In 2024, the advertising technology (ad tech) sector has witnessed a significant uptick in mergers and acquisitions (M&A), building on a relatively subdued performance in 2023. Notably, the number of ad tech deals nearly doubled during the first half of 2024 when compared to the same period the previous year, according to LUMA Partners. This momentum persisted into the latter half of the year, resulting in a 25% increase in deal volume in the third quarter year-over-year. Central to this year’s developments is the proposed merger of prominent advertising agencies Omnicom and IPG, which, pending regulatory approval, aims to create the largest advertising company in the world.
Among the noteworthy transactions, January saw LiveRamp completing a $200 million acquisition of Habu, a data clean room startup, signalling a strategic move as LiveRamp bolsters its identity graph with Habu's cross-cloud technology. Other notable purchases included the e-commerce platform Rokt acquiring AfterSell, a Shopify app aimed at enhancing checkout experiences, and Minute Media securing online video platform STN Video for $150 million.
February brought significant movements, highlighted by Walmart's $2.3 billion acquisition of smart TV manufacturer Vizio. This acquisition focuses not just on hardware, but on Vizio's extensive data collection capabilities from millions of smart TVs in the US, positioning Walmart for a stronger foothold in data-driven advertising.
March continued the trend with various smaller yet relevant acquisitions. For instance, talent agency UTA expanded its reach by acquiring the Gen Z-focused marketing firm JUV Consulting, while Sensor Tower, a mobile marketing analytics firm, purchased its competitor Data.ai. Deliberations at Bidstack's in-game ad platform culminated in a unique buyback by a team of executives following trading suspension on the London Stock Exchange.
Despite the flurry of activity, not all proposed deals materialised; notably, Google reconsidered a multibillion-dollar acquisition of HubSpot amid regulatory pressures concerning Big Tech mergers. In more successful ventures, Advanced TV advertising company Cadent acquired AdTheorent, a machine-learning-focused performance marketer, and Essence magazine's parent entity agreed to acquire Refinery29 for approximately $400 million.
June marked a resurgence with Seedtag’s acquisition of Beachfront, and further significant transactions included a series of strategic moves such as the purchase of Qonset and Valence Labs merging into a new startup. The month also saw Mozilla acquiring Anonym, reflecting the rising importance of privacy-focused solutions in ad tech.
July was characterized by varied acquisitions including Seedtag's extended deals, and Publicis' purchase of the influencer marketing agency Influential for $500 million, further diversifying its portfolio in the marketplace.
August commenced with major announcements, including Outbrain's $1 billion acquisition of Teads, enhancing its service offerings. In a similar vein, Reddit acquired Memorable AI as it seeks to improve its advertising capabilities by leveraging data analytics.
As autumn began in September, Publicis further expanded its commerce portfolio with a significant acquisition of Mars United Commerce and DirectTV’s failed attempt to acquire Dish Network.
The final months of 2024 witnessed intense deal-making, culminating in dramatic conclusions. Walmart successfully closed its acquisition of Vizio, Experian acquired Audigent, and the eventful year closed with Omnicom's planned acquisition of IPG for an all-stock deal valued at $13.25. This deal is anticipated to reshape the competitive landscape of the ad marketplace significantly.
While deals such as Kroger's aborted merger with Albertsons drew attention for regulatory reasons, other notable completions included Mirakl's acquisition of Adspert and LoopMe's acquisition of Chartboost from Zynga.
2024 has established a vibrant atmosphere of M&A activity within the ad tech industry, setting the stage for what market participants anticipate will be a compelling and dynamic 2025.
Source: Noah Wire Services