- 2022 is expected to be another significant year for the announcement of mergers and acquisitions, according to experts.
- Buyers spin data, healthcare marketing, and metaverse companies.
- Industry experts have identified 11 market-place companies or attractive targets.
2021 was a record year for mergers and acquisitions in the advertising industry, and 2022 promises to be even bigger.
There were 1,747 digital media and marketing deals in 2021, according to a new report from consultancy Ciesco. The biggest areas of growth in terms of deal volume were content production, data and analytics, martech and digital ad agencies, with the latter two growing 90% and 110% year over year, respectively.
The group of buyers is wide.
Private equity is moving into advertising, driving 20% of all military tech deals and 14% of digital agency acquisitions, while traditional buyers such as advisory firms and agency holding firms were less active last year.
Colin Wheeler, a partner at Ciesco, expects holding companies like WPP and Publicis to do more tech-focused deals in 2022. The CEO of a traditional ad agency told Insider he’s spoken to 180 potential buyers as diverse as IBM, Accenture, Omnicom and Endeavor. When exploring last year’s sale.
Buyers are interested in a range of areas.
Chris Karl, chief business development officer at mergers and acquisitions advisory JEGI Clarity, has predicted an “arms race” for high-performance marketing agencies, whose margins make them attractive to holdings and holding companies alike.
Metaverse Buzz has investors looking for companies that help marketers master virtual reality.
There is also a demand for data analytics and healthcare marketing, as well as traditional advertising agencies. For example, Horizon Media recently received an investment while Goodstuff was acquired. Kamran Asghar, CEO of Crossmedia, has predicted that other agencies focused on emerging platforms will receive a premium in 2022.
Identifying Advisers, Investors, and Advertising Executives 11
Those on the market or that would achieve attractive targets, listed in alphabetical order. The companies declined to comment or did not respond unless otherwise noted.