Digital Agencies
Rebounding in Popularity
Digital Agency M&A has seen one of the biggest surges in interest across all FE International business models. Unlike many businesses in the digital media sector, agencies are perhaps the least affected by fluctuations in rankings by Google, AI and other externalities. Good agencies are primarily reputation-driven – clients are attracted by referrals in the long term and these businesses are less likely to be hurt by outside factors particularly if they have recurring contracts with clients. At FE International we speak with tens of thousands of buyers per year. We have seen a 59% increase in the number of buyers telling us they are interested in agency businesses vs. 2020 suggesting that 2024 is a great time to be building and considering selling a service-based agency business. In today's rapidly evolving business landscape, establishing a robust online presence has become more crucial than ever before. As consumer behavior continues to shift towards digital channels, businesses are recognizing the need to adapt and engage with their target audience virtually. By harnessing the potential of digital marketing, businesses can enhance brand awareness, drive customer acquisition, and ultimately achieve sustainable growth in today's highly competitive market. These dynamics are the primary driver behind why the global market for Digital Advertising and Marketing is projected to grow from $531 Billion to a size of $1.5 Trillion by 2030. Given these positive headwinds, FE International anticipates continued and robust demand for digital agencies.
FE International
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2024 Digital Media M&A Report
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