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MarTech Barometer – 2019 Market Review

By Rosemary Fallowfield 24 Jan 2020

Welcome to the 2019 full year edition of the MarTech Barometer – Results International’s market update for the global marketing technology sector.

Review of 2019 in the martech barometer:

  • Continued strong M&A activity with an uptick in Private Equity transactions: notable deals include Platinum Equity’s $2.7bn acquisition of publicly-listed Cision; Vista Equity Partners’ $1bn acquisition of Acquia; and Blackstone’s $750m acquisition of Vungle.
  • Further consolidation in the four historic subsectors of adtech: DSPs, DMPs, SSPs, and content recommendation, including the take-private transactions of RhythmOne (by Taptica), Cxense (Piano), and Telaria (The Rubicon Project); as well as Taboola’s acquisition of Outbrain (for $250m in cash plus a 30% share of the combined companies).
  • Owning in-house customer insight & experience personalisation capabilities remained a key priority, and new acquirers entered the space: McDonald’s (acquired Apprente and Dynamic Yield), Nike (Celect); Walmart (Polymorph, Aspectiva and assets of Triad Retail Media); and PayPal (Honey) – the latter acquisition worth $4bn.
  • Increased focus on connected TV (CTV): Xandr acquired Clypd (linear and CTV SSP), adding more advanced TV capabilities to its current stack, in a bid to serve more relevant ads to viewers; The Rubicon Project acquired Telaria (video advertising & CTV) to create “The Trade Desk of the sell-side”, capitalising on the growth of CTV and to offer an alternative to the triopoly: Google, Facebook and Amazon.

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  • Amazon continued on to its quest to rival Google and Facebook; acquiring Sizmek’s legacy ad server and DCO, to address its DSP’s weaknesses and to provide a more robust alternative to Google’s DoubleClick Campaign Manager.
  • Our martech and adtech share price indices demonstrated positive momentum over the last 12 months, largely driven by Cardlytics and Shopify (following positive financial performance), and Telaria (following the announcement of its acquisition by The Rubicon Project); joined by three new martech constituents: Sprout Social (social media management), Medallia (customer experience management), and Lightspeed (EPOS & eCommerce platform).

Review of predictions made for 2019:

  • As predicted, the private markets remained an attractive alternative to the public markets with a number of large transformational acquisitions (three deals over $1bn) and numerous notable funding rounds.
  • As expected, companies in the CDP space and AI-native tools proved to be highly attractive assets; Qlik acquired Attunity (CDP / CXP) for $516m, Centerbridge acquired IBM’s marketing & commerce assets for $500m, Mastercard acquired SessionM (CDP & customer loyalty) for $215m, Dun & Bradstreet acquired Lattice (AI-powered CDP), and Segment, Tealium and Amperity (all CDPs) raised $175m, $55m and $50m, respectively.

Predictions for 2020:

  • The entrance of new buyers into the space will continue, as brands look to better leverage customer data, particularly first-party, to capitalise on the demand for data-driven customer personalisation, and avoid regulatory mishap (including GDPR).
  • Further consolidation in the martech and adtech space, as companies seek to expand their capabilities, particularly in analytics and video.

The martech and adtech sectors remain active and the outlook is exciting. As such, now is a good time to be contemplating fundraising, exit or growth through acquisition in the martech or adtech space – if you are, please do get in touch.

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Rosemary Fallowfield

Associate

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