The news: Horizon Media, the largest independent media agency in the US, is on the lookout for acquisition targets. CEO Bill Koenigsburg told Business Insider in an interview that the company is actively searching for acquisitions in retail technology, influencer marketing, and sports marketing.

Recently appointed president Bob Lord, an advertising veteran who led acquisitions at AOL and worked at IBM and Publicis Groupe, will lead Horizon’s search for acquisitions.

Eyeing opportunity: Koenigsburg’s statements signal a new era for Horizon. Its recent struggles, including the loss of its three-decade account with Geico in 2023, and a focus on new areas of interest reflect a broader shift among large agencies to rely less on big-ticket clients, for whom competition is steep.

• Retail media’s consistent double-digit spending growth has attracted significant attention from agencies. The ad channel opens up spending from midsize and smaller businesses, whose operations can be less volatile than sought-after, big-name brands.
• Influencer marketing is also surging. Social media platforms are adding tools to connect marketers with creators, who are becoming increasingly important as regulatory changes make it harder to track young audiences.

Our take: Mergers and acquisitions will allow companies like Horizon to claim an even larger share of the rapidly growing digital advertising industry. While the US will make up the majority of the industry’s spending in 2025, capturing even 1% of the global market represents a multibillion-dollar opportunity.

• Ad industry deals spiked in the second half of 2024 and have continued at a strong pace in Q1 2025. January has been flush with news of mergers and acquisitions following December’s landmark deal between Omnicom and Interpublic Group, as the new Trump administration has signaled that it will be friendlier to consolidation.
• We expect global digital ad spending to total $776.98 billion in 2025, up strongly from last year’s $689.56 billion. North America will account for 46.5% of all digital ad spending, with Asia-Pacific (28%) and Western Europe (15%) following.

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