AdTech Market by Offering (Software Tools/Platform (DSPs, SSPs, DMPs, Ad exchange, Ad networks), Services), Marketing Channel (Mobile Apps, Website, Social Media), Advertising type (Programmatic, Search, Display), Vertical and Region – Global Forecast to 2030
The global AdTech Market is projected to grow from USD 579.4 billion in 2023 to USD 1,496.2 billion by 2030 at 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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Report Metrics |
Details |
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Market size available for years |
2019–2030 |
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Base year considered |
2022 |
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Forecast period |
2023–2030 |
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Forecast units |
USD (Billion) |
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Segments covered |
Offering, Advertising Type, Advertising Media, Vertical, and Region |
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Geographies covered |
North America, Asia Pacific, Europe, Middle East & Africa, and Latin America |
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Companies covered |
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). |
This research report categorizes the AdTech market based on offering, advertising type, advertising media, vertical, and region.
By Offering:
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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
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Solutions by Deployment Mode
- Cloud
- On-premise
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Solutions by Mode of Interface
- Desktop
- Mobile
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Services
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Professional Services
- Training & Consulting
- System Integration & Implementation
- Support & Maintenance
- Managed Services
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Professional 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
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Print Advertising
- Magazines
- Newspapers
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Outdoor Advertising
- Public Signs
- Billboards
- Posters
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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:
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North America
- US
- Canada
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Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
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Asia Pacific
- China
- India
- Japan
- Australia and New Zealand (ANZ)
- South Korea
- ASEAN Countries
- Rest of Asia Pacific
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Middle East & Africa
- UAE
- Saudi Arabia
- South Africa
- Qatar
- Rest of the Middle East & Africa
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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.
Frequently Asked Questions (FAQ):
What is AdTech?
AdTech is a broad category encompassing the tools and software employed by advertisers to oversee, target, and evaluating their digital advertising endeavors.
What is the total CAGR expected to be recorded for the AdTech market during forecast period?
The market is expected to record a CAGR of 14.5% during the forecast period.
What are the key drivers supporting the growth of the AdTech market?
Some factors driving the growth of the AdTech market are 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.
Which are the key advertising media prevailing in the AdTech market?
The key advertising media gaining a foothold in the AdTech market are Television Advertising, Radio Advertising, Print Advertising (Magazines, Newspapers), Outdoor Advertising (Public Signs, Billboards, Posters), and Digital Advertising (Display and Mobile Advertising, Search Engine Advertising, Social Media Advertising).
Who are the key vendors in the AdTech 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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The AdTech market research study involved extensive secondary sources, directories, journals, and paid databases. Primary sources were mainly industry experts from the core and related industries, preferred AdTech providers, third-party service providers, consulting service providers, end users, and other commercial enterprises. In-depth interviews were conducted with various primary respondents, including key industry participants and subject matter experts, to obtain and verify critical qualitative and quantitative information and assess the market’s prospects.
Secondary Research
In the secondary research process, various sources were referred to, for identifying and collecting information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from other secondary sources, such as journals, government websites, blogs, and vendors' websites. Additionally, AdTech spending of various countries was extracted from the respective sources. Secondary research was mainly used to obtain key information related to the industry’s value chain and supply chain to identify key players based on solutions, services, market classification, and segmentation according to offerings of major players, industry trends related to solutions, services, deployment modes, mode of interface, advertising type, advertising media, verticals, and regions, and key developments from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and AdTech expertise; related key executives from AdTech solution vendors, SIs, professional service providers, and industry associations; and key opinion leaders.
Primary interviews were conducted to gather insights, such as market statistics, revenue data collected from solutions and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped understand various trends related to technologies, applications, deployments, and regions. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and end users using AdTech solutions, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of AdTech solutions and services, which would impact the overall AdTech market.
The breakup of Primary Research:
To know about the assumptions considered for the study, download the pdf brochure
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COMPANY NAME |
DESIGNATION |
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C Wire |
Co-Founder |
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Vidsy |
Product Lead |
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Nickelytics |
CEO |
Market Size Estimation
In the bottom-up approach, the adoption rate of AdTech solutions and services among different end users in key countries concerning their regions contributing the most to the market share was identified. For cross-validation, the adoption of AdTech solutions and services among industries and different use cases concerning their regions was identified and extrapolated. Weightage was given to use cases identified in different regions for the market size calculation.
Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included the analysis of the AdTech market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socio-economic analysis of each country, strategic vendor analysis of major AdTech providers, and organic and inorganic business development activities of regional and global players were estimated. With the data triangulation procedure and data validation through primaries, the exact values of the overall AdTech market size and segments’ size were determined and confirmed using the study.
Global AdTech Market Size: Bottom-Up and Top-Down Approach:
Data Triangulation
Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included the analysis of the AdTech market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socio-economic analysis of each country, strategic vendor analysis of major AdTech providers, and organic and inorganic business development activities of regional and global players were estimated. With the data triangulation procedure and data validation through primaries, the exact values of the overall AdTech market size and segments’ size were determined and confirmed using the study.
Market Definition
AdTech is a broad category encompassing the software tools and platforms employed by advertisers for the purpose of overseeing, targeting, and evaluating their digital advertising endeavors.
Stakeholders
- AdTech vendors
- AdTech service vendors
- Managed service providers
- Support and maintenance service providers
- System Integrators (SIs)/migration service providers
- Value-added Resellers (VARs) and distributors
- Distributors and Value-added Resellers (VARs)
- System Integrators (SIs)
- Independent Software Vendors (ISV)
- Third-party providers
- Technology providers
Report Objectives
- To define, describe, and predict the AdTech market by offering (solutions & services), advertising type, advertising media, vertical, and region.
- To provide detailed information related to major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the market growth
- To analyze the micro markets concerning individual growth trends, prospects, and their contribution to the total market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the AdTech market
- To analyze opportunities in the market and provide details of the competitive landscape for stakeholders and market leaders
- To forecast the market size of segments for five main regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
- To profile key players and comprehensively analyze their market rankings and core competencies.
- To analyze competitive developments, such as partnerships, product launches, and mergers & acquisitions
- To analyze the impact of recession across all the regions across the AdTech market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per your company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product quadrant, which gives a detailed comparison of the product portfolio of each company.
Geographic Analysis
- Further breakup of the North American AdTech market
- Further breakup of the European market
- Further breakup of the Asia Pacific market
- Further breakup of the Middle Eastern & African market
- Further breakup of the Latin America AdTech market
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in AdTech Market