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A53696 | Pages: 408 | Charts: 93 | Tables: 189 |
The global AdTech market was valued at USD 748.2 billion in 2021, and is projected to reach USD 2.9 trillion by 2031, growing at a CAGR of 14.7% from 2022 to 2031.
Factor such as growing digital and internet penetration around the world is positively impacting the growth of the market. In addition, increase in adoption of AdTech solution to enhance operation & productivity strengthens the growth of the AdTech market trends for future. Furthermore, rising adoption of advanced technology such as artificial intelligence (AI), machine learning, and AR/VR, among others are expected to provide the lucrative growth opportunities for the advertising technology market during the forecast period. Moreover, rising gaming industry and growing social media app such as Facebook, Whatsapp and others, create numerous opportunities for the market growth in the upcoming years. However, data security and high investment costs hamper the AdTech market growth.
Adtech is a broad term that categorizes the software and tools that agencies, brands, publishers, and platforms use to target, deliver, and measure their digital advertising efforts. Adtech software platforms help brands and agencies purchase advertising space. It also helps publishers price and sell their ad space. Moreover, the adtech industry has been eager to adopt adtech because of the competitive advantages it provides. Adtech enables brands to track their customers’ online behaviors, delivering insights into the interests and preferred online formats of their audiences. Teams can then shape their advertising content around a customer profile while leveraging software and platforms to quickly produce and spread content across multiple channels. Furthermore, emerging advanced adtech solutions such as AI/ML can solve a variety of human error and quality issues. Hence, many organizations such as healthcare, IT, retail, and other sectors are adopting AdTech due to its benefits. This factor creates lucrative growth opportunities in the advertising technology market.
The Adtech market is segmented into solution, advertising type, enterprise size, platform, industry vertical, and region. As per solution, it is bifurcated into demand-side platforms (DSPs), supply-side platforms (SSPs), ad networks, data management platforms (DMPs) and others. According to advertising type, it is divided into programmatic advertising, search advertising, display advertising, mobile advertising, email marketing, native advertising, and others. Depending on enterprise size, the market is segregated into small and medium-sized enterprises smes and large enterprises. According to platform, the market is segregated into mobile, web, and others. By industry vertical, the market is classified into BFSI, IT & telecom, retail & consumer goods, education, healthcare, media and entertainment, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
[ENTERPRISESIZEGRAPH]
On the basis of enterprise size, the global AdTech market share was dominated by the large enterprises in 2021 and is expected to maintain its dominance in the upcoming years. This is mainly attributed due to higher adoption of adtech solution in large organizations. However, small & medium-sized enterprises segment is expected to witness the highest growth, owing to digitalization and increasing investment in advanced technology such as AI/ML, AR/VR, and others which are expected to provide lucrative opportunities for the market growth during the forecast period.
[REGIONGRAPH]
By region, North America dominated the market share in 2021 for the market. The increasing investment in advanced technologies such as AdTech solution to improve businesses and the customer experience are anticipated to propel the growth of market in North America. However, Asia-Pacific is expected to exhibit highest growth during the forecast period. This is attributed to increase in penetration of digitalization and higher adoption of advanced technology are expected to provide lucrative opportunities for the market growth in this region.
Key player in the adtech market such as Adobe Inc., Twitter, Inc., Verizon Communications Inc., Amazon.com, Inc., Oracle Corporation, Meta Platforms, Inc., Microsoft Corporation, Google LLC, InMobi Technology Services Private Limited, Alibaba Group Holding Limited
Digital marketing adopted artificial intelligence (AI) as a solution to the mounting difficulties faced by publishers and advertisers when attempting to predict future consumption habits. Although businesses have historically relied on a variety of technology advertising and solutions to analyze data and monitor performance measurements, they have nevertheless had difficulty keeping up with the fast-paced changes in the market. As a result, businesses are expected to keep using AI solutions to produce better results as a result of big data analytics. This enables businesses to predict events more accurately and make more strategic choices.
There is a growing interest in utilizing AI for both publishers and marketers due to the significance of advertising data. Publishers are looking for the best adtech investment trends that can monetize their ad space at the most competitive price and with the most relevant content, while advertisers are looking for the best solution that fits their audience. Such trends are expected to propel the growth of the AdTech market forecast.
The use of smartphones has grown rapidly and the way consumers interact with various brands or sellers have transformed, owing to the accessibility of high-speed internet on smartphones. This factor is expected to fuel the market as it has become crucial for the brands to understand consumers’ interests with the help of smartphone advertisements and stimulate their decision to purchase. Smartphones are providing real-time marketing opportunities for advertisers to engage with the users who truly want to associate with their brands. In addition, the market players are offering new digital advertising solutions due to the rapidly growing demand for smartphone-based advertising, which is expected to further drive the market. For instance, in October 2019, Tech Mahindra, an IT services provider, collaborated with InMobi, a marketing cloud firm, to offer a video advertising solution. The solution is expected to enable advertisers to develop and distribute engaging and innovative video ads on mobile phones.
The COVID-19 outbreak has impacted less negatively on the growth of the market. It is predicted that various brands may reduce their advertising spend given the economic impact of COVID-19; however, the uptick in social media traffic has presented unique opportunities for engaging with online audiences as well as keeping the brand awareness high. In addition, the coronavirus pandemic has spread uncontrollably and governments across the globe are still trying to contain it by closing public spaces, schools, and borders; this has transformed all size of businesses and the marketers to update their online marketing strategies. Businesses are also expected to invest more in online advertising due to the pandemic, which is fueling the market growth. For instance, according to the Interactive Advertising Bureau (IAB), there was a 24% decline in traditional TV advertising spend for 2020 vs. 2019; however, connected TV advertising spend is estimated to grow at 19% year-over-year.
The growth of the market during the pandemic and post-pandemic is expected to be driven by factors such as extensive rise in social media advertising, increase in influencers, rapid growth in opportunities in OTT advertising, and growth in voice searches.
Key Market Segments
Key Market Players