Client Briefing March 2017 | 1

2017 JEGI MEDIA & TECHNOLOGY CONFERENCE

JEGI hosted its 13th annual Media & Technology Conference on January 12 at the Time Warner Center in New York City. The 2017 Conference, our largest to date, brought together more than 450 senior executives and investors from across the global media, information, marketing, software and tech-enabled services sectors for an afternoon of highly relevant, actionable programming and peer-to-peer networking.

IN THIS ISSUE

@JordanEdmiston

linkedin.com/company/jegi

Follow us on Twitter

Find us on LinkedIn

Attendees filled the conference venue to watch presentations from A-list speakers

March 2017

CLIENT BRIEFING

1 2017 JEGI Media & Technology Conference

2 The Transformation of Oracle Data Cloud

3 Mobile Apps & Digital Payments

4 Fostering a Culture of Cultures

5

Key Trends in theFinancial Markets

6

JEGI Sector Insights

9

The Continuing Evolution of Bloomberg

10

Data as a Service

11

Insights in Media & Technology Innovation

11

Legal Update

12 Exceptional Transaction Experience

Focused on “Transformational Growth through Innovation + Change,” the event provided key insights from high-profile speakers across JEGI’s core markets on how to stay relevant in today’s fast-paced and rapidly evolving landscape.

JEGI is extremely grateful to the event’s long-time sponsors for their support: BDO; Boston Consulting Group; Capital One; Intralinks; Koller Search Partners; and Morgan Lewis.

In addition, JEGI would also like to thank the blue-chip roster of speakers who contributed their time and effort to the Conference. Bios for all speakers, as well as the full program guide and select presentations, can be found at www.jegi.com/resources/2017-JEGI-Media-Technology-Conference.

On the following pages, we have provided excerpts from several Conference sessions.

ModeratorJohn Rose, Senior Partner & Managing Director, BCG

Keynote SpeakerEric Roza, SVP & GM, Oracle Data Cloud, Oracle

2 | Client Briefing March 2017

John Rose: Can you talk to us about where the world of data and analytics is heading, and where the winning positions are?

Eric Roza: Let’s talk about data in the world of digital media – data that makes ads work better – because that’s arguably one of the biggest uses of third party data today.

We are in the very early days of data. Over the past 12 months, about $4 billion in media, predominately in the U.S., was enhanced with our data, meaning that our data made the media work better.

The total addressable market for data, which never really existed as a business of scale before, is approximately 10+% of the global media market, which is between $500 million and $1 trillion dollars, depending on how you measure it.

Rose: Where is the value; in the proprietary data source?

Roza: Yes. There are two types of data: i) attribute data – knowing something about someone, such as basic demographics and preferences, and ii) identity data – ability to connect a

THE TRANSFORMATION OF ORACLE DATA CLOUD

piece of data to an activation or media outcome.

Users want to have access to all of this data, and then find a way to filter out the noise through algorithms and processes.

“Over the past 12 months, about $4 billion in media, predominately in the US, was enhanced with our data.“

Rose: For scalable plays, where do you invest – data access, platform capabilities, analytics?

Roza: They are all equally important. The two biggest assets in the Oracle Data Cloud – Datalogix and BlueKai – took different positions on the value chain. BlueKai is all about technology and high resolution connections – more data is better. At Datalogix, the focus was on proprietary valuable data assets and deep data science – what you actually do with the data. The data preparation is important. There is so much noise to parse out before you can even let the math do its work.

Rose: Google, Facebook, Apple and Amazon – are they going to eat the world?

Roza: Facebook and Google are customers of the Oracle Data Cloud. They use our data to build their ads businesses. So, they not only have a tremendous amount of their own data, but they also have a strong appetite for purchasing incremental data to complement the data they own.

While we don’t speak as publicly about our relationships with Amazon and Apple, we have done work with both companies.

On the identity side, Google is doing more and more to unite identities across YouTube, DoubleClick, search, and so on. They are forming a native ID graph connecting identities, something that Facebook has always been very good at. Apple hasn’t really focused there yet, but it has all the assets. Amazon has also moved a little bit slower, but it has a lot of the assets as well.

Rose: Pivoting to Oracle and Datalogix – how have you been able to take what was an incredibly entrepreneurial and agile culture, and keep that alive within the corporate Oracle world, which is not as fast-moving and agile?

Roza: I gave myself three core purposes that helped guide me and led to our success.

First, I said to myself, “Look, Oracle paid a lot of money for this company, and I want to deliver a great return on

Eric Roza provides key insights on the evolving world of data and analytics and where he believes the industry is heading.

10+%of the global media market

The total addressable market for data is approximately

(from left) John Rose (BCG), Eric Roza (Oracle)

Innovative Developments in Design & Technology

Client Briefing March 2017 | 3www.jegi.com

• Black Friday 2016 – more consumers shopped online than in-store for the first time.

• EMV/chip cards slow down the checkout process, encouraging mobile payments – far less friction, everything is stored.

• Two benefits of mobile payments: more security; and ability to tie in loyalty and marketing.

• Online platforms, such as delivery.com, enable brands to have access to another consumer touchpoint. Brands are able to have some control of the branding experience in a

MOBILE APPS & DIGITAL PAYMENTS FUELING THE NEXT GENERATION OF CONSUMERS

investment.” We’ve beaten our top and bottom line plan eight quarters in a row.

Second, I wanted it to be a great deal for the whole team, and to continue being a fun and thriving place to work. We fought hard to have a level of autonomy that Oracle had never granted to an acquired company before. We recently did a survey, and over 80% of our employees would recommend the Oracle Data Cloud to friends as a great place to work.

And third, personally, I wanted to change the way that Oracle did

business. We have succeeded pretty dramatically, to a point where Oracle has set up a couple of other recent acquisitions the same way they configured us, and I’ve had the privilege of providing input to their leadership on how to structure things to succeed as a part of Oracle.

So it’s been a good acquisition for us and is very much the result of a conscious decision to value these core purposes that would give meaning to what we do and would matter to my stakeholders.

(from left) Joseph Sanborn (JEGI), Frank Liddy (PayPal and JEGI Advisory Board Member), Ben Kaplan (CashStar), Peter Martin (Google), Jed Kleckner (delivery.com)

“retail endcap experience.” Also, the loyalty programs within these online platforms encourage purchases, which benefits the brands.

• If you try to limit choice, consumers will choose around you. The more available and ubiquitous your brand is, the better chance that consumers will choose you.

• There are more and more choices for mobile payments platforms every day. This is confusing for consumers and frustrating that many don’t sync with web purchasing. However, PayPal has started a one-touch process that

stores consumer credentials and allows one click payment, reducing the checkout abandonment rate.

• More platforms where payment is incidental, such as Uber. No live financial credentials are passed between passenger and driver, dramatically reducing risk.

• Mobile payments apps are also driving mobile commerce experiences, such as Starbucks mobile app, enabling consumers to order ahead and pay automatically.

• Fraudsters are constantly testing new mobile payments, so the right risk mitigations must be put in place. The more data you have, the easier it is to manage on mobile.

• Consumers seem to be comfortable with giving data. For example, consumers share a lot of information about what they buy and who they buy for on Venmo!

• Enabling easy digital payments is good for both consumer and retailer; they enhance the whole ecosystem for everyone.

Panelists discussed the latest trends in mobile apps and digital payments; see key takeaways below.

Andres Nicholls, Senior Partner & Global Executive Creative Director of Prophet, at the JEGI Conference

Keynote Speaker

Brian Whipple, Global Lead, Accenture Interactive

4 | Client Briefing March 2017

FOSTERING A CULTURE OF CULTURES

Brian Whipple gives a look into Accenture Interactive and discusses the importance of culture within organizations.

When I spoke with JEGI about my presentation, I thought a lot about what keeps me up at night, which is about fostering a culture of cultures. From my perspective, the success of an acquisition has far less to do with financial metrics and far more to do with creating success through culture.

Over its history, Accenture Interactive has acquired a wide spectrum of companies. Some have roots in technology, and some have more of an agency-like culture, including extreme casual dress, flexible hours… Yes, I run the group in Accenture with the tattoos and nose rings.

“The success of an acquisition has far less to do with financial metrics and far more to do with creating success through culture.“

Our business is about helping clients create, drive and enable the best customer experiences on the planet, and if a target is out there that can help us do that, we’re interested. We do not

buy inorganically for the sake of just adding revenue; we buy inorganically for the sake of driving organic growth revenue. Either it’s a synergy play or a capability play, but it is very different from the traditional holding company model. Our business is Accenture Interactive in Tokyo and in Hong Kong and in São Paulo and the U.S. and Europe.

What I’ve Learned

So, what are the common elements that stitch together our approach, and what makes it successful?

• Perform extensive due diligence on employees, particularly leadership, before bringing them into the family. There’s a difference between a background check and a chemistry check. Are you going to be successful together? Do the executives fit with your executive team? Do you like each other, and can you stick it out together?

• Partner on an integration plan and jointly develop it. The target needs to have authorship in that plan, in order for it to work.

• Clearly communicate information that matters to employees. There are a lot of regulations, and culturally there will be challenges, but, ultimately, it’s your job to reduce or eliminate some of that noise.

• Protect the business from corporate’s “new toy” effect. If you’re a regular acquirer, the latest and greatest acquisition gets all of the attention. Most people think that’s a good thing, but in many cases it’s not – you’re acquiring these companies because they’re successful in their own right and you want to allow them to continue to be successful in their own right.

Often, that means “keeping the wolves at bay.”

• Customize your approach to the company. There are no rules of thumb. For example, Accenture has a very detailed and rigorous brand hierarchy. As a long-term destination, the acquired company will be in the Accenture Interactive family. For each acquisition, we create a target as to when that will occur, based upon the business conditions at that time. There is no blanket rule; it’s about common sense and customization.

• Embrace and respect the people and culture. Learn from them, as they will make you better.

Non-Obvious Questions to Consider

• Do they share your vision? Do they believe you?

• Can you explain to Grandma in three sentences why are you acquiring?

• Why are the owners selling? Is it just about money?

• Will the employees want to work for you long-term? Or will they leave after financial incentives expire?

• Are you better off walking away? Even if you have invested in diligence? Even if a competitor is involved?

• Is the internal climate right to acquire? Are you integrating other acquisitions? Credibility? Politics?

• Do you have a trusted insider who can shepherd the deal through its first one to two years?

If every acquisition is over-performing, is that a good thing? I would argue that in a growth market, you want to look at your acquisitions as a portfolio of deals.

(from left) Brian Whipple (Accenture Interactive), Wilma Jordan (JEGI), Marcus Anselm (Clarity)

Client Briefing March 2017 | 5www.jegi.com

Scott Marden, Managing Partner

• Middle-market private equity firm, focused on growth companies in tech-enabled services, business information and marketing services

• Multiples are high, and we don’t see that trend reversing

• Returns are going to be lower, so we need to be systematic in our investments, with more upfront diligence and focus on deals where we can add tangible value on day one

• We are spending more time building relationships and focusing on domain expertise to find business models where we can get in early

Justin Sadrian, Managing Director

• 50-year-old private equity firm with $45 billion in assets under management, diversified across geographies, sectors, and stages and sizes of investments

• Multiples seem to be reaching the high-water mark; we think the next 10 years will be a lot tougher; the tailwind of multiple arbitrage and expansion is behind us

• Financial buyers are beating out strategics in frothy auctions, even without the same level of industrial logic and synergies – something’s got to give, and that concerns us

• We have some 25 vertical teams becoming subject matter experts and sourcing deals

Matt Porzio, VP, Strategy & Product Marketing

• Virtual data room technology provider that has facilitated more than 100,000 transactions worth $31 trillion over its 20-year history

• Intralinks has an early view of deals during the due diligence stage, typically six months before they are announced, and we see more than 1/3 of all global announced deals

• After a record year for number of M&A transactions we predict growth to continue in 2017 with approximately 6% more deals in H1-17 vs. H1-16 on a global scale

• Key trend is the globalization of deal-making with strong uptick in cross-border buyers

Ray Shu, Managing Director & Head of Originations, TMT

• Prolific provider of debt financing solutions for a variety of industries

• Biggest surprise of 2016 was lack of impact from Brexit – the market rode through that challenge very quickly and saw robust activity overall

• Expect strong activity to continue in 2017, with debt multiples continuing to stay high, given the amount of competition and liquidity in the market

• The biggest unknown is the new government administration – they are promising less regulation and lower taxes, but if only a fraction of that happens, how will that impact the overall confidence level?

KEY TRENDS IN THE FINANCIAL MARKETS

We are currently supply constrained rather than demand constrained. So, if I have every deal over-performing, one of two things is happening – one, I’m sandbagging, or two, I’m not being aggressive enough.

If you don’t miss occasionally, something is wrong. It’s about being comfortable in taking risks in a high-

growth market, with a good shot of success. Battle scars are expected, but staying the course is worth it.

“Embrace and respect the people and culture. Learn from them, as they will make you better.“

So, in sum, can cultures truly merge? No, not really, and that’s okay. But you must share a unified vision and protect what’s special.

Most of all, you don’t dictate their culture; you accept their culture and embrace it. Their culture becomes part of you – that’s what a culture of cultures is all about.

(from left) Matt Porzio (Intralinks), Scott Marden (CIP Capital), Ray Shu (Capital One), Justin Sadrian (Warburg Pincus)

6 | Client Briefing March 2017

JEGI SECTOR INSIGHTS

JEGI leaders highlighted key trends within the sectors we serve; excerpts are below.

The Evolution of the Digital Marketing Machine and the

Enterprise Services StackAmir Akhavan & David Clark

In 2013, we looked at version 1.0 of the mar-tech stack, which was an “alphabet soup” of point solutions companies created through $25 billion of M&A over a four-year period. The pace of acquisitions accelerated during the next three years, with an additional $50 billion in M&A, creating order out of chaos. Now, we have neatly defined operating systems of record, led by tech giants that drive content and commerce.

This ecosystem supports the entire marketing function for better digital user experience. Much still remains to be integrated for easier deployment, but the major players have their seat at the mar-tech table, and their roles will only get bigger. The marketing machine is supported by a massive enterprise services layer of vendors that help design and develop the technology – what we call “building the machine” – and another group of vendors that produce and manage content – what

we call “feeding the machine.”This “build/feed” dynamic is driving a lot of interesting M&A, including a current wave of tech services firms buying digital agencies, which is causing a dramatic impact on the build side of the stack. Given JEGI’s activity in digital marketing, we anticipated this wave of deals a few years back. Our early thesis was that rapid adoption of marketing tech was creating real pain for brands, thereby generating demand for a new class of IT services. Over the past two years, the number of agency transactions involving new market entrants has exploded. Every sizable

consulting and IT services firm has acquired at least one digital agency.

Forces at Work

Now we need a new thesis, because clearly there are bigger forces at work here. The consultants call it “digital service design.” It’s focused on a much broader market, namely, building digital services that not only connect brands to consumers via marketing, but also to suppliers, partners, employees, content, etc. It’s impossible to separate brand experience from digital experience. The number of digital touchpoints across customer relationships continues to multiply. This makes for a big addressable market. The new thesis is that digital marketing and digital service design are converging as a service category.

Feeding the marketing machine with big content for big commerce is a major force at work and very difficult to execute in a market that’s driving $2 trillion of sales globally and is expected to grow to $4 trillion in 2020. M&A is driving the market, because there is huge demand for content solutions, meaning consumers require visual merchandising and guided selling to make buying decisions. Even though

(from left) Sam Barthelme (JEGI), Jeff Becker (JEGI), David Clark (JEGI), Scott Peters (JEGI Advisory Board Member), Amir Akhavan (JEGI)

Client Briefing March 2017 | 7www.jegi.com

there are point solutions solving the problem, it’s a completely open market.

When we look towards the future of the digital marketing space, we envision a world where software and services continue to come together to offer closely-knit go-to-market solutions. We see a ton of innovation taking place with deeper analytics, attribution, and optimization, as well as smarter connections between the various parts of the marketing machine. We anticipate another $75 billion of M&A in this marketplace over the next several years.

HCM: War for TalentJeff Becker

Human capital management (HCM) can be defined as the technology and services that go into organizations acquiring, managing and retaining their employees. It’s a big market – hundreds of billions of dollars – and still growing at a rapid pace of 8.5% CAGR over the past several years. This growth is being driven by the “war for talent.” Unemployment has declined to new lows each year, which has created increased time and cost for companies to hire skilled employees. Employers are seeking better ways to train and optimize current employees, rather than recruiting new ones.

Historically, HCM was divided into two very distinct camps, with software players on one side and services/consulting companies on the other. Each group mostly stayed in their own market. Software companies were very concerned about their SaaS/cloud platforms and about protecting their higher margins and valuations. Services and consulting outsourcing companies did not have the technology necessary, nor the DNA internally, to build or support software solutions. Now, these two markets have come together via acquisition.

In the future, analytics will continue to find its way into everything. We also expect more transactions in the engagement culture management space. Lastly, there will be a next generation of leadership development tools and systems.

Battle of the Event Data & Analytics Point Solutions

Scott Peters

One to three percent of corporations’ total revenue is spent on meetings and events. Events are the largest portion of a $60 billion B2B marketing budget and account for 24% of that spend. Event spending is growing 6% per year and typically trails only a company’s website as its most effective marketing channel. This consists of

venue sourcing and event marketing, management and engagement. Historically, the CMO’s analytics engine has been fueled by content along with managed digital, website and social data. When you add the event layer of the data collection now powering the marketing and CRM stacks, you have a whole new level of insight that will provide value to the CMO. One example is Salesforce, which runs hundreds of events a year for customer development and client engagement. In the past, the CMO would have collected data on a registered user to a website or a white paper. Now, when you add the data overlay from the event, you get a new level of personal information on the registered attendees. There are companies out there that are taking that information, ingesting it, and turning it into insight for the CMO.

Going forward, you will see a lot of M&A activity with these companies. Going two steps forward, I believe the CRM and marketing automation companies will take out the whole other side of this, creating one big marketing stack. Lastly, the event industry will experience higher growth rates than many other forms of marketing and media in the coming years.

The Consumer PerspectiveSam Barthelme

Today, the younger generations equal half the population but only account for one-third of the spending power. That will completely change by 2025, when they will be responsible for half of the spending power. Brands need to get in front of these younger generations while they’re making brand choices. Younger generations prefer experiences over buying things, favor the sharing economy vs. actually owning things, demand custom content, and are mobile-centric.

So, an increasingly large marketing budget is at play here. You have the brands on one side and consumers on the other, but who are the intermediaries sitting between the brands and the consumers today? There are the agencies, the retail

8 | Client Briefing March 2017

services firms that get the product on the shelf, and the audience aggregators. Each of these are making acquisitions, so that they can build an end-to-end solution from brand to consumer. Finally, you have tech companies building platforms with an arsenal of technology and services in order to leapfrog all the intermediaries and get to the consumer themselves.

Therefore, we see point solutions as the big opportunity. Across the agency space, we believe the storytellers and the user experience folks will be the winners. Within retail, it’s all about data and location, so you have to deliver the right ad to the right person in the right spot. On the audience side, we believe that experiential marketing agencies will experience a lot of growth. There are still some platform plays in software in underinvested marketing categories, such as event marketing.

SaaS vs. SassafraSTolman Geffs

”SaaS” is a term that was invented in 2001 by the SIIA to describe software as a service, heralded then and now as a business model of the future. Characteristics of SaaS companies include:

• Centralized hosting• Single-instance software• Subscription • Minimal services, massively scalable

So, is SaaS the answer for absolutely everything? Maybe not. First of all, it’s a very difficult and expensive business model to get right. The user interface (UI) is always the most expensive, time-consuming part of software development. Sales cycles in SaaS are very long and costly, plus the company has to support the expense of integration training and support. Typically, these companies have very steep losses until renewals catch up.

The one size fits all approach does not fit every business application. In fact, that cloud of massive disruption can turn into what we call “equity precipitation,” when it’s force-fed into the wrong solution.

Alternatively, there is another model called “SassafraS” – Software as a Service as a Freaking Awesome Service.

Characteristics of SassafraS companies include:

• Enterprise-grade software platform (NOT just tools to enable services)

• Managed service delivery• No UI development, training,

support • Key check: gross margins and

revenue retention comparable to SaaS

• Capital efficient + faster profit ramp• Metrics comparable to SaaS

companies, but much more capital efficient, with a much faster profit ramp

Below is a chart that compares SaaS companies to SassafraS companies. Look at sales and marketing, as a percentage of revenue. The SaaS companies are spending 45 cents of every revenue dollar on sales. SassafraS is 13 cents on the dollar. SaaS companies are averaging a negative 5% EBITDA margin. The SassafraS companies are showing a nearly 20% EBITDA margin. SaaS companies have $1.31 invested for every $1 of revenue. The median for the SassafraS companies? Zero. These metrics account for the growing appeal of SassafraS acquisitions.

Strategic buyers value the rapid entry into new markets and the business flexibility these companies represent. Private equity sponsors value the growth, capital efficiency, and ability to leverage the companies. We expect a lot more M&A for SassafraS models.

JEGI SECTOR INSIGHTS (CONTINUED)

Moderator Tolman Geffs, Co-President, JEGI

Keynote SpeakerJustin Smith, Chief Executive Officer, Bloomberg Media

Client Briefing March 2017 | 9www.jegi.com

THE CONTINUING EVOLUTION OF BLOOMBERG

Geffs: We’re in a world where industries are converging. What kind of marketing agency capabilities are you building within Bloomberg?

Smith: It is survival of the fittest. To compete with the large tech platforms, you need new revenue streams. Digital advertising is moving beyond advertising to content. Bloomberg has strong content capabilities and also has a dedicated audience, on which we have collected a lot of data and insights. This makes for a very credible and powerful combination for brand marketers, where you can have a huge advantage over traditional generalist agencies. I believe marketing services will be one of the great new pillars of content-based media models in the future.

Geffs: Is the agency business adding value to your media, or are you actually serving B2B advertisers more broadly out of your agency?

Smith: Both. The way one can compete for premium advertising against the scale and data of the platforms is to provide much more customized bespoke and branding-related customer connections. The skills and capabilities to create that have not historically existed within media companies, so we’ve imported a lot of

Tolman Geffs: Can you provide us with a quick overview of Bloomberg Media?

Justin Smith: I work closely with Mike Bloomberg, who is not only the founder and majority shareholder of the company, but also the original architect of the media strategy at Bloomberg. Mike had a content marketing vision back in 1986, before content marketing became the buzzword it is today.

Instead of cold calling to sell Bloomberg Terminals into Wall Street, he had the brilliant idea of starting the first-ever financial radio station as a way of reusing the Terminal content in a media platform to build the brand. So, 30 years later, what started off as a local radio station is not only the biggest content marketing exercise on the planet, but has also resulted in one of the largest, if not the largest, global business and financial media companies.

Bloomberg is distinctive in that we operate across all five media platforms – radio, television, digital, print and live events – across all geographies. So, if you go to Hong Kong, we have all of those platforms, same in London, the Middle East, etc. Many of our traditional competitors operate in one or two lead platforms, such as CNBC in TV and the Wall Street Journal in print and digital. Bloomberg’s global, multi-platform strategy is what sets us apart.

Geffs: You mentioned that 50% of your revenue is digital. That is quite an accomplishment.

Smith: We are a data and technology company at our heart. We have 5,000 developers, mostly tied to the Terminal business, but it positions us in a different way culturally. We have an engineering and data culture, without a legacy business to protect, so we have adopted a very aggressive digital-first strategy.

that talent, including one of the chief creative officers out of Ogilvy & Mather, Teddy Lynn, and the U.S. CEO of media agency Vizeum, Steven Feuling. So, we’re not only competing for the sliver of remaining dollars that the platforms leave behind, but also competing more directly with the agencies for other marketing services projects.

Geffs: Bloomberg has entered into a number of creative partnerships,

Justin Smith shares a look into Bloomberg Media and how the company is evolving to stay competitive today.

50%of Bloomberg Media’s revenue is digital

To compete with the large tech platforms, you need new revenue streams. Digital advertising is moving beyond advertising to content.

Justin SmithBloomberg Media

(from left) Tolman Geffs (JEGI), Justin Smith (Bloomberg Media)

10 | Client Briefing March 2017

THE CONTINUING EVOLUTION OF BLOOMBERG (CONTINUED)

DATA AS A SERVICE: EMPOWERING THE MAR-TECH MACHINE

such as streaming Bloomberg Politics on Twitter during the presidential campaign. Was that joint venture successful?

Smith: Twitter is moving into video in a big way. We aired three of the presidential debates on Twitter, and for the third debate, with very little promotion, we had 4-4.5 million viewers on Twitter, which was only

about 1-1.5 million less than MSNBC had on TV. The offsite distribution opportunities with some of these large platforms for video are exciting.

Geffs: Bloomberg has grown organically with some smaller acquisitions, like more radio stations. As you look ahead, do you think the company is planning to acquire for Bloomberg Media or more broadly?

Smith: Bloomberg is not traditionally an acquisition-led organization. However, having said that, we recently acquired the Barclays fixed income indices business for just shy of $1 billion, as a critical piece of our financial portfolio. Prior to that, we purchased legal research firm BNA back in 2011. So, we never say never, but it’s not at the core of our strategy.

• Identity resolution is key, as it is the gateway to hyper-personalization. We’re seeing big data get smaller and smaller. The packages of data that we deliver transcend the traditional CPM model that a lot of the data business relies on today.

• The consumer doesn’t view data as offline or online.

• While there’s self-regulation, there’s also real government regulation that will cause us to rethink how consumers can access and control the information companies have about

them. You’re going to hear a lot more about GDPR (General Data Protection Regulation) in the next few years. It’s a new law that was passed in the EU recently, and it goes into effect May 2018. It was the most hotly contested law in the history of the EU and states that businesses with over 250 employees have to provide consumers with the ability to update, access, and control any data that companies have about them. The Federal Trade Commission (FTC) has signaled that they’re going to follow in the footsteps of the EU commission on this.

• First-party data is critical, because measurement and getting ROI on ad spend are reliant on predictive audiences and truly understanding what the consumer is doing and what the consumer wants.

• The big players are marrying data and technology in a way that marketers at scale require. I think all of us play different roles with technology vs. data. The right ingredients are needed to lay a strong foundation for any company in this space.

• Despite big players owning a large part of the market, there’s plenty of room for organic growth, and those of us in other parts of the ecosystem will do just fine.

• Accuracy and data quality are probably more important than ever.

• We are hopeful and expectant that, particularly in the digital advertising ecosystem, the per thousand impression unit of measure will be replaced by something a little bit more intelligent, as attribution gets better and outcome becomes clearer.

Panelists discussed how data and technology are transforming and empowering the marketing technology landscape.

(from left) Amir Akhavan (JEGI), Stacy Griggs (El Toro), Bart Lorang (FullContact), Anders Ekman (V12 Data), Doug Kaczmarek (Wiland)

Keynote Speaker

Deborah Farrington, Co-Founder & Managing Partner, StarVest Partners

LEGAL UPDATE: CORPORATE VENTURE INVESTMENTS

Charlie Engros, a partner at Morgan Lewis, discussed the rise of corporate venture investments, which accounted for approximately 20% of venture deals and $20 billion in 2016. Key takeaways include:

1. Strategic venture investing continues to grow in importance2. Strategic venture investing offers significant benefits to both investors and issuers,

distinguishing it from traditional venture investments3. Terms are complex and deal-specific, but certain market norms have evolved

For more information, Mr. Engros’s complete presentation is available at: www.jegi.com/resources/2017-JEGI-Media-Technology-Conference

Client Briefing March 2017 | 11www.jegi.com

INSIGHTS IN MEDIA & TECHNOLOGY INNOVATION: THE ROAD AHEADStarVest invests in expansion and growth-stage companies in technology-enabled business services throughout the U.S. We’re based in New York City and were early investors in SaaS business models and also in the first online insurance agency, ecommerce logistics, machine learning and Internet of Things (IoT).

I do want to offer a disclaimer: most technology predictions are wrong. McKinsey did a study in 1982 for AT&T to forecast the U.S. cell phone market in 2000. I’m a fan of McKinsey, but did they ever get this wrong. Noting, among other things, low battery power, patchy coverage and exorbitant prices, they forecasted 900,000 subscribers by 2000. Well, they were off by a factor of 100x: there were 110 million subscribers in the U.S. in 2000 and over half a billion worldwide. So, with that as background, let me make some predictions:

1. In ten years, Facebook will disintermediate Google. They have your name and have done a great job at connecting identities. The holy grail of advertising is institutionalized word of mouth, and, as a result, Facebook has momentum in the global ad war.

2. Radical personalization allows for micro segmenting of populations using analytics and artificial intelligence (AI) in a variety of industries, including healthcare, retail and entertainment. There is a lot of excitement in these areas.

3. The network effect of digital platforms will continue creating the “winner take most” dynamic, with the stronger becoming more dominant. They have specific personal information, so everybody has to use them, making them even more valuable and ubiquitous. Facebook and Alibaba lead in social; Apple leads in smartphones; Google leads in search; Amazon and Microsoft lead in cloud; and GE and IBM lead in IoT.

4. Smartphones will be the future platform for everything. With the U.S. accounting for less than 10% of global smartphone users, the most valued platforms, companies and applications have a worldwide audience. Mobile is the key to connectivity in the developing world, providing marketing opportunities to huge new groups of global consumers.

1. Horizontal is done. The leading cloud players for enterprise have been established in the major horizontal areas and will be getting stronger: Salesforce in sales and marketing; Workday in human capital; and Oracle, with its acquisition of NetSuite, in financials and ERP. There will be exceptions in SMB-focused solutions, but I am excited about the opportunities in industries and verticals.

2. Data-as-a-Service is finally here. Data is now easily collectable and is more usable. But, not all data is created equal. The most valuable data has analytics applied in order to produce actionable insights and track ROI. This includes machine learning and AI. AI is exciting, because it bridges the gap between data aggregation and analytic insights.

3. Highly-valued software is increasingly starting to gather data from hardware. For example, look at IoT. GE, a 100-year-old industrial giant, has remade itself into an IoT platform. Wow. Obviously, they see the future value. There are huge opportunities in IoT for manufacturing, 3D printing, supply chain, etc.

4. Analytics is most effective when combined with deep industry and functional expertise. As mentioned earlier, there is huge opportunity in verticals. We will see analytics transform areas, such as human capital management, manufacturing, supply chain/logistics, augmented reality, and price optimization in retail.

PREDICTIONS: DIGITAL MEDIA & PLATFORMS PREDICTIONS: CLOUD & TECH-ENABLED SERVICES

Client Briefing March 2017 | 12

Wilma JordanFounder & CEOwilmaj@jegi.com

Scott PetersSenior Advisorscottp@jegi.com

Tolman GeffsCo-Presidenttolmang@jegi.com

Richard MeadManaging Directorrichardm@jegi.com

David ClarkManaging Directordavidc@jegi.com

Jeff BeckerManaging Directorjeffb@jegi.com

Tom PechtManaging Directortomp@jegi.com

Sam BarthelmeManaging Directorsamb@jegi.com

Adam GrossCMOadamg@jegi.com

Bill HitzigCOObillh@jegi.com

Amir AkhavanManaging Directoramira@jegi.com

Joseph SanbornManaging Directorjosephs@jegi.com

EXCEPTIONAL TRANSACTION EXPERIENCE

JEGI’s client is mentioned first in each of the above transactions

Accordant is a leading data-driven, full-service programmatic advertising company and technology solution provider.

HAS BEEN SOLD TO

Avention is a leading business intelligence and software platform for sales acceleration.

PrizeLogic is a leader in digital engagement programs for major brands and retailers.

Wiland is a leading data-driven marketing technology and intelligence platform.

Yachting Promotions is a leading operator of the largest yachting and boat shows in the U.S.

Evanta, sold for $275 million, is a leading peer-to-peer leadership platform for Fortune 1000 C-suite executives.

A PORTFOLIO COMPANY OF

HAS ACQUIRED

A PORTFOLIO COMPANY OF

HAS BEEN SOLD TO

A PORTFOLIO COMPANY OF

TO

HAS SOLDYACHTING PROMOTIONS INC.

DBA SHOW MANAGEMENT

HAS RECEIVED AN INVESTMENT

FROM

AN UNDISCLOSED INVESTOR

HAS RECEIVED A SIGNIFICANT

INVESTMENT FROM

Framestore is a leading global VFX and CG content production company.

HAS SOLD A 75% STAKE TO

A CONSORTIUM OFCHINESE INVESTORS LED BY

Light Reading is a leading, innovative content-driven media business focusing on the telecom industry.

V12 Data is a leading DaaS platform offering integrated omnichannel data products and marketing technology.

CARCO is a leading provider of tech-enabled and compliance-driven HCM and risk management solutions.

HAS RECEIVED A SIGNIFICANT

INVESTMENT FROM

Connect Meetings is a leading US business travel and meetings event organizer.

HAS BEEN SOLD TO

Leading providers of governance, risk and compliance information.

HAVE BEEN SOLDIN A PRE-PACKAGED

MERGER TO

+

HAS BEEN SOLD TO

&

HAVE MERGED TO FORM

WITH INVESTMENT FROM

Doug StoweEVPdougs@jegi.com

LONDONClarity, 90 Long Acre London WC2E 9RA +44 20 3402 4900 www.claritycp.com

SYDNEYClarity, L35, Tower One, International Towers 100 Barangaroo Avenue Sydney, NSW 2000 +61 2 8046 6840 www.claritycp.com

NEW YORK JEGI,150 East 52nd Street18th FloorNew York, NY 10022 +1 212 754 0710 www.jegi.com

BOSTON JEGI, CIC Boston, 50 Milk Street16th FloorBoston, MA 02109+1 617 294 6555 www.jegi.com

James NallyDirectorjamesn@jegi.com

* Rankings by number of deals completed