The technology and tools used to manage, deliver, and assess the efficacy of Internet advertisements are referred to as “ad tech” (advertising technology). The demand-side platforms (DSPs), ad exchanges, supply-side platforms (SSPs), and other businesses and products make up the ad tech market.
New York, April 20, 2023 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global AdTech Market Size, Share & Industry Trends Analysis Report By Advertising Type, By Solution, By Platform, By Enterprise Size, By Vertical, By Regional Outlook and Forecast, 2022 – 2028”
Advertisers can use these tools to target the appropriate demographics for their ads, make the most of their advertising budgets, and assess the effectiveness of their campaigns. The market is evolving significantly, with various important trends transforming and reshaping the industry.
Connected TV (CTV), geotargeting, hyper-personalization, augmented reality & virtual reality, integrated customer journeys, and vernacularization are prominent trends in the ad tech market. Moreover, programmatic advertising targets and delivers ads using algorithms and data, making ad campaigns more successful and efficient. Because it incorporates sponsored material into the layout and style of a website, native advertising is also growing in popularity.
Native advertising facilitates efficient consumer engagement because it is less invasive than standard banner adverts. In addition, ad tech businesses employ data and AI to enhance targeting and personalization, enabling them to send their clients more pertinent messages and boost conversion rates. Finally, an increasing number of businesses are focused on privacy-compliant and open advertising techniques to ensure that their client’s data is secure and safeguarded.
Since there has been an increase in investment in data, artificial intelligence, automation, and programmatic advertising, the AdTech market is expected to expand quickly. New items and businesses are continuously entering the market, which is always changing and evolving. It is a complicated and dynamic environment that is essential to the digital advertising ecosystem. Companies in the ad tech market are offering solutions that assist marketers in targeting the appropriate audiences, maximizing their ad spending, and assessing the effectiveness of their campaigns.
COVID-19 Impact Analysis
During the pandemic, as more individuals stream TV episodes and movies at home, the demand for OTT (over-the-top) and linked TV commercials has increased as marketers seek to reach consumers on streaming platforms. Hence, marketers are boosting their advertising on these platforms to reach people where they spend most of their time. In addition, due to the increasing use of e-commerce services and the high demand for movies and television programs during the lockdown, several businesses decided to implement AdTech, which aided in market expansion during and after the pandemic.
Market Growth Factors
Increasing use of AI in advertising
AI is rapidly transforming the advertising industry due to its vast array of benefits and ability to increase intelligence over time. The use of data or consumer insights to make advertisements more relevant to their intended audience. With customers expressing that they will do only business with companies that customize their experience, it is increasingly becoming a priority to make marketing more relevant and individualized. As a result, AdTech market expansion is anticipated to be propelled by the increasing use of artificial intelligence in advertising to further improve the consumer experience and campaign efficacy.
Surged adoption of smartphones and the advent of high-speed internet
Smartphones have progressed significantly over the years and are now equipped with cutting-edge technologies such as a gyroscope, global positioning system (GPS), near-field connection (NFC), augmented reality, and virtual reality. The increased disposable income of consumers worldwide has led to an increase in the likelihood that they will spend money on media, entertainment, mobile communication devices, and networking, which has led to a rise in the global adoption of smartphones. As a result, rising disposable income is anticipated to stimulate the expansion of the worldwide smartphone market over the forecast period.
Market Restraining Factors
Dependency on third-party cookies
Based on the solution, the AdTech market is segmented into demand-side platforms (DSPs), supply-side platforms (SSPs), Ad networks, data management platforms (DMPs), and others. The data management platforms (DMPs) segment covered a considerable revenue share in the AdTech market in 2021. This is because data management platforms (DMPs) enable businesses to collect, store, and analyze vast quantities of data from various sources, such as websites, apps, and data partners. The increasing popularity of digital platforms has enabled organizations to gather and collect vast quantities of data via website interactions, mobile application usage, and social media activity.
Advertising Type Outlook
On the basis of advertising type, the AdTech market is divided into programmatic advertising, search advertising, display advertising, mobile advertising, email marketing, native advertising, and others. The search & display advertising segment witnessed the largest revenue share in the AdTech market in 2021. Search advertising entails displaying advertisements on search engine results pages (SERPs) whenever a user performs a specific search query. This sort of advertisement is frequently preferred by advertisers due to the fact that it targets individuals who are actively searching for related items and services.
Enterprise Size Outlook
By enterprise size, the AdTech market is classified into small and medium enterprises (SME) and large enterprises. The small & medium enterprise segment acquired a substantial revenue share in the AdTech market in 2021. Local companies, tiny online merchants, and start-ups are typically categorized as SMEs. These businesses typically have constrained funds and resources and concentrate on finding efficient and targeted advertising solutions. SMEs favor using self-serve channels to connect with their target markets, such as search engines, social media, and online marketplaces.
Based on the platform, the AdTech market is bifurcated into mobile, web and others. The mobile segment registered the maximum revenue share in the AdTech market in 2021. This is because mobile advertising provides a variety of ad types, including display, video, and in-app ads. These advertisements can be tailored to certain devices and audiences. Also, the proliferation of mobile marketing has spurred the development of new technologies that enable firms to target consumers depending on their geographic location.
By vertical, the AdTech market into media & entertainment, BFSI, education, retail & consumer goods, IT & telecom, healthcare and others. The media & entertainment segment covered a considerable growth rate in the AdTech market. This is because Adtech in the entertainment and media sector helps businesses market content, increase brand exposure, and increase viewer engagement. In the media and entertainment industry, video advertising targets people who actively watch or stream video content. Video advertising is mostly used to advertise specific films, television programs, and channels, and thus to increase subscriptions and memberships.
Region-wise, the AdTech market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2021, the North America region led the AdTech market by generating the highest revenue share. This is due to the region’s high digital advertising penetration. Using data, businesses are gaining a deeper understanding of their audiences and optimizing their advertising budget. This has led to expanding DMPs and marketing analytics platforms, enabling organizations to collect, analyze, and apply data to create advertising plans.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation and Google, LLC is the major forerunner in the AdTech Market. Companies such as Facebook, Adobe, Inc., Twitter, Inc. are some of the key innovators in AdTech Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Adobe, Inc., Alibaba Group Holding Limited, Facebook (Meta Platforms, Inc.), Microsoft Corporation, Google LLC (Alphabet, Inc.), Twitter, Inc., Oracle Corporation, Criteo S.A., Amazon.com, Inc. and Magnite, Inc. (SpotX)
Recent strategies deployed in AdTech Market
Partnerships, Collaborations, and Agreements:
Mar-2023: Adobe teamed up with Accenture, professional services company, for enabling enterprise marketers to unlock the content supply chain values. Together, the companies aim to create new services based on Adobe’s integrated Content Supply Chain technologies, which help marketers in creating and delivering content effectively, that offers personalized customer experiences at scale.
Mar-2023: Criteo signed a retail media advertising partnership with ASOS, an online retailer of fashion and cosmetics. For endemic brand advertising on ASOS’ market-dominating app and website for fashion-conscious twenty-somethings, Criteo will be the exclusive partner. ASOS Media Group (AMG) will be able to increase campaign volume and associated advertising revenue with the help of Criteo’s solutions, which will also enhance their current rich advertising offering spanning creative solutions, social media, targeted email, and app push notifications. Through the partnership, marketers will have access to stronger targeting and measurement tools, resulting in higher performance and more successful business outcomes, including ASOS.com sales.
Feb-2023: Adobe signed an agreement with Qualcomm, Inc. a company that focuses on creating semiconductors, software, and services related to wireless technology, for its cloud-based marketing software. The software helped the former company in becoming one of the few software companies to navigate the transition to the modern cloud era.
Feb-2023: Magnite announced a partnership with Polk Automotive Solutions from S&P Global Mobility, for offering advertisers access to strong insights comprising loyalty detail and auto purchase intent for allowing more precise targeting and measurement throughout OTT and CTV. Advertisers may access the most comprehensive source of automotive data by integrating Polk Automotive Solutions’ vast data sets into our platform and leveraging that throughout Magnite’s unrivaled streaming TV supply.
Jan-2023: Twitter partnered with Integral Ad Science, a technology company, and DoubleVerify Holdings Inc., a software platform for digital media measurement and analytics. Through this partnership, companies would offer advertisers tweet-level analysis on content featured next to their ads. Additionally, companies would independently verify that digital ads are seen by real people.
Jan-2023: Oracle Moat Measurement announced its collaboration with Studio71, a TV and digital content production company. Both companies focus on a study to measure the effectiveness throughout their suite.
Jan-2023: Magnite came into partnership with Brightcove, Inc., a streaming technology company. Following the partnership, Magnite would power advertising for Brightcove customers, extending fill and delivery to enhance customer revenue.
Oct-2022: Oracle Advertising came into collaboration with Nextdoor, a hyperlocal social networking service for neighborhoods. The collaboration focuses on delivering greater transparency and controls to Nextdoor Advertisers. This would help in ensuring high-value and optimal ad experiences on the platform.
Jul-2022: Microsoft announced its collaboration with Netflix for a cheap ad-supported Netflix Subscription plan. As they collaborate to develop a new ad-supported service, Microsoft has the track record to handle all of Netflix’s advertising requirements. In addition to strong privacy protections for members, Microsoft offered the opportunity to innovate over time on both the technical and sales sides.
Jun-2022: Oracle extended its collaboration with Azerion, a media platform, and digital entertainment company, with the addition of Oracle Advertising Bot Filtration. Oracle Advertising Bot Filtration provides companies with the most recent information on bot-related invalid traffic, which aids marketers and media professionals in minimizing losses brought on by invalid traffic. By using its own SSP, Improve Digital, Azerion can offer a clean supply to marketers by implementing Oracle Advertising Bot Filtration.
Jun-2022: Microsoft Advertising extended its partnership with InMobi for supporting strategic advertisers and enterprises in the Middle East, Southeast Asia, and Africa. By combining the search and native display capabilities of Microsoft Advertising with the mobile ad tech capabilities of InMobi s advertising platforms, InMobi aims to provide advertisers with an integrated solution to power their campaigns. Following the expansion, advertisers will be able to provide clients with a consistent brand experience by combining the finest search and native display platforms from both companies.
May-2022: Amazon Web Services announced its collaboration with IBM Corporation to provide IBM Automation, security, artificial intelligence, sustainability, and other software-as-a-service offerings through AWS Marketplace. The collaboration aims to deliver users easier and faster access to IBM Software built on Red Hat OpenShift Service on AWS and cloud-native to AWS.
Apr-2022: Criteo partnered with Flipkart, an e-commerce marketplace, for introducing Product Performance Ads (PPA) with full-funnel measurement capabilities. This would improve Flipkart’s off-platform offerings and open up options for marketers from all market segments to connect with and engage customers who have high intent. The broader 2022 growth strategy for Flipkart’s ad tech business includes this launch. By utilizing its audience signals for highly relevant reach and, consequently, improved overall campaign efficiency, Flipkart will enable advertisers of any scale to deliver their full-funnel marketing goals on the open internet.
Mar-2022: Oracle Moat, a part of Oracle Advertising and Customer Experience (CX) teamed up with Anzu.io, the most advanced in-game advertising platform, for first-to-market viewability measurement for in-game ads. Under this collaboration, the advertisers working with Anzu can access third-party viewability verifications and in-view metrics by Oracle Moat while running in-game ads, programmatically or directly, on PC or mobile.
Mar-2022: Microsoft extended its partnership with Outbrain, a web recommendation platform, for leveraging Microsoft Azure and encompassing technology, business, and services. The expansion of the collaboration will involve a multi-year Azure engagement to support Outbrain’s media platform’s rapid innovation.
Mar-2022: Meta Platforms came into partnership with VNTANA for making it easier for brands to run 3D ads on its Instagram and Facebook social media platforms. The partnership helps the brands in uploading the 3D models of their products and easily convert them into ads.
Jan-2022: Amazon Ads came into partnership with Artefact in various European countries namely France, UK, Spain, Germany, and Netherlands. As an Amazon Ads Partner, Artefact focuses on assisting clients in efficiently collaborating with Amazon and boosting their marketing ROI by utilizing top-tier products and technology.
Acquisitions and Mergers:
Mar-2023: Criteo took over Brandcrush, a company whose platform enables the buying and selling of omnichannel retail media, including offline media channels. The acquisition enabled the former company to deliver a holistic omnichannel monetization solution for retailers across the world, for managing their complete media inventory throughout both physical retail and e-commerce. Additionally, they would allow agencies and brands to discover and buy omnichannel media from leading retailers seamlessly. Also, the acquisition expanded Criteo’s foothold and capabilities in the Asia Pacific retail media market.
Aug-2022: Criteo completed the acquisition of IPONWEB, an AdTech Company with high-class media trading capabilities. The acquisition sped up Criteo’s Commerce Media Platform vision of providing better control to the enterprise marketers and their agency partners through utilizing the latter company’s well-established SSP and DSP solutions. Additionally, the acquisition increases media owners’ prospects for monetization and offers crucial services for first-party data management throughout the ecosystem.
Jun-2022: Microsoft signed an agreement to acquire Xandr, a provider of data-enabled technology platform, from AT&T. Together, the companies would help define the digital ad industry of the future as the internet landscape changes in a post-cookie era. To support the open web, where everyone can prosper, Microsoft and Xandr have complementary skills that they can use in a way that is compatible with their commitment to effective data governance and consumer privacy practices.
Product Launches and Product Expansions:
Mar-2023: Google released new AI-enabled tools comprising customer acquisition objectives and automatically created assets. These tools would enable advertisers to create more beneficial and meaningful ads.
Mar-2023: Microsoft released Dynamics 365 Copilot, an AI assistant for the application that manages marketing, sales, and customer service. The software can create contextual chat and email responses to customer support inquiries using technology from OpenAI. It can assist marketers in creating customer segments to target and in creating product descriptions for e-commerce.
Mar-2023: Adobe introduced new features in its Real-Time Customer Data Platform. The platform now provides more than 600 billion predictive insights annually on the basis of real-time customer profiles. Moreover, these innovations have been designed for enabling superior conversion and prospecting, richer personalization, and enhanced B2B account-based marketing.
Feb-2023: Magnite launched Magnite Streaming, a singular supply-side platform that combines leading technology from Magnite CTV and SpotX platforms. By enabling media owners to maximize the value of their assets across life and VOD content, CTV and OTT environments, and addressable linear, Magnite Streaming gives them the knowledge they need to run their businesses more profitably and successfully.
Dec-2022: Twitter released new controls for enabling companies to prevent their ads from appearing below or above tweets having certain keywords. With the launch of New Controls, the company wants to reassure and attract the advertisers who have withdrawn ads from the platform.
Oct-2022: Adobe launched the Marketing Mix Modeling (MMM) service in Adobe Experience Cloud, a new offering that utilizes Adobe Sensei, Adobe’s AI engine. This would enable the brands to access the business impact of their advertising and marketing budgets. Moreover, the brands can minimize the time it takes to gather, analyze, and act on insights from months to weeks, enabling them to forecast, target, and focus on resources for future campaigns effectively and efficiently.
Oct-2022: Amazon added the format to its self-service Sponsored Display program for making it easier for marketers to take advantage of video advertising. Also, the company expanded a public beta for its Video Builder that offers customizes templated while creating video campaigns, for brands. With a focus on providing options for small and mid-sized businesses, the addition of video to Sponsored Display allows advertisers to create video campaigns that run on Amazon as well as other platforms. The solution enables the production of immersive assets, including demonstrations, unboxing films, and tutorials.
Sep-2022: Criteo unveiled Commerce Max, a self-service, all-in-one demand side platform built for scale for enterprise marketers. This service is powered by the leading retail media and programmatic capabilities of Criteo. With the help of this service, agencies and brands can find their valuable audience on retailer sites utilizing on-site sponsored and display ads as well as they can extend these audiences off-site throughout open internet programmatic inventory.
Sep-2022: Microsoft Ads introduced a new, Simplified Smart Campaigns setup experience, including a new feature that makes them different from Google Ads. Microsoft shortened the campaign setup process in response to the expanding demands of SMBs in the current economy. The Smart Campaign update comprises an updated chat experience with support, a newly guided campaign experience, an updated AI solution for optimization, and a simplified Ad setup with options to self-create or auto-generate.
Jun-2022: Twitter announced the launch of Campaign Planner for Advertisers, to allow informed media investments on the platform. Campaign Planner is a tool that allows marketers to forecast expected outcomes before the commencement of the campaign, which is intended to make it even simpler for ad industry partners to make informed media investments on Twitter. At present time, not all Twitter marketers have access to Campaign Planner. Contacting their Client Partner will allow managed clients to seek access to Campaign Planner. At the moment, only managed advertisers in the US, UK, and Japan has access to Campaign Planner.
May-2022: Google introduced three new features including consumer interest insights, a new customer acquisition goal type, and a one-click upgrade tool. With the help of these new Performance Max tools, the ideal combination of inventory and ad types can be identified for maximizing profits.
Jan-2023: Alibaba Cloud opened its first international partner management and product innovation center. The center would expand customer services and facilitate their digitalization journey in a better way. The new Product Innovation Center will handle the management of product upgrades based on ongoing global customer demands and assist with future roadmaps for creating more market-specific solutions. The Partner Management Center would explore local partnerships and deepen the sharing of cutting-edge technologies and subject-matter expertise among partners to better meet the requirements of local customers.
Aug-2022: Criteo announced the launch of a Video Advertising Solution in India. This solution helps in achieving measurable outcomes with superior capabilities and unique audiences, strong access and scale with 600+ premium online video publishers, full-service support, and full-funnel management.