Leonis Principal, Inc. (d/b/a “Leonis Partners”) and The Jordan Edmiston Group, Inc. (d/b/a “JEGI CLARITY,” and together with Leonis Partners, the “Parties”) have entered into a proposed combination agreement (the “Transaction”). The Transaction is subject to approval by the Financial Industry Regulatory Authority (“FINRA”) and in the UK by the Financial Conduct Authority (“FCA”). The Parties will continue to be two distinct entities and businesses until the Parties obtain FINRA's and the FCA's approval of, and close, the Transaction. Click here for more information.
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Digital Marketing in Focus

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This month we examine the digital marketing industry including the key current drivers of growth, why brands are increasingly ‘In-Housing’ and global M&A activity in the sector.

Digital marketing growth drivers

  • c.47% of UK & US ad spend is digital, up from 17% in 2010
  • Stability in digital ad spend due to measurable ROI and CTR1
  • Digital ad prices are rising – CPM2 on Facebook from $4.3 to $9.1 and CPC3 on Google from $1.6 to $2.7 between 2015 and 2018
  • More relevant ad space is available due to media digitization
  • Consumers spend increasing time online with access to more digital
  • Tech development are opening new opportunities for digital marketing
  • Companies are developing in-house capabilities

In-housing has been a hot topic in boardrooms

Brands are seeking greater control of digital marketing as this is increasingly viewed as a sales channel as much as a marketing channel. 

Global M&A activity increasing in performance marketing

Global M&A activity in performance marketing services has increased in recent years. The growing digitalisation of media and rising digital ad costs are driving consolidation in the sector.  

• Whilst the Global Networks continue to be most acquisitive in this space, consultancies (such as Accenture) and PE-backed platforms (such as Elite SEM and Wpromote) were also prominent.  

• We expect M&A to remain active in 2019 with several acquisitions already announced including the investment in leading technologyled marketing agency, Brainlabs, by private equity fund Livingbridge (JEGI | CLARITY advised Brainlabs on this transaction). 

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