Month: March 2025

JEGI CLARITY’S 21^ST Annual Media & Technology Conference in New York brought together senior executives and investors from across the global media, marketing, information, and technology sectors.

Hugh Boston and Marcus Anselm dove into the Marketing Services industry, highlighting how technology has increased the sector’s complexity. They also discussed the growing convergence of e-commerce and social media, and how firms can capitalize on this trend to tap into new revenue streams and strengthen customer engagement. Here’s a brief overview of their insightful presentation.

Introduction

The marketing services industry is undergoing rapid transformation driven by technological advancements, shifting consumer behaviors, and evolving business strategies. There are key themes shaping the industry’s future, including the rise of AI, the increase of predictive analytics, greater focus on heightened personalization and automated content.

This article explores these key trends, their implications for businesses, and essential takeaways for firms in the marketing services sector.

Key Industry Trends

Acceleration of Digital Transformation

The marketing landscape has evolved significantly from traditional formats such as print, radio, and linear TV in the 90s to digital-first strategies encompassing search, programmatic advertising, and social media. By 2025, marketing spending is expected to reach $653Bn¹, 70% of which will account for digital marketing spend. This increase in marketing spending is driven in part by innovations in retail media, connected TV (CTV), and programmatic advertising.

The Expanding Role of AI in Marketing

AI is playing a transformative role in content creation, personalization, and predictive analytics. Key statistics reveal that AI adoption has led to a 50%² reduction in campaign time-to-market and a 40%² increase in click-through rates (CTR). Businesses are leveraging AI for ideation, A/B testing, chatbots, and optimization, with further expansion anticipated over the next two years.

Rising Influence of Social Media and Influencer Marketing

Social media advertising is expected to reach $256Bn by 2025³, highlighting the sector’s growing influence. Agencies specializing in influencer marketing, social media management, and data-driven advertising are attracting strong investment. The rise of social commerce, projected to reach $80Bn⁴ in the U.S. by 2025, underscores the increasing convergence of e-commerce and social media.

The Impact of M&A

Mergers & Acquisitions Driving Market Consolidation

The marketing services industry is witnessing increased M&A activity, as brands seek integrated solutions that combine creative, media, and technology capabilities. Omnicom and IPG are consolidating to form the world’s largest full-service advertising firm, reflecting a trend toward full-scale service providers while still maintaining demand for specialized agencies.

Private Equity Interest in Marketing Services

Private equity (PE) firms continue to invest heavily in marketing services, particularly in digital-first and AI-driven platforms. The increasing demand for data-driven, hyper-personalized campaigns has made marketing services an attractive sector for investment, with PE firms deploying over $2.1Tn⁵ in capital to capitalize on industry growth.

Winning Strategies for Modern Marketing Success

To stay competitive in today’s rapidly evolving landscape, businesses must adopt innovative approaches. Here are five key strategies to drive growth and enhance marketing effectiveness:

• Adopt AI-Driven Strategies – Companies must integrate AI into their marketing efforts to improve efficiency, personalize campaigns, and enhance customer engagement.
• Leverage Digital Growth Opportunities – With digital advertising spend surpassing traditional media, brands should prioritize digital channels, including CTV, programmatic advertising, and influencer partnerships.
• Consider Strategic Partnerships and M&A – Businesses looking to expand should evaluate consolidation opportunities to enhance their service offerings and drive efficiency.
• Capitalize on Social Commerce Trends – As e-commerce integrates with social media, businesses should invest in social commerce strategies to capture consumer spending shifts.
• Stay Ahead of Industry Disruption – With continued transformation in marketing technology, businesses must remain agile, embrace new platforms, and leverage data-driven insights to maintain competitiveness.

Conclusion

The marketing services industry is poised for another year of growth in 2025, fueled by AI advancements, digital expansion, and increased M&A activity. Companies that adapt to these changes, invest in emerging technologies, and adopt integrated solutions will be well-positioned to thrive in this evolving landscape.

For further information, please contact Hugh Boston or Marcus Anselm.

¹ Winterberry Group, UK & US outlook for advertising, marketing & data (Feb-25), ² Bain & Company, For Marketers, Generative AI Moves from Novelty to Necessity (Feb-25), ³ Statista (Jul-24), ⁴ eMarketer, ⁵ Pitchbook

The rapid evolution of AI-driven zero-click search* is disrupting digital marketing, with major implications for performance marketing agencies. As search engines increasingly provide direct answers to user queries, traditional models reliant on SEO, PPC, and affiliate traffic are under pressure. Yet, while this shift presents challenges, it also unlocks opportunities particularly for social-first agencies and those adapting to AI-driven strategies.

*Zero-click search refers to a search engine result where the user’s query is answered directly on the search results page without requiring them to click on a website link. This often happens through featured snippets, knowledge panels, or AI-generated responses, reducing organic traffic to external sites.

The Rise of Social Media and Influencer-led Marketing

The decline of traditional search-driven traffic is accelerating the acceleration of social media and influencer-led marketing. Platforms such as TikTok, Instagram, and YouTube are increasingly serving as primary channels for product discovery, predominantly among younger demographics.

• Influencer marketing is poised to benefit as AI-driven search struggles to replicate the trust and authenticity of personal recommendations.
• Social-first brands will thrive by leveraging video content, user-generated posts, and AI-powered ads targeting to capture consumer attention.
• Programmatic and performance-based social advertising will see increased investment as brands diversify away from search-dependent models.

Opportunities for Traditional Performance Agencies

While SEO and PPC face headwinds, agencies that embrace AI-driven search and first-party data strategies can maintain their competitive edge, including the following:

• AI-Optimized Advertising: Google’s Performance Max and dynamic search ads offer new ways to reach audiences, even as traditional search ads decline in effectiveness.
• First-Party Data and CRM: With less reliance on search traffic, brands must prioritize direct customer engagement, loyalty programs, and personalized marketing.
• AI-Friendly Content and Structured Data: Optimizing for AI-powered search responses through structured data and authoritative content can sustain visibility.

Adapting to the Future

The age of zero-click search is here, forcing a strategic shift in performance marketing. Social-first agencies are well-positioned for growth, while traditional players who embrace AI, first-party data, and evolving ad formats will continue to thrive in this new digital landscape.

Recent Market Activity: A Shifting Investment Landscape

With deep industry expertise, JEGI CLARITY remains at the forefront of digital marketing M&A, guiding Global Corporates, Challenger Agencies, and Investors through an evolving landscape. Our recent transactions highlight the increasing demand for AI, data-driven marketing, and social-first strategies:

• Bridgepoint’s investment in SAMY – reinforcing the rise of social-first marketing agencies.
• LDC’s investment in PreciseTV – reflecting the shift toward video-led discovery and targeted advertising.
• ECI’s backing of Croud – emphasizing AI-powered advertising and first-party data strategies.
• The sale of Strategus to CIVC Partners – underscoring the growing demand for data-driven CTV solutions.

These deals signal a clear industry pivot toward AI integration, automation, and audience-first marketing. As digital discovery evolves, businesses that harness AI-driven search, social engagement, and data intelligence will shape the next era of marketing success.

Click below to explore each transaction. For further information, please Contact us.

In our most recent Power of 3 series, Jonathan Davis and Hugh Boston,  ask three questions to three leading executives across the digital marketing services landscape.

This series features Juan Andres Elhazaz, CEO of SAMY Alliance, Alex Langshur, CEO Americas of Incubeta, and Glen Hartman, CEO North America of JAKALA. A big thank you to all the participants for their involvement.

Here we share some of their collective thoughts on the trends and opportunities ahead for the global digital marketing industry.

Back to business fundamentals & strategic optimization

Alex Langshur of Incubeta emphasizes the importance of focusing on core business fundamentals—people, clients, operations, and financials—before refining strategy. He compares leadership to a pilot navigating an emergency, prioritizing essential controls.

AI as the future of digital marketing & business growth

All three CEOs stress AI’s transformative role across their industries. Langshur sees AI as the biggest growth driver for Incubeta, beyond creative applications. Hartman of JAKALA highlights AI-driven personalization and machine learning as key differentiators, while Elhazaz of SAMY Alliance notes AI’s role in shaping audience behavior and content trends.

M&A as a growth lever

Each company is expanding through acquisitions, targeting firms with strong data, AI, and specialized platforms expertise:

• SAMY Alliance sees M&A as one key lever to achieve their vision of becoming a global and independent leader in social media marketing. They look for social-first companies with recurring revenue, data-driven capabilities, and ambitious leadership.
• Incubeta seeks companies excelling in data/analytics, platforms specialization, scalable AI-driven processes and able to do digital creative optimization at scale.
• JAKALA prioritizes firms that are strong in AI, machine learning, and retail media, particularly in North America.

The need for market differentiation

Hartman of JAKALA critiques the “sea of sameness” in marketing services and stresses the need for unique value propositions. He champions “The Big Integration”—aligning strategists, data scientists, creatives, and media experts to focus on end-customer outcomes rather than traditional client metrics.

Social media & commerce as a core marketing channel

Elhazaz of SAMY Alliance emphasizes the dominance of social media in modern marketing, with brands leveraging platforms for audience insights, trend detection, and authentic engagement. He foresees social commerce as a major growth area.

Conclusion

These leaders share a common vision: leveraging AI and data-driven strategies, scaling through strategic acquisitions, and differentiating their services to stay ahead in a competitive digital landscape. While their approaches vary, their focus on innovation, optimization, and integration reflects the future direction of digital marketing and business transformation.

Please click here if you would like to access the videos. Alternatively, if you want to learn about this series or the market more broadly, reach out to us at  Contact us.