought to bypass the ‘black box’ of the Ad Networks, which have historically occupied a profitable niche in the value chain by arbitraging between buyer and seller in an inefficient market. Figure 2 illustrates the perceived value leakage historically due to the number of intermediaries between buyer and seller in the market.

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FIGURE 2 – VALUE LEAKAGE IN THE DISPLAY ADVERTISING MARKET

6.00 5.00 4.00 3.00 2.00 1.00 0.00

$5.00

$0.50 $1.80 $0.25 $0.35 $0.10

$2.00

Advertiser

Agency

Ad Network

Data Provider

Ad Exchange Ad serving / Rich Media

Publisher

Source: IAB (2010)

Despite the disintermediation of some of the Ad Networks by RTB platforms forcing them to rethink their business models, the landscape remains bewilderingly complex with many intermediaries remaining between publishers and advertisers. Although there is more transparency in the system, many participants are still acting like Ad Networks and arbitraging between buyer and seller. We only see this as sustainable where real competitive advantage has been created and a clear ROI for advertiser and/or publisher is being demonstrated. Figure 3 shows a basic summary of the RTB ecosystem and examples of some of the key players with the flow of advertising dollars running from left to right.
FIGURE 3 – THE RTB ECOSYSTEM, ILLUSTRATED W ITH SELECTED PLAYERS
Ad Exchanges

ADVERTISERS

Trading Desks

DSPs

SSPs

Ad Networks

Data Partners

Retargeting

Optimisation Tools

Source: GP Bullhound

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The ‘Death of the Madmen’?
So will RTB cause the ‘Death of the Madmen’? Well it’s clear these developments are driving greater efficiency in the system at the expense of human-based interaction. Advertisers are increasingly relying on independent specialists (e.g. Infectious Media, YD), agency trading desks (e.g. Xaxis, Accuen) or even buying in their own talent to run programmatic buying strategies. There will always be a need for strategic thinking in the direct sales force but as the ecosystem becomes increasingly connected we anticipate that the majority of global online display advertising will eventually be traded programmatically with more than 50% via RTB. We’re anticipating a step-change in the industry as more and more devices are connected to the mobile Internet and IP Connected TVs and outdoor displays deliver customised ad formats at the right time, to the right person in the right location. Mobile and video RTB are exploding as more inventory is pushed towards Ad Exchanges and increasing amounts of premium inventory are traded programmatically. We’re not quite there yet but the era of data-led marketing is dawning. Don Draper take note. The marketing geeks will inherit the earth.

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TECHNOLOGY AND APPLICATIONS How does RTB work?
The market for RTB is facilitated by a series of transactions which take place in fractions of a second between the time you click on a link to a website and when the page loads onscreen. Online users generate data about their browsing history and preferences which can be recorded using cookies and shared with third parties. This data can be used in isolation or combined with additional data (whether owned or bought) to determine whether an advertiser wants to target that user with an ad and how much they want to pay to do so. Where impressions are made available via an Ad Exchange, advertisers can place bids on these impressions based on specific criteria including not only cost, but, age, location, gender and so on. The highest bidder for an impression gets the placement so the quality and accuracy of data is key to ensuring the right price is paid.

It’s all about the data
RTB enables marketers to apply algorithmic buying strategies in their purchasing decisions. Rather than accessing an audience en-masse via a publisher or network using large bulk ordering and broad targeting parameters, RTB technologies allow a buyer to pick and choose impressions as they come in. A key benefit of this is the ability to learn, optimise and change a campaign instantly through a programmatic buying strategy. A large portion of RTB spend is based around such strategies using proprietary first party data alongside data acquired from third parties or picked up from cookies.

Cookie monsters
Cookie data is intrinsically important to the RTB process. By using cookie IDs advertisers can find out if that user has recently been on the publisher’s site, how often and where they have visited. The cookie data can be combined with other information about the user from third party data sources (e.g. Experian, Callcredit) as well as with their own first party customer data allowing for highly targeted programmatic trading strategies. Advertisers can also match this with cookie data generated from recent campaigns so that, for example, they have an indication of whether that user has clicked on a particular advert in the past. As a result, Data Management Platforms (or DMPs) have emerged to help advertisers merge and manage data in large volumes in order to make better buying decisions. Publishers are also increasingly using third party data providers and DMPs to better understand the value of their inventory.

Not all data is created equal
Views diverge, but arguably the most valuable data to advertisers currently is their own first party customer data. For example, when targeting an audience with a particular campaign incorporating first party customer data will ensure you’re not targeting individuals that are already customers with offers that they already have and that existing customers can be targetted with offers that are relevant on past behaviour or buying patterns. Cookie data declines rapidly in value, often in the space of a couple of days, as it becomes obsolete as soon as users refresh their browser history. Proprietary customer data is more valuable as it has a much longer effective shelf life than cookie data, which is based on media inventory that is burned through relatively quickly. There is then a raft of third party data available, some of which can be very valuable, but one issue is that the real value of much of this data is often not transparent until it has been applied at scale, tested and learned from.

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Demand Side Platforms
DSPs allow advertisers to use data to target their desired audience more effectively using algorithims to optimise buying strategies and bid on the most relevant impressions, at the right time, in scale and across multiple devices, formats and properties. DSPs interface with inventory sources like Ad Exchanges to provide advertisers with the ability to run programmatic bid strategies. There are three key characteristics of a DSP that determine its value to advertisers: (i) Usability – all about the functionality and ease of use of the software user interface for the advertiser or agency; (ii) (iii) Reach – the extent and breadth of acess to media sources (whether desktop, mobile or video); and Data – integration with data providers and applications that can assist with programmatic buying strategies. We see DSPs as broadly split between two types: the first is a one-size-fits-all interface that is all about the scale and breadth of both media and data integrations. The other is a specialist DSP offering a customised interface with deep first party data integration for its clients. The former approach requires scale to succeed and is exemplified by large players such as Turn, MediaMath, and AppNexus that operate a ‘platform approach’ and are increasingly looking to offer an end -to-end solution across the stack. The specialist DSP approach involves building bespoke buying platforms to satisfy individual client or industry segment needs with a more significant managed service layer on top, and has been successfully championed by European players such as Infectious Media in the UK and YD in the Netherlands. The rationale is that not only does this allow valuable first party data to be fully utilised but the third party data integrations and tools provided can focus on specific data sets relevant for optimisation in certain industries (e.g. online travel). While arguably less scalable, this model has the benefit of significant integration and ‘stickiness’ with its clients. The implication for the ‘platform approach’ is that DSPs that don’t achieve scale or offer technology across the stack will struggle to succeed due to increasing competition and the commoditisation of the technology over time. The DSP arena is becoming a relatively crowded space and this report lists more than eighteen significant players that are already operating in Europe (see Figure 15). The fragmented European market will ensure smaller localised platforms with local media sources and data integrations will be able to compete with the larger US entrants on local ground. Figure 4 illustrates the dominance of the larger DSPs in the US market with the top three commanding 50%+ of the market. It also indicates how quickly things can change with a significant fluctuation in market share over the course of just two quarters.

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FIGURE 4 - DSP MARKET SHARE BY SPEND (US)

Q1 2013 Q1 2013 DSP 10 1% Other 3%

Q2 2013 Q2 2013

DSP 9 4% DSP 8 4% DSP 7 4% DSP 6 6% DSP 5 7% DSP 4 11%

DSP 10 3% DSP 9 4% DSP 8 5% DSP 7 6% DSP 6 7% DSP 5 7%

Other 6%

DSP 1 21%

DSP 1 35%

DSP 2 17% DSP 4 12% DSP 3 13% Top 3 DSPs = 51% of market

DSP 3 12%

DSP 2 13% Top 3 DSPs = 60% of market

Source: Casale Media Index (2013)

Agency Trading Desks
The first agency trading desks emerged as Ad Exchanges became common place, providing access to inventory in greater scale and with greater transparency. The trading desks have reduced the inefficiencies in the complex and costly task of media planning and buying, by pooling consumer and media data at scale and using sophisticated analytics to execute more ‘informed’ trades. The major global agencies (e.g. WPP, Publicis, Omnicom, Dentsu/Aegis, Interpublic) have all developed agency trading desks (Xaxis, Vivaki, Accuen, Amnet, Cadreon) to aggregate their RTB activities. Earlier this year, Maurice Levy, CEO at Publicis, highlighted the importance of economies of scale in media buying as a strong rationale for the proposed Publicis/Omnicom merger. If the ‘Publicom’ merger completes, the combined entity could represent up to 40% of digital media volumes (according to RECMA) which could provide a meaningful competitive advantage. However, some industry participants think that there is a potential conflict of interest as the global agencies act simultaneously as both buyers and sellers. Since the trading desks earn a margin on CPMs, whilst the media agencies earn volume-based rebates, this has also led to concerns in some quarters over the pricing dynamic. Trading desks claim that such issues are more perception than reality. Another interesting trend is that some very large advertisers have started to set up their own trading desks (e.g. P&G, Unilever) and are now competing with the agency trading desks for talent to build their own inhouse RTB capabilities. The advantages for these ‘super advertisers’ are that they can keep their proprietary data confidential, reduce costs (which for large media campaigns can be significant) and take ownership of the media data produced via each campaign. While most advertisers will not want to invest in an in-house capability in a market moving so rapidly, the desire for retention and protection of proprietary data is a factor that could play into the hands of the independent trading desks and specialist DSPs with real expertise in data-driven buying. This could in turn provide a counterpoint to the power and scale of the big agency trading desks.

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While a number of larger US-based players are focusing on providing technology at an industrial scale there is likely to be real value created by specialist RTB service providers aiming to get the most out of the available technology for their clients. We expect to see strong growth for tech-enabled service providers that focus on customised data integrations and analytics to differentiate from one-size-fits-all tech providers.

The ‘Publisher’s Dilemma’
In contrast to the push from a fully data-enabled demand side keen to utilise the power of RTB, many publishers have initially been reluctant to release their inventory into the market for fear of declining CPMs. While publishers have been quick to use RTB to improve the yield on their tier 2/3 inventory, their concern in relation to tier one inventory has primarily been around erosion of CPMs and, particularly for premium publishers, brand safety from undesired advertisers buying inventory on their site. Arguably, premium publishers have historically benefited from a less liquid and transparent market that allowed them to bundle and sell large chunks of their inventory at premium prices. One of the risks of impression-level buying is that buyers will ‘cherry-pick’ the best inventory and leave some audience as remnant that was hitherto sold as premium. As a result large swathes of inventory have been witheld from these markets, decreasing liquidity from some key media sources. This is now starting to change, thanks in part to the development of SSPs, Private Exchanges and Direct Programmatic Sales.

Sell Side Platforms
SSPs first emerged to help to improve the ability of publisher’s to categorise, segment and sell their ad inventory via Ad Exchanges and maximise CPMs. SSPs provide software that analyses and categorises the publishers properties to better understand audience data and actively manage and optimise the yield on their ad inventory in an automated (or programmatic) way, just as DSPs do for advertiser buying strategies. The key battleground today is over the source and analysis of data with ownership of rich audience data providing a significant advantage for publishers. Advertisers are willing to pay a premium for transparency and rich data as illustrated by Figure 5 which shows that inventory sold with cookie and third party data can command a premium of up to twice that sold without. This bodes well for data-rich sellers (e.g. Facebook) who control access to, and have a high degree of understanding of, their audiences.
FIGURE 5 – PREMIUM PAID FOR TRANSPARENCY Winning bid price index 100 78

51

Cookie & 3rd Party Data

Cookie & No 3rd Party Data

No Cookie

Source: Cookie State (2013), cited in Casale Media Index (2013)

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Through algorithmic analysis of audience data, SSPs help publishers determine which channel their inventory should be sold through, whether it be actively through direct sales, via a private exchange or RTB exchange or passively through an Ad Network in order to optimise the yield of the portfolio (see Figure 6).
FIGURE 6 – MARKETPLACES IN THE RTB ECOSYSTEM

Above the Auction

SPONSORSHIP SALES

ACTIVE SALES

Programmatic

PRIVATE EXCHANGES

REAL-TIME BIDDING

PASSIVE SALES

Auction

REMNANT AD NETWORK

Source: PubMatic (2011)

Private Exchanges
Private Exchanges have played a key role in the publisher adoption of RTB as they enable publishers to sell their inventory programmatically but with a greater element of control over the marketplace. Private Exchanges (or Private Marketplaces) allow publishers to make a portion of their inventory available to a restricted set of advertisers and to set controls on pricing (e.g. pricing floors). By controlling these parameters and participants in the market, publishers can better protect pricing of their premium inventory and optimise yields. As a result, the lines between direct and indirect sales are beginning to blur. The distinction is becoming less about premium inventory versus remnant inventory, and more about active selling versus passive selling. IDC estimates that 1% of global premium ad revenue was traded in Private Exchanges in 2013. Figure 7 illustrates the slow initial growth of ‘Direct’ RTB sales in comparison to the more mature ‘Indirect’ sales market, with rapid growth expected over the next four years. The majority of growth in the market over the next four years will come from ‘Direct’ sales executed programmatically as the market matures and becomes more sophisticated.

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FIGURE 7 –‘INDIRECT’ VS ‘DIRECT’ RTB-BASED ONLINE DISPLAY SALES IN FOUR KEY
GEOGRAPHIES

($M)
2013-17 CAGR 15%
5,790 5,317 4,777 4,128 3,338 2,625

'Indirect' Display Sales

'Direct' Display Sales
5,305

2013-17 CAGR 174%
144% 148%

15% 13% 18%

157%

2,258

15%
1,259

176%
1,085 368 201 1 39 201 2 95 201 3 201 4 201 5 201 6 201 7

390

201 0

201 1

201 2

201 3

201 4

201 5

201 6

201 7

201 0

UK

France

Germany

US

Source: IDC (2013), Excludes Mobile and Video RTB and includes US, UK, Germany and France

Figure 8 illustrates the emerging publisher models as they progress towards RTB adoption across all of their inventory. In phases four and five we see increasingly smart, multi-channel sales techniques as publishers increasingly adopt RTB technology and more multi-channel active management of their inventory.
FIGURE 8 – PUBLISHER ADOPTION CYCLE

Publisher RTB Maturation Spectrum

Phase 5: Phase 4: Phase 3:
Publisher consolidates vendor strategy and executes private deals and/or sales with arbitrary price floors
Publisher actively manages smart, variable price floors informed by data; managed by strategic team within publisher organisation Publisher looks holistically at all sales channels and optimises yield across both direct and indirect/RTB sales channels

Phase 2:
Publisher incorporates multiple RTB vendors into monetisation partner suite

Phase 1:
No active publisher participation

Em erging m odels

Current models
Source: Forrester 2011

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A DYNAMIC GLOBAL MARKET
Global spend on online display advertising via RTB was estimated by IDC to be $2.7bn in 2012 and is now expected to grow at a 50% CAGR between 2012 and 2017. Global growth has been significant in the last three years averaging 159% per annum 2010-12. This is significantly above growth rates forecast in the global online display advertising market. This growth is principally being driven by three key areas:   Growth of online display – Online display is forecast to grow at a CAGR of 19% 2012-17 and RTB will ride this wave. Online Mobile and Video – Mobile and Video RTB ad spend are both forecast to grow at around or in excess of 100% p.a. over the next few years across the US, UK, France and Germany, as smartphone penetration rates continue to rise and 4G network speeds aid rapid video streaming. This will drive further RTB-traded inventory.  Publisher adoption – Increasing adoption of programmatic selling by publishers via SSPs and Private Exchanges (see Figure 8).
FIGURE 9 – GLOBAL RTB DISPLAY ADVERTISING MARKET ($M)
1

20,820

14,498

9,865
6,726 4,488 2,697 1,382 404 2010 2011 2012 2013 2014 2015 2016 2017

Source: IDC (2013), Includes Rich Media, Mobile and Video display

1

IDC (2013)

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FIGURE 10 – GLOBAL RTB DISPLAY ADVERTISING MARKET IN CONTEXT ($M)

2012

2017

$80bn $34bn

$2.7bn

$1.8bn

$21bn

$10bn

Global Online Display Ad Spend Global RTB Display Ad Spend Global Share of RTB Display Ad Spend taken by intermediaries
Source: IDC (2013), GP Bullhound (2013)

Figure 10 illustrates the global opportunity in online display, with a global market of $34bn in 2012 and $80bn by 2017. IDC forecast the $2.7bn of RTB-based ad spend in 2012 will increase to $21bn by 2017. In 2010, industry estimates suggested that around 65% of online ad spend was being retained by intermediaries between advertiser and publisher. If we assume the same percentage of RTB ad spend is retained as net revenue by RTB platforms and service providers then the market share for these players was around $1.8bn in 2012. If we estimate that the percentage retained by intermediaries will then decrease to 50% in 2017, as greater efficiencies are generated between publisher and advertiser, then consequently the market size for intermediaries would be approximately $10bn globally in 2017.
2

2

IAB (2010)

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Key geographies in focus
FIGURE 11 – US RTB DISPLAY PENETRATION FORECASTS

41%

34% 28% 25% 19% 19% 14% 13% 2012 2013 2014 eMarketer 2015 2016 IDC 2017 23% 22% 28% 29%

Source: eMarketer (Aug-13), IDC (2013)

Forecast penetration rates can vary significantly between industry experts. IDC and eMarketer both estimate penetration of RTB as a percentage of overall display in the US to be 19% in 2013 but forecast 29% and 41% respectively in 2017. Magna Global recently forecast an RTB display penetraton rate of 52% in 2017 for the US , reflecting increasingly bullish views on the potential of RTB. If the current trend in publisher adoption continues we can foresee the UK reaching similar levels (i.e. 40-50%) over the next five years.
FIGURE 12 – RTB DISPLAY ADVERTISING BY GEOGRAPHY ($BN) 2012-17 CAGR 51% 20.8 58% 14.5 9.9 6.7 4.5 0.4 2010 1.4 2.7 49% 54%
3

2011

2012 2013 ROW

2014 2015 Western Europe

2016

2017 US

Source: IDC (2013) Includes Online Display, Mobile and Video

As the largest market worldwide, the US has the highest penetration rate for RTB, as a percentage of online display advertising. Higher growth rates in Western Europe and the Rest of World illustrated in Figure 12 indicate these markets are starting to catch up with the US. The UK is considered the leading geography for RTB in Europe, with the remainder of Europe also experiencing rapid growth rates and rising penetration.

3

Magna Global (2013)

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FIGURE 13 – EUROPEAN RTB AD SPEND AND PENETRATION

30% 25% 22% 20% 17% 14% 15% 13% 11% 7% 3% 1% 2010 2011 France 2012 2013 2014 Germany 3.3 2015 2016 UK 2017 17% 17% 22% 27% 27%

12%
8%

6% 5%
1% 2%

2012-17 CAGR 54% 46%

2.3 1.5 1.1 0.7 0.0 0.2 0.4

49% 50%

72%

2010

2011
UK

2012

2013
Germany

2014

2015
France

2016

2017
Rest of Western Europe

Source: IDC (2013)

With growth at over three times that of the overall online display market, European RTB penetration is forecast to increase dramatically over the next four years as the fragmented media landscape provides a long tail of inventory ripe for monetisation. The fragmented and disparate market of publishers and advertisers in Europe makes for substantial potential cost savings from consolidation onto public exchanges. RTB opens up the opportunity to buy inventory across multiple geographies and languages in real-time and for advertisers to target pan-European consumers based on relevance.

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We see significant potential in Western Europe for further growth in RTB as publishers adopt RTB-enabled trading technologies from the US and drive more inventory into the system. We can see a potential ‘upside case’ for penetration rates in the UK, France and Germany where they start to catch up with those in the US and reach 30-40% in the next few years, as premium ‘direct’ sales take off and mobile and video RTB start to gain traction. This will likely be lead by the UK, which has already demonstrated its propensity to adopt advertising technologies and catch up and even overtake the US in digital penetration rates. The UK currently has the highest proportion of digital ad spend as a percentage of total ad spend in Europe (40% in 2012) and this is expected to reach 51% by 2017. France and Germany are expected to increase to 25% and 27% respectively over the same period (currently 18% and 20%) whilst digital ad spend as a share of total ad spend in the US is expected to increase from 25% to 31%. If we assume the RTB penetration rates under the ‘upside case’ as set out in Figure 14 below, then this would result in a Western European market totalling $4bn by 2017.
FIGURE 14 – ESTIMATES OF THE SIZE OF THE EUROPEAN RTB MARKET ($BN) IDC Forecasts 2017 UK France Germany Rest of Western Europe Western Europe
Source: IDC (2013) GP Bullhound.
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GPB Upside Case 2017 1.4 0.5 0.7 1.4 4.0 Penetration (%) 40% 32% 32% -

Penetration (%) 29% 27% 27% -

1.0 0.4 0.6 1.2 3.3

The UK is the largest market outside of the US and currently represents 38% of the Western European RTB. IDC forecast the UK RTB market to be worth $1bn by 2017 and 29% of UK display ad spend. The UK is well-suited to rapid adoption of RTB which is evident in both the number of players setting up in the UK (Figure 15) and market penetration second only to the US globally. Several large US players have been attracted by the size of the UK digital market and economy and additionally we are seeing the emergence of some innnovative UK-born players such as Infectious Media, Switch and Grapeshot. RTB penetration in Germany has lagged behind much of Western Europe with only 7% in 2012, primarily due to a legacy of independent direct sales houses. These sales houses have consolidated the number of buying points for advertisers making it is easier for publishers to sell direct to advertisers than in otherEuropean markets. As a result there is less of an incentive for publishers to sell off inventory via RTB. The German market is reaching an inflection point for RTB penetration with RTB-based spending anticipated to hit $157m in 2013 (an 82% increase on 2012) and a penetration rate of 12%. France is also growing rapidly with RTB penetration up to 11% in 2013 from 7% in 2012 . Local publishers are staking their claim in the space with the collaborative joint ventures La Place Media which launched in May 2013 and Audience Square in 2012. The joint ventures provide sell-side services, acting as a form of
5

4 5

eMarketer (2013) IDC (2013)

17 GP Bullhound LLP

sales house plugging into the major exchanges and trading platforms. This could be considered a step in the right direction with regards to RTB adoption in France
FIGURE 15 – EUROPEAN RTB MAP – SELECTED PLAYERS
UK AdJug (Dentsu) GDM Digital Glow Digital Media Grapeshot Infectious Media Iponweb myThings StrikeAd Switch VisualDNA Netherlands 161 Media FlxOne Improve Digital YD Germany Adnologies AdScale RevenueMax Sociomantic
17 7 4 13 8 4

1 1 1 1 2 2 3 3 1 4 4 5 2 2 5 2 3 6 6 4 7 5

3 4 8

7

10
9 6 9 6 3 11 1 7 9 6 7

4 6 2 16

7 3 1 2

7 4 5 9 8 5 13 7 9 13 1 1 5 4 9 2 10 11 5

France AdXperience Audience Square Criteo La Place Media

Norway 3 Opera Media Works Sweden 4 Admeta 8 Delta Projects Denmark 7 Adform Spain 8 MediaSmart

3 1 12 1 2 15 10 2 1 1 5 10 2 10 5 7 7 5 4 11 13 12 8 13

16

4

3
3 2 7 6 8 7 10 8 16

3

7 6 5

4

11 3

13 7 12 4 5 4

16 2 11 3 6 6 10 7 6 4

8
17 9

9 3 4 5 5 10 9 6 6 11 7 7 8 9 12 6 10 7 11 12 13 8 13 10 14 15 16 8 17 9 10

US [x+1] Accordant Media Accuen Adap.tv Amnet AppNexus AudienceScience Brightroll Cadreon DataXu Digilant Doubleclick FBX Liverail MediaMath MoPub (Twitter) OpenX PubMatic PulsePoint Right Media (Yahoo) Rocket Fuel Rubicon Project SpotXchange The Trade Desk Triggit TubeMogul TURN Varick Videology Vivaki Xaxis

16 9 7 2 5 3 9 6 7 17 4 7 13 11 8 11 13 3 7 5 4 7

Google 9 Admeld 14 Doubleclick 11 Invite Media Other 18 Brandscreen 15 Casale MEDIA

Legend
Exchange DSP SSP Trading Desk Other Video specialist Mobile specialist

Source: GP Bullhound

Figure 15 reflects the substantial presence of both home-grown and US RTB players in Europe with a concentration in the larger economies, particularly the attractive UK market. We see Europe as a hotbed of activity in RTB and, although somewhat behind the US in terms of market size and adoption, there is potential for rapid expansion of RTB. With large-scale technology infrastructure for RTB already imported from the US, we expect to see European success stories come from the application of innovative additional technologies, predictive data analytics and specialised service providers that generate further optimisation and efficiencies for both buy and sell-side.

18 GP Bullhound LLP

NEW MARKETS AND TECHNOLOGIES Mobile: real-time location-based advertising
Mobile RTB is rapidly gaining traction in the US and is forecast to explode into Western Europe over the next few years. Smartphone penetration rates in the G5 economies are forecast to top 50% this year, driving an increasing amount of inventory on mobile devices and interest from advertisers in running mobile campaigns as a result. Smartphones and tablets are generating vast amounts of data about consumer behaviour which can be used to target an audience, and investment in new tracking technologies is enabling media campaigns to be executed across multiple devices and targeted in realtime.
FIGURE 16 – US MOBILE RTB SALES ($M)
6

3.0

1.9 1.1 0.4 0.1 2013
Source: IDC (2013)

2014

2015

2016

2017

It is estimated that location-based targetting through mobile is up to 2.3x more effective than the industry average click through rate (CTR) . Mobile RTB is a huge opportunity, which is evident in forecast growth rates over the next few years of over 100% p.a. in the US and nearly 200% p.a. in Western Europe (from a smaller base), illustrated in Figure 16 and Figure 17 respectively.
FIGURE 17 – MOBILE RTB SALES IN THREE KEY EUROPEAN GEOGRAPHIES ($M) 549 2013-17 CAGR 184%
7

344

191%

191% 150 62 8 2013 2014 Germany
Source: IDC (2013)

170%

2015

2016 France

2017 UK

The market for mobile inventory is distinctly different from desktop. Cookies aren’t enabled in 90% of mobile devices so tracking users has been a problem for the industry. A number of tracking technologies

6 Comscore (2013) 7 Verve Mobile (2013)

19 GP Bullhound LLP

have now emerged to provide a solution using device fingerprinting and in-app analytics (e.g. Drawbridge, HasOffers, Ad-X (acquired by Criteo) and Somo’s mobile ad-tech suite). Most publishers have traditionally lacked scale in mobile inventory so have historically delegated sales to a mobile Ad Network to aggregate inventory and sell it on their behalf. This is almost a carbon copy of the online display market in the last decade where there wasn't enough individual reach from publishers to justify a marketplace. However publishers are experiencing rapidly growing traffic on their properties, particularly from in-app browsing which is now driving a rapid move into mobile RTB. The few companies that have the scale and cross-platform user base to be able to track across devices using login details (e.g. Facebook, Twitter and Apple) are also at a competitive advantage as their vast collection of rich audience data across channels drives higher CPMs, and therefore mobile ad revenues. Facebook and Google top the US display advertising revenue charts and the FB-X (Facebook’s Ad Exchange) is becoming a de facto destination for sophisticated mobile RTB campaigns. The secret sauce is Facebook’s rich pool of social audience data combined with a mobile first understanding of audience monetisation which is evident in its explosive growth over just five quarters where mobile has gone from 14% to almost half of Facebook’s ad revenue illustrated in Figure 18.
FIGURE 18 – FACEBOOK MOBILE AD REVENUE ($M) 882 49% 656 41% 30% 23% 14% 152 306 375

Q3 2012

Q4 2012

Q1-2013

Q2-2013

Q3-2013

Facebook mobile advertising revenue
Source: Company filings (2013), includes all mobile ad revenue

Mobile % of total ad revenue

With circa 40% of tablet and smartphone users using their devices when watching television, the potential reach of the ‘second screen’ is vast. In the US During the last Super Bowl over 100 million people were estimated to have watched the half-time ads, with tens of millions checking their mobile devices providing a significant audience for targetted campaigns. We believe the convergence of mobile, locational and cross-device technologies with the digitisation of the TV and outdoor markets is one of the most exciting trends in the market

20 GP Bullhound LLP

Video advertising: the big prize for RTB
The online video display advertising market is also growing rapidly. Consumers are spending an increasing amount of time watching online video content, particularly on mobile devices. As a result, viewer impressions are growing rapidly along with the amount of advertising dollars spent on video ad inventory. Global online video advertising is expected to reach $3.6bn in 2013 , growing at 26% p.a. from 2011 to 2017 . Online video represents a big prize for RTB because it has the potential to unlock large brand advertising budgets into RTB. This is primarily because brands are attracted to rich media formats which provide a more engaging advertising experience. Video RTB will also be driven by advances in ad serving technology and investment in the video RTB infrastructure.
FIGURE 19 – US VIDEO RTB GROW TH ($BN)
8 8

1.7 1.3 0.8 0.4 0.1 2013
Source: Forrester (2013)

2014

2015

2016

2017

RTB video advertising spend is greatest in the US, however Europe is expected to catch up, growing at 127% p.a. across UK/France/Germany in the next few years compared with the US at 88%.
FIGURE 20 – VIDEO RTB ADVERTISING REVENUE FOR SOME KEY EUROPEAN GEOGRAPHIES ($M)

2013-17 CAGR 127%
152 111 138%

58
30 6 2013 2014 Germany 2015 2016 France 2017 UK

131% 109%

Source: IDC (2013)

Advertisers are increasingly using programmatic trading to buy online video advertising but there is a reluctance for premium publishers to ‘play ball’. Buyers are seeking video advertising at real-time prices but, as with standard display formats, publishers are reluctant to allow buyers to ‘cherry-pick’ their inventory. As a result the market is bifurcating with a split into bid-based public marketplaces for nonpremium inventory and private market places for premium inventory.

8 Forrester (2013)

21 GP Bullhound LLP

FIGURE 21 – BUYER MODELS FOR BUYING VIDEO ADVERTISING VIA RTB

Bid-based Public Market places

Direct Deals and Private Market places


• • •

Prevalent among mid-to-long-tail inventory
Premium publishers testing RTB bids in competition with traditionally sold inventory Pricing being determined dynamically via bidding Optimised based on audience, engagement, and direct-response metrics

Growing among premium publishers as a way to automate buys and maximise sellthrough
Pricing being determined through a combination of pre-negotiated rates and dynamic bidding Optimised based on cost audience reach and brand survey metrics

Source: Forrester (2013)

Video adtech players (e.g. Liverail) have designed the infrastructure to publish inventory at scale and in real-time. As a result of these advances, advertisers are now able to reach a targeted, brand-receptive audience across a wide range of devices. This, combined with social media activity, means RTB can be used to target an engaged audience in real-time when they are interacting with brands. Global TV advertising net revenue is forecast to hit $219bn by 2018 , and with such high budgets at stake, IP connected television could drive the potentially game-changing phenomenon of RTB TV advertising in due course. Why should you be served the same advert in your living room at half time during Manchester United vs Arsenal, as your neighbour in his?
9

9

Digital TV Research (2013)

22 GP Bullhound LLP

CAPITAL INVESTMENT AND CONSOLIDATION Investment into RTB
With such a large market migrating to and being enabled by RTB technologies, it is no surprise to see significant capital inflows into the sector. We estimate over $1.3bn has been invested in RTB over the last ten years of which more than half has been invested in the last two years alone as the RTB market has started to gain critical mass and 2013 has seen the IPOs of Criteo and Rocket Fuel (raising a combined $367m).
FIGURE 22 – SELECTED FUNDRAISING IN THE RTB SPACE ($M)

$538

$141 $104 $60 $8 2004 2005 Other
Source: Capital IQ, Crunchbase, GP Bullhound Note: Includes Criteo and Rocket Fuel IPOs

$145 $87 $75

$163

$47

2006

2007

2008

2009

2010 SSP

2011

2012 DSP

2013

Exchange

Venture and growth capital
DSPs have consistently attracted investment since 2008 with AppNexus ($75m), DataXu ($27m) and OpenX ($25m) ensuring 2013 is set to be a record year for VC funding. In contrast, SSPs have only begun to receive really substantial funding in more recent years, with 2012 a record year including a $45m raise by Pubmatic.

23 GP Bullhound LLP

FIGURE 23 –SELECTED PRIVATE PLACEMENTS IN THE RTB SPACE FROM THE LAST THREE YEARS ($M)

$77 19%

$57 14%

$228 56% $45 11%

DSP
Source: Capital IQ, Crunchbase, GP Bullhound

SSP

Exchange

Other

Only three SSPs have raised substantial (>$10m) capital in total compared with seven DSPs, which may explain why there is such competition on the demand side as mentioned earlier in this report. Independent Trading Desks have also gained traction with funders in recent years as investors see value in sectors outside the now hyper-competitive DSP space, closer to the advertiser data.

Europe in focus
Fundraising in the sector has been dominated by the US players, with significant sums raised to date. It is notable that over the last four years Europe has seen increased activity relative to the US in terms of volume of companies funded, up to 35% from 26% of fundraisings by volume (see Figure 24). This is due to a drop in the number of transactions in the US coinciding with an increase in European volumes, indicating a maturing of the funding market in the US, whilst Europe has been woken up by the arrival of well-funded US tech platforms driving wider spread RTB penetration. The average size of fundraising in the US has been two-and-a-half times that of Europe over the same period.
FIGURE 24 – SELECTED PRIVATE PLACEMENTS BY GEOGRAPHY

AMOUNT RAISED
15% 18%

VOLUME OF RAISES
26% 35%

78%

71%

67%

56%

7% 2004-2009

11% 2010-2013YTD Europe 2004-2009 US

7%

9%

2004-2009
Other 2010-2013YTD

2010-2013YTD

$7m
Average Raise in Europe 2010-13YTD
Source: GP Bullhound, Capital IQ, Crunchbase

$16m
Average raise in US 2010-13YTD

24 GP Bullhound LLP

Recent IPOs and potential candidates for the future
On top of substantial private capital inflows, there have been a number of IPOs in the Ad-Tech space in recent months. The recent IPOs of Criteo and Rocket Fuel have been well received as their scale, proprietary technology capabilities, and positioning in the disruptive and rapidly growing RTB market are seen as key competitive differentiators. Combined, they have raised $367m of capital in 2013 taking the total capital raised in 2013 to $538m in public and private markets combined.
FIGURE 25 - RECENT AD-TECH IPOS

Company

Investors Raised Recently Announce / Completed IPOs
 Adams Street, Bessemer, Elaia, Fourvest, IDInvest, Index, SAP, SoftBank , YJ

Description

 
Private: $60m IPO: $251m    

Leading global retargeting platform Floated Oct-13 with an offer price of $31 per share, above its upwardly revised $27-29 range and providing a market cap of approximately $1.7bn Share price rose 40% from its debut and was approximately $36 a share as at 18-Nov-13 and 16% up on the IPO
Leading Demand Side Platform Floated Sep-13 at a share price of $29 valuing the company at close to $1bn Share price doubled in its first week of trading and as at 18-Nov13 was $54.20 approximately 90% up on the IPO

Northgate, Summit, Cross Creek, Nokia Growth Fund, Labrador

Private: $77m IPO: $116m

Source: Capital IQ, Crunchbase, GP Bullhound

The warming of the IPO markets and recent success of Criteo and Rocket Fuel will have been watched with a keen eye by a spate of other adtech companies in the RTB ecosystem, who may be potential IPO candidates.
FIGURE 26 – POTENTIAL AD-TECH IPO CANDIDATES

Candidate

Investors
First Round, Khosla, Kodiak, Venrock, Microsoft, Tribeca, TCV

Raised IPO Candidates
$140m    $45m   

Description

Real time ad exchange/deliver system Rumoured to have been approached by AOL and Microsoft in Aug-10 Real-time campaign management platform across mobile and video channels Acquired MexAd in Sep-12 Sell side platform Acquired Others Online, SiteScout, Fox Audience Network and MobSmith

Atlas Venture, Flybridge, Menlo Ventures, Thomvest Ventures Clearstone, IDG, Mayfield, Standford, Berkeley, Peacock, Fox Trident, Scale, Adams Street, True ventures, Comerca Bank, KPG Accel, Samsung, Cox Media, iNovia, Greycroft, Comerica Bank

$50m

$46m

Video ad network and demand side services

$56m

  

Audience targeting and data/ media management Acquired Tumri, OggiFinogi, and Personifi Supply side platform helping publishers automated selling of inventory Acquired MobiPrimo and ReviNet Large scale demand side platform Acquired TapMe

DPJ, Helion, Nexus, August, SVB

$63m

  European Founders, QED, Safeguard, SVB, SJF, Catalyst Investors  

$24m

Norwest, Shastra, Trident, Focus

$61m

Large scale demand side platform

Source: Capital IQ, Crunchbase, GP Bullhound

25 GP Bullhound LLP

M&A and consolidation in the sector
We see an oncoming wave of consolidation in the market which will help to drive a series of transactions over the next few years. With substantial growth in RTB ad spend still to come, a fragmented European market and the need for differentiated technologies and capabilities, we believe the market is ripe for consolidation, which will be a further key driver of scale and efficiency in the market.
FIGURE 27 – SELECTED M&A VOLUME IN THE RTB SPACE 11 9 7 9

1

2009

2010 DSP

2011 SSP Exchange

2012 Other

2013

Source: Capital IQ, Crunchbase, GP Bullhound

M&A activity has picked up considerably in the space in the last three years as strategically important capabilities are acquired (e.g. Twitter’s recent acquisition of MoPub), or as a consolidation play with players such as Google, AOL and Yahoo looking to own the entire value chain.
FIGURE 28 - GOOGLE & YAHOO SHOW ING A HIGH LEVEL OF ACTIVITY

Source: Capital IQ, GP Bullhound

Yahoo and Google have been two of the most active acquirors in the sector in recent years and have been making a play to own large parts of the value chain given the strategic importance of advertising revenue to both.

26 GP Bullhound LLP

Where next for M&A?
M&A activity has been fairly muted in Europe compared with the US. We see M&A activity picking up with a number of potential drivers of consolidation:     Scale – as the technology commoditises, additional M&A will be required to leverage efficiencies from owning the full ‘stack’ of technologies and client data at scale. Customers – M&A could be driven by the acquisition of customer concentrations and proprietary technologies in individual verticals (e.g. ecommerce, online travel). Multi-channel – as the market matures and new high growth areas emerge (e.g. direct, mobile and video) larger acquirors may look to add to their cross-channel capabilities. Internationalisation – a key driver to penetrate new markets especially where the barriers to entry are high or scale is difficult to achieve organically.
FIGURE 29 – POTENTIAL STRATEGIC ACQUIRORS IN THE ADTECH SPACE
Internet Giants Existing RTB Players CRM Software Providers Global Agencies & Ad Networks

Source: GP Bullhound – Example companies are illustrative only

Potential future acquirors include the following:  Internet Giants – those heavily reliant on ad revenues will look to ensure they have the core competencies and technology stack in-house. The importance of RTB in mobile advertising was evident in Twitter’s recent acquisition of Mo-Pub (Sep-13). Google has made a big play on the space with its acquisitions of Doubleclick, Invite Media and Admeld ensuring it has coverage across the technology stack. We expect more from the likes of AOL, Microsoft, and Yahoo.  Global Agencies and Networks – we expect the global agencies will look to ensure they are well positioned in the space and we see them as key potential acquirors. We also expect to see Ad Networks acquiring technology and skills as the pace of change in the sector continues unabated, exemplified by Millenial media’s acquisition of Jumptap (Aug -13).  Software providers – M&A activity has been high in the CRM software space with Adobe’s acquisition of Neolane (Jun-13) and Salesforce’s acquisition of ExactTarget (Jun-13). These software providers may now look to integrate these platforms with RTB capabilities. The benefits to such organisations could be big, with a fully integrated RTB-enabled display advertising and CRM platform, providing a single dashboard for multiple advertising channels.  Consolidation of existing RTB players – in a market with competing technology platforms we expect to see significant consolidation as business models evolve to compete. Early examples of this include Criteo’s acquisition of Ad-X (Jul-13), Rubicon Project’s acquisition of mobile capabilities in MobSmith (Mar-12), and DataXu’s acquisiton of Mexad (Dec-11). We expect to see mergers and acquisitions of complementary technology capabilities and local customers driving internationalisation. Finally we see data players (e.g. Experian) as a further key category of acquirors as they seek to leverage their data assets and analytics capabilities across the landscape.
27 GP Bullhound LLP

APPENDICES
SELECTED COMPANY PROFILES – DEMAND SIDE

HQ: New York
Investors: Privately Held Rev: N/A

Founded: 2010

HQ: Copenhagen

Founded: 2002

Investors: Via Venture Partners Rev: €30m Raised: Employees: N/A 200

Raised: Employees:

N/A 50

 Independent media trading desk  Display, video, mobile, social, email, instream audio and out-of-home channels  Co-founded by digital agency execs Art Muldoon and Matt Greitzer

 Multiscreen DSP incorporating display ad serving, rich media, video, mobile, dynamic ads, personalised targeting, and real-time bidding through integrations with major inventory players

HQ: New York

Founded: 2007

HQ: Paris Investors: Privately Held Rev: N/A

Founded: 2009

Investors: First Round, Khosla, Kodiak, Venrock, Microsoft, Tribeca, Crossover Rev: N/A Raised: $141m Employees: N/A

Raised: Employees:

N/A N/A

 Platform for buying real-time online advertising  Offers a proprietary gateway to premier ad exchanges and ad inventory aggregators  Completed $75m series D in May-13

 Mobile media trading desk  In-house bidding and optimisation system  95% of its activity outside of France

HQ: Boston

Founded: 2009

HQ: Sweden Investors: ND Rev: N/A EBITDA: N/A

Founded: 2002

Investors: Atlas Venture, Flybridge, Menlo Ventures, Thomvest Ventures Rev: N/A Raised: $45.8m Employees: N/A

Raised: Employees:

N/A 55

 Real-time campaign management platform for digital advertising campaigns across online, mobile and video channels  Combines automated media buying, optimization and analytics  Raised $27m in Series C funding in Feb13  Acquired MexAd in Sep-12

 Efficiency-focused online advertising solutions with real-time planning, buying, optimisation and reporting.  DSP and DMP technology solutions and a managed buyside service

Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ

28 GP Bullhound LLP

SELECTED COMPANY PROFILES (CONT.) – DEMAND SIDE

HQ: London Investors: Privately Held Rev: N/A

Founded: 2007

HQ: Netherlands

Founded: 2012

Investors: Greenhouse Group Rev: N/A EBITDA: N/A Raised: $900k Employees: N/A

Raised: Employees:

N/A N/A

 Marketing intelligence and media trading company  Produces market intelligence that identifies the strengths and weaknesses of each individual platform in market  Benchmarks across both price and performance metrics

 Empowers real time advertising specialists with analytics and optimization technology to buy and sell ads more effectively  Integrated with Doubleclick and AppNexus

HQ: London Investors: Rev: N/A

Founded: 2007

HQ: London

Founded: 2010

Investors: Private individuals
Raised: N/A Employees: Rev: N/A EBITDA: N/A Raised: Employees: N/A 70

50

 Delivers customised real-time advertising campaigns for leading advertisers  Combines analytics with proprietary targeting and optimisation tools to power real-time display advertising  Customised DSP to maximise benefit of first party advertiser data

 Next generation performance trading specialist  Empowers agency partners with predictive analytics in big data for online display inventory trading

HQ: New York

Founded: 2007

HQ: Germany

Founded: 2012

Investors: European Founders, QED, Safeguard, SVB, SJF, Catalyst Investors Rev: $50m Raised: $24.4m Employees: 125

Investors: ZANOX.de
Rev: N/A EBITDA: N/A Raised: Employees: N/A N/A

 Offers cross-exchange advertising management services and technology  Media buying service provides the technology, strategy, services and insights to trade effectively across the leading display advertising exchanges and supply sources on behalf of agencies  Acquired Tap.Me in Dec-12
Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ

 RTB buyside platform  Allows advertisers to make impressionbased marketing decisions  Provides flexible and customised solutions for intelligent and highlypersonalized digital marketing strategies

29 GP Bullhound LLP

SELECTED COMPANY PROFILES (CONT.) – SUPPLY SIDE

HQ: Memphis

Founded: 2007

HQ: Berlin

Founded: 2009

Investors: Mohr (35%), Nokia (8%), Nothgate (6%), Public (28%)

Investors: Rev: N/A Raised: Employees: N/A N/A

Rev:

$159.6m

Raised: $77m* Employees: 465

 Data-focused programmatic media buying platform  Went public on Sep-13 and sold 4 million shares at a price of $29, raising a total of $116 million at a valuation of nearly $1 billion * Pre-IPO

 Develops RTB solutions for advertisers  Platform that enables users to bid for individual user impressions in real-time auctions

HQ: New York

Founded: 2010

HQ: Redwood City

Founded: 2004

Investors: eValue, DFJ Esprit, Karlin Ventures, SoftTech Rev: N/A Raised: $9.1m Employees: 55

Investors: Greenspring Assoc, Norwest, Trident, Shasta, Focus Ventures Rev: N/A Raised: $57m Employees: N/A

 Leading mobile DSP providing a single console through which users can run global mobile RTB campaigns  Three Series A funding rounds since Jun-12 for a total raised of $9.1m

 Integrated, end-to-end platforms for data and media management  Offers media expertise, client services and a geographically distributed infrastructure  Raised $20m in Jan-12 in a round led by Greenspring Associates

HQ: New York

Founded: 1999

HQ: Amsterdam

Founded: 2008

Investors: Echelon, Hudson, Blue Chip, WS, WallerSutton, Advanced, Intel Rev: N/A Raised: $39m Employees: 60

Investors: TOHARU Ventures, Partech Ventures, Active Venture Partners Rev: N/A Raised: $5.9m Employees: 60

 Data-driven multi-channel platform offering based on its Predictive Optimization Engine  Raised $17m of debt from Ares capital in Apr-13  Acquired UberTags in Feb-13 and WDA in Jul-13

 DSP providing bespoke software allowing advertisers to optimise ads based on real-time insights into audience reach, acquisition price, revenue and conversion attribution

Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ

30 GP Bullhound LLP

SELECTED COMPANY PROFILES (CONT.) – SUPPLY SIDE

HQ: Amsterdam

Founded: 2008

HQ: Paris

Founded: 2012

Investors: PubliGroupe (85%) Rev: N/A Raised: Employees: N/A 60

Investors: Amaury Medias, FigaroMedias, Lagardère Publicité and TF1 Publicité Rev: N/A Raised: Employees: N/A N/A

 Provides a real-time advertising platform to the owners of digital media  Enables media owners to build, grow, manage, control, and optimize their own environment driving revenues  PubliGroupe acquired 85% stake in Oct12

 SSP/ Private Adexchange founded by four French media leaders  120+ premium publishers’ partnerships for a specific audience target  Partnership with Microsoft Advertising since Nov-12  Launched a mobile Adexchange in May13

HQ: San Francisco

Founded: 2010

HQ: Redwood City

Founded: 2006

Investors: Twitter (100%) Rev: N/A Raised: $18.5m Employees: 45

Investors: DPJ, Helion, Nexus, August, SVB Rev: N/A Raised: $63m Employees: 380

 Operates as a mobile monetization platform, providing ad serving, optimization, and new ad experiences for mobile applications  Had over 250 active publishers in July 2011  Closed $18.5m series B round in Sep12  Acquired by Twitter Sep-13 for $350m

 Helps publishers automate the process of evaluating and selling their advertising inventory  Real-time media selling platform for managing revenue and brand strategy  Raised $45m in Series D funding Jun-12

HQ: Los Angeles

Founded: 1998

HQ: Southampton Investors: Privately Held Rev: N/A

Founded: 2008

Investors: Clearstone, IDG, Mayfield, Standford, Berkeley, Peacock, Fox Rev: N/A Raised: $51m Employees: 300+

Raised: Employees:

N/A 60

 The largest independent supply-side RTB trading platform for digital advertising used by more than 500 of the world’s premium publishers to transact with over 100,000 advertising brands globally  Acquisitions include SiteScout, Fox Audience Network and MobSmith

 Digital advertising solutions for publishers  Single platform adserver, RTB and data driven optimisation  2nd fastest growing UK tech company, (Sunday Times Hiscox TechTrack 100)  Innovation in partnership with Southampton University's Web Science Faculty

Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ

31 GP Bullhound LLP

SELECTED COMPANY PROFILES (CONT.) – AD EXCHANGES

HQ: Gothenburg

Founded: 2002

HQ: New York

Founded: 2005

Investors: Chalmers Innovation AB, KL Ventures, Layline Partners Rev: N/A Raised: $5m Employees: 40

Investors: Google (100%) Rev: N/A Raised: N/A Employees: 1,541

 Private Ad Exchange offering online advertising platform solutions for advertisers and publishers in Europe  Provides a yield optimization platform for publishers and a networks Web based campaign management platform for agencies and advertisers

 Provides digital ad serving technology and services  Services display, video, search and affiliate marketing  Acquired by Google in Apr-07 for $3bn

HQ: Pasadena

Founded: 1998

HQ: Menlo Investors:-

Founded: 2012

Investors: First, Index, Mangrove, Mitsui, Accel, DAG, SAP, AOL, Cyber Rev: N/A Raised: $50m Employees: 305

Rev:

N/A

Raised: Employees:

N/A N/A

 Independent provider of digital advertising technology that enables businesses to manage and maximize their ad revenue  Comprehensive revenue generation platform by combining ad serving with a unique ad exchange  Closed $25m Series E funding in May-11

 Allows marketers to use their own realtime consumer insight data to reach an audience on Facebook  Advertisers and agencies use cookiebased targeting through DSPs to reach their audience on Facebook in real time

HQ: New York

Founded: 2011

HQ: New York

Founded: 2003

Investors: DFJ, Gold Hill, Investor Growth Capital, New Atlantic, Updata
Rev: N/A Raised: $3m Employees: 150

Investors: Yahoo! (100%)

Rev:

N/A

Raised: $45m Employees: 134

 Ad exchange and SSP providing a spectrum of services including data management, media mix optimisation, content distribution, and contextual ad exchange capabilities  Formed in 2011, from a merger between Contextweb and Datran Media

 Digital advertising exchange platform  Auction marketplace for buying and selling online inventory  Connects digital advertising companies and provides an opportunity for these participants to reach their audiences on their own terms  Acquired by Yahoo! In Apr-07 for $850m

Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ

32 GP Bullhound LLP

SELECTED COMPANY PROFILES (CONT.) – CROSS PLATFORM TECHNOLOGY / TARGETING

HQ: Hamburg

Founded: 2006

HQ: Bellevue Investors: 19 Rev: N/A

Founded: 2003

Investors: ViewPoint Capital Partners Rev: N/A Raised: Employees: N/A N/A

Raised: $100m Employees: 135

 Provides a full stack of RTB-enabled technologies  Functions and services include DSP, DMP, Ad Serving, Data Exchange, SSP, dynamic creative and dynamic video that fully integrate into the first end-to-end data-driven advertising platform

 Offers online behavioural targeting platforms and marketplace for the digital media industry  Targets relevant audience for advertisers through its data-driven platform

HQ: Paris Founded: 2005 Investors: VCs (34%), Individuals (16%), Corporations (11%), Public (39%) Rev: N/A Raised: $60m* Employees: 700

HQ: London

Founded: 1992

Investors: IQ Capital Partners LLP Rev: N/A Raised: $2.45m Employees: N/A

 Provides pay-per-click performance display advertising solutions in France and internationally  Platform leverages large data sets to target relevant users in real time  Went Public on Nasdaq in Oct-13 * Pre-IPO

 Contextual advertising tool for display media  Uses probability algorithms to optimise the placement of content and advertisements online  Helps publishers to create virtual channels specific to each advertiser’s contextual needs.

HQ: London Investors: Privately Held Rev: N/A

Founded: 2000

HQ: London

Founded: 2003

Investors: Iris, Accel, t-ventures, Carmel N/A 140 Rev: N/A Raised: $37m Employees: 17

Raised: Employees:

 RTB infrastructure and technology provider  Provides real time data analysis for targeting consumers through custom engineered, intelligent, scalable, media trading platforms  Powers over 40 online ad platforms across the world

 Performance based display advertising solutions for online advertisers in Europe and internationally  Enables merchants to stay in touch with prospects after they leave the site, and delivers an optimized message for each user  Winner of the 2011 E-consultancy Innovation in Affiliate Marketing Award

Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ

33 GP Bullhound LLP

SELECTED COMPANY PROFILES (CONT.) – VIDEO AD EXCHANGES / AD SERVERS

HQ: New York Investors: AOL (100%) Rev: N/A

Founded: 2006

HQ: San Francisco

Founded: 2006

Investors: Trident, Scale, Adams Street, True ventures, Comerca Bank, KPG Rev: N/A Raised: $46m Employees: 70

Raised: $48.5m Employees: 205

 Online video advertising platform  Provides buyers and sellers with automated tools to plan, buy and measure across linear TV and online video  Acquired by AOL for $405m in Aug-13

 Online video advertising platform  Enables advertisers to execute digital video campaigns across a pool of web and mobile video inventory  100 million monthly unique viewers  Raised $30m in Series C Funding in Nov-11

HQ: Austin

Founded: 2009

HQ: San Francisco

Founded: 2008

Investors: Videology (100%) Rev: N/A Raised: €2.88m Employees:

Investors: Cleartide Limited, Pond Ventures Rev: N/A Raised: $8.5m Employees: 110

 Mobile marketing platform  Provides media optimization services to publishers and advertising networks for enabling targeting on mobile devices  Was acquired by Videology in Jun-12

 Online video advertising  The company’s platform provides solutions that range from RTB and onboarding custom data to campaign management, analytics, and streamlined client billing  Raised $4m in Series C funding in Jun13

HQ: Emeryville

Founded: 2006

HQ: Baltimore

Founded: 2007

Investors: NSV, Bee, Knight Bridge, Trinity, Foundation, Northgate, SingTel Rev: N/A Raised: $53.2m Employees: N/A

Investors: Boulder, New Enterprise, Valhalla, Comcast, Catalyst, Pinnacle Rev: N/A Raised: $134m Employees: 180

 Online video ad buying platform  Advertisers only pay when someone chooses to watch their video and they see which sites their ads ran on, how their ads performed and who watched them  Raised $10m in Series C Funding in Jun-13

 Online video advertising platform  Predictive targeting product that improves advertisers' ability to reach their intended audience  Acquired ColliderMedia Jun-12 and LucidMedia Oct-12  Raised $60m in May-13

Source: GP Bullhound, eMarketer, Crunchbase, Capital IQ

34 GP Bullhound LLP

SELECTED FUNDRAISING TRANSACTIONS

Date Sep-13 Sep-13 Sep-13 May-13 May-13 Apr-13 Feb-13 Jan-13 Jan-13 Jan-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Jun-12 Mar-12 Feb-12 Jan-12 Dec-11 May-11 Apr-11 Apr-11 Mar-11 Jan-11 Jan-11 Jan-11 Dec-10 Dec-10 Dec-10 Nov-10 Nov-10 Nov-10 Oct-10 Sep-10 Jun-10 Jun-10 May-10 May-10 Apr-10 Mar-10 Mar-10 Jan-10 Dec-09 Nov-09 Oct-09 Sep-09 Aug-09 May-09 Apr-09 Apr-09 Mar-09 Mar-09 Feb-09 Sep-08 Sep-08 Aug-08 May-08 Mar-08 Mar-08 Mar-08 Feb-08 Feb-08 Feb-08 Jan-08 Jan-08 Jan-08 Jan-08 Jan-08 Jan-08 Jan-08 Dec-07 Oct-07 Oct-07 Jun-07 May-07 Mar-07 Oct-06 Apr-06 Mar-06 Nov-05 Jun-05 Apr-05 Jan-05 Aug-04 Dec-03 Mar-02 Jan-02 Apr-01 Sep-00 Apr-00 Jun-97

Target Action Exchange StrikeAD YD Triggit TubeMogul AudienceScience DataXu AppNexus Glow Digital Media OpenX PulsePoint TubeMogul Triggit Brandscreen Criteo PubMatic MyThings XPLUSONE Visual DNA RevenueMax OpenX PulsePoint Improve Digital MediaMath StrikeAD XPLUSONE Turn Brandscreen SpotXchange Admeta MyThings Admeta The Rubicon Project AppNexus TubeMogul Triggit adscale AudienceScience Criteo PubMatic The Trade Desk DataXu Adform Grapeshot AppNexus AudienceScience The Rubicon Project MediaMath OpenX DataXu The Rubicon Project TubeMogul PubMatic Visual DNA AppNexus MyThings Turn XPLUSONE AdJug Turn Unica YD SpotXchange TubeMogul The Rubicon Project adscale Triggit OpenX Criteo PubMatic Admeta AppNexus TubeMogul The Rubicon Project OpenX Visual DNA MediaMind Technologies Right Media MyThings Criteo AudienceScience Right Media PulsePoint Turn XPLUSONE MediaMind Technologies AudienceScience XPLUSONE XPLUSONE AudienceScience AudienceScience DoubleClick

Target HQ US UK Netherlands US US US US US UK Canada US US US Singapore France US UK US UK Germany Canada US Netherlands US UK US US Singapore US Sweden UK Sweden US US US US Germany US France US US US Denmark UK US US US US Canada US US US US UK US UK US US UK US US Netherlands US US US Germany US Canada France US Sweden US US US Canada UK US US UK France US US US US US US US US US US US US

Funds Raised($m) 3 7 6 6 8 9 27 75 1 25 3 29 7 11 40 45 15 5 10 ND 20 9 ND 14 1 10 20 3 12 ND 6 ND 18 50 10 4 6 8 6 8 3 11 ND 2 5 15 9 13 10 8 5 3 4 14 8 8 15 16 7 15 18 ND ND 2 15 ND 1 16 10 7 5 3 ND 4 5 5 30 45 8 7 24 12 60 8 8 8 15 1 3 20 5 40

Investors SoftBank Capital; AOL Ventures; Lerer Ventures; Verizon Ventures; Golden Venture Partners, Inc. DJF Esprit, Siemer Ventures, SoftTech VC Partech International; Active Venture Partners, SGECR, S.A Foundry Group, North Atlantic Capital, Spark Capital Singtel ND Atlas Venture, Flybridge Capital Partners, Infocomm Inestments Pte, Menlo Ventures, Thomvest Ventures TCV, Venrock, Tribeca Avonmore Developments Ltd , Project A Ventures GmbH & Co. KG Accel, Cyber Communications, Index, Mitsui & Co, Presidio STX, Samsung Venture, SAP Ventures DFJ, Investor Growth Capital, Vantagepoint, Updata Northgate, Trinity, Foundation Foundry Group, Spark Capital Macquarie Capital Grup, SingTel Ventures, Southern Cross Venture Partners Adams Street Partners, Bessemer Venture Partners, Index Ventures, SAP Ventures, SoftBank Capital, YJ Capital August Capital, Draper Fisher Jurvetson, Helion Venture Partners, Nexus Venture Partners, SVB Silicon Valley Bank Accel Management, Carmel Ventures, GP Bullhound, Iris Capital, T-Venture Holding, Viola Private Equity Hudson Ventures ND High-Tech Gruenderfonds Management GmbH Accel, AOL Ventures, DAG Ventures, Index, Mitsui & Co, Global Investment, Presidio STX, SAP Ventures ND Van den Ende & Deitmers Safeguard Scientifics, Inc eValue AG Advanced Technology Ventures, Blue Chip Venture Company, Hudson Ventures, Intel Capital Focus Ventures, Greenspring Associates, Norwest Venture Partners, Shasta Ventures, Trident Capital Adventure Capital Pty H.I.G. Growth Partners LLC Chalmers, KL Ventures, Layline Partners Accel Management , Carmel Ventures, GP Bullhound, T-Venture Holding, Dotcorp Chalmers, KL Ventures, Layline Partners Clearstone Venture Partners, IDG Ventures, Mayfield Fund, News Corporation, Peacock Equity Fund First Round Capital, Kodiak Venture Partners, Microsoft Corporation, Venrock Foundation Capital, Knight's Bride Capital Partners, Trinity Ventures Foundry Group, Spark Capital TIME Equity Partners ND Bessemer Venture Partners Draper Fisher Jurvetson, Helion Venture Partners, Nexus Venture Partners Founder Collective, IA Ventures, Wider Wake Networks Atlas Venture, Flybridge Capital Partners, Menlo Ventures Via Venture Partners A/S, Via Venture Partners Fund I IQ Capital Partners Kodiak, Venrock, First Round Capital Integral Capital Partners, Mayfield Fund, MeriTech Capital Partners, Mohr Davidow Ventures Clearstone Venture Partners, Mayfield Fund, Peacock Equity Fund SVB, European founders fund, QED, Safeguard Scientifics Accel Management, DAG Ventures, First Round Capital, Index Ventures, Mangrove Capital Partners Atlas Venture, Flybridge Capital Partners, Menlo Ventures Clearstone Venture Partners, IDG Ventures, Mayfield Fund Trinity Ventures Draper Fisher Jurvetson, Helion Venture Partners, Nexus Venture Partners Northzone, Atomico, Horizons Ventures First Round Capital, Khosla Ventures, Kodiak, Venrock Accel Management, Carmel Ventures, GP Bullhound, Dotcorp Focus Ventures, Norwest Venture Partners, Shasta Ventures, Trident Capital Advanced Technology Ventures, Blue Chip Venture Company, Hudson Ventures Balderton Capital, Tomorrow Focus AG (DB:TFA) Norwest Venture Partners, Shasta Ventures, Trident Capital Balderton Capital, Tomorrow Focus AG (DB:TFA) Toharu & Angel Angel Investors Knight's Bride Capital Partners Clearstone Venture Partners, IDG Ventures, Mayfield Fund, Stanford University, University of California Berkeley European Founders Fund Magagement GmbH, Holtzbrinck Ventures GmbH Bay Partners Accel Management Co, First Round Capital, Index Ventures, Mangrove Capital, O'Reilly Alpha Tech Ventures AGF Private Equity, Elaia Partners, Index Ventures Draper Fisher Jurvetson, Helion Venture Partners, Nexus Venture Partners Sjaette AP-fonden First Round Capital, Khosla Ventures, Various Angels NetService Ventures Clearstone Venture Partners First Round Capital, Index Ventures, Mangrove Capital Partners, O'Reilly SlphaTech Ventures Northzone BRM Group Redpoint Ventures, Yahoo! Inc. (NasdaqGS:YHOO) Accel Management, Carmel Ventures AGF Private Equity, Elaia Partners Integral Capital, Mayfield Fund, MeriTech , Mohr Davidow, Second Avenue Redpoint Ventures VantagePoint Venture Partners (nka:VantagPoint Capital Partners) Norwest Venture Partners, Trident Capital Blue Chip Venture Company, Echelon Ventures, Hudson Ventures, WS Capital Insight Venture Partners American Express, Angel Investors, Cedar Grove , Deutsche Bank, Gulf International, Kellett, Mayfield, Mohr ND Echelon Ventures, Hudson Ventures Cedar Grove Investments LLC, Kellett Investment Corporation, Mayfield Fund, Second Avenue Partners Angel Investors, Cedar Grove, Deutsche Bank, Investment Arm, Kellett, Madrona Venture, Second Avenue ABS Capital Partners, Bain Capital Private Equity, Canaan Partners, Greylock Partners, Venrock, Peck & Greer Venture

Source: GP Bullhound, Capital IQ, Company press releases, ND = Not Disclosed

35 GP Bullhound LLP

SELECTED M&A TRANSACTIONS

Date
Nov-13 Nov-13 Sep-13 Sep-13 Aug-13 Aug-13 Jul-13 Jul-13 Jul-13 Jul-13 Jan-13 Jan-13 Dec-12 Dec-12 Oct-12 Oct-12 Jun-12 Apr-12 Mar-12 Mar-12 Jan-12 Nov-11 Oct-11 Aug-11 Aug-11 Jun-11 Jun-11 May-11 Apr-11 Apr-11 Feb-11 Feb-11 Nov-10 Nov-10 Oct-10 Jun-10 May-10 Mar-10 Jan-10 Jan-10 Aug-07 May-07 Apr-07

Target
Tedemis Sitescout Mopub Gradient X Jumptap Adap.tv AdMovate Ad X Tracking Matiro IgnitionOne, Inc. Akamai Decisions Solutions Mobvalue adscale TapMe JumpTime Improve Digital Collective intellect Peer39 MobSmith Amobee Mexad Interclick Smartclip AdJug Dotomi Mediamind Admeld ReviNet Adbuyer.com Adenyo Oggifinogi Transpera ScanScout FAN MobClix Invite Media SiteScout adscale AdMarvel Quattro Chintano Right Media DoubleClick

Target Geography
US US US US US US US UK France US US France Germany US US Netherlands US US US US Germany US Germany UK US US US US US US US US US US US US US Germany US US US US US

Acquirer
Criteo Centrico Tw itter Amobee (Singtel) Millenial Media AOL Yahoo Criteo 1000mercis ABS Capital Partners, Persimmon Capital Partners MediaMath Prisma Media Stroer MediaMath OpenX Technologies PubliGroupe Oracle DG MediaMind the Rubicon Project Singtel DataXu Yahoo! Adconion IgnitionOne / Dentsu ValueClick DG Fastchannel Google PubMatic MediaBank Motricity (nka Voltari) Collective Media Tremor Media Tremor Video the Rubicon Project Velti Doubleclick the Rubicon Project Various investors Opera Softw are Apple Datran Media (nka PulsePoint) Yahoo Google

EV ($m)
20 40 350 ND 209 ND ND ND 3 ND ND ND ND ND ND ND ND 16 10 321 ND 273 168 ND 295 414 400 ND ND 140 ND ND 65 ND 54 40 ND ND 23 275 20 850 3,110

Target Description
Email re-targeting RTB demand side platform Supply side platform for mobile adds RTB platform for mobile ads Mobile DSP Full RTB technology stack for video Mobile ad targeting platform Mobile ad tracking platform Media trading platform for online advertisements Digital marketing technology Advertising decisions platform Mobile advertising netw ork and platforms Platform for buying real-time online advertising Mobile and video in-game ad platform Content optimisation technology Supply Side Platform Automated real-time mining & analytics softw are for social CRM Data provider to improve relevance and effectiveness of online display advertising Location-based mobile advertising platform Mobile advertising solutions for operators Demand Side Platform Data management and analytics platform Online video advertising netw ork Platform for buying real-time online advertising Interactive digital marketing Digital advertising campaign mgt infrastructure Digital advertising platforms Netw ork optimization services for online publishers Platform for buying real-time online advertising Digital and mobile marketing Real time video ad platform Mobile video technology Streaming ad server Online marketplace for digital advertising Mobile Ad Exchange Buying platform for display media Cloud-based publisher protection platform Exchange platform for buying real-time online advertising Mobile advertising platform services Mobile advertising netw ork Ad server Display advertising exchange Platform for buying real-time online advertising

Source: GP Bullhound, Capital IQ, Company press releases, ND = Not Disclosed

36 GP Bullhound LLP

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38 GP Bullhound LLP