Solganick & Co. Issues Q1 2017 Digital Media M&A Update

June 8, 2017 – Los Angeles and San Francisco, CA –  Technology and Digital Media investment banking firm Solganick & Co. has issued it’s latest Digital Media M&A Update for Q1 2017.   Solganick – Q1 2017 Digital Media Report

 
The following summarizes the report highlights:

  • Q1 deal value increased significantly to $3.17 billion, up by 223% compared to the previous quarter.
  • Deal volume increased by 46% compared to 48 in Q4 2016.
  • Ad Tech made up the largest portion of the Digital Media sector with 60% of deal volume in Q1 2017. eCommerce and Marketing Tech sectors shared the remaining part of the pie equally at 20%.
  • Strategic buyers completed 54 deals in Q1 2017 and a total reported value of $2.65 billion.
  • There is ample cash on corporate balance sheets and $852 billion in global private equity dry powder.

 

Digital Media M&A Drivers 2017

 

 Mobile Pushes Steady Internet Usage Growth

U.S Adults now spend over 5.6 hours per day on the internet, including over 3 hours per day on mobile when compared to under 1 hour per day in 2011. Yet, desktop usage has declined slightly, indicating it’s more of an addiction of mobile than a shift to mobile.

 

 Mobile Ad Dollars Now Exceed Desktop

While total online ad spend is growing steadily, mobile has now overtaken the desktop in ad dollars just like it has with usage time.

 

There Should Be More Ad Spend On Mobile

People spend 28 percent of their media time on mobile yet it only receives 21 percent of ad spend, indicating there’s a $16 billion opportunity for more mobile ads.

 

You can access and download the complete report here:  Solganick – Q1 2017 Digital Media Report

Posted in Digital Media M&A, Quarterly Update, Sector Analysis and tagged , , , .