Market Update: Digital Marketing & E-commerce Q1 2023
In Q1 2023, deal activity declined modestly from the previous quarter’s volume but demonstrated positive quarter-over-quarter growth considering that Q1 2023’s global M&A activity shrank to its lowest level in more than a decade, as rising interest rates, high inflation and fears of a recession soured the appetite of companies for dealmaking.
Despite the cooling economic environment, Digital Marketing and E-commerce revenues continued to climb during Q1 2023, further bolstering E-commerce’s recent sales record of ~$299 billion during the last quarter of 2022. This is up 6.2% from ~$282 billion recorded in Q4 2021, according to the U.S Department of Commerce. This rapid growth contributed to E-commerce sales surpassing $1 trillion for the first time in history, representing a 7.7% year-over-year growth.
The rationale for this positive divergence away from the broader market selloff can be largely attributed to the sector’s innovation driven by breakthrough and disruptive small/medium and enterprise-business-focused E-commerce platforms such as BigCommerce, Commercetools, and Drupal as well as the accretive (1.8% QoQ growth) E-Commerce penetration of U.S. retail.
7MA has completed numerous M&A transactions for companies with Digital Marketing & E-commerce service providers. 7MA has developed unparalleled deal expertise and knowledge of the industry, valuation trends, and most active strategic and financial buyers. Please get in touch with Mark Landry, Sydney Scadden, or Ilia Ulianchuk if you would like to learn more about Digital Marketing & E-commerce.