I'd really like to welcome you here to Enero Group's strategy webinar. I'd like to begin by acknowledging the traditional custodians of the land on which we work and meet today, the Gadigal people of the Eora Nation, and pay our respects to their elders past, present, and emerging. I'd particularly today like to acknowledge the passing of Yunupingu, the loss of a great Yolngu leader and a great Australian. For those of you offshore, that's not as obvious, but to everyone here it is. Today is all about providing a deeper insight to our group's strategy and the strategy behind each of the core businesses within the portfolio. You'll hear from our senior leadership team, including Group CEO, Brent Scrimshaw, our Group CFO, Carla Webb-Sear, and a number of our agency CEOs.
The team will highlight our recent track record of group transformation, provide a deeper insight into our portfolio businesses and their growth opportunities, and also share the board's approach to capital management. At the end of the strategy presentations, we're looking forward to answering your questions in a live Q&A. Before handing over to Brent, I want to briefly touch on a high-level summary of Enero as a strong and unique investment opportunity for both current and potential investors. We are unique in the Australian market. There are no other listed marketing services businesses like the Enero Group on the ASX. Through Enero, our clients and investors get the opportunity to invest in some of the world's most blue-chip global companies in growing industries around the world today. We've worked hard to transform the business into a diversified but strategically focused portfolio.
This diversification, combined with our focus on long-term growth industries, helps us provide some resiliency to macroeconomic uncertainty, as evidenced in our first half results. Our strategy continues to set the foundation for an ongoing transformation effort, and you can see the results in our operational performance over the past three years. I'm also pleased to announce that Brent Scrimshaw, Enero's Group CEO, has committed to an extension of his employment contract to continue to lead the group evolution. The board believes that stability and leadership is important at this time. We sit at the center of a market that is evolving rapidly and offers huge opportunity for growth. You'll hear more about our specific growth drivers from each of the business CEOs during today's presentation. We are absolutely committed to shareholder returns.
This is manifested in the delivery of strong but sustainable earnings growth, also in a clearly communicated capital management strategy, which you'll hear more about from Carla Webb-Sear, our Group CFO. In particular, we're excited to announce a share buyback to the ASX today, underlying the board and management's confidence in our financial position and our ability to capitalize on the growth opportunity before us. Thanks for joining us today. With that, I will now hand over to Brent.
Okay. Thanks, Ann, and good morning, everybody. Thanks again for joining our Enero strategy webinar this morning. Firstly, I just wanna make it clear up front that the intention of this session is to provide all investors with an overview of Enero's group strategy. A number of investors, both existing and prospective, have specifically asked for a deeper understanding of key businesses within our portfolio, and that's what today is about. The opportunity this morning is also to ask questions of portfolio CEOs, and that's where we're gonna spend our time today. Just to be clear, we're not gonna be providing a trading update or commentary around Enero's current or future financial performance. Of course, as you all know, financial information about Enero Group will be provided in our full year results, which are due in August.
Let's start at the beginning. Who is Enero? Well, as you all know, Enero is a creative technology company. We provide integrated marketing and adtech services combined with deep vertical and industry expertise. This represents a reimagined opportunity for both our clients that we work with around the world and our talented global team to redefine the expectations and results for success in modern marketing services in today's world. Now, we're creatively powered and we're technology-enabled, and we're gonna demonstrate that to you through our webinar this morning. Our brands comprise a portfolio of category-leading businesses that provide differentiated marketing service offerings that enable us to create demand for our clients and to help solve the business problems of some of the world's leading companies. Let's roll through the portfolio very quickly.
BMF is a globally renowned creative agency, famous as the home of the long idea and its delivery of enduring, effective, and emotive end-to-end ideas. BMF has been responsible for creating some of the most high-profile and talked about campaigns in Australia. Hotwire is now a distinctive global business and stands apart from the competition by linking its existing tech expertise and communications capabilities with the account-based marketing credentials of ROI·DNA and GetIT. With this full suite now of integrated services, Hotwire is well-positioned as the preeminent B2B tech communications and marketing consultancy, providing reputation-Relationship and now revenue generating services on a truly global basis. CPR. CPR is a leading public affairs and communications consultancy that provides strategic and effective advice to influence perception, manage reputation and build public, stakeholder and government support for its clients.
OBMedia, you'll hear from Mike and Raja this morning, is a technology-driven proprietary performance customer acquisition platform that helps publishers maximize the value of their ad inventory and provides advertisers access to untapped sources of high quality and most importantly, high intent traffic. Lastly, Orchard is our digital experiential agency based here in Sydney, but also with an office in New York, that delivers connected experiences that enable some of the world's largest pharmaceutical manufacturers launch breakthrough therapies into the global marketplace, as well as leading the digital transformation of Australia's leading consumer brands. Each of the portfolio businesses within the Enero Group is uniquely positioned, and we've been quite deliberate in our strategy there, which I'll explain more about this morning, with a differentiated service offering in their specific industry vertical.
The group continues to rapidly transform into a progressive, world-class and globally competitive business. We now have over 900 people in our teams across 16 cities around the world. Our global footprint delivers numerous benefits for the group, including, but not limited to, enhanced capability to serve global clients with global remits and of course, access to larger budgets. An ability to tap into and to deploy deep local market IP and of course, local experience. Global mobility and career progression, which is really important for our growing group of talented people. Optionality to use skills and capabilities from lower cost regions. Diversification of revenue across geographies and into higher growth, large scale marketplaces. The clients we work with are also a direct result of our strategic focus with the group now working with some of the world's most progressive, respected, and innovative blue-chip companies.
There really aren't too many Australian businesses that can match Enero with these deep growth focused partnerships with top-tier global clients. Enero sits at the convergence of the three critical marketing services landscapes required by any modern marketer in today's world. Each of our agency businesses are led by human-generated creative ideas that most effectively communicate our client's product, service, or brand and amplify its individual DNA. Through ROI·DNA, GetIT and Orchard, we help clients navigate the increasingly complex marketing technology ecosystem. We help diagnose, install, and operationalize the best data platforms and processes to execute their customer and business goals. Finally, through ROI·DNA and OBMedia, we also help companies deliver impact and cost-effective media and content at scale that reach the right audience with the right message at the right time.
In terms of our marketplace, we operate in a traditional marketing services marketplace that's huge. It's $500 billion globally. The accessibility to that has never been greater than it is today. We're also rapidly expanding into new markets of opportunity in both digital transformation and data and analytics across all of our businesses, which is dramatically increasing the potential client budgets we can access. We see future addressable markets more than doubling to in excess of $1 trillion. It continues to be critical that with many aggressive competitors, we have to be and we have to remain laser-focused in order to create a suite of services that will continue to grow our market share. In a rapidly evolving and dynamic marketplace, technology is transforming consumer expectations. Data is driving faster and smarter decision-making.
Marketing leadership roles and responsibilities are merging, and reputation and stakeholder management is increasingly important in a globally transparent and information-led economy. From a competitive perspective, upstart challenger competitors continue to search for opportunity to launch new offerings. It's super critical for Enero to continue to evolve faster and deliver even more relevant services into the future if we're gonna remain competitive. Our job's not to be reactive, but in order for us to effectively deliver on our clients' expectations, in essence, we need to be a leader in our industry through the anticipation of changing client needs, and then the implementation of those services. Our more established competitors are also evolving just as rapidly. This is the competitive marketplace that we live in. We need to continue to build our competitive advantage through those new and differentiated services.
This could be both through inorganic or organic investment, but one thing's clear: standing still is not an option if we're gonna continue to deliver on our growth ambitions. Enero's strategy is to provide an integrated offering of the most modern and relevant marketing services in those growing global vertical industries that we talk about all the time. Explicit in this strategy is the need to develop deep industry expertise with an end-to-end integrated offering that's tailored to each of those priority verticals. We know our clients are looking for modern capabilities around digital, around data, and around technology while still delivering outstanding creative ideation. They're the two tenets that underpin us as a creative technology business. Underpinning that strategy, however, are three core enablers. Our culture continues to be a magnet for world-class talent.
Now we invest in our people with continued focus on learning and development, modern ways of working, DE&I, and mental wellness. We continue to drive efficiency and effectiveness through refined and streamlined systems and processes that support our people and enable them to be more productive in the delivery of their work for clients. We efficiently manage capital to drive sustainable shareholder returns, reaching the right balance of investment in opportunities for future value creation and return of excess cash. You'll hear more from Carla about that today. Next, we'll look at how the execution of that strategy that I've just outlined has delivered what we think are remarkable results over the last three years as we continue on our journey to transform the Enero business. Critical to the delivery of our strategy is our operating model.
I'm sure some of you on this call have heard me talk about this operating model before, but it really is the foundation of our ability to deliver consistent and dynamic results over time. We segment our business into two strategic, focused areas: brand transformation and creative technology and data. We deliver our services across three priority verticals. It would be really easy for us to focus on everything, but we're actually honing our focus around these three priority verticals: technology, healthcare, and growth consumer. We believe that these verticals re-represent significant market opportunity for Enero. They're all strong and growing global industries that require specific and unique skills to serve. Over the past three years, we've implemented also a global centers of excellence operating model.
Where the Enero team deliver centrally led services to support each of our global businesses through both people and culture, finance, IT, strategy, M&A, and legal. This allows us to create and share uniform functional best practice across each of our businesses that in turn enable significant efficiency and high impact advisory to continue to drive our business performance across each of our brands. At Enero, people are our most important asset, and we see our people and the skills and experiences and capabilities they bring really as the X factor of our competitive advantage globally. Over the past three years, we've invested to elevate our people in three key areas, in capability, in culture, and in tools and pro-processes. We've brought impressive new talent and their capabilities to the group. We have new leadership working across multiple Enero brands around the world.
We've also created meaningful change and impact with the Enero centers of excellence that I just mentioned. We're now seeing new and progressive talent actually attracted to Enero based primarily on our strategy, our performance, and our career growth opportunities. People are actually coming to us. Our employment value proposition is attracting global talent who three years ago would never have considered Enero for their career. That's a very healthy sign for our business. We've also acquired additional specialist capabilities through our acquisitions. We continue to invest in our culture, not only through centrally through talent, learning and development, DE&I, as I mentioned, and our reconciliation plan or RAP, for those of you in Australia, but also by continuing to support our businesses to develop their own unique culture, equally becoming magnets for talent in their own right.
A great example of this is the evolution of Hotwire's Thoughtful Working 2.0 approach, which many of you know about. Finally, we also understand the impact that tools and processes can have. Being able to unlock productivity for our people and make it easier for them to do their jobs, all in a creative environment that is purpose-built to ultimately deliver great work for our clients. At the end of the day, that's really what matters to our success. Notably, we've also transformed our portfolio across segments and geographies over the last three years. We take a look back here, we've moved from eight companies in four segments, predominantly an Australia-centric business in 2019 to five companies in two segments, with strong growth now being led out of the United States.
That is a remarkable and it's a rapid transformation that's allowed Enero to move out of highly commoditized offerings like research and insights, and divest of other poorly run or underperforming businesses, while providing the group with the ability to continue to scale its integrated offerings against the strategy I've outlined this morning around the world. An example of our strategy in action, I think, and to bring that to life is the Hotwire group. Through our strategic focus and transformation, Hotwire now has the capability to deliver fully integrated services to B2B technology clients globally. Following its acquisitions of ROI·DNA in the U.S. and GetIT into Asia for the first time, along with the integration of Hotwire marketing team in the U.K. and Europe.
First of all, we identified a clear gap in the market to better serve our clients who are looking to directly connect the narrative from their reputation and relationship messaging to incorporate demand-based revenue-generating campaigns. For most clients, this process had traditionally been inefficient, often led to disconnected brand and inconsistent results in both their comms and their marketing campaigns. Hotwire is now a distinctive global brand if you follow the evolution on the slide in front of you, and it stands apart from the competition, bang on our strategy by linking its existing tech expertise and communications capabilities with the account-based marketing services credentials of ROI·DNA, GetIT in Hotwire marketing U.K. Now with a full suite of integrated services, Hotwire is truly uniquely positioned as the preeminent tech communications and marketing consultancy on a global basis.
A great example of how our strategy is playing out in real time. The execution of our strategy, most importantly, has also delivered consistent revenue growth of 11% compound annual growth rate over the past five years. Strong EBITDA expansion with accelerated EBITDA CAGR of 32% since FY 2020. As you've seen in our H1 results, we've continued to deliver strong group momentum this year. In fact, in H1 2023, we delivered more EBITDA for the group than we did for the entire fiscal year of FY 2020. On slide 21, we demonstrate the diversification of our revenue streams across industries and geographies. Revenues continue to reflect our strategic focus and are again well-diversified by industry, I should say, with the largest categories being technology and digital media.
If we double-click into this technology-based revenue, we're largely operating in the B2B segment. You've heard me talk about cloud, cyber, digital transformation as the key sweet spot for us in the past, which has accelerated also due to the acquisition of ROI·DNA and GetIT. Geographically, we're also well-diversified, I talked about being an Australia-centric business back in 2019. With nearly 70% of revenue now delivered outside of Australia. Again, these are in markets of infinite scale. An important point to note here, if you still think of Enero as an Australian business, as many had done historically.
We've also built revenue stability, with 47% of our business on fixed retainers and another 11% of our business, primarily through ROI·DNA, enjoying minimum spend thresholds, which you now see on this slide under the new variable retainers category. The group's diversified strategy is delivering synergy as well, and that's a key thing in any portfolio business. With an impressive 28% of our revenue now from clients who have relationships with more than one Enero Group business. Steve and Wei are gonna talk a little bit more about that later on this morning. Most importantly, it's also really critical to reflect that our transformation is delivering consistently outstanding financial results, particularly within our industry. On an economic basis, on the slide in front of you, the past three years really has delivered a few things that we're very proud of.
Net revenue's increased by 61% in that three-year period. EBITDA, at the same time, has grown by 119% in that three-year period, and our EBITDA margin has expanded by 7 percentage points. Again, remembering that those numbers are on an economic basis. This has translated into industry-leading EPS growth over that period, where we're at the very top end of performance when compared to our global competitor set. That's translated to TSR, only bested by Next 15, who are based in London, and many of you know. Is again, something that we're really proud of when you compare us to the global marketing services businesses around the world. This chart is for the period to 31 December 2022, which obviously is the period of our last reported financials.
I think many of you know, our share price since then reflects the impact of a more challenging trading environment for everybody, not just us, which we are proactively managing and as we've discussed during our H1 results, but let me touch on that just a little now on the next slide. I think one thing's clear, through the entire industry, that global macros have certainly impacted client investment since mid to late 2022. I'm sure everyone on the call today is aware of the media headlines surrounding the broader technology industry, and we've obviously got the opportunity to hear from some of our leaders, particularly those who are based in Silicon Valley. Heather Kernahan and Matt Querie are joining us this morning, who are literally right in the middle of it.
You'll hear from them later this morning, obviously, the opportunity to ask questions for some firsthand insight at the same time. We're generally seeing, as we've expressed at the end of our H1, some conservative approach to ad spend from some clients with project timing delays and in some cases, some scope reduction. Some clients are pausing as they look for clear signs of economic recovery. We do fundamentally believe that our vertical focus and deep expertise, particularly in technology, will deliver strong growth over the medium to long term, particularly as conditions improve. In the interim, we've also made hard decisions around cost to protect our margins across the entire Enero portfolio.
I think, for those of you who we've had discussions with as part of our ongoing market communications, these decisions are going to be largely reflected in our H2 results. Importantly, we've also made strategically focused FTE and freelance labor reductions using this time really as a chance to reevaluate the critical services that our clients care most about while of course, delivering profitability for the group. Lastly, we've also transformed Enero's agency business EBITDA margin, which excludes OB Media, to consistently outperform key competitors over the last three years on the chart in front of you. This achievement reflects our long-term aspiration for ongoing industry high performance. To summarize, we're achieving some fundamental milestones on our transformational journey. We're investing in the right capability and leadership to execute our strategy. We're showing leadership and resiliency through uncertain times.
If you think about the last three-year period and the recap on not only our strategy, but our results in that last three period. We've all lived through COVID-19, the uncertainty that provided, of course, now everybody's experiencing some slowdown from a global macroeconomic perspective. We continue to ensure that our culture remains our strongest competitive advantage along that journey, and we're very proud of that. We're building differentiated and uniquely positioned businesses in long-term growth verticals, and we're focused on commercializing our recent acquisitions. As I mentioned earlier, really pleasingly for us to call out 28% of group revenues come from multi-agency clients served across our portfolio of businesses, which is further evidence of the growing synergy effects of our portfolio model. Lastly, we're taking strategically focused cost action.
I just referenced it on the slide prior, to preserve our unique capabilities, most importantly, and our performance whilst of course improving productivity. You'll hear from the OBMedia leaders, Mike and Raja today as we continue to enhance that business to drive strong growth and margins for the group. In closing, we continue to focus on the transformation of our business. Hopefully, this morning, certainly from a group perspective, some of the insight in terms of the strategy that I've laid out and our track record from a results perspective, is definitely interesting. We will continue to ruthlessly edit our opportunities to amplify our unique point of difference. I guess the final thought from me is I think Enero has never been better positioned than it is today. That ends the Enero Group business and strategy overview.
Now what we're going to do is move directly into our portfolio business strategy overview. You'll hear a little from each of the CEOs of the key businesses within the group. We're gonna start with OBMedia, and then in terms of order, we'll be followed by BMF, by Orchard, and then Heather and Matt from the Hotwire group before we all come back together, and we'll return for probably around, we've allowed about 30 minutes of live Q&A. Just lastly before we do, we've pre-prepared this morning's OBMedia webinar overview, and then as I mentioned, CEO Raja Gupta and CTO Mike Lynn are gonna join us live for 30 minutes of Q&A direct from the USA during this morning's webinar. Let's kick it off with the OBMedia business overview.
Good morning, everyone. I am Raja Gupta, CEO of OBMedia. On the line, too is Mike Lynn, my co-founder, and OBMedia's CTO. We founded OBMedia back in 2001 when we sold a majority stake to Enero in 2007. It has been a story of growth with Enero ever since then, with our business evolving significantly over that period. Back then, we were a simpler search and email marketing business. Today we are a diversified omnichannel advertising platform with some pretty cool technology and partnerships powering our performance. We have more than 50 people helping to drive our growth. Both Mike and I appreciate the benefits of the cohesive working relationships of being part of the Enero Group. It is the perfect balance of entrepreneurialism within a strong public business operating environment.
We are excited to share more about OBMedia today and our confidence in the significant growth opportunity ahead of us. Today, we are going to explain OBMedia through three simple lenses: the value we deliver to our customers, our economic model, and our growth opportunity. For those unfamiliar with the ad tech ecosystem, we benefit from a simple business model in a digital advertising market that continues to grow at pace. Our technology is differentiated, our partner relationships are long-term and strong, and we see multiple levers for future growth. Let's start with the customer value we deliver. Put simply, we are a customer acquisition platform for digital advertisers. We work with the world's largest search engines, Google and Bing, to acquire, qualify, and monetize high-intent customers on behalf of their advertisers.
First, when we acquire customers, we do so from a range of digital omnichannel traffic sources such as display, native, social, and email. We use our proprietary technology to qualify customer intent and quality. We identify the traffic that is most likely to convert to a customer of the advertiser. We monetize these customers when we deliver that traffic to the end advertiser, who pays our customer, the search engines, for those high-intent clicks. Google and Bing share data with us on the performance of our advertising, which enables us to continuously optimize our performance. You'll hear the word optimization over and over today. It is an important one. At our core, we are a data business generating millions of clicks every day and using data science to optimize the conversion of those clicks. The higher the conversion, the more profit we generate.
What does that look like in practice? Well, here's an example of a typical OB Media advertising journey. To start, our media buying and publisher partners develop an ad that is configured for the particular channel where we are acquiring customers, using data provided by OB Media to determine the best ad vertical, channel, and format. Here you are seeing a display ad for air conditioning on a relevant CNN article. In this instance, our partner has placed the ad via a display advertising network such as Outbrain, Taboola, or GDN. We give our partners data to optimize the ad imagery, tagline, and copy based on our near real-time intelligence of ad performance. If the potential customer clicks on the ad, they are taken to a hosted OB Media landing page. This click is the first sign of customer intent around air conditioning.
We may then further qualify intent by asking them to click on the most relevant keywords from a selection of options. Again, these keywords are dynamically optimized by our proprietary technology. The customer is then shown a list of search results as if they had typed in those exact keywords in a search bar. This is still an OB Media page, but the search end results are direct feed from the search engines. By the time they click on the link in the search results and are taken to the advertiser's website, they have proven that they are a high intent customer and the advertiser pays the search engine for the click.
Underpinning this advertising journey is our OBMedia technology. We have tens of thousands of ads across multiple channels, verticals, and formats running at any given time, pointing back to our landing pages, producing millions of visits a day. As you can imagine, this creates a lot of data. We take this data and we combine it with many other sources, some from third parties and revenue data from Google and Microsoft. We have to organize this data, make it available to all of our media buyers, applications, and partners that we work with. We've spent years optimizing our attribution models. We consider them leading edge and key to optimizing profitability and working with search partners. In order to do all this, we've built a pretty robust data analytics and infrastructure platform. Our transition from legacy SQL technology to Snowflake's cloud platform has unlocked new levels of performance for us.
Now we're providing reporting to partners in 15-minute increments rather than bulk processes. This allows applications and buyers to adjust their spends based on market dynamics, and it dramatically improves profitability. One cool thing we're testing at the moment is using generative AI to develop more effective advertising campaigns. For example, we're trialing AI image creation and ChatGPT for content creation. We use our own first-party data to identify audiences. We don't use cookies, so what this means is we're well pos... visions given the changes coming in online privacy. We are using AI to optimize and generate original ad copy, ensuring we maximize the click-through rate of our ads. In a qualifying stage, when a customer's on an OBMedia landing page, we have a range of proprietary technology running.
AI is deployed to optimize the keywords that are shown to customers. We have a number of different technologies and processes running that identify robotic traffic. We are known amongst our partners for our conservative approach. We aggressively filter out suspect traffic. Google and Bing value us as a trusted and high-quality partner. Because of all this technology and analytics at work, by the time a customer hits the advertiser's websites, we are delivering traffic that converts at an equal or higher rate than the advertiser's paid search traffic. In essence, we've unlocked... new sources of cost-effective omni-channel traffic with conversion performance equal to or better than high-value search customers. This is a critical point of difference in a crowded ad tech market.
To expand on Mike's last point, if you think about Google or Bing, they generate revenue from consumers who search for something in a search bar, click on a paid search ad in the search results, and then land on the advertiser's website. The industry calls this pull marketing. Matching the ad to what the consumer is actively seeking. This is a huge $300 billion market, but it is a market that has been growing. OBMedia enables search engines to access incremental growth by converting push marketing customers for browsing on websites and social media into customers with the same conversion performance as pull advertising. By placing the right ad in the right place for the right customer, we are unlocking intent before it has surfaced.
Now, one question you might ask is, "Why don't the Google or Bing just do this themselves?" The answer to that question is simple. Firstly, we are a very different business model. We collaborate with hundreds of publisher partners, media buyers, and ad networks, whereas the search engines operate large-scale industrial ad markets. Secondly, we have access to data the search engines don't. We have years and years of first-party campaign level data that informs our optimization and advertising performance. Lastly, the search engines trust our ability to deliver high-quality traffic. We have a proven track record and technology that manages fraudulent traffic on behalf of the search engines. We are in constant dialogue with Google and Bing about product improvements and data enrichment, and we continue to see them invest in new capability to fuel our mutual growth.
We'll talk about growth in a few slides' time. First, we will spend time understanding our economic model in more detail. How do we make money? The best way to think of our economic model is as a trading business, just like a high-frequency trader of online traffic. Put simply, OB Media makes money by buying cheaper clicks from omni-channel traffic markets and then selling those clicks at a premium to our search engine partners. The fundamental truth to our business is that the amount an advertiser is willing to pay for a search-like conversion is higher than the typical cost of placing an ad in a non-search market. That said, on both the buy side and the sell side, we operate in markets where prices vary constantly.
Therefore, it is critical that we manage our trading performance by optimizing our advertising based on live market dynamics. For example, right now, dental advertising might be underperforming relative to home improvements, and we would therefore be adjusting our activity to stop dental campaigns and focus on home improvement campaigns. In any market, liquidity is important. On the buy side, we continue to add liquidity by diversifying our channels across social, display, native, email, and others. This lets us not only dynamically optimize our industry vertical, but also our traffic source and ad format. On the sell side, the search engines have almost unlimited appetite for clicks, and there are only a handful of competitors in the world who have these valuable contracts allowing us to sell clicks to search engines.
In a normal trading environment, the arbitrage opportunity disappears over time, but the difference in our model is that we add value to those clicks by uncovering intent and improving the conversions and therefore the value of the traffic.
How this flows through to our PNL is quite simple. We pay traffic acquisition costs, usually recorded as cost of sales to ad networks, publishers, and partners, and we often have credit terms with these partners. After qualifying the traffic and then feeding that traffic to the end advertiser's website, the search engines pay us for a pre-agreed rev share of revenue each month. It is important to note that we do not have a direct relationship with the end advertisers. The search engines are our customers. OB Media's net revenue is simply gross revenue received from the search engines less our cost of traffic acquisition.
We collect revenues from the search engines ahead of paying partners, which allows us to maintain positive cash position. To finish today, we'll talk through some of the opportunities ahead of us that will continue to grow our business. We have built a very robust technology and data platform that has delivered strong performance for us and our search partners, but we are just as excited about the growth that we believe is ahead for us. If we look across the three phases of our business, acquire, qualify, and monetize, there are a number of opportunities that will drive continued growth. On acquire, we continue to diversify our sources of traffic as well as our media buying partners, publishers, and those who place ads for us on behalf using our technology. This will include expanding into new geographies such as Europe and Asia over time.
We also have attracted a team of leaders from one of our largest competitors to build an audience development division, which is focused on building OBMedia's own content network of sites to grow organic traffic. We are seeing early success here, this team is already generating incremental profit. We are always working with our search engine partners to enhance the quality of our data, we have a number of live initiatives that we believe will materially improve our ability to optimize our advertising performance. Lastly, if we continue to look for opportunities to diversify our revenue streams with new monetization partners and products. If I was to leave you with a few key points to take away here. First, we are a technology-powered data business benefiting today from decades of experience in this market.
We are valued by our search engine partners. We give them access to incremental growth they couldn't otherwise access. Our economic model allows us to adjust to market dynamics to deliver profitability. We are industry agnostic, we're able to optimize across channels and ad formats. Last, we have growth opportunities we're excited about and continue to diversify and enhance our business performance. Thank you for listening, and Raja and I are looking forward to any questions you have at the end of the webinar.
Okay. Thanks, Mike and Raja. Hopefully, that's given everybody a deep understanding of OBMedia. We've tried to make that really as simple as we can to give everybody a really good understanding of the fundamentals that power that business. Now we're gonna keep moving this morning. Next up is Stephen McArdle. Steve is the CEO of BMF, and he's going to give you an overview of BMF's business and strategy. Over to you, Steve.
Thank you, Brent. Hello, and thank you for joining us today. My name is Steve McArdle. As Brent said, I am CEO at BMF. I'm here to give you a little more insight into the BMF business, who we are, how we operate, the client partners we work with, where our industry is going, and why we're uniquely positioned to win in an industry that continues to evolve at pace. On a brief personal note, I've worked in creative agencies for over 25 years in London and Sydney, have been fortunate enough to lead the BMF business for eight years, the last three of those as CEO. About us. Who are BMF? Simple terms. We're a Sydney-based, fully integrated, globally awarded creative agency with over 150 people working across 30 businesses. Those businesses are based across both Australia and internationally.
Our core capability is brand transformation, which includes launching and relaunching brands. Over time, we have built out substantial capabilities in other areas to ensure we drive overall marketing effectiveness for our clients, something we'll talk about in more detail shortly. Our client partners, who we work with. 30 clients on an ongoing basis, some with a portfolio of departments within them, like the federal government or a portfolio of brands like George Weston Foods. In a number of cases, we benefit from many long-standing retained relationships. For example, our two biggest clients here by revenue, ALDI and the Australian federal government, have both been with the agency for over 20 years and have recently signed 3-plus-year extensions to those agreements.
As you can see from this slide, our client portfolio is highly diversified and strong in high-growth verticals such as retail, financial services, travel, and media. These are complemented by consumer staples and government, which I mentioned before, both federal and state government. More recently, we've also been successful in winning more progressive digital first and online marketplace brands such as hipages in Australia, Turo, the world's largest car share marketplace, and Afterpay. Moving on to how the marketing world has changed and continues to change for all of our clients. There's no doubt there's been a seismic shift over time. Traditional paid campaigns that focus solely on channels like TV, out-of-home, and print no longer exist in isolation. As media fragmented and digital channels rose up, they were subsumed into fully integrated campaigns delivered across multiple channels.
Owned channels like websites and social media platforms and earned media channels worked alongside paid, but became increasingly important, and this trend has certainly continued apace. With improved increased marketing technology, the power of customer data has now been truly unleashed to deliver hyper-personalized communications that complement and leverage brand-building work. This means today the conversation is focused on what role marketing plays in the overall experience a customer has with a brand, referred to as the CX. This has become the key to demand creation and demand conversion for businesses. I shall refer back to this as I talk about what BMF's point of difference is and what our roadmap for the future looks like. What makes BMF different? What sets us apart? The answer is a combination of three critical elements: capability, creativity, and culture.
We focus on going broader and being better than our competition across all three of those. First, I'll just talk to capability. We've obviously been responding to and certainly leading the industry changes I've just spoken to you about. We've done this by significantly evolving and in certain areas, transforming our capabilities way beyond the traditional core skill sets that you see on the left-hand side of this slide. This has helped us extend our remits and deepen our relationships with current clients and broaden our appeal to potential clients. The next two slides talk to the second critical differentiator, our approach to creativity. BMF positions itself in the market as the home of the long idea, a positioning that we've had in place for eight years now. It refers to the enduring, highly effective brand platforms we develop for our clients.
The formula for building those ideas was developed using a blend of neuroscience, data science, marketing science, and good old-fashioned imagination. Rather than talking you through the theory, let me now take you through a few examples of how it's been applied in practice through our clients' businesses. These four examples, starting top left, have ALDI Good Different, an idea that has guided their entire business over the last six years and helped ALDI become Australia's most trusted brand and most effective advertiser for three consecutive years. Secondly, there's the Department of Social Services for federal government's Stop it at the Start campaign. It's been running for seven years and is the federal government's most successful behavior campaign of all time, with eight out of 10 adult Australians taking action as a result of it. Bottom left is TAL Life Insurance. This Australian life is the platform.
It's in its 7th year and has helped that business regain the number one spot in life insurance. Last, but by no means least, Tasmania – Come Down For Air, an absolute standout in the tourism travel category. In its 4th year, it's been able to drive 39% increase in visitation, so a really successful long-term platform. These examples provide irrefutable proof, we believe, of the effectiveness of our creative approach and continues to drive client retention, organic growth, and new business wins. The awards listed on this slide further reflect that BMF's excellence in those three key areas: creativity, culture, and capabilities. You'll see here creative effectiveness is absolutely critical. We have built a reputation as one of the world's most effective creative agencies, being named number three globally in the WARC 100 recently. Culture and talent.
Winning Mumbrella's award for culture two years running proved our reputation for having one of the strongest cultures in the industry. It's creatively driven, caring, progressive, and ambitious, which means we retain and attract the best talent in the market. Then there's the modern marketing capabilities we've developed. We have recently been recognized as the best in the industry in disciplines beyond creative advertising, being awarded B&T's CX Branding and Design Agency of the Year. Finally, what this list shows is consistent quality. Five years as one of the industry's top performers and named AdNews Creative Agency and Overall Marketing Agency of the Year just a few weeks ago. A first in our decorated history and something I'm incredibly proud of. Moving on to our revenue model. How do we convert reputation and momentum into commercial success?
In its simplest form, we grow our business by increasing our client base, by attracting or winning new clients and of course, retaining those that we have. Organic growth comes from extending our remit or scope of work with those clients. We do this by offering up a range of complementary services, which you saw earlier on the early chart, that helps drive greater ROI across our clients and marketing mix. In terms of the nuts and bolts of making money, in the majority of cases, it is selling our time to deliver on an agreed scope of work. Cost of time depends on the blend of skill sets and experience required to deliver the agreed outputs. Our rates are benchmarked to make sure we're competitive, but I will say we do operate at a price premium to reflect the quality of the people and the product that we deliver.
Part of, or more rarely, all of our revenue can be attached to an agreed outcome. This is classified as performance-based remuneration, PBR, or a value deal, which refers to the value we create for our clients' businesses. This will be aligned to things like increased sales, visitation, and customer spend, as a few examples. Lastly, where to next for BMF? We continue to evolve our capabilities to deliver on the varied and complex needs of our marketing clients and their customers, whilst further building a positive, progressive, and ambitious culture that retains and attracts the world's best talent. Key to these evolved capabilities is technology as an enabler to deliver a more personalized customer experience, CX, and drive innovation. This also means further leveraging customer data, automation, and low-cost, high-impact content to drive engagement. All areas we continue to invest in.
Whilst pursuing these, we never lose sight of what really put us at the top of the industry today, and that is the power of strategic brilliance and creativity to provide a marketing effectiveness multiplier for our clients. This will always be the biggest driver for their business, we believe, and for ours. Thank you. That's it. I look forward to any questions you might have at the end of the presentation. I'll now hand on to Wei from Orchard.
Good morning. I'm Wei, CEO and co-founder of Orchard. Really looking forward to giving an overview of the Orchard business. personally I arrived from the U.K. to Sydney in 2000 with a background in digital strategy, and held leadership roles in a number of APAC digital agencies, such as Zevo, Spike, and then Grey. From there, I co-founded Orchard, and together really proud to have grown it into one of the most successful digital and healthcare agencies in Australia. unlike BMF, which at its core is a brand transformation agency, the value Orchard provides to clients is to really help them through their digital transformation journey.
We're known as a connected experience agency, which really at the heart is using a combination of data and a creative application of technology to bring to life the customer experience for brands at the most important part of that journey. If I was to explain Orchard by numbers, we're over 100 talented individuals, headquartered in Sydney with a satellite office in the U.S. to service some of our global pharma clients. We've been operating for over 16 years, but with one key belief that's really been consistent from the whole start of this, that with a smart combination of data, creative, and technology, we can emit better outcomes for our client partners. We've done that. Where we're known as a digital agency, one part I really wanna focus on is that we are by far Australia's leading or largest healthcare marketing agency by any measure.
Head count, revenue, clients. We're split approximately 50/50. We work with some of the largest global pharma companies to launch blockbuster drugs into this market, and especially with our connected experience approach, which is really resonating with the pharma clients, bringing on board seven new pharma brands this year. In fact, we work with three and soon to be four of the top 10 reimbursed brands on the Pharmaceutical Benefits Scheme. What this really allows us is a much higher barrier to entry than any normal digital agency. You can't just set up an office in Surry Hills, buy some laptops, and open the door. With such a high requirement of medical and science talent and a much more deeper understanding of the regulated marketplace and dynamics, and the talent pool is so much smaller.
On the consumer side, we continue to work with one of the largest digital accounts in Australia, Hyundai. We partner with amaysim, the fourth biggest telco, and we're just onboarding and working with a new bank which we hope will grow into a much bigger scope of work for FY 2024. As well as working with our B2B customers such as Salesforce and Epson. What's most motivating and exciting for me, though, is where the market is heading. It's very evident that we're in a new era of brand marketing. An era in which influence has really given way to experience. At our agency, creative technology and data has always been the core of our DNA. It's how we started. However, in recent times, we've witnessed three profound shifts that underscore the need for our services like never before.
These shifts have redefined the foundations upon which brands operate and exist in today. Firstly, a sea change in customer expectations. Driven in part by the pandemic, the shift towards complex experiences, the advent of digital therapeutics, and the transformation of very traditional industries like banking, retail, travel, have really ushered in an entirely new paradigm for customer engagement. We look at the rise of emerging channels. If you think about the way we communicate with and market to our audiences now. TikTok's meteoric rise as a search engine, Facebook and Instagram's evolution as a digital marketplace. The advent of AI powered search algorithms really transforms the way we now discover, consume, and engage with content. What wraps really around this is we're really witnessing an unprecedented level of customer intelligence.
We've got access to more data than ever before, we have the ability to predict and anticipate customer behavior with a very high degree of accuracy. This intelligence allows us to create truly personalized experience that are tailored to cohorts and individuals, driving loyalty and revenue growth. At the heart of this is a recognition that creating and connecting brand experiences is no longer optional, but essential to doing business in today's world. If we look at, I guess, how we are differentiated, at Orchard, our mission is to unlock the power of connected experiences. If we go to the next slide, please. There's three things that really set us apart here. We're brand experience specialists. We have a team of strategy and experience consultants who look at a brand problem both through the communication possibilities but also through experience design.
This makes us a very valued partner for our clients who not only need an agency who can reach new audiences, but take them through that funnel from prospecting through to lead and beyond. Talked about it before, we're also category specialists. Down to the categories, we really focus on health, B2B, finance. This sees us employing specialist talent from medical writers with PhDs to auto experts in loyalty and retention. This commitment to doubling down in a category means that, for example, in health, we've become, yes, the most effective health agency, but we partner with pharma, biotech, government, NFPs, and have beaten some of the global health networks at their own game. Finally, platform specialists.
We've always prided ourselves in being technology agnostic, so that means we design the experience first and then select the technology most fit for purpose. That said, we're also specialists in emerging and enterprise data platform, launching Australia's first Optimizely data platform for Tourism Tasmania. This unlocking of connected experience means that you'll continue to see great work from Orchard, such as changing the way GSK educates its audience with social or re-platforming Amaze so it can utilize the full power of its tech stack, as well as developing a companion app for Tourism Tasmania, which just launched this week, as long as the website we developed there. Tourism Tasmania, Audi, and Clear Skin Clinics are shared with BMF, the clients that we work together on.
We're seeing greater and greater synergy and opportunity by partnering together, so we can orchestrate both the brand story with the brand experience, and that's something we, I think will continue to do that further. More than just developing a Hyundai website, I think a really good example here of the end-to-end connected experience and how it works across the whole customer journey. For some brand assets, the customer can see and others they can't. If you think about our automated virtual augmented reality experience, then we moved on as the first OEM in the sector to offer a AI-driven smart assistant, a dual innovation with Meta. We developed the e-commerce platform for Hyundai to sell its innovative IONIQ 5 range. Finally, looking at the retention part, a portal for retention of its existing customers.
All touch points that enhance the overall brand experience beyond just developing their web app. What a customer doesn't see is the work, the technology and data infrastructure to ensure the product information, pricing, stock is up to date, centralized to have one single source of truth that can be updated through the whole dealer network and other third parties, essentially allowing us to offer a layer of personalization to the brand offering given by the customer data platform. When we look at this, it's this connected experience approach when applied to the very regulated and compliance-driven pharma industry, which is making us a very different proposition in the market. COVID-19 was a wake-up call for pharma. They needed to evolve the way they went to market beyond the traditional rep-driven sales model. There's now a huge appetite for this.
Our work for CSL Behring is across APAC, and it's a good demonstration of us applying digitally centered techniques across an array of traditional touch points to communicate to hard-to-reach specialists in some very rare disease populations. From conferences to medical education and patient support, we're finding new and more effective ways to augment their traditional marketing mix with great effect. This is what I'm particularly passionate about growing. In terms of our business model, our client mix, we've got a healthy mix of contract arrangements and master services agreements, which is an exclusive as well as project related. The split around the exclusive predictable is around 70% compared to the 30% in the project work. Essentially, our business model is based on a head hour model and service fee.
People and time are our leaders in a service-based industry. We're trying to evolve this in two ways. One, we have some movement in productization where we've identified key repeatable processes. For example, pharma detail aids, which are what reps use to educate drug benefits to doctors. A quick way how we can productize that. Also light entry platforms, landing pages, using our code library and templates to deploy solutions more cost-effectively. I guess in summary, the biggest growth opportunity I believe for Orchard is that. We are in that double sweep spot post-COVID. We continue to ride the wave in digital consumer behavior, and we are invested in the latest marketing technologies to remain relevant and useful for clients. We bring this bleeding-edge approach to the more traditional pharma industry, helping them to modernize their marketing approach.
This is unique globally and one that we believe will fuel our continued growth. Thank you for your time in listening to me. Now I'll pass you on to Heather Kernahan, who will introduce you to Hotwire.
Hi. Thank you, Wei. A little reminder, I'm Heather Kernahan, CEO of Hotwire Global, and I'm here today with Matt Querie, who's the Founder and CEO of ROI·DNA. Hi, Matt.
How's it going?
For the past two years, I've been CEO of Hotwire, but I have been with the company for seven years, and I came to Enero through an acquisition Hotwire did of Eastwick, a U.S. tech-based consultancy. Before my current role, I was running our Hotwire U.S. business, but my entire career has been in the technology industry. I spent more than 20 years inside technology startups, fast growth startup companies, and global tech organizations before coming to Eastwick and now to Hotwire. I'm based in San Francisco, named the center of the tech universe, but I'm happily in Sydney this week visiting our clients and team. Welcome, Matt.
I'm Matt Querie. Nice to meet everybody. CEO of ROI·DNA. I spent 27 years working in online companies, 25 of which in marketing. I grew up doing the digital channels, each one by myself for a while, until I graduated to running global teams for Roxio and Childpay. Got lucky enough to found ROI·DNA in 2009, and it's been an awesome 13.5 years, and now we're just getting started with Hotwire and the Enero Group.
Thank you, Matt. Today, Matt and I want to take you through the Hotwire Global business. We're gonna talk about who Hotwire Global is, our clients and the problems we solve for them, our differentiated market proposition with details on new capabilities we have now that we have ROI·DNA and GetIT Marketing as part of the group, and our future growth opportunities and our long-term plan for growth. We've been in the process of transforming the Hotwire business over the past three years, and we're continuing to execute on our strategy. We are a global communications and marketing consultancy that powers the world's most innovative tech brands. We operate in 11 countries across 15 offices, and with the addition of ROI·DNA and GetIT Marketing last July, we now have 400 employees around the world.
We have long-term partnerships with tech companies, as Matt's gonna talk about later. We're also partnered with more than 20 consultancies that give us reach into any country our clients need us to extend into. Now, for more than 20 years, we have worked with the technology brand names you know, and those are names like Dell, Salesforce and LinkedIn. We also work with the behind-the-scenes technology and innovation companies creating the future. Tech leaders, innovators, and creators turn to Hotwire to tell their stories that help them build and manage their reputations, develop relationships with their most important audiences, and deliver revenue to help them grow. We do this for companies spanning the tech ecosystem. Everyone from enterprise technology companies and software to service companies to financial tech, consumer tech, telcos, industrial, marketing and advertising technologies, and retail and leisure tech, just to mention a few.
Importantly, we work with leaders in cybersecurity, cloud, and digital transformation, which continue to be technologies that companies around the world need to operate in a modern business environment. An ongoing trend is the expansion of tech innovation into every industry as machine learning, AI, and digital transformation are requiring a change to businesses everywhere. You've probably seen the headlines that say every company is now a tech company. Well, our work is expanding as well. For example, we are working with one of the world's largest retailers, helping them tell their innovation story to attract tech talent to their business. We're working with one of Europe's largest home good manufacturers to tell the innovation story of their products for a tech-savvy consumer audience. Those are two examples of how our core expertise of tech and innovation is expanding into new industries.
As we look at our clients, today's marketing and communications leaders who are the clients we work with, they need to do more with less, and business requires them to find simple solutions to very complex problems they're all facing. The work of marketing, sales, and growth, which used to be siloed, are coming together to form a new role. If you haven't heard about it yet, you will. It's the rise of the chief experience officer. We see this role emerging as companies put their customers at the center of their business strategy. Companies with a customer-first strategy are orienting their organizations under this thinking, and they're using data about their brand perception and leadership position, their relationship sentiment, pipeline, sales conversion, and renewals to meet their growth goals. They're also managing an efficiency focus in the years ahead.
They're managing transformation of digital marketing, which continues at a rapid pace. They're managing back-to-back reputation issues, COVID recovery planning, cybersecurity concerns, supply chain and ESG topics. They're also being required to predict and deliver ROI for marketing. This is becoming the new normal.
Those are the same exact demands that our customers are feeling the pressure to deliver to as well and why we're excited to be part of the Hotwire group and really deliver a holistic approach to all these pain points together. At ROI·DNA, we help B2B companies transform their marketing efforts and achieve sales goals they need. We help cross the boundaries between their internal teams as well, too. As part of what we're seeing in the market is the massive transformation of the evolution of the Chief Marketing Officer, the Chief Revenue Officer, and the Chief Sales Officer into the Chief Experience Officer or office. By following that experience of the customer from that first brand messaging all the way to the web interaction, all the way to the multiple interactions with sales and then renewals eventually. You're really building brands and communication that customers trust.
The B2B companies that we think will experience the most growth in the years to come are the ones who embrace the customer experience holistically.
Three years ago, we were setting out our long-term plan, and we set a course very purposefully to expand our capabilities to help our clients meet their most important goals. We've used this model now to differentiate ourselves from other consultancies. This model is our reputation, relationship, and revenue service model. The reputation services are brand awareness and strategy, narrative development, company positioning, and thought leadership. Our relationship services help clients develop, grow, and manage their most important relationships, and that can span relationships with media, influencers, and analysts to their employees, which is an incredibly important target audience, to prospects and clients. We have our revenue services. This is new with the addition of ROI·DNA and GetIT. With revenue services, we can support sales pipeline, go-to-market strategy, digital marketing, and account-based marketing programs.
That's where we come in. Those two awesome front Rs in terms of the revenue side where ROI·DNA lives and breathes. We take all that brand goodness and that created content and develop the digital ABX strategies, the channel implementation, the management and optimization services, and we really build that digital backbone for these companies and help them drive sales they need to achieve the next level. I'll go more in depth in this. When we look and sat down and looked at the market five years ago, we basically threw in all in at ABX and ABM. We broke our company into these four different distinct pillars so that customers understand how we can help them. In the digital strategy portion of ABX, we go through and really look twofold.
One, not only what media plan we just built for you and how to reach the ideal client profiles you need to go after. Two, what is the technology stack you need to succeed as a business? Our consulting is continually evolving with that. On the analytics side, we build bespoke dashboards so our clients can actually tell the return on ad spend. Every dollar we spend, we can say, "This is what it brought back to you." On the digital media side, we run millions of paid media on a monthly basis, and we put that dollar where it's next best spent, whether that be LinkedIn, whether that be a demand-side platform, Google, The Trade Desk, whatever that would be. Then to round it out, we've got design and creative.
We do about 25 major websites a year, and we have engineering to actually really round that out. When you think about this, Hotwire's capabilities combined with ROI·DNA's brings that whole holistic digital picture together. One of the funnest things about working here and now working with this awesome group is that we see clients for a long time. AWS, that person we worked with for 10 years through three companies. We've moved with their career. Salesforce, 20 bosses, we still run the all the digital for the AppExchange over 10 years. Drift started out as a partner, became a client pretty quickly. We did their latest website. We run their paid media as well as their ABM. Cisco, worked with them for many years, many departments. We now help launch new products to market for them.
Elastic started out as go-to-market strategy. We now run their global paid media. BeyondTrust is a great example of a client that we run the paid media, but with a partnership, which we'll talk about a little more, we were able to increase their high intent leads by 32% and their AOV, their average order volume for marketing allocated sales by 62% using partnerships. That's how we've actually really inflected our growth as well too. About two years ago into this full on five-year ABM program for us in terms of what we're focused on in B2B, we said partnerships are gonna be key to our growth, and we established those pretty deep. We're a Google Premier Partner now. We're also a Google International Growth Program partner. They put us in there because we're growing so fast internationally.
We're a premier partner for 6sense. We're one of only three companies that they do enterprise consulting with and co-pitch with. Same thing with Drift, we're one of only two companies with Drift. Those are two of the top B2B SaaS applications and account-based marketing on the market today, and we are in the top echelon of both. Salesforce, Salesloft, and The Trade Desk are awesome partners for many, many years and consultancies. We always look to that new program that we're gonna kinda build out and look to what is gonna help our customers grow fast. Mutiny is a great new tool out there that does conversion rate optimization and one of our newest partners we just brought on board.
Our data and analytics solutions underpin our reputation, relationship, and revenue services. In February, we launched a new suite of IQ data solutions, which use artificial intelligence to quickly get to insights and effectiveness analysis for our clients. We are now providing real-time insight into program performance, and already Indeed, NTT, and Honeywell are among the clients using our IQ services to support their business goals. What I'd really like to do now is take you through an example of a client who's using reputation, relationship, and revenue services to meet their business goals. I'm gonna talk about Honeywell, one of our clients. Honeywell came to us as they were looking to grow in the retail sector, and we set out a reputation relationship revenue program that utilized account-based marketing to design and deliver the results.
With reputation, we aim to increase their brand awareness from a specific set of target accounts. For the relationship portion, we aim to help them develop relationships with those prospects and then both directly and indirectly build a relationship. With revenue, we needed to support revenue generation across all their target accounts and build an active sales pipeline. Our program focused on a specific list of prospects from each retail company, and I'll show you the specifics of those. In the first out, the reputation portion, we used intent data to understand what target audiences were searching for online.
We then worked with retail influencer Steve Dennis to develop content that we knew would be of interest to the Honeywell target buyer, and we deployed that content in a campaign starting with a podcast. What we found as we rolled out the campaign is that within each target account, we saw that the buyers started to increase their searches for Honeywell, and it ended up being 2 x more than for their top competitors. We were getting traction. As we moved on to relationship, as I mentioned, we had a set of target accounts we were working with them on. In this example, Walmart, there were five potential buyers who we focused on reaching via LinkedIn with content that was tuned to their challenges.
Once the potential buyer opted into their content, they entered into a nurture program, which then turned into a sales opportunity and then closed. 17% of the total campaign revenue came from this activation with a specific set of buyers using content and social media. Moving to revenue. The account-based marketing program turned into a sales pipeline that converted and led to overachievement of the revenue target by 281%. It's also become an award-winning campaign within the industry. This is just one example of a reputation relationship program, revenue program we're running today, and we continue to expand these services into other clients across our portfolio. Turning to our business model. Our model is a combination of retainer revenue, project revenue, and paid media revenue.
With retainer clients, we have ongoing programs with a core team who can then grow with that client as we take on new work with them. An example is Atlassian, who we work with across multiple countries in Europe, and we support them with reputation and relationship strategies. For our project clients, they have contained programs, and those can run from a few months to multiple quarters and often renew. An example of our work there is with IBM Strategic Alliances. We support their partnership program with events, content, and campaigns that help meet their relationship and revenue goals.
On the paid media side, we have two aspects that we do in the paid media. One is building out the paid media program for them and really planning out what they're gonna go to market with. Two is running that for them under a retainer basis as we go. Cisco is a great example where we basically devise and launch paid media programs for them and ongoing manage them for them as well, too.
As a global business with expanded capabilities from the addition of ROI·DNA and GetIT to Hotwire, we are very focused on bringing value to our clients as their growth partners. We have three main areas of growth as we look ahead. The first is expanding the reputation, relationship, and revenue services model by cross-selling across our client base and working together to sign new clients.
Also on the new service and geographies, we've got several things going on there now. One of the fastest-growing ones within ROI·DNA is the marketing stack consulting. No longer are we just running the programs for them. We're actually going in before those programs are even conceptualized, picking out the martech stack for them that's gonna work across their businesses.
We're also gonna continue to innovate on our data and analytic solutions. As I mentioned, we had a launch of our IQ services in February. We're building a pipeline of new services that will come throughout the year. As we look ahead, we're really excited about expansion into Asia-Pacific now that GetIT Marketing is part of Hotwire. They have offices in Singapore, Japan, Malaysia, and India. We'll be taking our core reputation and relationship services and expanding more into those countries over the coming year. Lastly, global growth. In January, we named a new chief growth officer and have tasked her with activating the Hotwire network along with ROI·DNA and GetIT to build offers that are focused on attracting new global clients to the business.
In summary, over the past three years, we have been transforming Hotwire and have significantly differentiated our global business with the addition of acquisitions, most recently with GetIT and ROI·DNA. We now have the capability to deliver reputation, relationship, and revenue services globally, and we're already deploying these services within large companies. We're gonna continue to accelerate in this area with organic wins and new clients. Thank you, everyone. That's Hotwire, and I'm gonna pass it now over to Carla Webb-Sear, Enero Group's CFO. Thanks, Matt.
Thanks, Heather. You've been listening over the past hour to Enero's business leaders and their operational and growth strategies. I'll now talk about our financial framework and capital management perspectives. We aim to strike the right balance of investment in opportunities for future value creation and prudent return of excess cash. We expect that our capital management strategy will give shareholders confidence that the board is focused on disciplined management of our balance sheet and cash position. The Enero capital allocation framework is similar to what you'd expect to see in a maturing company of our size. As outlined in our recent half-year reporting, we continue to focus on driving strong cash conversion above our targeted 85%. Over the past few years, we've exhibited the ability to manage costs and drive efficiency, and we continue to remain focused on returning to our industry-leading margins in the near term.
Talking through this slide. On the left-hand side is our annual commitments made from cash flows over and above our low CapEx requirements. From a bank debt perspective, we remain very comfortable with the position reported at the 31 December 2022 half-year results, being leverage of 0.7 times following our recent acquisitions of ROI·DNA and GetIT. We continue to report leverage, including both bank debt and contingent consideration. In the medium term, we expect to maintain a net debt to EBITDA ratio below 1.25 x as we look to pay down our debt facility within Westpac Bank's 3-year arrangement. Another element of our framework is the dividend policy, where we look to share earnings with our shareholders.
While each dividend is subject to board approval. We have committed to a dividend policy of at least 40% and up to 60% of our adjusted net profit. On the right-hand slide, we highlight both annual and multi-year levers we use to invest capital or cash flows in order to create shareholder value. This includes both investing and releasing capital. As Brent outlined earlier in the presentation, we continue to build our competitive advantage through new and differentiated services. This includes investment that's both organic and through M&A. Our funding of recent M&A has included consideration paid over a 3-year period and is contingent on business performance targets. The board periodically assesses the potential for returning excess funds to shareholders. I will now turn to the next slide to outline the on-market share buyback announced today, reflecting our confidence in Enero's balance sheet and business outlook.
The Enero board today announced that it will be conducting an on-market buyback of its ordinary shares commencing from May 1, 2023 for up to a 12-month period. Up to a maximum of 8.8. Up to 10% of the lowest number on issue during the previous 12 months. Enero will maintain a strong balance sheet following the completion of the buyback, and the Enero board will continue to assess the merits of this capital management plan as market conditions evolve. I will now hand back to Brent for some closing comments.
Okay. Thanks, Carla, and thanks to all of our presenters this morning. Hopefully, everybody has found it both educational and enlightening in terms of the strategy across not only the Group, but also in terms of each of the individual businesses and hearing directly from the individual business leaders in our portfolio. I'm going to just quickly wrap it up here with a couple of closing comments, and then what we'll do is go into a live Q&A. I think just to recap, I think hopefully what we've demonstrated today is just the excellent financial profile of the Group, the health of the Group against delivering clear results against an even clearer strategy. The fact that we have continued to transform the business and the rate of transformation certainly makes us feel good about future opportunity.
When you think about growth and future opportunity, again, you've heard from each of the leaders today around the agency foundations that we've built and how we've differentiated really our offering into core long-term industries that are healthy and growing for the most part, certainly in the near to long term. Secondly, the ability for us to continue to work and partner together with Mike and Raja at OBMedia and our ability to continue to grow that business. Lastly, just in terms of the focus that we have on people, the way that we believe culture and the capability of our team that we've really done a lot of work on over the last three years continues to be an engine to transform this group over time. We certainly thank you for your attention.
With that, what I'm going to do is move to move away from slides, actually, and go to Q&A. All of the leaders of each of the businesses, along with our chair, Ann Sherry, are joining us today now for live Q&A. What I'll do is ask everybody to come back on camera, and then we'll direct some questions that we've received over the duration of this morning's presentation to each of the individual presenters as they unfold. Let's go with our first question.
Thanks, Brent. Just to remind everybody, please put your questions in the Q&A box and identify yourself. We've got a lot of questions that have come in, and we're preferencing those people that are not writing anonymous. I might start just first with a question for Ann. We noted that you have announced a buyback today. Why are you doing a buyback at this point?
Thanks. Yes, if you heard from Carla earlier, Enero's committed to a strategy that accelerates growth and shareholder returns. Fundamentally, the board believes the current share price does not reflect the fair value of our business. As we maintain a strong balance sheet, where we have committed debt facilities available, we've considered our cash flows under various growth scenarios and think the buyback represents a prudent opportunity to create some value for shareholders. It's been long discussed, well discussed, and the board has agreed we think this is the best way forward, in terms of just, creating some value.
Thanks, Ann. question for Matt: What do you see as being the benefits of being in the Hotwire and Enero Group?
Yeah. The benefits, I mean, one is clearly a global footprint. We were looking at expanding beyond North America, as I say, we're looking for resources within North America. We're really excited to have feet on the ground in EMEA and APAC. I think the core, you know, benefit as well too is a very aligned culture. You know, at ROI·DNA, we have 80% identified female as a culture, both Enero and Hotwire, very, very far along that fence as well too. We felt the synergies between the people and the ethos and spirit of the companies, would really benefit each other and grow together extremely well.
Thanks, Matt. We have a number of questions on OB Media, and we'll try and do the question by business division now. I'll start first with a question for Raja. Can you tell us about your relationship with the two large search engines and your thoughts on risk and revenue concentration?
Sure. We have worked with Google for 10+ years and with Microsoft for 6+ years. Our relationships are very collaborative. We work with the search engines to monetize high intent customers on behalf of their advertisers. They like us because we continue to add net new traffic to their search revenue business. They continue to invest in their products to support our growth. We have a renewed contractual commitment for multiple years.
Thanks, Raja. maybe we'll have a few more questions on OBMedia first. excuse me. this question comes in from, Matt Joass. how do you expect your business to be impacted by a broad economic slowdown or recession?
It's a dynamic market. It's a dynamic marketplace that we operate in, but we have years of experience, and we continue to look for opportunities with new channels.
Thanks, Matt. Sorry.
Raja.
Thanks, Raja. A couple more questions from Matt on OB Media. Then I'll have other questions from others. How did the Apple anti-tracking changes impact your business?
That's probably one for you, Mike, I would've thought.
Yeah, definitely. We don't believe that IDFA will materially impact our business. The spending that's happening through, say, Facebook is at an all-time high running through our network right now.
Yeah. Maybe just to clarify there, because we do get that question quite a bit, actually. you know, OB Media does not use cookies, right? just to clarify that for everybody on the line.
That's right.
A question from Matt on OB Media. If you unintentionally let robotic traffic through, what would happen? Would the search engines block you altogether or just refuse to pay you for that traffic?
We have a very low history, and the quality is monitored closely. The minimization of this is what we're most proud of.
Yeah. Yeah. I was just gonna add, I think one of the key things, and we've spoken about this in the past too, is, you know, the notion of OBMedia and, Mike or Raja, feel free to make any comment on this if you think I've missed anything. The notion of a really deep focus on quality traffic sets you apart from, you know, experiences, let's call it, of some of the competitors in the marketplace. I think that is kind of sitting at the heart of the partnerships you have with the world's largest search engines, right?
Absolutely.
All right. A question for Hotwire account. How does the emergence of ChatGPT and generated AI potentially impact the OBMedia business model?
Mike, I'd say that's one for you, given some of the things you're working on.
Absolutely. We see ChatGPT as an opportunity. We're already experimenting with using generative AI to make ad copy better and improve click-through rates. We have strong relationships with both Google and Microsoft, and they're investing heavily into generative AI as well as we are. Fundamentally, we don't believe that the business model of the search engines of driving high intent traffic to advertisers will change, and we believe that we're well-positioned for incremental growth.
Maybe just a comment from me just across the broader group, 'cause, you know, probably don't need to make any comment on it, Heather or Matt. I think, as a broader comment from an Enero perspective, I mean, we're leaning into the opportunities that ChatGPT represents or any other AI for that matter, but it's important to recognize that it's still really early days. You know, we wanna be optimistic about what the possibilities may be, but we don't think that there are, you know, any hard facts or data points at this point that would lead us to talk about it in a more robust way other than to say that we're always embracing new technologies and how that can help scale and monetize our businesses around the world.
A question from Kate Lee: Could you explain the competitive landscape for OB Media? Who do you think are the largest competitors? What is the key to build a barrier to entry in terms of, for example, customer relationships, technological edge, and so on?
Sure. I think System1 would be the most visible. Digital advertising is a large and highly competitive industry, we continue to be focused on delivering best-in-class return on investment for advertisers. I think we have a long history of relationships with the search engines, work collaboratively with them to do so.
I mean, I think the other thing I would add, too, is just the barriers to entry, if that was part of the question, if I'm not mistaken, was just, you know, the deep relationships that we've built and that Mike and Raja, you and the team have built, over time with our search engine partners and the way that we work together with them. The fact that there are only a handful of the specific technology feeds that we enjoy in the world makes the barrier to entry, incredibly high or almost impossible for folks that don't enjoy the same depth of relationship or technology enhancement.
Thanks, Raja and Brent. A question from Nicholas O'Shea, a bit more conceptual on OB Media. Could you provide a bit of detail on what macro factors influence the demand-supply dynamics of traffic versus ads?
Do you wanna repeat the question maybe?
Could you provide a bit of detail on what macro factors influence the demand-supply dynamics of traffic versus advertisements?
Yeah, I'm not quite sure if traffic versus advertisements is a question that's particularly insightful in the context of explaining the business. Maybe what would be helpful, Raja or Mike, is just talking to the current macro environment. I think maybe this is where the flavor of the question is going. The current macro environment, as you're experiencing it today relative to traffic flows that you're seeing, you know, as part of executing from an OBMedia point of view on the day-to-day. Maybe to reframe that is, you know, are you currently experiencing more challenging ways to secure traffic, given what's going on in the world today from a demand point of view, more broadly in digital advertising, I would suspect?
You know, it's a really dynamic marketplace, ever-changing, ever-evolving. It's hard to give a directional answer to that question one way or the other. We have years of experience operating in the space, managing this type of a dynamic marketplace, and we're always looking for new opportunities and new channels to experiment with diversify. You know, we'll continue doing our best regardless of the macro environment around us.
Okay. Thanks, Raja. Thanks, Nick. I hope that answered your question.
Thanks, Raj, and thanks, Brent. Question from Ron Shamgar. Has the board considered demerging the marketing division of OBMedia as two separate companies? This will create significant value to holders in Ron's view.
Thank you for your question. Thanks for your question. It's a question that's been asked a few times. At this point in time, that's not a path that we're interested in pursuing, 'cause it may create some short-term value, but we've got a long-term frame here as well. Hence the decision to do the share buyback at this time and focus on our capital management rather than breaking the business apart.
Thank you, Ann. Maybe whilst we've got Ann and Brent in the room, Ann, you mentioned buyback. A question from Matt Jones. The buyback is happening because the share price doesn't reflect fair value. What share price will be more reflective of fair value in the board's view?
Well, I won't argue. I won't answer on behalf of Ann and the board, but I want to say somewhere north of where we are, quite frankly. I don't think I'm going to put a number on it, but I think it's pretty fair to say that we're completely aligned in terms of the value represented today versus our ongoing performance. I'll let Ann comment.
Look, I don't want to put a number on. I thought we were undervalued at AUD 3, so I'd say north of three. Hopefully at some point, given the performance of the business, the mix, our exposure to the growth sectors, I think, well north of three represents better value, quite frankly.
Thanks, Ann. Thanks, Brent. Another question on the buyback that's come in as you were talking from Eduardo Riquelme. Where does the balance sheet sit post-December year-end? Cash flow took a hit in the half due to receivables issue, but that was timing. Interested to understand how there was a pick-up in the net cash balance.
Yeah, I'll let Carla take that one. Thanks.
Yeah, as Eduardo pointed out, that is right. We had a timing of receipts that affected the December position. I guess the best point in time I could probably give a bit of a steer to is we had to update the market as a result of the Silicon Valley incident, and at that point in time, we did disclose to the market we were sitting at AUD 41 million. Yes, that's a point in time. Obviously we'll update the market again as we get closer to June, but as reinforced by some commentary around the buyback that we're looking to instigate from May 1st, it's a very healthy cash position.
Thanks, Carla. Maybe one more question on OB Media. I'm conscious of time, and there are questions on the other parts of the business as well. This question comes from Al Stewart. Can someone please speak in general terms about whether OB Media customers commit to contracted minimum spend or any other sort of ongoing spend arrangement?
Raja or Mike, do you want to take that one? The question was just around, do any of the advertisers commit to any minimum spend as part of engagement with OB Media?
Everything we do is a pay for performance basis, so, there's no commitment with us.
Okay. I might turn to ROI·DNA. A question that's come in from Nick O'Shea. Could you provide some color on how partnerships, relationships help the group? Maybe use a customer example of how or why the partnerships helped you win or add value to a client above what competitors may be able to do.
Yeah. From our perspective, there's a twofold with this. There's one, we've already started extending our partnerships with Hotwire and our new feet on the ground internationally, which is awesome too. We actually, those partnerships can help them grow in country as well. In EMEA, 6sense is pretty well established. We're helping, you know, getting some inbound from that. Also, I think one of the obvious growth things from the partnerships is we're now getting enterprise-level leads direct and co-pitching with both Drift and 6sense. They're choosing us to actually co-pitch with net new business because the expertise in ABM. While Drift and 6sense are amazing at their own consultancy of getting the product on, they want the ABM expertise to really go deep with the product and the clients, and that's really helping us grow our business.
Thanks. Thanks, Matt. A question from Eduardo Riquelme. Is the retainer revenue holding up better than project revenue in light of current macro headwinds? Is there any focus to increase retainer revenue as a percentage of revenue going forward? That was for Steve, sorry, not Matt. Sorry, I noticed you were looking at the screen. Steve?
Yeah, thank you. It's an interesting one. I suppose just in terms of retainer and project kind of balances, I mean, since I've worked in agencies, which is a long time, there has been a swing away from retainers into more project based work. Every time we have a conversation with a client, new or existing, looking at our contracts, we're always looking at nailing down that scope of work and making that kinda, I suppose, work and therefore revenue as reliable as possible. In the context of our clients, we're very lucky we've got some really scaled clients, therefore, we have kind of in terms of reliable revenue, predictable revenue, retainers, and work attached to those retained clients. We're at 70% there and 30% in terms of projects.
To answer your question more directly around kinda how we've seen this sort of the current environment kind of affect that. We've been pretty lucky. It's been very solid. The projects themselves, more than the sort of... They don't tend to go away, but what they do tend to become is sort of moving targets. Similar in the, in the world of kind of when COVID hit, when businesses are changing their focus, pivoting is the now famous word, then those briefs can change quite quickly. Essentially, it can mean that we end up doing more work rather than less. From our perspective, our business hasn't been affected by those sorts of the recent macroeconomic headwinds.
Again, back to probably good, solid, reliable retainer work and then the necessity we're always talking to our clients about that they still need to be out there, they need to be active. In this sort of environment, it's the clients who are still spending and doing visible work, they will come out the back of this in much, much better shape than those that start to pull back. Most of our clients, I think, are kind of fairly sophisticated quality, marketing businesses that kinda understand that. It might also be good, Heather, for you to just give a little quick point of view on that as well, because I think it's clearly relevant for you as well.
Similar to Steve, we've seen the transition to increased project work over the past probably three to four years. The core Hotwire business is about 60% retainer, 40% projects now. The projects tend to be on a renewal basis, so we complete one assignment and then the next assignment gets lined up right behind it. I think what's most important about our business is that we are a consultancy business, so we're working with clients to meet business goals in their business. Because of that connection to what's most important in their business and moving it forward, we get quite sticky with them, and we just continue to help them with new challenges that emerge.
Thanks, Steve, and thanks, Heather. A question for Orchard. Now, this is from Matt Jones. Can you please expand on the economic model? What is Orchard's typical gross margin? I.e., is there much cost of goods sold from buying ads on behalf of clients? Wei?
I think you're on mute, so you might wanna start again. Sorry. Our economic model is fairly traditional. Cost is our largest part of our cost of goods, so to speak. You know, everybody said we're looking to work towards both productization if we're looking at margin, but also a huge amount of time is spent in digital projects and actually developing kind of project definition documents to give customers, you know, a scope of whether that platform is 500, 800, et cetera, and that's something we're working on accelerating. In terms of the question directly, exposure from buying ads and cost of goods, It's a very small part of our business.
Really more it's a strategic decision to do that, when we're controlling the whole campaign or the whole end-to-end experience, but it's immaterial in terms of cost of goods, in terms of the social buying. I'll let Carla provide an update on margins, et cetera, at the appropriate time. Thank you.
I'd probably only just say, Wei... Is there echo there? We sort of talk in broad ranges with our margins across the agency business in the sort of, mid-teens, as Brent showed in one of the slides, up to the sort of, mid-20s, so Orchard sits within that range. Obviously, the first half results or one of the results has been a little bit more impacted by margin, reduction. As we've steered the market, we've talked about moving back to those more normalized margins as we come out of H2 and into FY 2024 and beyond.
Thanks, Wei, thanks, Carla. A question from Vincent Nguyen. How come Australia generates more net revenue than the U.S. but contributes less operating income?
Vincent, that one. Oh, sorry again. Too many people in one room. Vincent, I'd probably just point you in the direction of the way in which we think about our segments. In particular, most importantly, the Australian business holds agencies which sit at a different margin profile. OBMedia sits within the U.S., and also is part of our creative tech and data segment. OBMedia has a very different margin profile, which you can see from our reporting. That's really creating the distinction between margins across geographies is the contribution of OBMedia within that region.
Thanks, Carla. A couple of questions from Nick Weal from Evans & Partners on OB Media strategically. What is the benefit to OB Media of staying in the group?
Well, let me, let me just answer the first one first. I mean, hopefully, Nick, it's been an education for you this morning to understand more about OB Media's business. Clearly, we are operating marketing services, which is a pretty broad definition. I talked to the total addressable market today in terms of both digital advertising, the creative and content services we provide, and the opportunity within that marketplace. I think not only does that represent opportunity, but what I would say is the synergy between OB Media and Mike and Raja on the call today, as we have co-invested in this business over the last three years, has delivered exceptional results.
Right now, we continue to partner together and have great entrepreneurial founders who operate within our narrow centers of excellence, which means we provide significant assistance, significant advisory around everything from financial relations to IT, to people and culture to employee transition. I think if you look back on the performance of this business, since that integration and synergy has come to life and understand a little bit more about why the synergy of that business combined with our portfolio makes sense, I think that will become pretty apparent.
Thanks, Brent. You probably answered Nick's second question around, how OBMedia and the agencies line up strategically.
Yeah. Well, again, I would say hopefully today's been educational, and so therefore you'll have a better understanding of how that business works and of course, how we work together with the founders of OB as true partners to continue to grow that business as part of our portfolio.
I'm just conscious of time, and we're heading up to the half-hour mark very shortly. Maybe one last question from Annabelle Holden from Canaccord. Can you expand on the shared client revenue? How much of your pipeline is with existing clients looking to expand work across other brands or agencies within the group? How has this 28% figure evolved over the past six to 12 months?
I might take a crack at that first, and then maybe, Carla, you may wanna add some comments. Obviously, you know, it's been part of our strategy, whilst not fundamental, to make sure that we are providing sticky services to clients. Those sticky services don't necessarily need to be just within one brand within the group. Obviously, in Australia, as we're all co-located here in one building, and we have a representation of some of our core agency services here together, that becomes something that I think in the past had kind of been ad hoc or relationship-based, and now is a much more deliberate strategy for the group, as evidenced by the results over the last 12-24 months.
I don't have the specific number in terms of what it was three years ago, but needless to say, you know, it is a core part of providing services that more importantly, certainly lead to stickier revenue within the group. For us, it is about making sure that we have the best available capabilities for clients to provide them with solutions regardless of which particular brand an employee or a capability might sit in. For us, that's just a maximization opportunity to grow with existing clients. I think Steve and Wei mentioned a couple today, Tourism Tasmania, ALDI as examples. Also it's an important proposition, particularly in this part of the world, when you think about new clients.
Obviously, if you go to the United States, you know, we've spoken a lot about the reputation, relationship, revenue service offerings that both Matt's team, Heather's team, and obviously GetIT, come together to provide solutions for clients holistically on a truly global basis. You'll continue to hear more about us as it relates to the United States and how the integration of those acquisitions is progressing. Anything you wanna add, Carla?
I'd probably just add that, yeah, most of that growth has happened in the last two to three years. There's definitely been an uplift, and it's been as a result of a fair bit wins and opportunities as like Steve and Wei have referenced today. Also as we've talked in the past when we've talked about the ROI·DNA, GetIT and Hotwire acquisition, there was lots of complementary clients, but not necessarily a significant amount of crossover, as we highlighted in the performance webinar we did with Matt and Heather, a few months ago. We're looking for more opportunities. We'd anticipate that number to be growing as we're seeing some of those client opportunities come to life within the broader Hotwire group now as well.
Okay. I think that's exhausted all of the questions that we had. We wanna thank everybody for joining us today. Obviously, as mentioned at the beginning, we've had a lot of requests for people to get to know the businesses as part of the portfolio more deeply, certainly to understand the strategy. Hopefully, that's been clarified for you today. What I'm gonna do now is just quickly pass to Ann, who's gonna close the meeting and wrap it up.
Thanks, Brent. Can I say thanks to all the business leads for making time at various times of the day and night today, to come into this call. To all of you online, we do have a commitment to continuing to create value out of this business. We are in a segment that's hard to compare, we know, with a set of businesses that are fast-moving in the sweet spot of what everyone's talking about in the new world of technology and part of changing a lot of what's happening in other big companies around the world. We're both an enabler as well as a driver of business. Hopefully, today has helped you understand better what we're doing, and we thank you for your time and look forward to our continuing dialogue. Thanks very much.