Snapshot of B2B North American demandgen and leadgen

1.
ERGO Comps, LLC
D: 214.702.6427
www.ERGOcomps.com
B2B LEAD GENERATION INDUSTRY
The Solution Providers Market, Beyond the core platforms,
there has been a proliferation of tools that sync/integrate
with the primary platform supported by thousands of
consultants and numerous regional service providers.
And while there are thousands of providers, there are less
than a handful of market leaders with meaningful market
share within their function and by industry.
Private Regional B2B Sales Support Models:
>$1m with >50 to <1,000 EE
1. Sales Staffing & Recruiting (~175)
2. Lead Generation Tools & Services (~550)
3. Outsourced Sales, Service, Care Centers (~205)
4. Sales Consulting (400 Boutique Consultants)
5. Systems Implementation (100+ either local or
industry focused)
6. The Industry model (by industry)
Beyond market consolidation, there is a significant demand for
bundled solutions preconfigured by industry as buyers require
support services to effectively use their spend and tools.
The investments in the capabilities & partners determines
whom scales to a market leadership position and enjoys
consolidation capabilities.
Solution vendors differentiate based upon:
 Packaging & Services: what to bundle and how to
maximize gross profit by industry, by channel
Technology capabilities: data analytics, multichannel,
and BPaaS versus BPO: buy vs. license vs. build
Middle-Market Technology Platforms Snapshot
Partners Landscape
Do you have the right partners?
Partner options:
Platform Software Systems
Data & Intelligence
Tools & Apps
Services
Vendors
Consulting
Staffing
Lead Generation
Outsourcing Centers
Digital Sales Landscape Buyer Segments
Technology & Software Platforms & Apps/Tools Marketplaces Startups to Small Business
Agencies and Service Providers Middle Market Industry Leaders
Vendor Partners: Content, Training, Tools, Staffing Global Enterprises

2.
ERGO Comps, LLC
D: 214.702.6427
www.ERGOcomps.com
B2B Digital Sales Industry Leaders
Communities DemandGen LeadGen SalesGen Omnichannel & Care
B2B Digital Sales Industry Snapshot
Providers in the industry are typically divided into enterprise and non-enterprise focused divisions.
Industry
Category
~ Count of firms >$1m in annual revenues by category segment
Demand
Generation
Digital Marketing Agencies ~200+ (More than 12,100 advertising agencies plus
8,000 consulting/PR agencies)
MarTech Services ~200+ certified from the top 8 platforms
Lead
Generation
Above plus +
Lead Generation marketing service providers ~200+
Outsourced appointment and sales contact centers ~200+
Sales
Sales centers focused on direct sales ~40 private with 50+ seats
Sales centers focused on channel & partner sales ~<20 with $2m+
Sales Recruiting ~40 private + Sales Staffing includes hundreds by industry
Omnichannel Omnichannel BPO inbound, outbound, care, warranty, response ~ by industry
BPOs
BPO contact centers ~ based on location and industry
 Domestic
 Nearshore
 Hybrid with domestic and global offshore
Consultants
 Technology Implementation
 Strategy Consultants
 Fractional Interim CXO Consultants ~ local and/or industry centric
 Functional & Competency consultants by platform, competency

3.
ERGO Comps, LLC
D: 214.702.6427
www.ERGOcomps.com
Digital Sales Deals with Price
The following list of M&A is for illustrative purposes only.
2018 – Main Street Hub acquired by GoDaddy. Marketing platform for SMBs. Acquired for $125M in cash.
2018 – Junxure, CRM consulting acquired by AdvisorEngine for $16m.
2018 – Orchard Marketing acquired by Energo Group. Creative acquired by global marketing agency group. Acquired for $27M.
2018 – Online Automotive Solutions acquired by New Media Investment Group. Auto marketing solutions provider. Acquired for $4M.
2018 – XL Group acquired by AXA. Developer of extranets, portal for direct marketing campaigns for $15.3B in cash.
2018 – Alexander Mann Solutions acquired by OMERS Private Equity. Sales revenue consulting acquired for $1.1B.
2018 – Strategic Communication Services acquired by TTEC (NASD: TTEC). Contact center acquired for $4.4M.
2018 – Web.com (NASD: WEB) acquired by Siris Capital Group. Leading provider of SMB online marketing acquired for $2b.
2018 – Teleperformance buys Intelnet from Blackstone for $1B. Indian BPO provider of outbound sales, analytic services and customer
services competing with Convergys Genpact (Bain) and other Global BPOs.
2018 – WONGDOODY acquired by Infosys. Marketing services agency acquired by global Consulting & BPO for $75M.
2018 – Glassdoor acquired by Recruit Holdings. Acquired for $1.2B in cash.
2018 – Quirius acquired by Becomex. FAO & Consulting firm acquired for $28M.
2018 – Basware acquired by Verdane Capital Advisors. FAO acquired by PEG for $35M eruos.
2018 – StarTek, Inc. (NYSE: SRT) business process outsourcing (BPO) acquires Aegis for $230M
2018 – Mattersight acquired by NICE Systems. Analytics firm acquired by BPO WFM for $90M.
2018 – Info Sys Management acquired by SWK Technologies. Reseller of SAGE and Acumatica solutions acquired for $1.7M.
2018 – LogoMix acquired by Deluxe Corp (NYSE: DLUX). A marketing platform for SMBs. Acquired for $43M in cash.
2018 – Accompany acquired by Cisco. A database and intelligence company acquired for $270M.
2018 – Adaptive Insights acquired by Workday (NYSE: WDAY). Analytics for business planning acquired for $1.6B.
2018 – Convergys acquires Synnex for $2.8B in cash/stock. Global BPO deal.
Deal Commentary /
 293+ acquisitions since 2010, 95 acquisitions in 2018 year-to-date:
o Business intelligence including data management, and automated workflows
o Consolidation of industry centric marketing & lead generation firms with MarTech, CRM, BI, and ERP implementation
capabilities
o Staffing and outsourcing
o Tools for strategic CFOs, CXOs, and managers
 Valuations remain flat for BPO services that are missing tech enabled platforms with a modern stack that includes apps, tools,
chatbots, and workflow automation.
Industry Recap /
 2018 – More than 50 CRM implementation firms acquired over the past 36 months
 2017 – Hubspot 10+ M&A acquisitions to date.
 2017 – Proliferation of new digital sales models, digital ecosystems, marketplaces, & communities
 2017 – More than 500 service providers greater than $1m on cloud-SaaS modern solutions
 2016 – Vista Equity Partners, private equity firm, acquires Marketo, marketing automation software in in LBO for $1.8B.
 2016 – Netsuite acquired by Oracle for $9.3B.
 2015 – Proliferation of hundreds of venture funded industry solutions
 2014 – Hubspot IPO: NYSE: HUBS
 2013 – Launch of SaaS “FAO as a Service” , “Data as a Service”, “Marketing as a Service” , etc.
 2012 – Pardot acquired by ExactTarget for $95.5m. ExactTArget acquired by SalesForce.com NYSE: CRM in 2013 for $2.5B.
 2012 – Oracle buys marketing automation platform Eloqua for $871m based on Eloqua $90m revenue run-rate.
 2010 - IBM acquires Unica (enterprise marketing management) for $480m.
 2006 - Hubspot launches.

4.
ERGO Comps, LLC
D: 214.702.6427
www.ERGOcomps.com
Industry Snapshot /
Tech Implementation Services beyond the Platform.
Size:
Tech:
Small Industry Enterprise
Implementation
Leaders
Thousands of SMB
consultants < 10 EE
~550 firms greater than $1m with
certified competencies.
Global 2000 Consulting,
Outsourcing, Staffing, &
Accounting firms
Financial
Management
Intuit QuickBooks, Xero,
FreshBooks, Thomson,
Freshworks, Jira, Zuora,
and numerous others
 Middle Market: NetSuite,
FinancialForce, Intacct, Epicor
 Workforce management: Slack,
ServiceNow, ZenDesk, Freshdesk
SAGE, Microsoft, NetSuite,
Workday, SAP, Oracle and
numerous ERP and industry
software platforms
MarTech, Sales Enablement,
Analytics, AI, Bots
CRM Hubspot, Zoho,
InfusionSoft
Salesforce.com, SugarCRM,
BPMonline
Digital Stack Wordpress, GoDaddy Azure, AWS, AdaptiveInsights, Tableau, HostAnalytics, Qlik, Magneto
Communities
&
Associations
Industry Commentary / The market for beyond implementation managed services continues to grow,
especially for BPaaS solutions which creates significant post implementation recurring revenues across:
Technology Services Vendors
Platforms & Apps
Digital Services &
Lead Generation
Recruiting & Staffing
MarTech Sales Gen Training & Development
CRM Sales &
Service Stack
Omnichannel
& Care
Consulting & Advisory
4X in services for every dollar spent on tech with 65%
Profit Margins for bundled solutions.

5.
ERGO Comps, LLC
D: 214.702.6427
www.ERGOcomps.com
Call-To-Action for an Industry Briefing
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enabling your people with the right processes, tools, and partners.
Spend an hour with us instead of weeks
evaluating dozens of different options.
Briefing Goals
Your industry briefing discussion will include:
How do you compare to the competition?
Do you have the right partners?
What is the impact of various options?
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