Martech and Adtech continue to be high-growth sectors. Entrepreneurs can substantially increase their companies’ values if they know how to navigate the ins and outs of technological innovation and rapidly changing consumer behavior. Portada spoke to Giuliano Stiglitz, CEO of NUMATEC, to understand how he is planning to grow his company to the US $100 million sales threshold.
Spending and investment in MarTech continues to grow: the latest figures show an expected 14.3% annual growth rate in 2022 in the U.S. NUMATEC is the holding company for more than 10 international advertising and marketing services companies. Launched in November 2020, NUMATEC companies include EKN, a data-driven multichannel buy-side media company, programmatic buying firm Eikon Tech, Influencer marketing agency Kanvas, and growth marketing agency Si Señor.
CEO Giuliano Stiglitz notes that, in addition to the above-described services, NUMATEC companies also play an important role in international marketing technology distribution such as for Demand Side Platforms (DSPs) and other marketing technology providers. “We represent DSPs in many markets in Europe and Latin America,” Stiglitz states. Technology leaders NUMATEC represents include data-driven ad management and analytics technology company Flashtalking, social creative platform Spaceback, and Dataglobal, a provider of enterprise information management services. NUMATEC serves both the big media buying holding companies, like Publicis, Dentsu and GroupM, and Havas, as well as brands directly. In the U.S., the brand direct business is thriving with large healthcare organizations and food distribution companies in the client roster.
According to Stiglitz, NUMATEC currently has a US $50 million dollar sales run rate. “We are extremely profitable and not for sale”, he adds. His goal is to double the sales figure by the end of 2024. The sales expansion will be a combination of organic growth and acquisitions. In a prior interview Stiglitz told Portada that NUMATEC typically takes a majority stake of between 51% and 100% in the companies it invests in.
How NUMATEC Plans to Reach the US $100 million Sales Mark
in which business units of NUMATEC does Stiglitz see a particularly high growth potential? “Growth will be in tech distribution and consulting. Adopting the right technology for executions is crucial for media agencies and brands.” Typically when the technology company NUMATEC represents is U.S. based, it will distribute its technology in Latin American and/or European markets. “We also see lots of growth on the trading desk side. We are expanding into many countries as we speak,” Stiglitz claims. Omnichannel marketing is another segment with high growth potential, he adds. Geographically NUMATEC is looking to expand into Africa, the Middle East, and additional Latin American countries.
Asked about whether he plans any imminent acquisitions, Stiglitz asserts: “We are working on a target pipeline. There are huge opportunities for consolidation because there are many companies in Latin America, Europe, and the U.S. which are small and extremely successful with a good client base and good entrepreneurs. Particularly, in omnichannel, media-buying optimization, and technology distribution. We are looking to cherry-pick.”
“There is a high growth potential in keeping integrating companies into our own ecosystem and helping them streamline products.”
NUMATEC: Investment in Top-Level Talent
Another key area of growth is talent and human resources, Stiglitz says:”We have made key talent hires over the last 12 months. We are actually on a hiring spree.” As examples, he mentions the recent hires of a senior Finance Team, a VP of Tech partnerships, as well as a VP for the holding company in Europe. NUMATEC is headquartered in Miami and has more than 300 employees in the United States, Latin America and Europe.
Trends in Martech
Looking at the wider advertising and marketing technologies space, Stiglitz notes that it is not new that digital giants can lose some relevance as new platforms emerge. As an example, he mentions the emergence of TikTok as a major social media player. A major trend, Stiglitz sees continuing in the medium term are the growth of marketing clouds and omnichannel market, as well as app marketing. “The market has shifted from programmatic DSP to much more omnichannel sophistication,” he adds.
E-Commerce Marketing Growth
According to Portada’s annual Brand Marketer Needs for Marketing Technologies report, marketers intend to continue investing at a particularly high rate in Martech solutions to foster e-commerce. Stiglitz mentions that NUMATEC companies help their clients with the Amazon marketplace. “We help our clients be more profitable in Amazon and also with their own D2C efforts. In addition, we now have the opportunity to buy retail media for our clients. This adds a lot of interesting inventory to the system,” he concludes.