AdTech Market Size, Share & Trends Analysis Report By Solution (DSPs, SSPs, Ad Networks), By Advertising Type (Search, Display, Mobile, Email), By Enterprise Size, By Platform, By Industry Vertical, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global AdTech market size was valued at USD 886.19 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 13.7% from 2023 to 2030. Adtech (advertising technology) refers to the technology and software used to manage, deliver, and measure the effectiveness of online advertisements. The adtech industry consists of a wide range of companies and products, such as demand-side platforms (DSPs), ad exchanges, data management platforms (DMPs), supply-side platforms (SSPs), and more. These products help advertisers target their ads to the right audiences, optimize their ad spending, and measure the performance of their campaigns. The market is evolving at a significant pace with several key trends changing and shaping the industry. Some of the notable adtech industry trends include connected TV (CTV), hyper-personalization, geotargeting, augmented reality and virtual reality, integrated consumer journeys, and vernacularization. Additionally, the use of programmatic advertising utilizes algorithms and data to target and deliver ads, allowing for more efficient and effective advertisement campaigns.

Native advertising is also gaining traction as it integrates sponsored content into a website's design and format. Since this approach is less intrusive than traditional banner advertisements, native advertising enables effective consumer engagement. Adtech companies use data and AI to improve targeting and personalization, allowing them to deliver more relevant messages to their customers, and increase the chances of conversion. Lastly, more and more companies are focusing on privacy-compliant and transparent advertisement practices to ensure their customers’ data is safe and protected.

The advertising technology market is anticipated to grow rapidly as it has experienced increasing investment in data, automation, artificial intelligence, and programmatic advertising. However, the industry faces various challenges, such as ad fraud, transparency, and privacy concerns. Overall, the market is constantly evolving and changing, with new products and companies emerging all the time. It's a complex and dynamic space, but it plays a critical role in the digital advertisement ecosystem. Companies in the adtech space are providing solutions that help advertisers target the right audiences, optimize their ad spending, and measure the performance of their campaigns.

COVID-19 Impact

The COVID-19 pandemic has significantly impacted the market. Due to the economic downturn attributable to the pandemic, several companies had reduced their ad spending to cut overheads. Moreover, the pandemic has resulted in many consumers spending more time online due to lockdowns and social distancing, leading to a shift in digital channels.

This has increased demand for programmatic advertising and digital advertising, as well as a shift towards e-commerce and online services. However, on the downside, the pandemic has also led to a decrease in ad prices due to increased competition for ad space, as well as a decrease in consumer spending.

The e-commerce and online services sectors also were significantly boosted during the pandemic. As more people have switched to online shopping and other digital services, businesses in these sectors have increased their advertisement spending to reach potential customers. This has increased demand for digital advertising, particularly on social media platforms and search engines.

With more people streaming TV shows and movies at home, there has been an increase in demand for OTT (over-the-top) and connected TV advertisements, as brands look to reach audiences on streaming platforms. For instance, streaming platforms like Netflix, Hulu, and Disney+ have seen a surge in viewership during the pandemic. As a result, brands are increasing their advertisement on these platforms to reach audiences where they are spending most of their time.

Solution Insights

The demand-side platforms (DSPs) segment dominated the market with a share of 33.6% in 2022 and is expected to witness a CAGR of over 14.0% during the forecast period. DSPs ease the process of buying advertising inventory, making it efficient and effective. It also allows for advanced targeting capabilities, making them an attractive option for advertisers looking to reach specific audiences and optimize campaign performance.

The rise of programmatic advertising has led to an increase in demand for DSPs, as they allow advertisers to purchase programmatic advertising inventory efficiently and effectively. DSPs offer advanced targeting capabilities, which allow advertisers to reach specific audiences and optimize campaign performance, making them more effective and efficient than traditional advertisement methods.

The data management platforms (DMPs) segment is anticipated to witness the fastest CAGR of 14.8% throughout the forecast period. Data management platforms (DMPs) allow businesses to collect, store, and analyze large amounts of data from various sources such as websites, apps, and data partners.

The rising adoption of digital platforms has enabled businesses to generate and collect large amounts of data from website interactions, mobile app usage, and social media activities. DMPs offer advertisers a centralized solution to manage and activate the gathered data. Increasing advancements in artificial intelligence, machine learning, and big data analytics have enabled real-time analysis of data, allowing for better insights and targeting capabilities.

Advertising Type Insights

The search advertising segment dominated the market with a share of 23.8%. It is expected to expand at a CAGR of around 14.0% throughout the forecast period. Search advertising involves the process of displaying ads on search engine results pages (SERPs) when a user enters a particular search query. This type of advertisement is highly preferred by advertisers, as the ads are targeted to users actively searching for relevant products or services.

This type of marketing campaign reaches users in real-time and can direct traction to a specific product or service, making it highly effective. The increasing penetration of the internet and mobile devices has resulted in a shift of users towards search engines to gather information on several products and services, thus increasing the number of search queries and propelling the market for search advertising.

The mobile advertising segment is anticipated to progress at the fastest CAGR of 15.7% throughout the forecast period. One of the factors attributing to the market growth includes the rising use of smartphones and other mobile devices. Mobile advertisements are displayed on mobile apps and websites and specifically target users accessing the internet on mobile devices. Furthermore, advancements in technology, such as programmatic advertising and beacon technology, are expanding the capabilities of mobile advertisement.

Mobile devices are considered more personal than any other devices, and hence they can provide in-depth insights into user preferences, behaviors, and demographics. This gathered data can be used to personalize ads, making them relevant to users and resulting in higher engagement and conversion rates. Mobile advertising, when integrated with other ad formats, such as display, search, or video advertisement, offers marketers a holistic and effective advertisement strategy.

Enterprise Size Insights

The large enterprise segment dominated the market with a 66.9% share in 2022. It is anticipated to advance at a CAGR of around 13.0% during the forecast period. Large enterprises typically are multinational corporations, large media companies, and major brands. These companies generally spend a specific number of resources on advertisements. Enterprises also use a combination of different ad formats and channels to reach their target audiences.

Search, display, and video advertising are majorly preferred by large enterprises in the market. Large enterprises also use DSPs to buy and manage their digital advertising campaigns. Moreover, these enterprises use advanced technologies, such as DSPs, DMPs, AI, and ML, to gain insights, predict user behavior, and improve the performance of their ad campaigns.

The small and medium enterprises (SMEs) segment is expected to witness the fastest CAGR of 14.9% throughout the forecast period. Local businesses, small online retailers, and startups are generally considered SMEs. These companies generally have limited resources and budgets and are focused on cost-effective and targeted advertisement solutions. SMEs prefer self-serve platforms, such as search engines, social media, and online marketplaces, to reach the target audiences. Self-serve platforms enable SMEs to customize and manage their ad campaigns, with minimal costs and technical knowledge.

Platform Insights

The mobile segment dominated the market with a share of 58.9% in 2022 and is projected to witness the fastest CAGR of over 14.0% during the forecast period. Mobile advertising offers a variety of ad formats, such as display ads, video ads, and in-app ads. These ads can be customized depending on specific devices and audiences. The rise of mobile advertisements has also led to the development of new technologies, allowing businesses to target consumers based on their geographic location.

Additionally, mobile wallets, push notifications, and mobile apps have also gained traction in the adtech industry, allowing businesses to engage with consumers in innovative ways. Mobile advertising has also driven the growth of mobile apps and in-app advertisement, therefore, reaching specific audiences and creating an immersive advertisement experience.

The web segment is anticipated to expand at a CAGR of 12.9% throughout the forecast period. The web-based platform uses the internet and web-based technologies to create, deliver, and target online advertising campaigns. The web platform encompasses web browsers, websites, and web-based apps, that deliver online advertisements to consumers. The web platform allows businesses to target a large and diverse audience as it has a wider reach than other platforms.

Businesses can use tracking and web-based analytics tools to gauge respective target audiences and optimize advertisement campaigns. These tools collect and analyze data based on web and app usage, customer demographics, and behaviors, thereby, designing personalized advertisement campaigns. Search advertising, coupled with other web-based advertisement formats, such as display and video ads, creates better and more comprehensive advertisement campaigns.

Industry Vertical Insights

The retail & consumer goods segment dominated the market with a share of 28.6% in 2022 and is expected to expand at a CAGR of more than 12.0% during the forecast period. Companies operating in the retail and consumer goods segment use adtech to advertise their products and services, build brand awareness, and thus, drive sales. Social media advertising in retail helps businesses engage with customers and promote new products.

Similarly, influencer marketing includes the promotion of goods and services through social media influencers. Location-based advertisements use GPS and other location-detection technologies to target consumers based on their physical location. Retail companies use location-based advertising to promote nearby stores, products, and services.

The media & entertainment segment is anticipated to register the fastest CAGR of 15.9% throughout the forecast period. Adtech in the media & entertainment industry helps businesses to promote content, build brand awareness, and drive viewership and engagement. Video advertising in the media & entertainment industry targets consumers that actively watch or stream video content.

This often includes pre-roll, mid-roll, and post-roll ads. Video advertising is majorly used to promote specific movies, shows, or channels, and thus drive subscriptions and memberships. Similarly, media and entertainment companies use programmatic advertising to reach specific audiences and optimize their ad spending. Programmatic advertising uses automation and real-time bidding to target consumers based on their demographics, interests, and behaviors.

Regional Insights

North America led the overall market in 2022 gaining a revenue share of 35.7%, with the U.S. being a major contributor to the industry. High penetration of digital advertising is one of the factors propelling regional market growth. Businesses are using data to better understand their audiences and optimize their ad spending. This has increased the growth of DMPs and marketing analytics platforms, allowing businesses to collect, analyze, and use data to generate advertising strategies.

The U.S. has the largest digital advertising market in the world, and it continues to grow owing to a shift of consumers to online and mobile platforms. The U.S. is home to several technology companies and ad tech firms, including Google, Facebook, and Amazon, which have played a significant role in shaping the industry.

Asia Pacific is expected to develop substantially by the projection period and progress at a CAGR of 15.5% during the forecast period. The increasing population and rising disposable income are anticipated to propel regional growth. China and Japan are technologically advanced countries in the region, resulting in higher penetration of internet consumption, and smartphone and mobile device penetration.

China dominates the Asia Pacific region in terms of revenue and is home to domestic tech giants such as Baidu, Alibaba, and Tencent. Rising inclination toward video platforms such as YouTube, TikTok, and Facebook has also resulted in an increase in the video advertising market in this region. Since the Asia Pacific region has a high penetration of social media users, social media advertising is growing rapidly in the region.

Key Companies & Market Share Insights

The industry is highly competitive, as several companies are striving continuously to gain maximum market share. The key players focus on providing ad platforms to help marketers buy, sell, and deliver digital advertisements. The competitive landscape of the advertising technology market is evolving constantly and is majorly driven by changing consumer behaviors, technology, and regulations.

In the past few years, the market has witnessed a significant rise in programmatic advertising and data-driven targeting. This has increased the competition among technology providers to provide advanced and effective adtech solutions. On the other hand, new players continue to enter the market with state-of-the-art technologies, such as independent programmatic platforms and DSPs, to transform the traditional advertising ecosystem. Some prominent players in the global AdTech market include:

• Adobe

• Alibaba Group Holding Limited

• Amazon.com, Inc.

• Criteo

• Facebook Incorporation

• Google Incorporation

• Microsoft Incorporation

• SpotX

• Twitter Incorporation

• Verizon

AdTech Market Report Scope

Global AdTech Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global AdTech market report based on solution, advertising type, enterprise size, platform, industry vertical, and region:

• Solution Outlook (Revenue, USD Billion, 2017 - 2030)

  • Demand-side Platforms (DSPs)

  • Supply-side Platforms (SSPs)

  • Ad Networks

  • Data Management Platforms (DMPs)

  • Others

• Advertising Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Programmatic Advertising

  • Search Advertising

  • Display Advertising

  • Mobile Advertising

  • Email Marketing

  • Native Advertising

  • Others

• Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

  • Small And Medium Enterprise (SME)

  • Large Enterprise

• Platform Outlook (Revenue, USD Billion, 2017 - 2030)

  • Mobile

  • Web

  • Others

• Industry Vertical Outlook (Revenue, USD Billion, 2017 - 2030)

  • Media & Entertainment

  • BFSI

  • Education

  • Retail & Consumer Goods

  • IT & Telecom

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia-Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa