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NZ Marketers: Ad Tech Deals Decline, AI Investments Surge Amid Economic Headwinds
Global ad tech and martech dealmaking experienced a significant slowdown in Q1 2026, primarily due to macroeconomic uncertainty. Despite this cooling, Artificial Intelligence (AI) remains a highly attractive area for investment and acquisition, signaling a clear strategic direction for technology development.
What Happened
- •Q1 2026 saw a notable decrease in overall dealmaking activity within the ad tech and martech sectors.
- •Macroeconomic instability is identified as the primary factor contributing to this decline in mergers and acquisitions.
- •Investment in Artificial Intelligence (AI) technologies continues to be robust, bucking the general downward trend.
- •The focus of remaining deal activity is shifting towards strategic acquisitions that enhance core capabilities or integrate AI.
- •LUMA Partners' Q1 report highlighted the impact of economic drag on deal volumes.
- •Companies are prioritising efficiency and innovation, with AI seen as a key driver for both.
Why It Matters for NZ Marketers
- •NZ marketers should anticipate slower adoption of new, non-AI ad tech platforms as global investment cools.
- •Local agencies and tech providers may find it harder to secure funding or attract buyers without a strong AI proposition.
- •Increased global AI investment signals that NZ marketers must accelerate their own AI integration to remain competitive.
- •Budget allocations for marketing technology in NZ should scrutinise ROI closely, favouring solutions that demonstrate clear efficiency gains or innovative AI capabilities.
- •The shift towards strategic acquisitions means fewer 'nice-to-have' tools and more focus on essential, impactful technology for NZ businesses.
- •NZ's smaller market size could make it more susceptible to global investment trends, potentially delaying access to cutting-edge, non-AI-driven martech.
Strategic Implications
- •Prioritise AI integration across marketing functions, from content creation to audience targeting and measurement.
- •Evaluate existing martech stacks for redundancy and opportunities to consolidate, focusing on platforms with strong AI roadmaps.
- •Invest in upskilling marketing teams in AI literacy and application to maximise the utility of new tools.
- •Seek partnerships with local or international providers demonstrating clear AI innovation and proven results.
- •Develop a clear data strategy to feed AI models effectively, ensuring high-quality inputs for optimal outputs.
- •Focus on demonstrable ROI for all technology investments, particularly in a climate of economic uncertainty.
Future Trend Signals
- •AI will increasingly become a foundational layer across all marketing technology, not just a standalone feature.
- •Consolidation within the ad tech and martech landscape will continue, driven by the need for efficiency and AI integration.
- •Companies without a compelling AI strategy will struggle to attract investment or maintain market relevance.
- •The focus will shift from acquiring 'more' technology to acquiring 'smarter' technology that leverages AI for efficiency and insight.
Sources
Editorial note: This analysis is original, AI-assisted editorial content. All source material is attributed with links. No full articles are reproduced. Short excerpts are used under fair dealing principles.
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