Coronavirus Forces Companies to Embrace Adtech and Martech; Sector Booms - Seite 4

Bourbon Giant on Board

Late in April, Hashoff added yet another global juggernaut to its client roster. Japan-based Suntory Holdings, the owner of Jim Beam, Maker's Mark, Knob Creek and Basil Hayden, and third-largest producer of premium distilled product brands worldwide behind Diageo and Pernod Ricard, signed a SaaS agreement centered on video-based influencer content for a global market. A sign of its prescient decision making, video-based influencers are an upcoming component of influencer marketing and an alternative strategy the Hashoff has implemented effectively in other recent campaigns for global brand customers, such as PepsiCo.

A company like Suntory Holdings with its bevy of brands spanning food & beverage, beer, wine, spirits and health food speaks to the opportunity at hand for Hashoff to grow exponentially within one client. DGTL leadership is presently reviewing requests for more SaaS proposals. The demonstrated growth and speculative future expansion don't seem to be reflected in the valuation of the young company yet. As management succinctly details in its presentation, industry comparables are trading at much higher multiples, particularly as a measure of enterprise value to revenue and price-to-sales ratio. Others in the asset class are trading 10 to 15x and even as high as 50x on price-to-sales, meanwhile DGTL is trading at approximately 3 to 4x sales.

Plenty of Pie to Go Around

With global advertising spend nearing $600 billion, there is ample opportunity for many companies to carve out market share. This is particularly true against the backdrop of a worlwide pandemic that caused a huge spike in demand for cutting-edge platforms while simultaneously completely reshaping the new norm for advertising and marketing.

Perion (NASDAQ: PERI) is a global advertising technology company that delivers holistic solutions across three pillars of digital advertising: ad search, social media and display/video/CTV advertising. CTV is skippable online advertising targeted to relevant content channels and/or audience groups. Perion cited CTV as a key factor for new customer acquisition and primary contributor to 11% increase in average deal size during the first quarter. Perion further proved the point that consumer trends are sticking, as average daily searches ballooned 45% to a record 17.7 million in Q1.