At the top of 2024 and the dawn of 2025, customer data platforms (CDPs) were the favored acquisition targets in the martech space. Digital experience vendors devoured up three CDPs in a few months which got everyone talking in regards to the way forward for the CDP as a standalone tool.
Here we’re a number of months later, and one other goal is catching the attention of enormous agencies in particular. Two agency-holding firms recently acquired firms 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 big, diverse data set useful for training AI models.
WPP will integrate InfoSum into its “WPP Open” operating system, enabling clients to mix 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 worldwide identity and data company with a powerful presence in the APAC and EMEA regions, which can 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 mix Lotame’s assets with its Epsilon platform and its existing 2.3 billion profiles. The company said that combination will allow Publicis to achieve 91% of adult web users worldwide, which is roughly 4 billion customer profiles.
What do these acquisitions have in common?
While Lotame and InfoSum deal heavily with data, they don’t serve the identical function. However, each acquisitions will strengthen their agencies’ data assets, as shown by their plans to mix them into existing data platforms.
Equally vital is how each acquisitions address the changing promoting 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 in regards to the ad industry?
In addition to first-party data and privacy, 4 significant trends are forcing agencies to match with data-related vendors.
The rise of data collaboration
Agency clients see benefits in combining their data with that of partners (publishers, other brands, data providers) to achieve 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 may’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 coach and power higher AI models in the promoting 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 query now’s, who’s next?
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