A closer look at what’s driving (and will continue to drive) M&A in ad tech in 2024

You’ve been inundated with talk of M&A in ad tech. You’ve seen the headlines hyping up the next wave of deals. Now, let’s break down the key factors driving it all.

First, let’s set the stage: There’s a growing buzz about a resurgence in dealmaking activity. Banks are getting involved, rumors are flying left and right, and actual deals are being inked. All signs point to deals reaching a tipping point. However, the big question remains: When will this tipping point actually occur? No one wants to make a move too soon, given the uncertainties surrounding borrowing costs, industry dynamics and the political landscape.

But hold up — how long has this thaw been happening? On the surface, it seems like a relatively recent shift — since the turn of the year, with notable deals like Walmart’s $2.3 billion splurge on Vizio, Triton Digital nabbing AI brand safety startup Sounder and LiveRamp investing $200 million in Habu. However, dig a bit deeper, and some argue it dates back to last summer. Ad tech economist Tom Triscari, for instance, points to DoubleVerify’s acquisition of Scibids. The ad verification firm paid a 44% premium on enterprise value and 16x EBITDA — a move that seemed fair to many in the industry.

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