Prepare for Another Historic Year of Mergers and Acquisitions within the Marcom Sector
Global Marcoms Sector Sees Record M&A Activity in 2021, Carried Over into 2022
The marketing communications (marcoms) sector experienced a significant rebound in merger and acquisition (M&A) activity in 2021, with the first two weeks of 2022 showing early signs of continued momentum.
Last year's M&A activity was partially driven by deals that had been delayed due to the first wave of Covid-19 and associated lockdowns, contributing to inflated statistics. This catch-up effect, as pent-up demand for consolidation led to increased deal-making, was a key trend in 2021.
Companies used M&A to rapidly enhance digital marketing offerings, customer engagement platforms, and data analytics capabilities in response to accelerated digital transformation trends triggered by the pandemic. The focus was on strategic consolidation, with larger firms pursuing bolt-on acquisitions to scale operations and reduce costs, while expanding service portfolios to meet evolving client demands.
There was a notable emphasis on digital capabilities and marketing technology acquisitions, reflecting the sector’s shift towards digital-first strategies. Cross-border dealmaking also rebounded, with international transactions picking up to optimize geographic reach and service integration. Private equity investors also played a significant role, helping to fuel deal volume as they capitalized on growing marcoms demand and sector fragmentation.
In the first two weeks of 2022, Stagwell Group made an acquisition in the marcoms sector, acquiring Goodstuff Communications. This move is indicative of the continued M&A activity expected in the sector this year. Additionally, at least one announced takeover has already taken place in the marcoms sector in the same period.
The delayed 2020 deals due to Covid-19 created a backlog that materialized as increased M&A activity in 2021 in the marcoms sector globally. This reflected broader sector shifts toward digital transformation accelerated by the pandemic.
As we move into 2022, the marcoms sector is expected to continue with more M&A activity, building on the record-setting year seen in 2021. The first two weeks of the year have marked the beginning of another year of potential M&A activity in the sector.
The financial sector has played a pivotal role in the escalating M&A activity in the marcoms industry, with private equity investors being particularly active in fueling deal volume. In response to evolving business demands, marcoms companies have engaged in numerous acquisitions to enhance their digital marketing offerings and strengthen customer engagement platforms.
