Key M&A Insights and Public Market Trends
The Digital Media and Marketing Technology ecosystem closed Q3 2025 on a positive note, supported by improving macroeconomic conditions, growing expectations of additional interest rate cuts, and renewed investor confidence. Optimism was further driven by emerging industry trends, particularly the continued focus on AI-driven efficiencies and capabilities that are reshaping operational models and value creation across the sector.
Year-to-date, total deal volume reached 347 transactions, up +16% versus the same period in 2024. That said, M&A activity in the quarter was flat from a strong Q3 2024. Ad Tech and MarTech recorded 11 scaled deals (>$100mm EV), compared to 14 in Q3 2024.
Public markets were mixed in Q3, as the LUMA.A index rose +2%, bringing year-to-date gains to +8%. LUMA.A was supported by outsized performance from several key constituents in the quarter, namely AppLovin, up +105%. The LUMA.M index slightly declined (3%) in the quarter.
Private financing activity remains heavily concentrated in AI-driven capabilities. Over the past 12 months, AI-related deals represented ~63% of all VC dollars invested, up from ~40% in the 12 months ending Q3 2024.
Looking Ahead:
We anticipate a strong finish to 2025, driven by improving macroeconomic conditions and a renewed focus among companies on staying ahead of the accelerating innovation curve. This environment is prompting both operators and investors to re-engage in strategic dialogue and seize emerging expansion opportunities.
Q3 and YTD M&A Activity Highlights:
- Total 2025 deal volume: Q3 Flat YoY; 2025 YTD +16%
- Ad Tech M&A: Q3 down (8%) YoY; 2025 YTD +10%
- MarTech M&A: Q3 up +4% YoY; 2025 YTD +23%
- Notable Transactions:
° Novacap’s $1.9bn take-private of IAS
° Salesforce’s $1.1bn acquisition of Bluebirds
° Zeta’s $325mm acquisition of Marigold’s Enterprise Business
Public Markets & LUMA Indices Highlights (Market Data as of 9/30/2025)
- LUMA.A: Up +2% in Q3. While 10 of 22 Ad Tech companies declined (10%) or more, it was more than offset by strong performances from AppLovin (+105%), Unity (+65%), Cardlytics (+48%), and Zeta (+28%)
- LUMA.M: Declined (3%) in Q3, notable gainers included Comscore (+81%), Shopify (+29%) and Zeta (+28%)
- Both Ad Tech and MarTech delivered strong earnings results – 16 of 19 Ad Tech and 19 of 22 MarTech companies beat or met revenue expectations.
Download the full report for detailed insights on Ad Tech, MarTech, and Digital Content, including the following:
- Quarterly deal activity and sector trends
- Public market performance and earnings highlights
- Public valuation and operational benchmarking
- Private financing trends and investor activity
