Publicis Groupe today announced it has entered into an agreement to acquire Andy Monfried’s Lotame, one of the longest-tenured and most popular independent data solutions companies, as part of its push to accelerate its AI strategy.
Why This Matters:
Lotame owns one of the world’s largest third-party data marketplaces and operates globally across every continent and in over 100 countries. In addition to its data marketplace for enrichment, the company offers ID solutions like Panorama ID, an interoperable, cookieless identifier built on what Publicis says is “100+ data sources and activated through more than 1.6 billion IDs.” Publicis also claims that over 4,000 of the world’s leading brands and publishers use Lotame’s solutions globally.
By combining Publicis and Lotame, Publicis gains access to a combined 2.3 billion global profiles, enabling its advertisers to target over 90% of adult internet users in an addressable way. Keep in mind, Publicis also owns Epsilon—so this acquisition is part of its broader effort to carve out real ownership of identity-driven marketing. Publicis says the combined footprint of Epsilon and Lotame will expand its unique profiles to nearly 4 billion in total. Lotame is also expected to help drive Epsilon’s expansion in APAC and EMEA, where Lotame has a strong presence.
Lotame strengthens that data pool while also providing standard DMP capabilities. The company has a fast-growing curation business, which should also benefit Publicis. And all of this—especially access to a third-party data marketplace and Lotame’s Panorama ID—should enhance CoreAI, Publicis’s AI platform. After all, the company that owns the data and has insight into it ultimately builds the better AI product. Scale matters.
This also looks like a massive win and a nice exit for Lotame Founder and CEO Andy Monfried. However, the release states he “will be positioned as part of Epsilon, accessible to all Publicis clients and teams to enhance their ability to deliver personalized marketing services at scale.” Even after you close a deal, the work never really ends, I guess. The deal comes a year before Lotame’s 20th birthday, after launching in 2006.
Experts React:
Here’s what Andy had to say about the deal:
“We have a rich history of innovation, building out our global data marketplace and scaling our identity solution to become among the most trusted and adopted in the industry. We are beyond thrilled to join Publicis Groupe, who shares our commitment to industry interoperability, connectivity, and privacy. Together with Epsilon, we look forward to delivering the next chapter of connected identity for Publicis.”
And here’s the Publicis Groupe take from Arthur Sadoun, Chairman and CEO:
“In the age of AI, the name of the game is connect or die.
By connecting Lotame to Epsilon, we’re reinforcing our industry-leading identity graph, giving clients the unique competitive advantage of seeing and engaging with 91% of all adults who use the internet, safely and transparently.
By connecting that best-in-class identity to our clients’ data thanks to AI, and leveraging it across their marketing spectrum, from their PESO media ecosystem to content production, all in their owned environments, we are truly delivering measurable outcomes for their business.
It’s how we are making CoreAI a reality, and how we’ve built a category of one for Publicis that means today we are the world’s largest advertising group, leading the industry on every KPI.
As we continue to invest in the products, services and talent that drive differentiation and growth for our clients, I couldn’t be happier to welcome Andy and the outstanding teams at Lotame on board.”
Our Take:
Yesterday, after it was revealed that T-Mobile was buying Blis, we wondered who would be next to be bought? Well, now we know. That was fast!
