The creator economy sees significant merger and acquisition activity in 2024, with influencer marketing gaining momentum and various sectors consolidating to enhance global reach.
In 2024, the landscape of the creator economy was characterized by significant merger and acquisition activity, particularly in the areas of influencer marketing, talent management, and podcasting. Various startups emerged as prime targets for acquisition as companies aimed to expand their global reach by acquiring firms in distinct regions.
Notably, the Publicis Groupe’s acquisition of the influencer marketing platform Influential for $500 million stood out in this evolving marketplace. M&A experts informed Business Insider that this acquisition reflects the growing recognition of influencer marketing as a critical component of modern advertising strategies. Chris Erwin, founder of M&A advisory firm RockWater, remarked, “If influencers are the new gatekeepers and authority within these digital channels, then they’re going to command audiences. Advertising revenue dollars are going to flow towards them.”
Analysts from Goldman Sachs underscored the rise of influencer marketing spending as a significant growth driver within the creator economy, which was valued at approximately $250 billion last year. In addition to the high-profile acquisition of Influential, other advertising brands made moves to secure influencer marketing expertise, including Stagwell’s acquisition of the agency Leaders, as well as Canadian talent agency Dulcedo Group’s purchase of the influencer marketing app Node, both announced in July.
The creator economy continues to mature on a global scale, with companies making strategic deals in markets such as India, Japan, and Australia. Underlining this trend, Ollie Forsyth, a former senior manager at Antler and a writer for New Economies, noted that “Creators really can be global from day one,” recognising the role of AI-powered tools in facilitating global distribution of content.
Significant global acquisitions included French influencer firm Ykone’s majority stake purchase in the Indian influencer marketing firm Barcode, and Finnish firm Boksi’s acquisition of the German company Influencer GmbH, illustrating the expanding reach of influencer marketing strategies across different regions.
Furthermore, podcasting emerged as a particularly lucrative sector, with platforms like YouTube and Spotify enhancing audience engagement. EMARKETER forecasts that US advertising spending on podcasts is set to reach $2.28 billion in 2024, marking a 16% increase from the previous year. James Creech, an M&A advisor at Quartermast Advisors, described the trend as a publisher’s approach to consolidating popular networks of shows, predicting that the momentum will likely continue in the years to come.
Key acquisitions in the podcasting sector included Triton Digital’s acquisition of podcasting ad tech firm Sounder, aimed at enhancing targeting and brand safety, and Night’s purchase of The Roost, which encompasses several popular podcast shows.
The consolidation trend also extended to talent management firms representing creators. With numerous agencies striving to support creator businesses, notable transactions included Wasserman’s acquisition of the Long Haul talent-management agency to strengthen its offerings in gaming and sports creator markets, and Whalar’s purchase of the influencer-management firm Sixteenth.
As the creator economy looks ahead to 2025, both Erwin and Creech predict ongoing growth and activity within the sector. Creech emphasised the expectation of increased mergers and acquisitions, particularly amongst consumer packaged goods (CPG) companies, such as Hershey’s acquisition of creator Maxx Chewning’s Sour Strips brand in 2024.
Funding activity in 2024 has provided insight into potential future trends in M&A. Startups focusing on artificial intelligence, newsletter tech, influencer marketing, and e-commerce attracted considerable investment, paving the way for potential acquisition activity in the forthcoming year. Both Erwin and Creech agree that the current climate presents a favourable environment for raising capital or considering exit opportunities, highlighting the thriving nature of the creator economy.
Source: Noah Wire Services
- https://www.localogy.com/2024/08/publicis-propels-the-influencer-economy-with-influential-acquisition/ – Corroborates the Publicis Groupe’s acquisition of Influential for $500 million and its significance in the influencer economy.
- https://www.businessinsider.com/creator-economy-acquisition-deals-show-where-industry-could-head-next-2024-12 – Supports the M&A activity in the creator economy, including Publicis Groupe’s acquisition of Influential, and the growth of influencer marketing spending.
- https://www.marketingdive.com/news/publicis-groupe-acquires-influential-influencer-marketing/722520/ – Details Publicis Groupe’s acquisition of Influential, the integration with Epsilon, and the significance of influencer marketing in modern advertising strategies.
- https://martech.org/acquisitions-signal-agencies-are-betting-on-influencer-marketing/ – Discusses the acquisitions of influencer marketing platforms, including Publicis Groupe’s acquisition of Influential and Stagwell’s acquisition of Leaders, highlighting the growth of influencer marketing.
- https://www.businessinsider.com/creator-economy-acquisition-deals-show-where-industry-could-head-next-2024-12 – Mentions other acquisitions such as Stagwell’s acquisition of Leaders and Dulcedo Group’s purchase of Node, and the global expansion of influencer marketing.
- https://martech.org/acquisitions-signal-agencies-are-betting-on-influencer-marketing/ – Provides context on the global maturity of the creator economy and the role of AI in facilitating global content distribution.
- https://www.marketingdive.com/news/publicis-groupe-acquires-influential-influencer-marketing/722520/ – Highlights the expectation of increased social media marketing spending, surpassing linear TV ad spend, and the importance of influencer marketing in this growth.
- https://martech.org/acquisitions-signal-agencies-are-betting-on-influencer-marketing/ – Details the acquisitions in the podcasting sector, such as Triton Digital’s acquisition of Sounder and Night’s purchase of The Roost.
- https://www.businessinsider.com/creator-economy-acquisition-deals-show-where-industry-could-head-next-2024-12 – Discusses the consolidation trend in talent management firms, including Wasserman’s acquisition of Long Haul and Whalar’s purchase of Sixteenth.
- https://martech.org/acquisitions-signal-agencies-are-betting-on-influencer-marketing/ – Predicts ongoing growth and activity in the creator economy, including increased M&A activity among CPG companies.
- https://www.marketingdive.com/news/publicis-groupe-acquires-influential-influencer-marketing/722520/ – Provides insight into funding activity in 2024 and potential future trends in M&A, particularly in AI, newsletter tech, influencer marketing, and e-commerce.
