Colonnade publishes industry commentary on lead generation agencies.
The lead generation industry is fragmented with companies operating differentiated business models. Broadly consisting of more than twenty-one thousand businesses, lead gen agencies include pure play sellers of contact lists, originators and sellers of leads, predictive modelers, content creators, website designers, SEO specialists, print mail houses, providers of direct mail advertising services, traditional advertising agencies and many companies with multiple business strategies. This white paper largely focuses on companies that originate leads and develop predictive models.
The industry presents a compelling investment opportunity for both financial investors and industry incumbents. Since January 2016, there have been approximately 100 M&A transactions in the lead gen industry, and we anticipate continued robust deal activity over the next 18 months as financial investors are attracted to the fragmented ecosystem, high cash flow margins and the expanding market size as operators look to dominate verticals, diversify channels, expand capabilities and grow geographically.