2017 Outlook: Marketing and Media M&A Expected to Increase—Focus Shifts to Programmatic, Data/Analytics, Experiential

AdMedia Partners, data/analytics, Digital Services, disruptive services, experiential marketing, Marketing, marketing and media, Mergers and acquisitions, Pr, private equity buyers, programmatic, Public relations, Social media, strategic buyersAccording to a new survey from M&A firm AdMedia Partners, mergers and acquisitions activity in the marketing and media industries remained strong in 2016, with nearly two thirds of respondents being approached by a buyer, and 22% actually transacting—and respondents expect this high level of activity to continue in 2017, both with strategic buyers and increasingly with financial (e.g., private equity) buyers.

Digital services, such as programmatic, data/analytics and social, continue to generate strong interest and are viewed as disruptive. This year, however, experiential marketing also appears to be more in demand, which is perhaps reflective of the increasingly blurred lines between digital and traditional, with all marketing services truly complementing and leveraging each other.

“Interestingly, expected valuations remain robust with little or no change from last year’s results,” said Seth Alpert, managing director at AdMedia Partners, in a news release. “However, there was significantly more interest in analytics, consulting, design/user experience, experiential and mobile.”

Continued M&A Growth in 2016

  • Among respondents, there was a material increase in companies that ended up receiving an offer.
  • There was an increase in actual deals completed, with 14% of respondents being acquired by a strategic buyer and 8% being acquired by a financial buyer

M&A Expectations for 2017

  • While there was a decline in respondents who expect to explore a sale of their company next year, it is still notable that almost half of respondents expect to undertake this effort.
  • In addition, there has been a very significant increase in respondents who expect to seek investment/growth funding, doubling from a year ago. Similarly, more than half of respondents expect that M&A activity by financial buyers will be up in 2017—an increase from 44% last year.
  • These responses reflect the continued activity by private equity firms in the marketing services space, with a sizable group of PE firms showing the interest and wherewithal to capitalize on the continuing shifts in the marketing landscape.

Industry Trends

  • Artificial Intelligence was cited by numerous respondents as being disruptive to the industry; in addition, a number of prominent trends continued from last year, such as programmatic, social, data and analytics.
  • Likewise, the areas that most respondents were most interested in expanding or acquiring into are analytics (65%), design/user experience (50%) and social marketing (50%).
  • In addition, giant tech players like Google, Facebook and Amazon are viewed as competition for both client spend and talent.

Download the complete report here.

Source: Business Wire; edited by Richard Carufel

We've updated our Privacy Policy. Read the updated policy →

PR Biz Update PR Agency News PR People Marketing Trends
Happy young couple relaxing and watching TV at home.
Ad Science: Nielsen Study Underscores Value of Lifestyle TV Programming for Marketers, Showing It Generates Higher Ad Engagement

A new study reveals that advertisements seen in lifestyle television programming...

Female shopaholics going by the shop with big sale
Retail Marketing Shift: Consumers No Longer Willing to Pay Full Price as Deep Discounts Influence Consumer Behavior

Seventy-six percent of Baby Boomers will not pay full price when...

Fake News US Concept: Newspaper Front Page, 3d illustration on wood
A Real Plague: Weber Study Finds 82 Percent of Americans Express Concern About the Impact of Fake News

71% of American Public Says Fake News Contributes to Incivility, Study...

Thought Leaders On Deadline
small laptop with old projector showing film
Video Marketing Perspectives: How to Effectively Use Pattern Interrupt Elements to Shake Things Up in Your Videos

By Andrea Kalli, Video Designer, Editor and Marketer Have you ever caught...

Corrie Westmoreland-Vairo
Social: It’s #Personal—What Millennials Want Brands to Know About Social Advertising

By Corrie Westmoreland-Vairo, Director of Accounts, Fell Swoop Social marketing is...

Jon Bloom
Transparent Communications in the Trust Economy, Part 2—Putting a Plan Into Action

By Jonathan Bloom, CEO and Founding Partner, McGrath/Power Public Relations In part...