LUMA is excited to announce the release of its Q2 2024 Market Report!

Increased dialogue over the past several quarters translated into closed deals in Q2 2024, as M&A activity picked up for the second consecutive quarter following 2023’s dearth of dealmaking. Through the first half of this year, scaled deal activity in the Digital Media & Marketing ecosystem rose 44% year-over-year. An improving macro-environment supported this return to M&A activity – inflation is taming, interest rates could be dropping into 2025, and ad spend growth is strong. Growth initiatives in the ecosystem – Data/Identity, CTV, Commerce Media, and Mobile – are supported by the technology industry’s on-going investment in AI and drove a return to M&A for strategic buyers.

The public markets were more of a mixed bag, as both LUMA.A and LUMA.M traded down in Q2 2024, but we also saw the first MarTech IPO of the year, with IBOTTA debuting in April. Within the venture landscape, global VC activity hit $94bn in Q2 2024 – +25% QoQ – but is still down relative to 2022. There remains significant appetite for AI financings in today’s market, specifically in areas like code generation and productivity tools.

Download the full report to get all the data on Ad Tech, MarTech, and Digital Content.

M&A Activity Highlights

  • Q2 2024 deal volume was slightly up +5% from Q1 2024, as robust deal activity in Ad Tech and MarTech offset flat Digital Content deal activity.
  • Scaled deal activity (>$100mm) of 20 deals in Q2 2024 was slightly above a strong Q1 2024 and was largely driven by strategic buyers who accounted for 75% of the scaled deal activity in the quarter.

Public Markets & LUMA Indices Highlights

  • The LUMA.A indices -7.5% lagged market benchmarks (S&P +4%, Nasdaq +8%) as only 9 of the 24 names traded up on the quarter, while the LUMA.M cohort traded down -10.1% on the quarter – feeling the impact of broader softness within the software market.
  • The Ad Tech and MarTech public markets have continued to see an uptick in volatility around earnings despite strong results this quarter, as most names beat revenue and profitability consensus estimates.

The Q2 2024 Market Report includes:

  • Quarterly deal activity by sector
  • Public market trends and the latest earnings detail for Ad Tech and MarTech
  • Public valuation and operational benchmarking across Ad Tech and MarTech
  • Highlighted private financing activity across the sectors

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