CTV, Retail, and Measurement Driving Ad Tech M&A in 2022
Ad tech mergers and acquisitions (M&A) are making a comeback in the digital advertising industry. The recent surge in ad tech deals, including T-Mobile’s acquisition of Vistar Media, Rokt’s purchase of mParticle, The Trade Desk’s acquisition of Sincera, and DirecTV’s majority stake in Invidi Technologies, has reignited interest in M&A activity within the ad tech sector. After a period of dormancy due to economic uncertainties and a slowdown in ad spend, Uren Dhanani, Vice President at ComCap LLC, a boutique investment banking firm specializing in ad tech and other high-growth tech sectors, believes that the resurgence of M&A in ad tech was expected.
According to Dhanani, this year’s ad tech consolidation will focus on key growth areas in advertising, such as retail media, connected TV (CTV), and bridging the measurement gap in the industry. The lack of standardized measurement practices is a significant challenge for marketers and media buyers, making it a crucial area for consolidation and innovation in the ad tech space.
In the retail media sector, Retail Media Networks (RMNs) have become increasingly prominent, with major retailers leveraging their own RMNs for ad monetization. Dhanani predicts that smaller, niche RMNs will consolidate to compete more effectively against retail giants like Walmart and Target. As margins for smaller players may not always justify the investment in proprietary RMNs, there is potential for consolidation to offer consolidated shopper data services to marketers.
A growing trend in retail media is in-store advertising, aiming to personalize product ads for shoppers browsing physical stores. This trend highlights the importance of serving targeted ads to consumers during the shopping experience, both online and offline. Addressing measurement issues in retail media is also crucial, as current buying experiences lack efficiency and standardization. This presents opportunities for M&A activity to enhance measurement practices and improve campaign performance for advertisers.
The overlap between retail media and CTV presents additional opportunities and challenges for the ad tech industry. Personalized video ads on CTV and incorporating retail data into video campaigns are emerging trends. However, both sectors face measurement standardization challenges, hindering advertisers from accurately assessing campaign performance across channels and platforms. M&A activities are expected to focus on addressing these measurement gaps and driving innovation in cross-platform measurement methods and metrics.
Overall, the evolving landscape of ad tech M&A in 2025 is driven by key factors such as retail media growth, CTV opportunities, and the need for improved measurement practices. Companies are looking to capitalize on these trends through strategic acquisitions and partnerships to optimize advertising strategies and enhance ROI for marketers.
