At the SIIA Strategic & Financial Investment Conference on June 13 in NYC, JEGI provided the accompanying opening keynote presentation. For an audience of more than 200 M&A focused strategic executives and private equity investors, this insightful presentation discussed the shift in digital marketing with "Always-On CRM" and the convergence of marketing and technology. For more information, contact amira@jegi.com.

1. June 21, 2012www.jegi.com
Since 1987
June 13, 2013www.jegi.com
2013 SIIA Strategic and Financial Conference
New York, NY
The Coming Shift in Digital Marketing:
“Always‐On CRM”

2. CONFIDENTIAL 2
Discussion Agenda
2
Shifting Model, Enabling Technologies
M&A Heating Up in Marketing Technology
Emergence of the Enterprise Marketing Management Stack
Implications

3. CONFIDENTIAL 3
State of M&A Market
3
 Key drivers in 2012:
• Rising corporate investment
• Rush to beat changes in US tax code
• Pace picking up in Q2 2013 after Q1 lull
 Strategic buyers continue to be active
• Accelerating growth via acquisitions
• Strong balance sheets – as of Q4, U.S. non‐
financials held $2+ trillion in cash
• Retooling models to leverage technology and
new platforms/channels
 Strong PE activity
• Race to invest $600+ billion raised ‘07‐08
• Lender activity picking up, rates low, greater
comfort in marketing services
 Shortage of high‐quality available assets
2012 US volume and value surged, up 50% and 43% over 2011

4. CONFIDENTIAL 4
M&A Volume and Value by Sector
4
Despite Q1 ‘13 calm after Q4 ’12 M&A bulge,
Marketing Services & Technology remains most active segment
Industry Sector
No. of
Deals
Value
(millions)
No. of
Deals
Value
(millions)
No. of
Deals
Value
B2B Online Media & Technology 21 $198 19 $201 11% (1%)
B2C Online Media & Technology 53 $1,218 70 $1,537 (24%) (21%)
Business‐to‐Business Media 8 $102 9 $63 (11%) 61%
Consumer Magazines 11 $183 16 $83 (31%) 120%
Database & Information Services 12 $481 20 $3,862 (40%) (88%)
Education Information, Technology & Training 21 $238 12 $516 75% (54%)
Exhibitions & Conferences 16 $164 15 $263 7% (38%)
Healthcare Information & Technology 52 $1,596 46 $2,058 13% (22%)
Marketing Services & Technology 118 $2,539 136 $2,961 (13%) (14%)
Mobile Media & Technology 41 $819 31 $697 32% 17%
Total 353 $7,537 374 $12,242 (6%) (38%)
Marketing Services & Technology ‐ % of Total 33% 34% 36% 24%
Source: JEGI Transaction Database
Media, Information, Marketing & Technology M&A Activity
2013 2012
January ‐ March January ‐ March % Change

5. CONFIDENTIAL 5
Strategics Snapping Up Technology‐Driven Marketing
5
Expanding functionality through acquisition
Cross‐channel, interactive
marketing SaaS solution
SaaS‐based B2B marketing
automation software solutions
Develops, hosts, and supports
database software and hardware
SaaS -based marketing automation platform
with revenue performance management
Provides enterprise cloud
computing and CRM solutions
Provides social media marketing
platform
Provides advertisement planning
and placement services
Global provider of media and
digital services
Multi‐channel market data and
measurement solutions
Measurement solutions for analyzing
the TV and radio markets
Provides multi‐channel
advertising solutions
Enables brands to better acquire and engage
customers through digital channels
Provides enterprise cloud
computing and CRM solutions
Cross‐channel, interactive
marketing SaaS solution
Provides search, advertising and
analytics solutions
Social media marketing
management tools
Database marketing and
marketing services company
Provides a suite of integrated
performance marketing solutions
Online real estate database with
residential market data
Online marketing solutions for
real estate professionals

6. CONFIDENTIAL 6
6
Target Acquirer
PE Also Very Active In Technology‐Driven Marketing
Over the last 12 months, ~40% of 17 JEGI sale transactions
have closed with PE buyers
Ecommerce + shopper marketing software
Content marketing and development
Custom marketing research for consumer brands
Sales enablement and BI SaaS
Digital promotions across mobile, social and web

7. CONFIDENTIAL 7
Discussion Agenda
7
Shifting Model, Enabling Technologies
M&A Heating Up in Marketing Technology
Emergence of the Enterprise Marketing Management Stack
Implications

8. CONFIDENTIAL 8
8
Technology Impact on Marketing Budgets
“…by 2017, the CMO will be spending more on IT than
the CIO…”
‐‐ Gartner

9. CONFIDENTIAL 9
Top of the EMM Stack Recent M&A
9
Enterprise software companies acquiring for growth to keep pace with customers’
marketing needs and the unprecedented rate of technology adoption by CMOs
$22+ billion in M&A value 2010‐2012

10. CONFIDENTIAL 10
Enterprise Marketing Management (EMM) Stack
10
Breaking Down the Stack

11. CONFIDENTIAL 11
Enterprise Marketing Management (EMM) Stack
11
What is it?
 Repositories for marketing content for use
across all marketing activities
You know its DAM / MAM / PDM when you
hear…
 “Let’s make sure our logos look the same on
our direct mail package as well as our mobile
marketing campaigns”
Digital Asset (DAM) / Marketing Asset
(MAM) / Product Data Management (PDM)
COMPANIES IN SECTOR

12. CONFIDENTIAL 12
Enterprise Marketing Management (EMM) Stack
12
What is it?
 Software that enables websites to serve rich,
dynamic and personalized messages to visitors,
responsively and at scale
You know its MOM / WCM when you hear…
 “Let’s serve our ad campaign to customers who
have recently searched for our product…”
Marketing Operations (MOM) /
Web Content Management (WCM)
COMPANIES IN SECTOR

13. CONFIDENTIAL 13
Enterprise Marketing Management (EMM) Stack
13
What is it?
 CRM systems enable businesses to manage
customer relationships and the data and
information associated with them
You know its CRM when you hear…
 “Show me a list of customers who have
purchased more than one of our products in
the last 6 months…”
Customer Relationship Management
(CRM)
COMPANIES IN SECTOR

14. CONFIDENTIAL 14
Enterprise Marketing Management (EMM) Stack
14
What is it?
 Software that coordinates and tracks marketing
executions across channels
You know its MRM when you hear…
 “We need to do a better job of integrating our
B2B email acquisition campaigns with our other
lead gen activities…”
Marketing Resource Management (MRM)
COMPANIES IN SECTOR

15. CONFIDENTIAL 15
Enterprise Marketing Management (EMM) Stack
15
What is it?
 Customer satisfaction on steroids ‐‐ what
makes individual customers “tick”
You know its CEM / CIM when you hear…
 “Why are we seeing a spike in customer
complaints about our new product…”
Customer Experience Management (CEM) /
Customer Interaction Management (CIM)
COMPANIES IN SECTOR

16. CONFIDENTIAL 16
Enterprise Marketing Management (EMM) Stack
16
What is it?
 Data and dashboards and decision support for
media and marketing investments
You know its Media and Marketing Analytics
when you hear…
 “Should I spend more on search or social to
drive eCommerce revenue…”
Media and Marketing Analytics
COMPANIES IN SECTOR

17. CONFIDENTIAL 17
Enterprise Marketing Management (EMM) Stack
17
What is it?
 Predictive business insights for multiple data
sets
You know its BI when you hear…
 “Looking at our recent campaign results what
customer segments responded to our last
campaign…”
Business Intelligence (BI)
COMPANIES IN SECTOR

18. CONFIDENTIAL 18
Enterprise Marketing Management (EMM) Stack
18
 EMM dramatically impacting how large organizations
invest in marketing
 Marketing assets, channels, data sources, third‐party
APIs increasing in number and complexity
 Connect and synchronize end‐to‐end marketing and
sales activities…
 Brand / creative
 Media planning / buying
 Field and channel
 Online ad ops and campaign execution
 Acquisition / eCommerce
 Offer management and optimization
 Customer care and loyalty
 Marketing ROI measurement

19. CONFIDENTIAL 19
19
Presenting Companies in the EMM Ecosystem
Company Company Description
Technology that maximizes online advertising effectiveness
SaaS sales intelligence solutions
SaaS digital transformation platform
Mobile apps market leader in nature and wildlife
Actionable agriculture market data
Full‐service content marketing agency
Email intelligence for marketers
Behavioral online reference software for efficient recruiting
SaaS data driven marketing automation platform

20. CONFIDENTIAL 20
Discussion Agenda
20
Shifting Model, Enabling Technologies
M&A Heating Up in Marketing Technology
Emergence of the Enterprise Marketing Management Stack
Implications

21. CONFIDENTIAL 21
21
Customer Segmentation
Who are your customers?
How do you reach them?

22. CONFIDENTIAL 22
22
Identify and Connect Customer Across All Channels
HubHub
Click stream
Search
Social
interactions
Online
shopping
E‐commerce
transactions
Email
registrationsCatalog/direct
transactions
Print
subscriptions
Retail
transactions
Financial
transactions
Membership/
loyalty
Call center

23. CONFIDENTIAL 23
23
Traditional model
 Target audience segments
 Context / endemic sites
 Premium sites
 Retargeting
 BT segments (low effectiveness)
 Run campaign
 Measure results
 CTR (weak or negative proxy)
 Engagement, attitude lift
 Stare at data, repeat
Emerging model
 Target best current / next customers
 Relationship / transactional / CRM data
 Model at individual level
 Cross channel data
 Web, mobile, social
 On‐site, Off‐line, In‐store
 Dynamic, continuous communication
 Cross channel (ditto)
 Dynamic messaging at individual level
 Measure results
 Closed‐loop from desired event
 Feedback into CRM system
 At massive scale
Advertising Becoming “Always‐On CRM”

24. CONFIDENTIAL 24
Always‐On CRM Enabling Technologies
24
Additional Strategic
Initiatives
DaaS
Product
Offering
Identify:
Best
customers and
prospects
Reach:
Across web,
mobile, email,
offline, and
in‐store
platforms
Measure:
Closing the loop
on result /
conversion
measurement
Connect:
Link digital
identities across
channels
Optimize
Message:
Message and
frequency
EMM Stack Enables Always‐On CRM at Massive Scale
End to end, closed loop, measured and managed ROI

25. 25
MyWebGrocer: Online Driving In‐store Shopping
Transaction/
Close the Loop
Add to Shopping List

26. 26
Sociomantic:
Real Time Bidding on a Global Scale
Real Time Bidding
– Enables bidding for individual ad impressions in real-
time auctions
– Bids are calculated in milliseconds
Impressions at the Perfect Price
– Range of factors determines a precise value of
impressions for advertisers
Personalized Creatives
– Deep layers of intelligence show best possible
ad for every impression, boosting conversions

27. 27
The Trade Desk:
Empowering 170+ media buyers with proprietary RTB platform
MANAGEMENT & SERVICE
TRAFFICKING & OPTIMIZATION
DATA VISUALIZATION
CLIENT REPORTING
ANALYTICS & DATA MGT (CRM INTEGRATION)
AUDIENCE INSIGHTS
USER LEVEL DECISIONING
ATTRIBUTION
CHANNEL INTEGRATIONS
(ALL SOURCES IN DISPLAY, SOCIAL, SEARCH, EMAIL, ETC)
DYNAMIC CREATIVE OPTIMIZATION
TAG MANAGEMENT
DATA MARKETPLACE
DATA MANAGEMENT PLATFORM
PERFORMANCE REPORTING
BI AND DATA PROCESSING
REAL‐TIME ADSERVER
REAL‐TIME BIDDER
core tech
service
OPTIONAL FOR SERVICE LAYER,
ALSO PROVIDED BY PLATFORM
SERVICE LAYER (TTD CLIENTS)
THE TRADE DESK PLATFORM

28. 28
Discussion Agenda
28
Shifting Model, Enabling Technologies
M&A Heating Up in Marketing Technology
Emergence of the Enterprise Marketing Management Stack
Implications

29. CONFIDENTIAL 29
29
Technology Impact on Services Marketplace
“…despite all of this technology at work, the most critical
element in our evolving service mix is world class
creative capabilities…”
‐‐ Chief Marketing Officer
Global IT Services Firm
“Our role is to serve as a systems integrator for our
clients…to help brands tell their stories via marketing
technologies and API’s”
‐‐ Chief Strategy Officer
Global Agency Group

30. 30
Converging Services Market
30
DAM/MAM
WCM
CRM
MCM
CEM
Analytics
BI
Point Apps, Platforms and APIs
EMM Stack
IT/ Consulting
Services
IT/ Consulting
Services
Agency/ Creative
Services
Agency/ Creative
Services

31. 31
EMM Stack
Converging Services Market
31
IT/ Consulting
Services
IT/ Consulting
Services
Agency/ Creative
Services
Agency/ Creative
Services

32. 32
Content Marketing Ecosystem
32
Textual Content
Interactive Tools
Email
White Papers
Video
Webinars/Event Marketing
Blogs
Digital Point of Purchase
Social Media
Search Marketing
Direct Marketing
Websites
Mobile / Tablet Applications
Webisodes
Podcasts PublicationsContent Marketing

33. 33
33
Looking Ahead
What’s Next?
Wearable Technologies

34. 34
34
Next Marketing Channel ‐ Wearable Technology?
Connected consumer
devices proliferate –
each a data machine
Marketers can annoy consumers at
home, at the gym, while sleeping,
while driving…
Tweeting with your eyes
Dividing your attention

35. 35
Recent JEGI Transactions
35
In each transaction JEGI client is mentioned first.
20 transactions in 2012 & 2013 for over $1 billion in enterprise value

36. Since 1987
June 13, 2013www.jegi.com
150 East 52nd Street 18th Floor
New York, NY 10022
Phone: (212) 754‐0710
Fax: (212) 754‐0337
The Coming Shift in Digital Marketing:
“Always‐On CRM”