The adtech market is set to grow by USD 767.83 billion from 2022 to 2027, progressing at a CAGR of 13.36% during the forecast period. The report offers an up-to-date analysis regarding the current global market scenario, the latest trends and drivers, and the overall market environment.
The increasing internet and smartphone penetration drive the market growth. Due to the increase in access to internet and smartphones, there is an increasing demand for adtech platforms. As a result, from any part of the world, many more people can access adtech.
Therefore, there is increasing popularity of adtech platforms due to their convenience among both buyers and sellers, resulting in more people using their platforms to browse and post ads. As a result, there is rising investment in adtech platform providers in mobile applications to cater to the growing number of mobile users.
The major reasons for the growth of adtech platforms is the increasing internet and smartphone penetration. Thus, because of the growing adoption of the internet and smartphone, it is anticipated to significantly drive the adtech market growth during the forecast period. Here is an Exclusive report talking about Market scenarios with a historical period (2017-2021) and a forecast period (2023-2027).
Major Trends
The integration of AI and machine learning (ML) is an emerging trend driving market growth. Generally, they are used to enhance search results, suggest relevant listings to users, and automate different aspects of the medium, such as fraud detection and Ad placement; there is a growing use of this technology in adtech platforms.
The major benefits of the implementation of AI and ML technology in adtech platforms are that it supports to personalize their services, enhance user experience, and optimize advertising revenue. Moreover, we can analyze user behavior, preferences, and search history to provide personalized recommendations for Ads and products with the help of an AI algorithm.
Furthermore, ML is widely used to optimize Ad targeting and pricing based on user engagement and conversion rates. Therefore, such applications of AI and ML are anticipated to fuel the growth of the adtech market during the forecast period.
Major Challenge
The key challenge impeding the adtech market growth is the growing adoption of ad-blocker solutions. Mainly, Ad-blockers act as gatekeepers by removing Ads from websites that the user views and is a very easy browser extension. For example, Google has adopted a feature to ban Ad extensions, removing them completely from Chrome’s Web Store and Google Play. Despite this, the growth of Ad blocking remains intact.
Because of the growing adoption of mobile ad-blocker solutions has influenced the global adtech market adversely, as advertisers and publishers are under constant pressure to target, deliver, and track their messages better to users. Therefore, there is a decline in the revenue generated by the global adtech market as many users do not prefer to view advertisements and install ad-blockers. Thus, above mentioned factors are expected to limit the growth of the adtech market during the forecast period.