Q1 2025’s results are in, and a totally different vibe to the same period last year. With Q1 2024 marked by cautious optimism and promising a recovery in M&A activity, Q1 2025 reflected a more selective market, increasingly driven by technology, AI, and selective capital deployment.
From our research, we found that globally, Q1 2024 saw 474 media and marketing deals, a 67% quarter-over-quarter increase. Social and influencer deals accounted for 15% of total deal volume, including SAMY Alliance’s acquisition of social-first agency Kurio. PE was significant, but not dominant, with 32% of deals being PE or PE backed as private equity firms remained cautious due to high interest rates and economic volatility.
Conversely, in Q1 2025, we found that global deal volume had dropped right back to 229, a 52% year-on-year decline. This slowdown was felt across the sector as activity plateaued with agencies grappling with rising staff costs, stagnating ad budgets, and longer sales timeframes. A greater proportion of deals occurred in North America in Q1 2025 relative to the previous year, which we might put down to early market optimism surrounding President Trump’s second term although Q2’s M&A stats will likely make for ‘interesting’ reading given the tariff turmoil that has followed.
While overall deal volumes fell in Q1 2025 compared to the same period in 2024, performance media accounted for a larger share of total deals, signalling a shift in investment priorities as companies seek measurable, results-driven outcomes. AI-related deals remained resilient as acquirers continued to seek platforms that enhance operational efficiency and automation, notably including WPP’s acquisition of InfoSum.
What kind of barometer do we get from Network M&A? Omnicom and IPG have been understandably preoccupied with their pending $13b merger (approved by shareholders during the quarter), the latter also divesting R/GA to Truelink Capital as part of portfolio rationalisation. Dentsu equally inactive, WPP, acquiring a single firm, but with Publicis and Havas sustaining momentum. Publicis invested €500m across multiple deals, including US-based Lotame, and Moov AI in Canada, to boost its digital, data and influencer marketing capabilities, while Havas completed three acquisitions, focusing on sports marketing, retail media, and creative growth.
In just twelve months, the market has shifted from recovery to recalibration, emphasising quality and strategy over volume. However, while overall deal activity has slowed, digital, and AI-focused acquisitions have increased, and PE’s influence has grown further still.
