AI and Private Equity Are Rewriting the Marketing World in 2025
As the dust settles from the Omnicom x IPG mega-merger, the marketing and media landscape braces for a transformative 2025.
SI Partners’ Global M&A Insights Report 2024 unveils an accelerated trajectory for mergers and acquisitions (M&A) in the coming year, fuelled by the dual engines of private equity (PE) investment and AI innovation.
Southeast Asia, long a region of promise, now emerges as a key battleground for digital transformation and tech-enabled services, alongside legacy players recalibrating their strategies.
Private Equity and AI: Shaping the Future
Private equity continues to be a driving force, accounting for over one-third of M&A activity in 2024.
With a focus on quality over quantity, PE firms are hunting for companies that exhibit resilience and innovation.
According to Julia Vargiu, Director at SI Partners, the ability to pivot toward AI-operating models will define market leaders in 2025.
“The next year is set to redefine the M&A market. Larger players are rethinking strategies, whether consolidating or becoming acquisition targets themselves,” Vargiu shared.
“Innovative businesses prepared to lead with bold moves and adopt cutting-edge AI will reap the rewards.”
Legacy marketing groups like WPP are feeling the heat to replicate Publicis’ success with Sapient, while newer entrants are focused on integrating data-driven and tech-enabled capabilities.
In this shifting landscape, businesses moving beyond basic AI tools to operational AI models are positioning themselves as the forerunners of the next decade.
Southeast Asia and the Middle East: Emerging Stars
While the United States continues its dominance as the epicentre of M&A, Southeast Asia and the Middle East are now emerging as strategic regions for growth.
Buyers are increasingly looking at these markets for their digital transformation potential and tech-led services.
Michael Chin, Director at SI Partners, highlighted the significance of Southeast Asia.
“The region’s robust growth and tech adoption make it an attractive hub for digital innovation. Foreign buyers are eyeing opportunities in Southeast Asia, particularly in markets where businesses are embracing advanced tech capabilities and AI-powered transformation.”
The report highlights how this geographic shift could redefine global competition.
Southeast Asia’s growing pool of tech talent and expanding digital infrastructure are proving irresistible for firms seeking a foothold in the Asia-Pacific region.
Meanwhile, economic and geopolitical challenges in China have further tilted the spotlight toward other APAC hubs like Malaysia, Singapore, and Indonesia.
Tech and Media: Converging at the Speed of Innovation
One sector leading the charge in M&A is technology consulting, with Accenture topping the list at 26 acquisitions in 2024.
The convergence of media, marketing, and technology is accelerating, with AI driving transformations across industries.
Companies that integrate AI deeply into their operations are expected to not just survive but thrive in the new landscape.
Legacy players face mounting pressure to innovate.
WPP, for instance, is exploring ways to replicate Publicis’ Sapient success by integrating tech expertise more holistically into its offerings.
Meanwhile, contemporary players are leveraging data and automation to create cutting-edge solutions, making them hot targets for acquisition.
A Moment of Reckoning
SI Partners’ Report underscores that patience and strategy will be pivotal in the year ahead.
Sellers with strong 2024 performance metrics are driving activity, while buyers recalibrate their priorities toward sustainable and innovative businesses.
“The M&A market is recovering, but it’s a seller’s market for those who can demonstrate value,” Vargiu noted.
“This is a moment for market leaders to set themselves apart.”
With Southeast Asia’s growing prominence, businesses in the region have a unique opportunity to attract global interest.
The challenge will lie in showcasing resilience, innovation, and a commitment to integrating transformative technologies like AI.
Southeast Asia’s Time to Shine
As 2025 approaches, the M&A landscape promises to be more dynamic than ever.
Southeast Asia stands at the cusp of this transformation, offering fertile ground for growth and innovation.
For businesses, the key will be bold moves, a focus on AI-operating models, and the ability to demonstrate undeniable value in a competitive market.
The race is on, and Southeast Asia is poised to lead the charge.
