Agency & Marketing M&A Activity
Agencies & Marketing M&A by Year (In Millions of USD)
140
115
Low marketing spending and a decline in M&A activity were notable in 2023 as global M&A volume fell to the lowest level since 2004. However, despite shifting market demands and consumer preferences, the industry shows resilience in 2024, and these lows may indicate pent-up demand for deals in 2025.
80
65
44
Key trends:
$2,235
$4,042
$3,709
$1,980
$1,318
• Upturn in Total Deal Value: While the total deal value declined in 2023 and early 2024, a recent uptick was observed in Q3 and Q4 2024 compared to previous quarters. We anticipate that this positive trajectory will continue into 2025. As the marketing industry becomes increasingly complex, mergers and acquisitions are emerging as strategic imperatives for marketing firms seeking to navigate this evolving landscape. • Increased Martech Activity: Despite a decline in new product launches and feature updates in 2023, the use of AI has led to an upswing in 2024, resulting in significant MarTech M&A transactions. • Non-Traditional Buyers: Companies like publishers, sports leagues, and digital media businesses are entering the M&A market seeking complementary agency services.
2020
2021
2022
2023
2024
M&A Volume by Quarter (In Millions of USD)
Total Deal Size in ($B) # of Deals
38
36 36
35
33
30 30
24 23
23
22
18
15
15
13
12
12
10
10
9
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed. Note: Companies valued between $0 - $150 million were considered lower middle market.
16
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