At the end of 2024 and the dawn of 2025, customer data platforms (CDPs) were the popular acquisition targets in the martech space. Digital experience vendors gobbled up three CDPs in a couple of months which got everyone talking about the future of the CDP as a standalone tool.
Here we are a few months later, and another target is catching the eye of large agencies in particular. Two agency-holding companies recently acquired companies in the data space, with WPP acquiring data clean room vendor InfoSum and Publicis Groupe grabbing Lotame.
Why WPP acquired InfoSum
The very short version of the story is that WPP’s purchase of InfoSum will help WPP clients get more from their first-party data while maintaining privacy. InfoSum also delivers to WPP a large, diverse data set useful for training AI models.
WPP will integrate InfoSum into its “WPP Open” operating system, enabling clients to combine their first-party data with InfoSum’s network and WPP’s data assets.
Dig deeper: Why independent CDPs are disappearing (and what comes next)
Why Publicis Groupe bought Lotame
Lotame is a global identity and data company with a strong presence in the APAC and EMEA regions, which will help Publicis expand its global reach.
Publicis expects the acquisition to strengthen its first-party data stack and enhance its ability to deliver personalized marketing services at scale while respecting privacy.
Publicis will combine Lotame’s assets with its Epsilon platform and its existing 2.3 billion profiles. The company said that combination will allow Publicis to reach 91% of adult internet users worldwide, which is approximately 4 billion customer profiles.
What do these acquisitions have in common?
While Lotame and InfoSum deal heavily with data, they don’t serve the same function. However, both acquisitions will strengthen their agencies’ data assets, as shown by their plans to combine them into existing data platforms.
Equally important is how both acquisitions address the changing advertising landscape. Both deals highlight the increasing importance of first-party data, stricter privacy regulations and the response to the decline of third-party cookies.
Dig deeper: Acquisitions signal agencies are betting on influencer marketing
What do the Lotame and InfoSum acquisitions say about the ad industry?
In addition to first-party data and privacy, four significant trends are forcing agencies to match with data-related vendors.
The rise of data collaboration
Agency clients see advantages in combining their data with that of partners (publishers, other brands, data providers) to gain a more comprehensive view of consumers and improve campaigns. Data collaboration platforms make that possible.
Personalization at scale
Consumers increasingly expect personalized experiences; without robust data and identity solutions, you can’t deliver on that expectation. Acquisitions like Lotame and InfoSum should help agencies and their partners provide more granular and effective personalization.
The growth of AI in marketing
AI is becoming increasingly crucial for analyzing large datasets, generating insights, automating tasks and optimizing campaigns. However, it needs access to diverse and high-quality data to train and power better AI models in the advertising industry.
The need for comprehensive identity resolution
The digital landscape is becoming more fragmented, and traditional identifiers are less reliable, which makes strong identity resolution capabilities essential. Lotame will strengthen Publicis’ capabilities in particular in this area.
The obvious question now is, who’s next?
The post The latest trend in martech M&A: Agencies buying data collaboration firms appeared first on MarTech.
**Agencies Drive New Martech M&A Trend by Acquiring Data Collaboration Firms**
In the rapidly evolving marketing technology (martech) landscape, a new trend is emerging: advertising and marketing agencies are increasingly acquiring data collaboration firms. This strategic shift reflects the growing importance of data-driven marketing and the need for seamless, privacy-compliant data sharing across platforms and organizations. As agencies seek to offer more comprehensive, tech-enabled services to their clients, the acquisition of data collaboration firms has become a key tactic in staying competitive and future-ready.
### The Rise of Data Collaboration in Marketing
Data collaboration refers to the secure and privacy-conscious sharing and analysis of data between organizations to gain deeper customer insights, improve targeting, and enhance campaign performance. With the decline of third-party cookies and increasing regulatory scrutiny around data privacy (e.g., GDPR, CCPA), marketers are turning to first-party data and secure data collaboration solutions to maintain personalization and performance in their campaigns.
Data clean rooms, federated learning environments, and other privacy-enhancing technologies (PETs) have emerged as essential tools for enabling this collaboration. These technologies allow multiple parties to analyze combined datasets without exposing raw data, ensuring compliance with data protection laws while unlocking valuable insights.
### Agencies Adapt to the New Data Landscape
Traditionally, agencies have focused on creative development, media buying, and campaign execution. However, the digital transformation of marketing has pushed agencies to expand their capabilities into data analytics, customer experience (CX), and martech integration. As brands demand more accountability and measurable ROI from their marketing investments, agencies are under pressure to deliver data-driven strategies that go beyond traditional services.
To meet these demands, agencies are increasingly acquiring or partnering with data collaboration firms. These acquisitions enable agencies to:
– **Access advanced data analytics capabilities**: By integrating data collaboration tools, agencies can offer clients more precise audience segmentation, attribution modeling, and performance optimization.
– **Ensure privacy compliance**: With built-in privacy features, data collaboration platforms help agencies and their clients navigate complex regulatory environments.
– **Enhance personalization**: Secure data sharing allows for richer customer profiles and more personalized marketing, even in a cookieless world.
– **Strengthen client relationships**: Agencies that can manage and activate data across ecosystems become more valuable strategic partners to their clients.
### Notable M&A Activity
Several recent mergers and acquisitions highlight this trend. For example:
– **Publicis Groupe** acquired Epsilon in 2019, gaining access to a vast trove of first-party data and data collaboration capabilities.
– **WPP** has invested heavily in data and technology through its Wunderman Thompson and GroupM divisions, including partnerships with data clean room providers.
– **Dentsu** has been expanding its data capabilities through acquisitions and partnerships, focusing on integrating data collaboration into its CX and media offerings.
These moves reflect a broader industry shift where agencies are no longer just service providers but are becoming data-driven consultancies equipped with proprietary technology stacks.
### The Future of Martech M&A
As the martech ecosystem continues to grow—now comprising over 11,000 solutions according to the 2023 Martech Landscape—consolidation is inevitable. Agencies are likely to continue acquiring niche data collaboration firms to build out their capabilities and differentiate themselves in a crowded market.
We can expect to see:
– **Increased investment in privacy-enhancing technologies**: Agencies will prioritize firms that offer secure, scalable, and compliant data collaboration solutions.
– **Greater integration of AI and machine learning**: Acquisitions will focus on firms that can leverage AI to derive insights from collaborative data environments.
– **Cross-industry collaborations**: Agencies may acquire or partner with firms outside traditional marketing, such as fintech or healthtech data providers, to expand their data sources and industry reach.
### Conclusion
The acquisition of data collaboration firms by agencies marks a significant shift in the martech M&A landscape. As data becomes the cornerstone of effective marketing, agencies are evolving into tech-enabled, data-centric partners. This trend not only reshapes the agency business model but also sets the stage for more intelligent, privacy-conscious, and impactful marketing in the years to come.
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