The advertising and marketing industry is poised for a wave of mergers and acquisitions in 2025, with artificial intelligence and data capabilities emerging as key drivers of deal activity. Following a slow start in early 2024, M&A advisors report that deal flow accelerated significantly in the second half of the year, setting the stage for increased consolidation.
Omnicom’s $13.25 billion acquisition of Interpublic Group is expected to serve as a catalyst for further industry consolidation. William Ritchie, managing director of M&A advisory firm WY Partners, noted that “it feels like the tide has turned” for advertising M&A activity.
Industry insiders identify several key areas attracting buyer interest: retail media, connected TV (CTV), influencer marketing, and the implementation of data and AI technologies. Charles Ping, managing director at Winterberry Group, explained that “everyone is looking for the glue that ties together some of the components,” highlighting the strategic importance of AI integration.
Accenture Song, currently the world’s largest marketing services business, may pursue “revenge shopping” to maintain its competitive position. The company is expected to target acquisitions in data, media, and experiential marketing, with CEO David Droga anticipated to be an active acquirer in 2025.
AppLovin, riding high with a market value above $100 billion, faces speculation about potential acquisitions despite executives stating M&A isn’t part of near-term strategy. Industry observers suggest the company could expand into social media or further into connected TV to leverage its recent success in e-commerce advertising.
Criteo remains a takeover target while simultaneously exploring its own acquisition opportunities, particularly in CTV inventory access and retail-media technology. CEO Megan Clarken’s planned exit has intensified speculation about the company’s future.
The newly listed Havas plans to continue its “disciplined approach to acquisitions,” targeting high-growth markets and areas like data analytics, digital transformation, and AI. The French advertising group completed multiple acquisitions in 2024 and shows no signs of slowing.
Private equity-backed independent agencies like Dept, Horizon Media, and PMG are expected to make significant moves, with PE transactions representing about a third of deal volume in the sector. Talent agencies including CAA and UTA are actively seeking influencer marketing expertise and data capabilities to enhance their offerings.
Key Quotes
It feels like the tide has turned
William Ritchie, managing director of WY Partners, described the shift in advertising M&A momentum after deal flow picked up significantly in the second half of 2024, signaling renewed confidence in the market.
Everyone is looking for the glue that ties together some of the components
Charles Ping, managing director at Winterberry Group, explained the strategic rationale behind advertising M&A activity, highlighting how companies seek AI and data capabilities to integrate their various service offerings into cohesive solutions.
Experiential is going to be hot in 2025. The sheer fact that people are coming out and younger generations don’t just want to be in a digital world, they want social connections. You can do a significant amount of innovation in the integration between tech and real-world settings
A person familiar with Accenture Song’s strategy revealed the company’s interest in experiential marketing, emphasizing how AI and technology integration with physical experiences represents a key growth opportunity.
There are many companies that don’t have access to the capital that they imagined they would when they listed, and it’s hampering their growth, particularly if they have a global outlook
Charles Ping of Winterberry Group explained why take-private deals are becoming attractive for adtech companies, as public market constraints limit their ability to invest in AI and data capabilities needed for global expansion.
Our Take
The advertising industry’s M&A frenzy reveals a critical inflection point where AI capabilities have become the primary currency of competitive advantage. Companies aren’t just buying market share—they’re desperately acquiring the technical expertise and data infrastructure needed to survive in an AI-driven marketing landscape.
What’s particularly telling is how AI and data are mentioned alongside traditional growth areas like CTV and influencer marketing, suggesting these technologies are now foundational requirements rather than specialized niches. The urgency is palpable: firms that can’t build AI capabilities fast enough must buy them or risk obsolescence.
The potential for take-private deals is especially significant, as it suggests public markets may be undervaluing long-term AI investments in favor of short-term profitability. Private equity’s active role could actually accelerate AI adoption by providing patient capital for technology transformation that public shareholders might resist.
Why This Matters
This wave of M&A activity signals a fundamental transformation in the advertising industry, with AI and data capabilities becoming essential competitive differentiators rather than optional add-ons. The consolidation trend reflects how traditional advertising models are being disrupted by technology, forcing companies to acquire expertise they cannot build quickly enough internally.
The emphasis on AI implementation across multiple deal scenarios demonstrates that artificial intelligence has moved from experimental to mission-critical for advertising and marketing firms. Companies lacking robust AI and data analytics capabilities risk being left behind as clients increasingly demand sophisticated targeting, personalization, and performance measurement.
For businesses and marketers, this consolidation could mean more integrated solutions that combine creative services with advanced AI-driven targeting and measurement. However, it also raises concerns about market concentration and whether smaller independent agencies can compete effectively.
The trend toward private equity involvement and take-private deals suggests that public market pressures may be hindering innovation, as companies seek the flexibility to invest in long-term AI capabilities without quarterly earnings scrutiny. This shift could accelerate AI adoption across the industry as private capital enables more aggressive technology investments.
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Source: https://www.businessinsider.com/ad-industry-m-and-a-predictions-ctv-influencer-marketing-ai-2024-12