Tariffs and AI Driving Significant Changes in Ad Tech M&A Landscape

The evolving landscape of ad tech mergers and acquisitions (M&A) is being significantly influenced by the intersection of tariffs and artificial intelligence (AI). Brian Andersen, the managing director of investment advisory firm Atlas Technology Group and a co-founder of LUMA Partners, has observed this shift firsthand. In the current climate, AI’s rise is permeating every aspect of technology and marketing, including M&A activities.

This year alone, Atlas has successfully facilitated six deals, highlighting the increasing integration of AI into the ad tech space. These included significant acquisitions such as Braze’s purchase of agentic AI platform OfferFit, Uniphore’s acquisition of customer data platform Action IQ, and Rokt’s merger with CDP mParticle. Notably, Atlas also advised on Publicis’ acquisition of Lotame, a former data management platform.

The driving force behind these transactions is a shared necessity for robust data and identity capabilities. As AI models rely heavily on strong data platforms, the companies involved sought to enhance their ability to reach customers efficiently and effectively through the implementation of advanced AI technologies.

Andersen emphasizes the importance for companies of all sizes to remain agile and adapt to the changing landscape of technology and marketing trends. Keeping abreast of these developments enables businesses to strategically position themselves for potential M&A opportunities.

In a recent interview with AdExchanger, Andersen outlined key shifts within the ad tech industry that have unfolded in recent years. Notably, the depreciation of data, particularly cookies, has compelled companies to prioritize first-party data strategies. By leveraging data assets, customer data platforms, and forging second-party data relationships, companies can enhance targeting and measurement capabilities.

Companies like The Trade Desk, ID5, and mParticle exemplify the success of focusing on first-party data and robust technology offerings. Andersen also highlighted Lotame’s unique journey in the market, showcasing its ability to remain relevant by adapting its product offerings to meet evolving industry demands.

From a buyer’s perspective, M&A transactions are complex undertakings that require careful consideration and strategic integration efforts. Successfully integrating acquired companies is essential for realizing the full potential of a deal. Conversely, sellers should avoid imposing arbitrary timelines for selling their business, instead focusing on cultivating relationships with potential buyers.

The current political climate, characterized by increased uncertainty due to tariffs, introduces additional challenges to the M&A environment. Despite this uncertainty, buyers with a proactive and aggressive mindset may find opportunities in the market. While the M&A landscape may experience a temporary softening, opportunities for strategic acquisitions will remain available.

In conclusion, the evolving ad tech M&A landscape is shaped by a confluence of factors, including AI advancements, data-driven strategies, and geopolitical uncertainties. Adapting to these shifts is crucial for businesses aiming to navigate the complex and dynamic terrain of technology and marketing.