Despite ongoing economic uncertainty driven by tariff concerns and geopolitical tensions tempering expectations for a “Year of Thrive,” the Digital Media and Marketing Technology sector showed resilience and positive momentum in Q2 2025. Overall M&A activity increased by 25% year-over-year and 4% quarter-over-quarter. Sub-sector growth was broad-based: Ad Tech, MarTech, and Digital Content, each reported annual growth of +16%, +34%, and +19%, respectively. For the first half of 2025, scaled transactions (>$100mm EV) increased +8% year-over-year, primarily driven by notable growth in Ad Tech (+57%) and MarTech (+50%), offsetting a decrease in scaled Digital Content deals. Notably, strategic buyers dominated Ad Tech M&A in 1H 2025, accounting for 9 of the 11 scaled transactions.
Public markets rebounded in Q2, with the LUMA.A Index up +22%, outperforming the Nasdaq (+18%) and S&P 500 (+11%), while LUMA.M gained +7%. MNTN’s IPO (NYSE: MNTN), the first major Ad Tech listing since 2021, surged +65% above its IPO price during its debut. Ad Tech and MarTech earnings were strong, with most companies beating revenue expectations and raising or reaffirming 2025 guidance. Private financings in the quarter remained robust, and included several scaled, high-growth platforms with clear profitability paths and differentiated market positions.
Looking Ahead:
As we move into the second half of 2025, market participants will continue to monitor macroeconomic developments, including potential changes in U.S. tariff policies and associated global impacts. We anticipate continued strategic emphasis on innovation, particularly with regards to AI adoption, outcome-based marketing, and evolving media consumption patterns, driving further organic and inorganic growth opportunities.
M&A Activity Highlights
- Total Q2 2025 deal volume rose +25% YoY; up 4% QoQ
- Ad Tech M&A: up +16% YoY, up +10% QoQ
- MarTech M&A: up +34% YoY, up +6% QoQ
- Scaled deals (>$100mm): 19 transactions in Q2, one less than the same period a year ago, MarTech led the sub-sectors (8), followed by Digital Content (6), and Ad Tech (5).
Notable Transactions:
- DoorDash’s $175mm acquisition of Symbiosys
- Perion’s $65mm acquisition of Greenbids
- STG’s scaled acquisition of Movable Ink
Public Markets & LUMA Indices Highlights (Market Data as of 6/30/2025)
- LUMA.A: Rose +22% in Q2 2025, outperforming the Nasdaq (+18%). Notably, 13 of 23 Ad Tech companies gained +20% or more, led by Digital Turbine (+117%) and Magnite (+111%).
- LUMA.M: Advanced +7%, with 16 of 26 companies trading in positive territory. Top performers included Coveo (+50%) and Yext (+38%).
- Q1 2025 earnings were strong across Ad Tech and MarTech, with all but four companies exceeding consensus revenue expectations
Download the full report for detailed insights on Ad Tech, MarTech, and Digital Content, including the following:
- Quarterly deal activity across Ad Tech, MarTech, and Digital Content.
- Public market trends and earnings highlights in Ad Tech and MarTech.
- Public valuation and operational benchmarking across Ad Tech and MarTech.
- Private financing trends and investor activity across the sectors.
