Influencer-marketing and digital-talent firms are getting scooped up like crazy this year, even as other creator-economy companies have failed to live up to their valuations.
Some deals have involved buyers with big pockets. French ad holding company Publicis Groupe, which has a market cap of around $27 billion, announced it acquired influencer-marketing firm Influential in July. Global marketing firm Stagwell announced its purchase of the influencer-marketing company Leaders that same month.
Other sales have involved smaller firms, such as influencer-marketing company Izea’s purchase of influencer agency Hoozu, announced in December.
M&A success stories in influencer marketing arrive as other creator startups that gained unicorn valuations, such as monetization platform Jellysmack and video-shoutout app Cameo, have shrunk. Creator startups that debuted on public exchanges in recent years, like esports company FaZe Clan, have also struggled.
There have been some meaningful creator-focused M&A deals outside of influencer marketing in the past year, including social app BeReal’s 500 million euro sale to French gaming company Voodoo in June. But creator startups that offer business-to-business solutions are better targets for M&A than those that cater just to influencers as customers, Houlihan Lokey’s John Lambros told Business Insider in August. While digital creators are a newer category within entertainment, influencer marketing and talent management are well-established businesses that can tap into existing budgets within the broader advertising sector.
When Goldman Sachs analysts last year valued the creator industry at $250 billion, they called out influencer marketing as a core part of that valuation.
“The analysts expect spending on influencer marketing and platform payouts fueled by the monetization of short-form video platforms via advertising to be the primary growth drivers of the creator economy,” the company wrote in its report summary.
There’s been a flurry of M&A deals globally within influencer marketing and creator management since September 2023, according to a BI review of company announcements and data compiled by the data platform Pitchbook. Here’s a breakdown of 15 deals that were announced in the past 12 months, and what prompted buyers to make offers:
M&A to add influencer-marketing expertise to an existing marketing suite
M&A to expand into a new region
M&A to expand a company’s client base or offer new influencer services
The post An M&A spree in influencer marketing is bolstering the creator economy. These 15 deals show what’s selling and why. appeared first on Business Insider.
