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MarTech Barometer – Q3 2019 Market Review

By Rosemary Fallowfield 22 Oct 2019

Welcome to the Q3 2019 edition of the MarTech Barometer – Results International’s market update for the global marketing technology sector.

Highlights in the quarter:

  • With the influence of Amazon, GDPR in full motion, and the mounting scrutiny of Facebook’s data privacy practices, it is increasingly clear that competing in today’s data-driven marketplace requires direct customer relationships, making identity resolution and personalisation must haves.
    • Customer data platforms (CDPs) continue to attract private funding, notable fundraisings included Apperity ($50m) and Simon Data ($30m).
    • Kabbage acquired B2B data aggregator, Radius Intelligence, for an undisclosed amount (Radius Intelligence itself had raised a total of $120m).
    • Data-driven personalisation continues to attract more buyers, from apparel, to restaurants, through to life sciences: Nike acquired AI-powered analytics company, Celect; McDonald’s acquired conversational AI, Apprente (its second acquisition in the space after Dynamic Yield in Q1), and Veeva Systems acquired healthcare marketing data & analytics firm, Crossix Solutions, for $430m.
  • Capitalising on personalisation, one-stop-shops that provide cohesive and seamless customer experiences gained strong traction in both the private and public markets.
    • Acquia, web management and digital experience platform, was acquired by Vista Equity Partners for $1bn. Given Vista’s reputation of buying undervalued tech companies and turning them around to sell for a healthy profit (for example, Marketo), many will be anticipating Acquia’s next move.
    • Medallia, enterprise customer experience management platform, IPO’d, with its share price soaring over 76% on its first day of trading; the latest constituent added to the Results International Martech Index.
  • Adtech was very active with 30 deals, more than double the 14 completed in Q3 2018, although it is too early to tell if the rise in adtech deals reflects a rebirth of the sector. The triopoly (i.e Google, Facebook and Amazon) continue to rake a disproportionate percentage of new advertising spend. CCPA is around the corner, and GDPR is in full fledge, with the very concept of RTB being debated as a privacy compliant mechanism (see Twitter’s data misuse). In this context, adtech M&A is driven by private equity evaluating assets that are still growing and the performance of certain listed stocks (mainly The TradeDesk, Telaria, and Cardlytics) creating positive momentum and a good window to go-to-market.
    • Perhaps the most notable adtech deal this quarter was private equity buyer Blackstone’s $750m acquisition of Vungle, a mobile advertising and app monetisation platform.

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.

Rosemary Fallowfield

Associate

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