m&a in local commerce 2011
DESCRIPTION
With much of the activity focused on daily deals, several companies led the way in acquisitions: Groupon, Google, eBay and LivingSocial. This presentation provides a view of the local commerce ecosystem and details on the 186 transactions in 2011.TRANSCRIPT
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MERGERS & ACQUISITIONS
ACTIVITY IN LOCAL
March 2012
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LOCAL MARKETING AND COMMERCE ARE IN THE MIDST OF A MAJOR UPHEAVAL DRIVEN BY:
INTERNET-INFORMED & CONNECTED CONSUMERSMOBILE DEVICES
LOCATION AWARENESSINTENSIVE DATA ANALYSIS
BIA/KELSEY PROJECTS LOCAL ONLINE ADVERTISING WILL REPRESENT $43 BILLION IN SPEND BY 2015, UP
65% FROM TODAY
STRATEGIC M&A IS VERY ACTIVE, WITH 186 ANNOUNCED TRANSACTIONS IN 2011, UP 40% FROM
2010
GROUPON, GOOGLE, LIVINGSOCIAL AND EBAY ARE THE LEADING ACQUIRERS
KEY TAKEAWAYS
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DIGITAL MEDIA ARE INCREASINGLY ABLE TO FACILITATE INTERACTION AND COMMERCE BETWEEN CONSUMERS AND MERCHANTS
WHAT IS LOCAL ONLINE MARKETING ?
This includes: One-store merchants
Local service providers
National chain retailers
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THE FUNDAMENTALS OF LOCAL COMMERCE
SELL CUSTOMER
PRODUCTS &SERVICES
ATTRACTCUSTOMER
ENCOURAGE REPEAT
LOCAL MERCHANT
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LOCAL COMMERCE WITH COMPLEXITY
AdvertisingPromotionCreate Social Signals
ReviewsPrice & AvailabilityIn-Store Assisted SellingIn-Store Navigation
HELP CUSTOMERS LEARN
Distributed Store PlatformCATALYZE PURCHASES
RecommendationsSUGGEST ADDITIONAL PURCHASES
In-Store Assisted SellingHELP CUSTOMERS PAY
Payment Infrastructure
ENCOURAGE & MANAGE SOCIAL SIGNALS
Loyalty ProgramsCustomer SupportClienting Software
CUSTOMER RELATIONSHIP MANAGEMENT
Social Network EngagementEncourage Sharing PurchasesEncourage ReviewsEncourage Referrals
MARKETING EFFORTS
LOCAL MERCHANT
ATTRACTCUSTOMER
SELL CUSTOMER
PRODUCTS &SERVICES
ENCOURAGE REPEAT
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IMPORTANT LOCAL PLAYERS TODAY
LOCAL MERCHANT
ATTRACTCUSTOMER
SELL CUSTOMER
PRODUCTS &SERVICES
ENCOURAGE REPEAT
STRATEGIC MOVES ARE HAPPENING
LOCAL COMMERCE M&A ACTIVITY LEVEL
2010 2011 2012 TO DATE (a)
21 37 32 30 22 47 46 48 37
NUMBER OF TRANSACTIONS PER QUARTER
NUMBER OF UNIQUE BUYERS PER QUARTER
23
40
3436
24
57 55
50
Note: a) Through March 8, 2012Source: Architect Partners, Capital IQ and Public Information. Local commerce M&A is defined to Include target companies within local marketing and commerce such as local daily deals, coupons, local search, directory, local ad targeting, digital payment infrastructure and online local commerce. Excludes non-local flash sales companies.
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STRATEGIC MOVES ARE HAPPENINGTen Most Active Local Acquirers 2010 - 2012 YTD (a)
Prior to acquisition by Gilt City
Note: a) Through March 8, 2012Source: Architect Partners, Capital IQ and Public Information
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PUBLIC LOCAL-ORIENTED COMPANIES
Prepared by: For:
http://www.architectpartners.com