Amid green shoots of recovery in ad tech investment, a note of caution is warranted

A slew of announcements confirming mergers and acquisitions in the ad tech sector during Advertising Week New York has stoked enthusiasm among dealmakers that late 2024 will deliver a flurry of such activity.

Separately, the $25 million funding announcement for one of the most prominent names in ad tech — Brian O’Kelley’s Scope3 — could have seasoned observers thinking the clocks turned back to the giddy days of 2014 when the sector was the fastest-developing sector of digital media. Still, amid such heady announcements, it’s worth exercising a note of decorum.

Last week, Zeta Global announced the acquisition of LiveIntent for approximately $250 million, funded with a mix of $77.5 million in cash and $172.5 million in Zeta’s common stock. The deal also includes potential earn outs tied to performance targets, which could add up to an additional $25 million per year over the next three years if specific EBITDA growth milestones are met.

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