Forget “Peak Influencer”: The Creator Ecosystem Is Energising Digital Commerce M&A

The latest Digital Commerce M&A report from Hampleton Partners reveals that deal activity in the sector has grown for the second reporting period in a row. While the pace of activity has, in the words of our Sector Principal Ralph Hübner, “been kept in check by the lingering effects of recent macroeconomic headwinds and the stringent requirements of acquirers less willing to take risks in a volatile market environment”, there are several key trends which indicate the sector will continue towards a more bullish path.

One particularly significant trend discussed in the report is the strong interest in influencer marketing companies, which have become highly sought-after acquisition targets. While some more cynical media commentators have speculated that the sheer number of lifestyle gurus, travel vlog creators and cooking channel presenters out there has reached saturation point (“peak influencer”), the data suggests that we’re in fact entering a particularly fertile era for influencer partnerships.

This is partly because the processes around this kind of marketing have matured and formalised, with AI-powered analytics and engagement technology allowing advertisers to more rapidly source relevant influencers, diligently assess their KPIs and efficiently manage partnerships. The evolving algorithms and formats employed by platforms like TikTok and YouTube, such as the rollout of YouTube Shorts, have also accelerated content creation, with advertisers having to be increasingly active and dynamic in the social space to stay on customers’ radars.   

The size of the global influencer marketing market has consistently grown across the past decade, seeing a dramatic rise between 2024 and this year. The recent news that consumer goods giant Unilever is pivoting to a “social-first advertising model” with the aim of working with 20x more influencers, is emblematic of the wider drive among advertisers to leverage the power of creators, whose messaging is perceived to be more authentic and closer to the consumer than traditional ads.

This has led to a concurrent rise in demand among advertisers for solutions which optimise the process of pinpointing the most relevant and effective influencers, and which allow them to manage partnerships, develop social campaigns and keep track of influencer-related KPIs. This accounts for the recent spending spree targeting influencer marketing firms, making this one of the most significant segments within the Digital Commerce sector. Here are some of the notable deals we’ve seen so far.

This year kicked off with a major deal in this space, with marketing platform Later snapping up influencer marketing company Mavely for USD 250m. Illinois-based Mavely’s appeal as an acquisition target rested on two key factors.

One was its sprawling network of more than 120,000 “everyday influencers”, described by Mavely as “relatable people who share authentic content”. The other was its analytics technology which simplifies the process of tracking attributable data and seeing precisely which influencer posts are contributing to sales. As influencer spend by advertisers continues to grow, so too will the importance of being able to track such tangible “bang for buck” sales outcomes, rather than more nebulous social engagement metrics.

A landmark deal in the influencer marketing space took place in July last year, when Publicis Groupe – one of the world’s largest communications companies – bought the leading influencer platform Influential for a reported USD 500m.

Headquartered in Nevada, Influential uses its proprietary AI technology to match brands with members of its 3.5 million-strong global network of influencers. At the time of the deal, Publicis Groupe’s CEO signalled the sea change taking place in the advertising world, acknowledging how the “new creator economy” is “set to exceed linear TV on ad spend in the next year”. This acquisition by one of the major legacy advertising companies underscores how integral creators have now become to corporate communications.

In the same month as the Publicis/Influential deal we also saw the purchase of LEADERS by global marketing network Stagwell for an undisclosed amount. Based in Israel, LEADERS specialises in influencer-focused content creation, and was a particularly appealing target thanks to its development of InfluencerMarketing.AI – an SaaS platform which streamlines the influencer partnership and management process.

Advertisers can use the platform’s AI-based search function to pinpoint influencers, send briefs and track ROI automatically, lowering the barrier to social campaigning. The purchase has both bolstered Stagwell’s AI capabilities and allowed the network to plant its flag in Israel for the first time.

In September, talent management company Dulcedo Group – which represents a plethora of client categories including models and athletes – acquired AI-powered influencer platform Node for USD 13m.

Based in Canada, Node specialises in speeding up the influencer partnership process by allowing brands to post products and content briefs on the Node app and then wait for creators to create social media posts to promote them. It also allows brands to pay influencers with products and gifts rather than cash, in a similar manner to crowdsourcing platforms like Kickstarter. This innovative, demystifying approach to influencer marketing was highlighted by Dulcedo as one of Node’s major selling points as an M&A target.

Last March, influencer marketing agency YKONE announced its 70% stake in Barcode, one of India’s leading companies operating within this space. The move was part of YKONE’s aggressive international expansion strategy, with the company eyeing both the fast-expanding luxury goods market in India and the country’s social media audience, estimated to encompass at least 500 million people.

Barcode, which features many of India’s most popular influencers on its roster, hailed the acquisition as a pathway to “promoting India’s unique narrative globally”.

These deals represent only a fraction of the many deals being made in the influencer marketing segment of the Digital Commerce sector. If you’re a founder or senior decision maker interested to know how you might capitalise, get in touch with Ralph Hübner to talk about your company and find out what steps you can take to achieve a successful exit.