Q2 Public Market Update

Q2 Public Market Update

Key Takeaways

Total equity market value up by 7% since April 2021

The Media, Marketing, Information & Technology public equity markets continue to prosper, with the total equity market value up by 7% since April 2021.

2021 revenue growth of 17% across all sectors

Led by +28% growth across the eCommerce and digital media sectors, 2021 forecasted revenue growth remains strong across all sectors at 17% vs 2020. Notably, the Marketing Technology sector is also forecasting strong year on year revenue growth of +20%.

2021 EBITDA growth of 17% across all sectors

Favorable outlook for 2021 EBITDA, with nearly all sectors expecting double digit growth vs. 2020. Very positive outlook for Digital Media vs. 2020 with several sub-sectors including search and social media expecting +30% year on year EBITDA growth.

Valuation environment remains robust with the Media, Marketing, Information & Technology markets having increased by 7% ($975bn) since Q1 2021. This is underpinned by strong forecasted 2021 revenue growth across all sectors, with an average of 17% across the market, representing total incremental revenue across the market of nearly $455bn.

The total market value of the Media, Marketing, Information and Technology Sectors has increased by 7% since April 2021

AdTech and MarTech emerge as leaders of TMV growth in Q2 2022

  • The main drag on TMV growth through Q2 2021 has been eCommerce. While the growth outlook for these sectors remain positive, the sector was able to withstand the decline in Price Comparison and Consumer Verticals and saw TMV growth of 4% in Q2
  • Investor demand for businesses exposed digital transformation solutions and best-in-class CX is similarly reflected in TMV growth in both Tech & Consulting Services (up 7%) and Insights, Data, Analytics (up 12%)
  • The Digital Media sector, led by companies such as Facebook, Snap and Google, also continues to perform, up 7% ($4,015bn of TMV) over the period. The sector benefits from powerful tailwinds, including strong and growing demand  for performance marketing

Forecast 2021 revenue growth of +10% for many sectors

  • Strong 2021 revenue growth is projected by current market forecasts for nearly all sectors. The growth is driven by powerful tailwinds across many sub-sectors and a “bounce-back” in revenues in those sectors most impacted in 2020
  • Total revenue growth is forecast at c.17% from 2020 to 2021, signifying an aggregate increase in revenues across all sectors of close to $455bn, with double-digit percentage growth expected across many sub-sectors

Driving double-digit EBITDA growth for 2021

  • eCommerce is expected to have the strongest revenue growth, increasing by 28% to $997B, showing a limited correlation with the change in TMV
  • With Publishers & Lead Generation being the key sub-sector of growth and benefitting from demand from the eCommerce vertical, the Digital Media sector is forecast as a high performer with growth of 28%

Current market forecasts show that FY21 revenue growth across the Media, Marketing, Information and Technology sectors is expected to be 17% with 17% average EBITDA growth across the sectors in the same period

Market Research Sector Update

Market Research Sector Update

Key Takeaways

Sizable global market at $40B

Increasing to $80B with addition of analytics meaning ample addressable market to chase and capture.

M&A activity in the sector is increasing

Consolidation from existing players and increasing appetite from Private Equity is driving activity in the space.

Spend on research is recovering quickly

Companies need a better understanding of post-2020 markets and how consumers now think and feel.

Marketplace winners will optimize core market research while positioning for success in digital and data

Companies that can provide business leaders with agile, data-backed market analysis across media platforms are expected to be the most successful.

There is a sizable opportunity at the convergence of traditional research advisory, user experience, customer experience, experience management, and digital transformation.

M&A playing an active role

Large scale consolidation is reshaping the landscape as digital agencies, consultancies and SaaS vendors encroach on market research budgets.

Recent sector transactions

As vendors vie for scale, growth, and wallet share – advertising agencies have increasingly acquired market research companies to pursue value added services and new capabilities.

The existing sector landscape is evolving as market players focus on new opportunities

Global agencies and measurement companies are exposed

  • Businesses with flat and declining revenues are looking at cutting costs and resources leading to vulnerable accounts and talent drain.
  • M&A activity is increasing as a result with businesses looking to divest, restructure or hold for sale.

CX technology vendors are taking mind and wallet share

  • SaaS vendors are seeking access to enterprise client relationships and channel partners.
  • These vendors are also able to turn up the M&A where others cannot compete on price.

Large scale consolidation reshaping the landscape

  • Firms looking to return to growth through scale as well as bridging the current gap between research, insights, and marketing.
  • Service set expansion pursued as a way to increase mind and wallet share.

Large cap Private Equity active in the sector

  • Private Equity are being attracted by the sizable, fragmented, and disrupted market.
  • They understand the value of research and are recapitalizing to help re-define the market for a digital era.

Chris Karl Joins as Chief Business Development Officer

Chris Karl Joins as Chief Business Development Officer

New York, NY, July 12, 2021 – JEGI CLARITY, a pre-eminent M&A advisory firm for the global media, marketing, information and technology industries, headquartered in New York, NY and London, UK, is pleased to announce that Chris Karl has joined the firm as Chief Business Development Officer. Chris brings more than 20 years of senior level operating and market development experience with Yahoo! and MediaMath coupled with recent M&A and capital markets experiences with Progress Partners advising clients in deal origination and process execution.

Chris has advised a number of companies on Corporate Development and Strategy within the media and technology sectors over the years. Chris comes highly recommended by former employers where he has driven go-to-market sales strategies, partnerships, and dramatically expanded each Company’s revenue base. Former Yahoo! EVP Global Sales and JEGI CLARITY Advisory Board Member Greg Coleman commented, “Chris was one of the stars on the Yahoo! sales team and was responsible for delivering strong and complex partnerships with several of the top markets in the US.”

Chris has also authored several articles on AdTech and MarTech trends, the emergence of private data clouds, and “The Big Data Food Chain.”

At JEGI CLARITY Chris will support the firm’s Leadership by identifying and cultivating business prospects and enhancing JEGI CLARITY’s client base.

Wilma Jordan, Founder & CEO, North America of JEGI CLARITY noted, “Chris’ unique combination of business development, market strategies and M&A advisory skills, make him a valuable addition to JEGI CLARITY’s partnership ranks. We are thrilled to have Chris on board.”

Commenting on his new role at JEGI CLARITY, Chris said, “We are in the midst of a prolonged period of reinvention in consumer marketing and customer relationship management as a result of shifting consumer behavior and media consumption trends. Software technology is now disrupting every major business sector and JEGI CLARITY’s years of global deal making in the AdTech and MarTech space put us in a fantastic position to help CEOs and their investors identify the right buyers as the market consolidates. I couldn’t be more thrilled to join the firm at this particular time in the evolution of media and marketing.”