The fourth quarter of 2016 was active for transactions across the digital media space, with nearly 250 global M&A transactions and more than 1,400 disclosed global financings.
Several key trends that drove consolidation and investment in the sector included:
- Traditional media companies’ continued focus on utilizing alternative digital channels to distribute content and attract new audiences
- Increased activity from Chinese investors and conglomerates in the advertising and digital marketing sectors
- Ongoing merger activity between traditional brick-and-mortar retailers and eCommerce businesses to create omni-channel commerce platforms
- Expanded investment across virtual and augmented reality content production and platform technologies
- Migration of enterprise services and content to the cloud, and
- An expanded focus on mobile marketing and marketing automation to increase the effectiveness of advertising ROI.