How Merkle streamlined its offerings to fit Dentsu’s mission in the last year

It’s not an overstatement to say Merkle’s role in Dentsu has been a bit unclear since the Japanese agency holding company consolidated its ownership in the firm back in 2020.  Even a few Dentsu executives might admit it — privately. 

Is Merkle a data arm like Acxiom is to Interpublic Group, or Epsilon is to Publicis? Is it a digital agency that contributes to and competes with Dentsu’s array of media agencies like iProspect or Dentsu X? Does it fall somewhere in between — or is it something else entirely? 

Since 2023 when Pete Stein took over global operations of Merkle, it’s been his job to figure out Merkle’s proper role within Dentsu, then execute the organizational revamp needed to put it to use.

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What’s the future of data collaboration platforms?

Two deals stood out during the Q1 wave of consolidation in the ad tech and martech landscape, with activity from agency holding companies piquing interest: Publicis Groupe bought Lotame, while WPP acquired InfoSum.

These deals were notable as they represented holding companies writing big checks for ad tech or martech assets — let’s put the pending InterPublic Group (read Acxiom) merger with Omnicom to one side for now — rare occurrences in recent years, compared to similar M&A in the 2010s. 

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In both cases, the Madison Avenue stalwarts bought close bedfellows (see below), in quick succession. As one source, who requested anonymity as they were not cleared to speak with the press, said, “You usually see holdcos [sic] copy holdcos with acquisitions.”

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