|By Business Wire||
|December 27, 2012 02:00 AM EST||
Digital Globe Services, a leading provider of outsourced online customer acquisition solutions for large, consumer-facing corporations, today announced its intention to launch into Europe, Latin America and Asia Pacific. N+1 Singer has been appointed as Financial Adviser to assess funding options for the expansion, which may include a flotation on AIM.
Jeff Cox, Founder and Chief Executive of DGS, commented, “We believe our market leading technology and expertise in paid search and online customer acquisition places us at the forefront of a vast and rapidly growing market. With our blue chip customer base and strong financial position we are confident in our ability to replicate our successes in the US telecoms market into other verticals and territories.
“There is clearly a growing momentum in the number of technology companies joining the UK market via AIM and we believe this could provide a credible home for our business, raising our profile internationally and supporting our launch into European and Latin America markets as well as into new verticals.”
Overview of DGS
Founded in 2008 and headquartered in Colorado, USA, DGS employs over 430 staff both in North America and internationally. The Company currently has over 30 customers globally, many of which are in the US Fortune 500. DGS is a specialist provider of online customer acquisition solutions, through the delivery of optimised paid search, websites and call centre support.
DGS is seeking to establish itself as the leading provider of outsourced online customer acquisition services through its focus on having the premier technology platform for pricing and procuring paid search advertising on a cost effective basis. The Company has been consistently profitable every quarter since 2009, establishing a track record of increasing revenue, profitability, and cash generation, with these metrics and shareholder dividends showing annual growth rates in excess of 40%. The Company believes that medium term revenue growth in the region of 20-30% per annum will be sustainable.
What is Paid Search?
Search providers, such as Google, Yahoo, etc. typically provide advertisers with the opportunity, in exchange for a fee, to position search results or advertisements in response to specific search terms that users enter. In such “paid search” or “sponsored search” opportunities, the search provider will undertake an auction, in real time, for the key search terms which prospective advertisers will compete for in order to have their advertising or search results displayed. DGS uses its proprietary technology and database to enter bids in these auctions at price levels that seek to maximize DGS’s profitability and deliver the highest quality customers to DGS’s clients.
The Directors believe that DGS’s proprietary technology and databases, which include information on over 10 million search terms in over 6,000 geographic locations developed over five years, allow the Company a key source of competitive advantage within its industry.
In addition, DGS provides outsourced call centre and online services in order to respond to client customers who have followed a paid search link and registered their interest in the client’s offering. By optimising the results of paid search advertising, DGS is able to efficiently and cost effectively draw customers to DGS’s estate of web and contact centre properties. By further managing the process of converting these interested customers to paying customers, DGS provides considerable value in terms of ROI for advertisers seeking to acquire new customers.
The Market for Paid Search
Internet advertising, and paid search in particular, is a significant and fast growing global market. In calendar year 2011, corporations spent approximately $94 billion on Internet advertising out of which approximately 49%, or $46 billion was spent on paid search. Gartner projects that this amount will increase to approximately $138 billion by 2016, reflecting a compound growth rate in excess of 40% over the next three years.
DGS estimates that currently only 10% of the paid search market is outsourced to specialists such as DGS on a “fee per sale” commercial model. The balance is either not optimized to the level provided by the DGS, or advised or managed by third party providers that operate on a “percentage of spend” or “retainer” model. In a percentage of spend model, third parties will contract with companies to acquire paid search advertising in exchange for a percentage of the aggregate amount spent by the buyer. In a retainer model, third parties will contract to provide procurement and optimization services on a time and efforts or other fixed price basis.
DGS believes that both percentage of spend and retainer models do not align the interests of the corporate buyers of paid search advertising with the paid search service provider. DGS further believes that, over time, an increasing proportion of the overall paid search spend by companies will migrate towards providers such as DGS because of the greater transparency and clear return on expenditure provided by the fee per sale model.
A growing component of DGS’s paid search advertising has been procured for mobile devices. In fiscal year 2011 such mobile advertising accounted for approximately 25% of all DGS’s advertising dollar volume. This grew to approximately 55% of DGS advertising in fiscal year 2012.
Expansion of DGS
To date, DGS has focused on providing its solutions to US corporations operating in the telecommunications sector; all of the fifteen largest cable telecommunications companies (as measured by revenue) acquire customers through DGS. The Company believes the international market for its services to be significant and has begun exploring expansion opportunities.
DGS already has contracted with several clients in Mexico and is in the process of expanding more broadly into the Latin American marketplace. The Company is also in the process of establishing operations in Europe, with an initial focus on the United Kingdom, France and Germany. Finally, the Company is in exploratory stages of developing a market entry strategy for Asia-Pacific with material revenues targeted for 2015. These territories have been selected because of their strong telecommunications brands, competitive landscape and the shift in consumer purchasing behavior from more traditional marketing to internet marketing.
The Company is also expanding beyond its initial focus on telecommunications clients with expansion into adjacent markets such as energy utilities, education, financial services and other consumer facing industries that are seeking to optimize their online customer acquisition efforts. The Company has recently launched in the deregulated electricity utility sector in North America. The Company believes that a material proportion of its revenue will be derived from customers outside of the global telecoms sector by early 2015.
Jeff Cox, Founder & Chief Executive Officer, has over twenty years of wireless and cable sales and operations experience and has held executive positions in sales channel development and execution, on and off-line marketing programs and call center sales and operations for some of the world's most recognized brands. Jeff has held executive management positions at Charter Communications and senior management positions at mobile phone operator AirTouch (acquired by Verizon). Jeff holds a BS in Psychology from San Diego State University.
Bruce Casely, Chief Financial Officer, is a Member of the Chartered Institute of Bankers in Scotland. He has worked in banking, finance, M&A, investment, corporate advisory and strategy roles for more than twenty years. Bruce has held executive and management roles for The Bank of Scotland, Rothschild, Ernst & Young, a global brewer and a private equity firm. He has held various board directorships. Bruce holds a BA in Commerce from The Robert Gordon University and an MCIBS in Banking from Napier University.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
Jul. 4, 2015 04:30 PM EDT Reads: 1,065
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
Jul. 4, 2015 02:00 PM EDT Reads: 280
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and high availability solutions, leveraging the cloud and the benefits of Infrastructure-as-a-Service (IaaS...
Jul. 4, 2015 01:00 PM EDT Reads: 431
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 4, 2015 12:30 PM EDT Reads: 283
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Jul. 4, 2015 12:30 PM EDT Reads: 287
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Among the proven benefits, DevOps is corr...
Jul. 4, 2015 12:15 PM EDT Reads: 339
The basic integration architecture, as defined by ESBs, hasn’t changed for more than a decade. Most cloud integration providers still rely on an ESB architecture and their proprietary connectors. As a result, enterprise integration projects suffer from constraints of availability and reliability of these connectors that are not re-usable across other integration vendors. However, the rapid adoption of APIs and almost ubiquitous availability of APIs amongst most SaaS and Cloud applications are rapidly redefining traditional integration approaches and their reliance on proprietary connectors. ...
Jul. 4, 2015 12:00 PM EDT Reads: 266
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Jul. 4, 2015 10:45 AM EDT Reads: 407
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context wi...
Jul. 4, 2015 09:00 AM EDT Reads: 250
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Jul. 4, 2015 09:00 AM EDT Reads: 1,096
WebRTC converts the entire network into a ubiquitous communications cloud thereby connecting anytime, anywhere through any point. In his session at WebRTC Summit,, Mark Castleman, EIR at Bell Labs and Head of Future X Labs, will discuss how the transformational nature of communications is achieved through the democratizing force of WebRTC. WebRTC is doing for voice what HTML did for web content.
Jul. 4, 2015 08:45 AM EDT Reads: 218
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare to be blown away with a glimpse of the future.
Jul. 4, 2015 08:30 AM EDT Reads: 242
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
Jul. 4, 2015 07:00 AM EDT Reads: 213
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Jul. 3, 2015 12:00 PM EDT Reads: 1,294
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
Jun. 29, 2015 12:15 PM EDT Reads: 2,228
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Jun. 29, 2015 11:00 AM EDT Reads: 1,564
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
Jun. 29, 2015 09:45 AM EDT Reads: 2,046
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
Jun. 28, 2015 11:00 AM EDT Reads: 1,530
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Jun. 27, 2015 10:00 AM EDT Reads: 1,644
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fillin...
Jun. 26, 2015 12:00 PM EDT Reads: 1,685