The advertising market continues to provide a strong backdrop for M&A. WPP Media now expects global advertising revenue to grow 8.9% in 2026 to $1.3 trillion, up from the 7.1% it forecast in December, as AIdriven investment offsets geopolitical headwinds; Alphabet, Meta, and Amazon now control 57.6% of the market outside China. Marketing services M&A remained active in Q3, even as global deal value fell 41% from Q2 on higher borrowing costs; year-to-date M&A is still up 28%. The quarter was defined by independents combining to build scale, holding companies consolidating and divesting, and private equity backing businesses with proven growth.
Key M&A Trends
1. Indies Buying Indies: The Rise of the “Super-Independent”
Independent agency M&A is intensifying as shops add capabilities and scale while more marketers look beyond the holding companies, Ad Age reports. Q3 deals included Bastion’s merger with BUNTIN, Drake Cooper’s acquisition of Gigasavvy, Meet The People’s addition of The LOOMIS Agency, and The Variable’s purchase of Carson+Doyle.
2. Holding Companies Consolidate and Divest
Omnicom has merged or sunset more than 20 agency brands since acquiring IPG, including DDB, FCB, and MullenLowe, and plans to divest non-core units with about $3.2 billion of revenue, including Gutenberg Networks’ July management buyout. WPP created WPP Creative, moved Grey under Ogilvy, explored a sale of Burson, and is reportedly preparing a sale of Kantar with Bain Capital. Dentsu chose to restructure its international business rather than sell it.
3. Large Independents and Challenger Groups Reposition
Next 15 cut about 375 roles for roughly £26 million of annual savings, wound down Mach49, and sold part of Elvis to Wonderhood Studios. Stagwell launched Stagwell Media, and One Equity Partners-backed MSQ continues to build out its US business.
4. Private Equity Targets Proven Growth and Scale
Sponsors are focused on proven growth and scale, whether in specialists or broader platforms. Foresight Group acquired Connective3, and Griffin’s Wharf Partners and Lineage Capital invested in Evalla client Intrinsic Digital; PE-backed platforms such as MMGY Global and MSQ are also active buyers.
5. Technology Services Buyers Target AI and Data Talent
Consultancies are buying AI and engineering capability: AlixPartners acquired agentic AI consultancy Artium, CGI acquired Callibrity, and Tata Consultancy Services agreed to buy Porsche’s consulting unit MHP for €320 million.
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