Performance marketing fuels M&A surge amid AI, privacy, and channel shifts

The performance marketing sector is undergoing a marked increase in mergers, acquisitions, and investment activity as brands and investors pursue data-driven, scalable advertising strategies. Over the past decade, performance-related deal volume has grown by 20%, with median deal sizes surging by 196%, according to a joint analysis by UK-based advisory firm WY Partners and PitchBook.

At the center of this trend is a fundamental shift in how advertising value is measured. Performance marketing focuses on paying for specific outcomes—such as clicks, conversions, or sales—rather than impressions, making it more accountable and attractive in an environment driven by return on investment (ROI).

Several recent transactions highlight this growing momentum. T-Mobile’s acquisition of Blis, a privacy-focused ad tech company with omnichannel targeting capabilities, was one of the largest performance marketing deals in Q1 2025, valuing Blis at $175 million. Similarly, Publicis Groupe acquired Captiv8, an AI-enabled influencer platform, for approximately $150 million. DoubleVerify also moved to strengthen its multichannel measurement capabilities by acquiring attribution startup Rockerbox for $85 million.

In the private equity space, Croud, a digital marketing agency, received new backing from ECI Partners as LDC exited after a five-year stake. Around the same time, Croud acquired Metageni, a data analytics firm focused on marketing optimization, in a deal advised by WY Partners. Another notable deal involved the sale of gaming-focused agency Miri Growth to MSQ Partners.

WY Partners’ report outlines three major factors behind the current M&A climate in this sector:

1. AI Integration: Machine learning algorithms are now core to campaign optimization and predictive analytics. These tools enable faster budget decisions and dynamic content personalization, increasing operational efficiency in performance-focused advertising.
2. Privacy-Centric Strategies: The gradual elimination of third-party cookies has forced marketers to adopt server-side tracking and zero-party data practices. These privacy-first solutions help ensure compliance with regulations while maintaining personalization and performance integrity.
3. Channel Diversification: Marketers are expanding beyond legacy platforms like Google and Facebook, with increased focus on TikTok, LinkedIn, and connected TV (CTV). This broader channel mix allows for more robust cross-channel attribution and greater reach.

The performance-based model is also making its way into the public markets. Adtech firm MNTN, known for its CTV advertising solutions centered on measurable outcomes, went public in early 2025 with a valuation of $1.62 billion. The platform offers granular reporting on conversions rather than just views, aligning with the broader shift toward results-based metrics.