- Ad Solutions
- Marketing & CRM
- Products & Services
- eCommerce Infrastructure
- Mobile/Infrastructure Apps
- Media Consumption & Enabling Technologies
The intersection of the social media economy, marketing technology, eCommerce and content has just begun. Edison targets opportunities in these sectors creating and participating in market paradigm shifts. We take a macro and bottoms up approach to thematic investing in areas of hyper growth. Investment targets include consumer web services, social commerce, audience targeting, mobile advertising, video, gaming, community platforms, next gen CRM and unified analytics.
Secular growth trends are compelling for the early leaders in these categories. Online is driving a trillion dollar opportunity in offline sales. The pay for performance model in local marketing needs the next evolution of merchant services and technology automation. Technology vendors are becoming publishers and brands and publishers are adopting technology at a rapid pace. Content defines the technology platform it runs on. A new wave of brands has emerged that will capture the consumer’s attention and monetize through online commerce solutions and advertising-based models.
Online advertising ecosystem has evolved into various pools of inventory and data-driven solutions with numerous delivery channels. Only those who provide yield and value-add will survive as the market continues to consolidate the media arbitrage. The marketing mix is changing to drive double digit CAGR for online and commerce but large ad buys do not compare to broadcast until fragmentation is solved. Community platforms and social networks play a fundamental role in shaping where the money flows.
The advent of the cloud, smart phones/tablets and round the clock connectivity has accelerated the need for web services. In midst of all this innovation marketers need to better understand their customer in an increasingly fragmented marketplace. Next generation CRM will require data and unified analytics to fuel the customer lifecycle and drive real ROI and accountability across the enterprise.
Edison’s investment team has completed over two dozen investments in interactive marketing, eCommerce and digital media. Given technology innovation and secular trends driving market shifts, we are bullish on the future and investment opportunities that bring revenue generation, customer insight and cost containment capabilities to the advertiser, enterprise and consumer.
The enterprise can no longer ignore the “we” in social. The social web extends across generations and doesn’t show signs of slowing down. Your employees, customers and prospects are online, mobile and interacting within the social grid. The days of mass marketing are over, and the enterprise and advertiser need to adapt or they will lose.
Some areas of interest include brand monetization technologies, new marketing form factors, virtual good platforms, and smart display technology solutions.
CMO’s are increasingly accountable for proving ROI on spend. Marketing is no longer a linear process, but multi-nodal where consumers respond, participate, and repurpose content and messaging.
Some areas of interest include Data as a Service, enterprise insight management platforms, SMB and localized marketing platforms, and unified, dynamic messaging solutions.
The Internet has enabled companies to engage in brand building faster and in a more capital-efficient manner than ever before. Consumer product companies, like The Neat Company, have been able to leverage direct response marketing to build substantial brand equity at relatively low cost. Guerilla marketing strategies of Liberty Tax have yielded modest customer acquisition costs with favorable customer lifetime value. We believe the continued secular trends favoring online purchases will result in innovative product and service offerings.
eCommerce companies have a level of insight into consumer behavior that was previously beyond the grasp of traditional retailers. Real-time monitoring and testing of consumer behavior allows companies to optimize the shopping experience and, in turn, enhance conversions. Harnessing the data that flows from these eCommerce infrastructure components will become increasingly important over time, and a company’s ability to draw insight from these datasets can provide an enormous advantage over competitors.
New computing architectures—cloud computing—and software solutions are displacing the enterprise approach. Commerce, content and relationships are moving online, and extending to the mobile web. One in three consumers now own a smart phone. Mobile devices are an extension of people. Consumption is now multi-device with consumer expectations rising for doing more online—web or mobile, consumers want relevance and the ability to interact with the community.
Some areas of interest include consumer data services, Service as a Product, and solutions that connect web services and content owners.
We believe that new models built around eCommerce platforms will spawn a new crop of market leaders across numerous verticals. Gain Capital has built one of the largest retail FX trading platforms in the world. Online marketplaces, like Sonicbids, are disruptive to traditional, agency-based processes. Data exhaust from these business models provides ancillary revenue opportunities.
Consumers now create, share and consume media differently. The web continues to fragment while consumers are overloaded with information—it must be streamlined.
Some areas of interest include content sharing apps and community software, authentic quality content producers and turnkey video and publishing platforms.