AdTech market is anticipated to grow at a CAGR of 12.7% during the forecast period (2024-2031). The growing adoption of artificial intelligence (AI) and machine learning (ML) in advertising, with improving personalized and effective Ad targeting is the key factor supporting the growth of the market globally. Innovative technologies to increase campaign performance and brand exposure, AdTech marketing agencies are essential in navigating the ever-shifting landscape of digital advertising.

Market Dynamics

Increasing adoption of programmatic advertising for enhancing efficiency

Programmatic advertising and real-time bidding are two instances of innovative methods that are transforming the market. The market player increases the chance of conversion by expressing programmatic ads in front of users who have interacted with email content in the past and vice versa. employing a customized strategy for efficiency, scalability, targeting, and triggering. Additionally, programmatic advertising targets and delivers adverts using data and algorithms, making it possible to run more successful and efficient advertising campaigns.

Increasing usage of data-driven and tailored advertising solutions

The increasing utilization of targeted and data-driven advertising via automation, artificial intelligence, and machinery to scale and automate the one-to-one delivery of information or messages to consumers is recognized as data-driven advertising. Ad agencies, tech businesses, and data providers frequently form partnerships that promote a cooperative ecosystem. Such partnerships improve data capacities, expedite the advertising process, and produce more all-encompassing solutions. AdTech companies recognize the value of collaborating to address sector issues and capture new possibilities.

Market Segmentation

Our in-depth analysis of the global AdTech market includes the following segments by offering, advertising type and industry vertical:

• Based on offering, the market is sub-segmented into solution and service.

• Based on advertising type, the market is sub-segmented into programmatic advertising, search advertising, display advertising, mobile advertising, email marketing and others (native advertising).

• Based on industry vertical, the market is sub-segmented into media & entertainment, BFSI, retail & consumer goods, it & telecom, healthcare, hospitality, transport & logistics and others (education).

Advertising Type is Projected to Emerge as the Largest Segment

Based on the advertising type, the global AdTech market is sub-segmented into programmatic advertising, search advertising, display advertising, mobile advertising, email marketing and others (native advertising). Among these, the search advertising sub-segment is expected to hold the largest share of the market. The primary factor supporting the segment's growth includes increase use of search advertising to build brand awareness, paid search advertising management and retargeting audience to drive the segment growth. According to the International Association of Privacy Professionals (IAPP), in February 2024, U.S. experienced a 10.8% increase in US Ad revenue in 2022, down from 35.1% in 2021. Displaying advertisements on search engine results pages (SERPs) in response to a user's specific search query is recognized as search advertising.

Retail & Consumer Goods Sub-segment to Hold a Considerable Market Share

Based on the industry vertical, the global AdTech market is sub-segmented into media & entertainment, BFSI, retail & consumer goods, IT & telecom, healthcare, hospitality, transport & logistics and others (education). Among these, the retail & consumer goods sub-segment is expected to hold a considerable share of the market. AdTech is used by companies in the retail and consumer goods sector to promote their goods and services, increase brand recognition, and ultimately boost sales. Retailers can use social media advertising to interact with customers and launch new products. Further, in retail & consumer goods increasing uses of location-based ads target customers according to their actual location by using GPS and other location-detection technology. Retailers advertise their stores, goods, and services in the vicinity via location-based advertising.

Regional Outlook

The global AdTech market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

Increasing Advertising consumption for AdTech in Europe region

• Increasing digital media consumption, increases the attentive audience for advertisers, easily reached through digital platforms.

• Increasing programmatic advertising, and data analytics stand as pivotal drivers for the surge in Europe AdTech sector expansion. According to the Advertising Association/WARC Expenditure Report, in April 2023, UK ad spending grew 8.8% in 2022 to reach £34.8 billion ($36.7 billion).

Top Six UK Media Advertising Spend 2021-2022 ($ million)

Source: Advertising Association / WARC Expenditure Report

Global AdTech Market Growth by Region 2024-2031

North America Holds Major Market Share

Among all the regions, North America holds a significant share owing to presence of enormous number of providers offering AdTech such as Alphabet Inc., Google LLC, Magnite, Inc., MediaMath Inc., Meta Inc., and others. Meta Inc., provides solutions for social networking, advertising, and business insights. Through its main products, including Messenger, Instagram, Facebook, Oculus, and WhatsApp, the company connects individuals across the globe. For instance, in August 2022, Meta Inc. introduced its latest suite of ad automation tools designed to empower businesses and drive sales growth. The innovative tools are set to transform businesses operate and interact within the digital realm.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global AdTech market include Adobe Inc., Amazon.com, Inc., Google LLC, Meta Platforms, Inc., and The Trade Desk, Inc., among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance,

• In July 2022, Verve Group, a global consumer-first advertising suite and a part of Media Games Invest, announced that it acquired Dataseat Ltd. (Dataseat), an advertising technology company that provides app developers with the ability to manage in-house mobile app campaigns. The Dataseat provides customers with a demand-side platform (DSP) and unique bidding algorithms.

• In February 2024, PubMatic, an independent technology company delivering digital advertising’s supply chain, partnered with DISH Media allowing SLING TV to tap into PubMatic’s supply path optimization partnerships to access premium demand via private marketplace deals. To enable brands to engage growing audiences, DISH Media pass valuable content signals in the bid stream, such as genre or network, enabling advertisers to improve targeting and campaign ROI.

• In June 2023, The Trade Desk introduced Kokai, a new approach to digital advertising innovation that incorporates major advances in distributed artificial intelligence (AI), measurement, partner integrations and a revolutionary, intuitive user experience. With these innovations and others, Kokai ensures that marketers at all levels can easily benefit from the full power and sophistication of programmatic advertising.

• In January 2023, Adform launched the global partner programme leveraging its Ad Tech platform capabilities. Adform’s global partner program empowers agencies, resellers, service partners and consultancies globally to use its sector expertise and technological solutions to ensure the best performance and service to their advertising clients.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global AdTech market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.