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Marketing Technology Barometer – Q1 2017 Market Review

By Rosemary Fallowfield 20 Apr 2017

Welcome to the Q1 2017 edition of the Marketing Technology Barometer – Results International’s quarterly review of the global advertising and marketing technology sectors.

The public markets have been resurgent over the last 12 months; our Results MarTech index rose ~80%, with all bar one of the MarTech companies populating the index posting 35%+ gains over the period – including Shopify, which has more than doubled in value. AdTech has also seen a strong quarter with a 21% gain, albeit from a relatively low base, with three AdTech companies in the index doubling in value over the last 12 months, including RhythmOne, Taptica and the newly IPO’d The Trade Desk. Two other companies also achieved a 70%+ gain (Crossrider and Rocket Fuel) since March last year. With notable IPO’s in the pipeline and the general tech sector performing well, the public markets are demonstrating renewed investor appetite.

Q1 2017 also saw the highest quarterly number of M&A deals on record at 115, driven by MarTech (91 deals) where there were 50% more deals announced compared to Q4 2016 (60 deals). While the associated deal values (that have been announced) has not kept pace, a number of high profile medium-sized AdTech players announced their acquisition this quarter, including Teads (acquired by Altice) and Turn (acquired by SingTel’s Amobee), both for around $300m. These two acquisitions play into a key trend we have seen in recent quarters: the emergence of traditional business acquiring in the space to better monetize, and digitally transform, their businesses. Evidenced by Teads and Turn’s acquisitions by Telcos, the trend is further supported by traditional media’s busy quarter, including Time Inc.’s $25m acquisition of Adelphic, Entravision’s ~$50m acquisition of Headway and Conde Nast’s acquisition of CitizenNet.

There were three $100m+ fundraisings this quarter; interestingly two of these three were AdTech companies, demonstrating that investors are supportive of scaled and established AdTech businesses. While the market remains tough for undifferentiated propositions, with AI and machine learning highly applicable to the sector we anticipate that a fresh wave of funding will tap into this trend within both the AdTech and MarTech markets.

While the market trends are showing signs of positivity, AdTech, MarTech and the wider tech universe are recovering from a relatively tough few quarters. MarTech has had a notably strong performance this quarter, and with AdTech showing signs of recovery, 2017 and beyond remains exciting for both. As such, now would be a good time to be contemplating fundraising, exit or growth through acquisitions in the AdTech and MarTech space – if you are, please do get in touch.

Click on the image below to view the report.

Marketing Technology Barometer - Web

We hope that you enjoy the document and look forward to discussing the data and underlying themes with you. We have also produced our view on the previous quarter’s proceedings in a series of other market reviews on:

Digital Services

Enterprise Software

HealthTech

Cybersecurity

The Tech Report (all 5 sectors)

Rosemary Fallowfield

Analyst

Contact Rosemary

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