Market Update: Digital Agencies & E-commerce Q4 2022
2022, for many industries, was a year characterized by economic and financial challenges. Macroeconomic turmoil, robust interest rate hikes, and uncertainty throughout Eastern Europe led to the worst public market performance since 2008. This resulted in many businesses slowing growth initiatives, or pausing M&A altogether. Despite this cooling economic environment, in Q4 2022, the Digital Marketing and E-commerce sector experienced growth, with a 68.0% quarter-over-quarter uptick in deal volume count.
The rationale for this positive divergence away from the broader market selloff can be largely attributed to this sector’s persistence in innovation. Some marquee drivers of growth include the adoption of Composable Commerce and the transition away from the legacy monolithic technologies (among many other innovations) – an effort that has recently been championed by Shopify. These transformative commerce trends have proven to be an essential madidate for platforms looking to compete in an increasingly competitive marketplace. As stated by Gartner, “by 2023, organizations that have adopted a Composable Commerce approach will outpace the competition by 80% in the speed of new feature implementation.”
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.