Holding groups face fight for talent as Facebook and Google tipped to hit acquisition trail

Dentsu and WPP acquired 75 companies in 2016, splashing out US$3b in the process, with digital and analytic firms their principal targets.

A study by global pitch consultancy R3 revealed 80% of WPP’s 36 transactions were for digital and tech agencies, while Dentsu also brought in data and analytic expertise, most notably through the acquisition of US independent agency Merkle.

R3’s analysis of marketing mergers and acquisitions in 2016 covered 398 transactions with $14b changing hands, an increase of 150% over 2015. US acquisitions led the way in terms of number and value, 41% and 50% respectively.