Agency and Marketing Solutions Summer Report 2024

Global Agency & Marketing Financing

Agencies & Marketing Financing by Year (In Billions of USD)

Total Deal Size in ($B) # of Deals

2,118

1,902

1,599

1,325

Following the global trend across all industries, funding for agencies and marketing solutions surged in 2021. Although the pace slowed significantly in 2023, recent indicators suggest enduring potential in the sector.

Annualized

967

529

Key trends:

2.7 4.9

11.9

27.7

17.8

8.2

• Financing Decline: Financing volume for agencies and marketing dropped significantly in 2022, which persisted throughout 2023, exceeding a 35% decline each year. This trend has continued in 2024. However, rising demand in the sector can result in a potential shift in trajectory. • Shifting Investment Strategies: In 2024, the share of early-stage VC rounds increased compared to 2023. However, later-stage VC rounds continue to dominate the financing landscape. • Need for Digital Transformation: The rapidly evolving digital landscape necessitates a digital transformation for agencies to remain competitive and meet the changing demands of consumers. As a result, there is an increased need for funding, which is expected to drive financing volumes this year.

2020

2021

2022

2023

YTD 2024

Financing Volume by Quarter (In Billions of USD)

Total Deal Size in ($B) # of Deals

592

535

507 526 524

488

486

437

419

363 370

332 305 305

331 350

281

245

3.1 2.5 3.3 2.3 5.3 7.6 6.6 8.0 6.8 5.3 2.8 2.5 2.1 2.5 1.6 1.9 1.5 1.2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024

Source: Pitchbook as of June 2024. Data consists of transactions where deal value was disclosed.

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