AdTech Market

The global AdTech Market is expected to expand from USD 579.4 billion in 2023 to USD 1,496.2 billion by 2030 registering a compound annual growth rate (CAGR) of 14.5% during the forecast period. Due to various business drivers, the AdTech market is expected to grow significantly during the forecast period. The market is experiencing significant growth due to the increasing demand for data-informed marketing strategies. The growing popularity of audio streaming and podcasts for audio advertising and the proliferation of smartphones for greater mobile optimization and in-app advertising is also responsible for driving the market’s growth.

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Market Dynamics

Driver: Proliferation of smartphones for greater mobile optimization and in-app advertising

The proliferation of smartphones, with their ubiquitous presence, has significantly bolstered the demand for AdTech solutions, particularly in the realm of mobile optimization and in-app advertising. As users increasingly rely on their mobile devices for various activities, advertisers must adopt a mobile-first approach, optimizing content and ad campaigns to provide a seamless and responsive user experience on smartphones. Simultaneously, in-app advertising has gained prominence, capitalizing on the high levels of user engagement within mobile applications. Advertisers are leveraging this contextually relevant advertising medium to reach and engage users, utilizing interactive ad formats and benefiting from the monetization opportunities it offers to app developers. In this mobile-centric landscape, programmatic mobile advertising further enhances efficiency and precision, enabling data-driven targeting and cross-device tracking, ensuring that ads are delivered consistently and effectively across mobile devices and platforms. There have been notable deals and investments in the in-app advertising space in recent years. For instance, in 2020, Unity Technologies acquired DeltaDNA, a player in real-time player management and game analytics, to enhance in-app advertising and personalization.

Restraints: Stringent privacy regulations and security concerns

Privacy regulations and security concerns collectively impede the growth of AdTech solutions in the market. Privacy regulations, like GDPR and CCPA, mandate stringent data collection and usage restrictions, requiring explicit user consent and limiting available data for targeted advertising. Simultaneously, security vulnerabilities pose significant risks, necessitating increased efforts and costs to secure sensitive user information. High-profile data breaches erode user trust and brand reputation, further complicating the AdTech landscape. Advertisers and AdTech providers must strike a delicate balance between regulatory compliance, data security, and effective advertising strategies to ensure the industry's sustainable growth. Privacy regulations and security concerns hinder the growth of AdTech solutions by imposing strict compliance requirements, reducing the availability of user data, and necessitating increased security measures.

Opportunity: Widespread adoption of AR and VR technologies for more interactive and immersive ad experiences

The widespread adoption of augmented reality (AR) and virtual reality (VR) is a transformative opportunity for AdTech solutions in the market. The growth of AR and VR is supported by data showing the increasing demand for immersive experiences. According to MarketsandMarkets, worldwide spending on AR and VR is forecasted to reach USD 25.1 billion in 2023, reflecting the significant market potential. AdTech solutions can harness this momentum to deliver captivating, interactive ad formats. Users are embracing AR and VR, with applications extending from gaming to education, training, and beyond. This opens the door for AdTech to offer highly engaging and immersive ad experiences, allowing users to interact with products, services, and brand content in a virtual space. The opportunities are vast, from showcasing products in a three-dimensional space to creating interactive narratives that immerse users in brand stories. This level of engagement not only captures user attention but also fosters a deeper connection with brands. By integrating AR and VR into advertising campaigns, AdTech solutions stand to enhance user experiences and offer advertisers an exciting avenue for reaching and resonating with their target audiences, driving the continued adoption of AdTech solutions in the quest for more impactful advertising.

Challenge: Presence of Ad-Blocking Bypass Solutions

Ad-blocking bypass solutions create a multifaceted challenge for adopting AdTech solutions in the market. These tools disrupt user experience and trust, as users employ ad-blockers to reduce intrusive ads. The ongoing battle between ad-blockers and bypass solution developers results in reduced effectiveness for campaigns targeting bypass users, often leading to lower engagement and conversion rates. Privacy concerns, negative brand image, legal and ethical considerations, and resource-intensive development further complicate the landscape. Users' resistance to advertising and the potential backlash associated with bypass attempts add to the challenge, demanding a delicate balance between user experience, privacy, and ethical practices. Advertisers and AdTech providers must carefully navigate this complex environment to preserve user trust and ensure the effective adoption of AdTech solutions.

AdTech Market Ecosystem

By offering the demand Side Platforms (DSP) segment to account for a larger market size during forecast period

The AdTech solutions include Demand-Side Platforms (DSP), Supply-Side Platforms (SSP), Ad Networks, Data Management Platforms (DMP), Agency Trading Desks (ATD), Ad Exchange Platforms, Ad Creative and Production Tools, Ad Analytics and Attribution Platforms, Ad Verification and Brand Safety and other solutions (Data Analytics and Insights, Ad Fraud Prevention, Compliance and Policy Management and CRM Integration). Factors propelling the growth of DSPs in the AdTech market are the surge in digital advertising spending, the proliferation of mobile devices, and the increasing emphasis on data-driven advertising strategies are some of the driving factors. Additionally, the shift toward programmatic advertising continues to be a dominant trend, with advertisers seeking more efficient and automated ways to reach their target audiences.

By advertising type, native advertising registers the highest CAGR during the forecast period

The native advertising segment is projected to grow more during the forecast period. Native ads, being more integrated and less obtrusive, offer a way to overcome this challenge. Advertisers are increasingly seeking ways to improve engagement and build brand loyalty, and native advertising provides a means to do so by delivering content that's relevant and appealing to the audience. As mobile usage continues to grow, native ads are being adapted for mobile devices to ensure a seamless user experience. Native advertising platforms are also focusing on enhancing the tracking and measurement capabilities to provide advertisers with better insights into their campaign performance.

By verticals, BFSI holds the highest CAGR during the forecast period

The increased competition among financial institutions is one of the factors. Banks and insurance companies are constantly looking for ways to differentiate themselves in a crowded market, and AdTech plays a crucial role in helping them target the right audience with personalized offers and services. This competitive landscape is pushing BFSI companies to invest in advanced advertising technologies and services. AdTech solutions enable these organizations to analyze vast amounts of data to understand customer behavior, preferences, and risk profiles.

By region,  Asia Pacific holds the highest CAGR during the forecast period

From a technological perspective, the Asia Pacific AdTech market is enthusiastically embracing cutting-edge innovations. Markets such as South Korea and Japan are witnessing a flourishing trend in influencer marketing, while China's e-commerce giants are pioneering novel advertising strategies, including live-stream shopping. As consumer behavior undergoes transformation, AdTech firms are devising strategies to cater to the diverse preferences and behaviors prevalent across the Asia Pacific region.

Key Market Players

The AdTech solution and service providers have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgrades, partnerships, and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. Some major players in the AdTech market include Meta (US), Google (US), Amazon (US), Adobe (US), Yahoo (US), Zeta (US), Microsoft (US), Celtra (US), Basis Technologies (US), Luna (US), NextRoll (US), Quantcast (US), Criteo (France), Affle (India), InMobi (India), Demandbase (US), The Trade Desk (US), Adform (Denmark), Equativ (France), Tremor International (Israel), Innovid (US), Mediaocean (US), DoubleVerify (US), Magnite (US), Copy.ai (US), Nickelytics (US), C Wire (Switzerland), Cavai (Norway), Titan Digital (US), Glimpse Protocol (UK), StackAdapt (Canada), Cosmose AI (Singapore), Vidsy (UK), and Linkby (Australia).

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Scope of the Report

This research report categorizes the AdTech market based on offering, advertising type, advertising media, vertical, and region.

By Offering:

• Solutions
  • Demand-Side Platform (DSP)
  • Supply-Side Platform (SSP)
  • Ad Networks
  • Data Management Platform (DMP)
  • Agency Trading Desks (ATD)
  • Ad Exchange Platform
  • Ad Creative and Production Tools
  • Ad Analytics and Attribution Platforms
  • Ad Verification and Brand Safety
  • Other solutions
• Solutions by Deployment Mode
  • Cloud
  • On-premise
• Solutions by Mode of Interface
  • Desktop
  • Mobile
• Services
  • Professional Services
    • Training & Consulting
    • System Integration & Implementation
    • Support & Maintenance
  • Managed Services

By Advertising Type:

• Programmatic Advertising
• Search Advertising
• Display Advertising
• Mobile Advertising
• Email Advertising
• Native Advertising
• Other Advertising Type

By Advertising Media:

• Television Advertising
• Radio Advertising
• Print Advertising
  • Magazines
  • Newspapers
• Outdoor Advertising
  • Public Signs
  • Billboards
  • Posters
• Digital Advertising
  • Display Advertising
  • Mobile Advertising
  • Search Engine Advertising
  • Social Media Advertising

By Vertical:

• BFSI
• Media & Entertainment
• Healthcare & Life Sciences
• Retail & eCommerce
• Manufacturing
• Transportation & Logistics
• Food & Beverages
• Travel & Hospitality
• Telecom
• Others Verticals

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia and New Zealand (ANZ)
  • South Korea
  • ASEAN Countries
  • Rest of Asia Pacific
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Qatar
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America

Recent Developments:

• In August 2023, Meta acquired Kustomer, a customer relationship management (CRM) platform, for USD 1 billion. This acquisition is seen as a way for Meta to expand its advertising business to include more customer data.
• In August 2023, Amazon Ads launched a Household Reach and Frequency measurement reporting capability, which allowed Streaming TV (STV) advertisers to measure the effectiveness of their STV campaigns more accurately and to plan and optimize their campaigns more effectively. With this release, advertisers can now access reach and frequency insights both at the viewer and household level.
• In August 2023, Zeta launched a Snowflake Native App, Customer Growth Intelligence (CGI), on Snowflake Marketplace. This new offering enhances and extends the deep integration between the two companies, sharing a vision to reinvent how enterprises ingest, store, synthesize, surface, and activate consumer data to make complex solutions simpler for marketers.
• In July 2023, Meta and Microsoft partnered to bring Meta's advertising platform to Microsoft's cloud computing platform, Azure. This partnership will allow Meta to reach a wider audience of advertisers and provide them with more data and insights.
• In June 2023, Adobe unveiled Generative Recolor (beta), the first integration of Adobe Firefly in Adobe Illustrator, enabling designers to quickly experiment with colors using simple text prompts. The new release advances Adobe's vision of empowering creators of every skill level with Firefly as a creative co-pilot, bringing their visions to life at the speed of imagination.
• In October 2022, Yahoo announced a strong advanced TV (ATV) partnership with DIRECTV Advertising to provide access to DIRECTV’s set-top box (STB) data, unlocking new value for connected TV (CTV) buyers. With this expanded partnership, Yahoo’s demand-side platform (DSP) customers can now activate TV usage data from millions of DIRECTV households to optimize the planning, activation, and measurement of digital campaigns across DIRECTV and non-DIRECTV inventory.
• In September 2022, Yahoo launched Yahoo Member Connect, a cutting-edge media network solution that helps leading brands add to their core business. Yahoo Member Connect supports all types of businesses looking to build and scale their own media networks – enabling them to monetize data and media assets, engage with customers at scale, and offer rich ad experiences with quality content.

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