At 14 years old, SurveyMonkey, the online feedback and survey company, is “not quite a startup anymore,” says its CEO David Goldberg. But the last year has marked what you might call a second childhood of sorts for the Silicon Valley company: a large raise of funds (some $850 million, all secondary); a launch of a whole new product branch (enterprise); and, now, for its hattrick, a new international push. It’s the third of these that has brought Goldberg – a seasoned enterpreneur, investor and husband to Facebook COO Sheryl Sandberg – to London, to meet with me in a bar high above the city in the Shard, a new skyscraper near London Bridge.
We’re meeting here because although SurveyMonkey is announcing a new office in London, along with a hiring push for 50 new staff in sales, marketing and business development, it hasn’t yet found a place to call its own. Where will the company look? The answer is still (ahem) up in the air. Not in the glitzy Shard, where the rents are too high; and not necessarily in Shoreditch, where many other startups have laid down roots.
As it turns out, the Shard – with London spread out beneath us – is a fitting place to meet. SurveyMonkey is arriving here with opportunity in its eyes. London will represent its biggest investment yet outside of the U.S., and it comes directly as a result of its bigger enterprise push. It comes also as part of a concerted effort by the UK government to bring more tech business to London, including encouraging a new work visa scheme, faster broadband and more companies to commit to investing here.
Today the UK is SurveyMonkey’s biggest market after the U.S., with 1.5 million users, a position that is built on enterprise and customers across organisations like the National Health Service, the oil company BP, local councils and universities, and “100% of the FTSE 100 says Goldberg.
Many of these have started out as individual accounts, and so these are connections that SurveyMonkey hopes to reinforce and expand under its new enterprise licensing scheme; and, down the line, with more analytics services to make the most of the data that the surveys snag.
While I had Goldberg’s attention, I got an update on what else might be happening at SurveyMonkey:
– Acquisitions. It’s an obvious way for companies from the U.S. to scale business abroad, not to mention a way to bolt on new technologies, so will the be a route for SurveyMonkey?
Goldberg says that for the moment there are no acquisitions on the cards for customer scaling purposes. “There’s not a lot of anything of any scale out there,” he told me. “That’s not to say we wouldn’t buy something. We have been looking internationally but haven’t found anything.”
As for technology acquisitions, that’s a different story. The key with SurveyMonkey is that it’s launching a new business area with enterprise, and that could lead it into offering new products and services, some of which may get built internally; and some of which will not.
One of those areas could be data, and specifically big data analytics. “How do we collect data and how can we help people make decisions?” Goldberg asked me rhetorically. “To call what we do a survey is very narrow. It’s data, and that’s a very, very big space.”
Data intelligence could also be one way that SurveyMonkey could stay competitive against the likes of Google Surveys and (to a lesser extent) Formstack.
Although SurveyMonkey counts the public sector as a strong vertical for its services, one company Goldberg rules out as a target of any kind is YouGov, the UK-based polling company. “That’s not a space we want to be in,” he said, noting that SurveyMonkey in fact already has its own panel business.
And there remains a plan as well to continue to expand partnerships and integrations via SurveyMonkey’s API. Integrations like these are an important customer retention tool: “Those who use us and also use MailChimp and Eventbrite churn from us at a lower rate,” Goldberg notes.
– Funding. The money that SurveyMonkey raised earlier this year – which included significant contributions from Tiger Global, Social + Capital, and others – was “100% secondary,” he said, with the funds going to employees and investors.
“None of it went into the company,” he added, meaning that any acquisitions that it would make will come from its own cash reserves, as well as debt if needed. In 2012, SurveyMonkey made $62m in EBITDA, and $113 million in revenue, he tells me. It has not disclosed 2013 revenues. That funding round, he pointed out, which valued the company at some $1.35 billion, will put off questions of an IPO for some time to come.
In preparation for TechCrunch Disrupt Europe I’ve been running around the Continent for more than a month, hitting the Balkans for a huge tour and Warsaw for an amazing meet-up. Now I’m back for a meet up+pitch-off with our own Mike Butcher and the rest of the UK team. Tickets are free so grab yours now.
There will be great networking opportunities, and a battle to the death to see which entrepreneurs can dazzle and excite in under 60 seconds.
LONDON INFO HERE
- Participants interested in competing in the pitch-off will have 60 seconds to explain why their startup is awesome. These products must currently be in stealth or private beta.Application form for London is here or simply enter below.
ONLY FILL OUT **ONE** APPLICATION.
Office hours details
- Office Hours are for companies selected for the Pitch-off, these 15 minute 1 on 1 talks will be held on the day of the event. We’ll hear about your company, give feedback, and talk about the best pitch strategy for the 60-second rapid-fire competition. More information on Office Hours will follow in a post on TechCrunch.
- We will have 3 judges who will decide on the winners of the PitchOff. First place will receive a table in Startup Alley at the upcoming TechCrunch Disrupt Europe in Berlin. Second Place will receive 2 tickets to the upcoming TechCrunch Disrupt. Third Place will receive 1 ticket to the upcoming TechCrunch Disrupt.
Venue in London
- Ground Floor – CAMPUS LONDON, 4-5 Bonhill Street, London EC2A 4BX
- Event runs from 3 p.m. – 5:30 p.m. on Monday July 29th, 2013
- We will de-camp to a local bar afterwards, sponsors welcome to support (email firstname.lastname@example.org)
Remember we are holding our Berlin meetup later this week so if you don’t want to wing your way North we’ll come to you. Application form for Berlin is here.
Questions about the events? Please contact: email@example.com.
How To Become A Sponsor
- For more information on sponsorship packages and to discuss becoming a sponsor, please contact firstname.lastname@example.org.
And whether you’re an investor, entrepreneur, dreamer or tech enthusiast, we want to see you at the event, so we can give you free beer and hear your thoughts. Come one, come all.
Today Publicis and Omnicom, two of the “big five” global advertising and marketing agencies, announced a “merger of equals”, in which the two will combine to create the world’s biggest agency, with some $22.7 billion in annual revenues and a market capitalization of $35.1 billion. The pair say that the new Publicis Omnicom Group initially will be jointly run by the two existing CEOs, John Wren from Omnicom and Maurice Levy from Publicis, and headquartered both in New York and Paris, with a holding company HQ in the Netherlands.
The companies will trade publicly as ONC (currently Omnicom’s symbol) on both the NYSE and Euronext.
The confirmation – after reports of the deal swirled earlier this week – was delivered today in a press conference on a hot Sunday summer afternoon in Paris – a slightly oxymoronic setting for a megadeal.
“For many years, we have had great respect for one another as well as for the companies we each lead. This respect has grown in the past few months as we have worked to make this combination a reality. We look forward to co-leading the combined company and are excited about what our people can achieve together for our clients and our shareholders,” the co-CEOs said together.
If Google is the world’s biggest digital advertising network, the merger of these two will create an advertising megacorp that will be the world’s biggest provider of advertising to feed that machine. It will be twice the size of its nearest rival, WPP. While there are two other agencies in addition to these, Interpublic and Havas, they are significantly smaller. This will lead, inevitably, to antitrust scrutinty from regulators. Today, the companies, both already global operators, noted that they will need regulatory approval in 41-46 countries.
“We are not expecting anything that would prevent us from going forward,” Wren said at the press conference (according to Reuters). “We are confident that we will get regulatory approvals,” Levy also noted.
It may also spur more merger activities among other players.
Without a doubt, the history of the ad industry has been one of ongoing consolidation, and in that regard this seems like a logical and inevitable step. Some of the agencies that were once rivals and will now coexist under one owner will include BBDO, Saatchi & Saatchi, DDB, Leo Burnett, Razorfish, Publicis Worldwide, Fleishman-Hillard, DigitasLBi, Ketchum, StarcomMediaVest, OMD, BBH, Interbrand and ZenithOptimedia, with clients covering some of the world’s biggest buyers of advertising, including mobile carriers like Verizon and AT&T, drinks companies like Coca-Cola, financial services companies like Visa, and many more. The companies say they will have “efficiences” of $500 million as a result of the deal; whether that will lead to layoffs or closures has yet to be announced.
But while this plays to type in some regards, the world of advertising and marketing is also up against growth of other disruptive forces, for example the change in consumer habits brought about by the internet. That has taken the rug out from some of the more traditional formats for advertising, such as print media, and pushed more spend towards digital formats like the internet and mobile advertising.
These are still relatively smaller players in the wider advertising ecosystem: worldwide there will be about $519 billion spent in marketing and advertising this year across all mediums. But if you break out a newer area like mobile advertising, it’s expected to be just under $9 billion this year globally, according to the IAB.
Still, the smart money sees the writing on the wall. TV advertising dominates today, Nielsen noted earlier this week, but it has grown by just 3.5% so far this year while Internet has gone up by 26.3%. The IAB estimated that mobile will go up by 83% this year.
Publicis and Omnicom’s rival WPP projects that by 2018, 40% of ad spend that it oversees will come from digital. That is driving a number of acquisitions and investments, but it is also fuelling the rise of a new kind of advertising company focused around advertising technology (ad tech) to better measure, leverage and distribute ads in these new mediums. The rise of digital media is also dovetailing with the growth of advertising and digital opportunities in emerging markets like China, South America, India and so on.
All of this plays strongly into the technology and startup ecosystem, both in terms of the companies that are growing up around these innovations, but also because such a large part of the tech world is built around the consumer internet, and much of the consumer internet is built on free, ad-based models. Consolidation of players like Omnicom and Publicis speaks to a growing desire to better scale and consolidate on the kinds of returns at can be made from newer platforms like the internet.