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In a world where AI decisioning and autonomous agents are reshaping the advertising landscape, data and identity have never been more important. After all, how can you market to someone if you can’t find them?
But the rise of AI-driven platforms like Google’s Performance Max (PMax) and Meta’s Advantage+ has fundamentally altered how advertising operates. These systems now rely more on high-quality first-party data signals and less on manual human optimization—a shift that’s expanding beyond paid media into lifecycle marketing and digital experiences. This has put enormous pressure on the big holding companies to innovate both their tech capabilities and their services offerings.
Against this backdrop, Publicis’ acquisition of Lotame is a smart strategic move, reinforcing their identity and activation capabilities in an increasingly cookieless world. But I’m not sure it creates a durable advantage.
The future I see unfolding at big brands is founded on first-party data, so this acquisition begs the question: Should brands really be outsourcing identity resolution—or should they be taking control of it?
The answer depends on where you sit in the market. For mid-market brands, CPG advertisers, and those lacking rich first-party datasets, third-party identity solutions like Lotame’s Panorama ID and Data Marketplace can still play a role. But for large enterprises with millions of logged-in users, loyalty memberships, purchase transactions, and real-time behavioral data, external identity providers can still offer value in certain areas. However, overreliance on them can be unnecessary, costly, and increase the risk of vendor lock-in.
The future of advertising isn’t just about buying identity graphs—it’s about building and activating a strong first-party identity foundation while strategically supplementing with partner data where it adds value.
Why Publicis is making this move
There’s a bigger story behind this acquisition. The reality is that holding companies are under pressure as AI-driven ad platforms automate more of the traditional services they provide.
PMax and Advantage+ have already changed the game. While agencies and trading desks still play a role in creative strategy and audience segmentation, these platforms have reduced the need for manual campaign optimization by autonomously testing and optimizing against first-party data signals. AI is placing similar burdens on agencies and challenging the FTE model, forcing them to find new revenue sources and explore alternate business models.