French ad holding company Publicis said Sunday it would pay about $4.4 billion for marketing services company Epsilon to give it a leg up in digital marketing and to help clients better personalize their advertising.
The deal comes as the advertising industry reckons with the huge growth of digital advertising and the emergence of players like Facebook and Google. Digital ad spending was expected to surpass traditional ad spending in the U.S. for the first time this year, according to eMarketer, which also expects digital to account for more than two-thirds of all media spending by 2023.
Major ad holding companies have grappled with whether to own data or to insource the data from providers. Last summer, Interpublic Group of Cos. agreed to acquire Acxiom's Marketing Solutions for $2.3 billion. Dentsu Aegis Network in 2016 bought a majority stake in data marketing company Merkle. "As privacy becomes more and more of a concern for marketers and their customers, that capacity to balance precision marketing with customer and consumer privacy is a really important issue," he said.
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