The latest trend in martech M&A: Agencies buying data collaboration firms

At the end of 2024 and the dawn of 2025, customer data platforms (CDPs) were the popular acquisition targets in the martech space. Digital experience vendors gobbled up three CDPs in a couple of months which got everyone talking about the future of the CDP as a standalone tool.

Here we are a few months later, and another target is catching the eye of large agencies in particular. Two agency-holding companies recently acquired companies in the data space, with WPP acquiring data clean room vendor InfoSum and Publicis Groupe grabbing Lotame.

Why WPP acquired InfoSum

The very short version of the story is that WPP’s purchase of InfoSum will help WPP clients get more from their first-party data while maintaining privacy. InfoSum also delivers to WPP a large, diverse data set useful for training AI models.

WPP will integrate InfoSum into its “WPP Open” operating system, enabling clients to combine their first-party data with InfoSum’s network and WPP’s data assets.

Dig deeper: Why independent CDPs are disappearing (and what comes next)

Why Publicis Groupe bought Lotame

Lotame is a global identity and data company with a strong presence in the APAC and EMEA regions, which will help Publicis expand its global reach.

Publicis expects the acquisition to strengthen its first-party data stack and enhance its ability to deliver personalized marketing services at scale while respecting privacy.  

Publicis will combine Lotame’s assets with its Epsilon platform and its existing 2.3 billion profiles. The company said that combination will allow Publicis to reach 91% of adult internet users worldwide, which is approximately 4 billion customer profiles.  

What do these acquisitions have in common?

While Lotame and InfoSum deal heavily with data, they don’t serve the same function. However, both acquisitions will strengthen their agencies’ data assets, as shown by their plans to combine them into existing data platforms. 

Equally important is how both acquisitions address the changing advertising landscape. Both deals highlight the increasing importance of first-party data, stricter privacy regulations and the response to the decline of third-party cookies.

Dig deeper: Acquisitions signal agencies are betting on influencer marketing

What do the Lotame and InfoSum acquisitions say about the ad industry?

In addition to first-party data and privacy, four significant trends are forcing agencies to match with data-related vendors.

The rise of data collaboration

Agency clients see advantages in combining their data with that of partners (publishers, other brands, data providers) to gain a more comprehensive view of consumers and improve campaigns. Data collaboration platforms make that possible.

Personalization at scale

Consumers increasingly expect personalized experiences; without robust data and identity solutions, you can’t deliver on that expectation. Acquisitions like Lotame and InfoSum should help agencies and their partners provide more granular and effective personalization.

The growth of AI in marketing

AI is becoming increasingly crucial for analyzing large datasets, generating insights, automating tasks and optimizing campaigns. However, it needs access to diverse and high-quality data to train and power better AI models in the advertising industry.

The need for comprehensive identity resolution

The digital landscape is becoming more fragmented, and traditional identifiers are less reliable, which makes strong identity resolution capabilities essential. Lotame will strengthen Publicis’ capabilities in particular in this area.

The obvious question now is, who’s next?