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The Ad tech software market size is estimated to increase by USD 11.5 billion and grow at a CAGR of 7.78% between 2023 and 2028. Market expansion hinges on various factors, notably the escalating internet and smartphone penetration rates, coupled with enhanced user experiences and the burgeoning influence of social media trends. Ad tech software encompasses a plethora of tools and solutions utilized by agencies, brands, publishers, and platforms to streamline and optimize their digital advertising endeavors. However, challenges loom, such as the increasing adoption of ad-blocker solutions, combating fraud in digital advertisements, and addressing mounting privacy and security apprehensions among users. Despite these obstacles, the market's potential for growth remains significant, driven by innovative advancements in technology and evolving consumer behaviors. Adaptation and resilience are paramount for industry players to navigate the complexities of the ad tech landscape, fostering trust and delivering value amidst an ever-changing digital advertising environment.
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In the ever-evolving Ad Tech ecosystem, publishers, advertisers, and data management platforms collaborate to drive effective digital advertising strategies. Publishers monetize their inventory through ad networks, ensuring optimal viewability and performance. Advertisers leverage data management platforms for audience segmentation, enabling precise targeting through contextual, behavioral, and retargeting techniques. Campaign management tools streamline operations, while ad analytics and measurement platforms provide valuable insights into ad performance across channels like Facebook Ads, mobile, video, native, and social media advertising. With multichannel advertising, marketers reach audiences seamlessly, integrating with CRM systems for personalized interactions. Amidst stringent privacy regulations like GDPR and CCPA, marketing automation solutions ensure compliance and innovation in ad tech, fostering a dynamic ecosystem driven by data integration and continuous technological advancements.
The increasing internet and smartphone penetration are significantly driving market growth. When the number of smartphone users increases globally, companies can increasingly use digital advertising to promote their offerings. This has resulted in the development of the global advertising technology software market for browsing and posting ads.
Hence, Ad tech software providers are investing in mobile applications to cater to the vast number of mobile users. With increased access to the Internet and smartphones, as well as other technological advances, a more significant number of people are leveraging online platforms and applications for product research and browsing. Hence, all these factors are likely to result in an increase in growth of the global market during the forecast period.
The integration of AI and machine learning is a key trend shaping the market. Increasing the utilization of AI and machine learning helps enhance the user experience by improving search results and suggesting relevant options. This can aid companies to personalize their services, improve user experience, and expand their advertising revenue. AI algorithms can analyze user behavior, preferences, and search history to provide personalized recommendations for ads and products.
Additionally, machine learning can be leveraged using targeted ads based on user engagement, and conversion rates and pricing can be adjusted based on these inputs. This can help enhance the competitiveness of companies, driving more users and advertisers, which is expected to contribute to market growth during the forecast period.
The growing adoption of ad-blocker solutions is challenging market growth. Ad-blockers are applications that can be deployed easily through browser extensions. They help frustrated users who do not prefer to view advertisements to remove them from websites. Google has also adopted a feature to ban ad extensions from Chrome's Web Store and Google Play.
This is directly impacting the revenue generated by the companies. There are many targeted and delivered messages by advertisers and publishers which go unseen by users because of ad blockers. This is likely to hinder the growth of the market during the forecast period.
The market share growth by the retail and consumer goods segment will be significant during the forecast period. The segment accounted for the greatest market share with mobile and desktops-based online advertising, enabling marketing companies and brands to identify search results of consumers using cookies. This allows companies to gain insights into the needs and demands of consumers and offers opportunities for them to strengthen the in-store experience of consumers. The market is experiencing rapid growth as BFSI companies increasingly leverage advanced advertising technologies to enhance customer engagement and optimize their marketing strategies. Additionally, such advertisements can help companies give their customers a more interactive experience, improve advertising campaign effectiveness and ensure efficient consumer acquisition.
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The retail and consumer goods segment showed a gradual increase in the market share of USD 6 billion in 2018. Technological advances in this sector, including artificial intelligence (AI) will help the segment grow significantly. The growth is also supported by factors such as data explosion, increasing consumer disposable incomes, and the presence of numerous small- and medium-sized enterprises (SMEs).
The cloud-based deployments are expected to increase due to reductions in IT infrastructure costs. In addition, cloud-based deployments improve the flexibility, agility, and efficiency of marketing operations. The ever-dynamic marketing ecosystem grants marketers in the advertising technology software landscape adequate opportunities to scale their solutions utilizing cloud-based Ad tech software. Additionally, companies can also function streamline their operations and processes by managing all brand assets. The increasing shift towards cloud-based deployments is primarily due to economic reasons. Cloud-based deployments offer solutions at much lower maintenance fees and IT personnel costs. Moreover, the solutions also provide remote access and are easy to use and install. Hence, several vendors are providing software-as-a-service (SaaS) solutions for leveraging the increased adoption of cloud-based systems that will increase the growth of the cloud-based segment during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Ad tech software is gaining high traction in North America because of the increased penetration of smartphones and strong broadband infrastructure. The saturation of mobile and TV advertising in the region is another major factor in the growth of the regional market. Mobile ad spending is one of the major drivers of the regional market. As a larger population continues to spend more time using mobile devices for daily activities and content consumption, marketers focus on integrating more marketing activities into mobile devices.
The Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adform - The company offers Ad tech software such as Adform DSP, providing Ad tech software for programmatic advertising, including campaign planning, audience targeting, and creative optimization tools.
Adobe Inc. - The company offers Ad tech software such as Adobe Advertising Cloud, providing a comprehensive suite of Ad tech solutions for programmatic advertising, data management, and analytics.
Alphabet Inc. - The company offers Ad tech software such as Google Ads, offering Ad tech software for advertising on Google's platforms, including search ads, display ads, and video ads
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is a dynamic landscape where advertisers and publishers converge to maximize their digital marketing efforts. At its core, the market revolves around platforms like Demand-side platforms (DSPs) and Supply-side platforms (SSPs), enabling real-time bidding (RTB) and facilitating transactions via ad exchanges. These platforms utilize sophisticated algorithms for ad targeting, employing both contextual and behavioral targeting methods. Advertisers benefit from advanced ad creative tools and attribution modeling to optimize their campaigns, while publishers manage ad inventory and placement. However, challenges such as ad fraud necessitate robust fraud detection and verification solutions. Privacy compliance and ad blocking are also crucial considerations, especially with cross-device tracking becoming prevalent. Despite these challenges, innovations in ad tech continue to drive the market forward, offering opportunities for mobile advertising, video advertising, native advertising, and rich media ads.
Ad spend, click-through rate, impressions, and conversion tracking are key metrics shaping ad budgets and measurement strategies, fueling the evolution of the ad tech stack and ensuring ongoing industry growth. The market is a dynamic landscape where advertisers, publishers, and platforms converge to optimize digital advertising campaigns. Demand-side platforms (DSPs) empower advertisers to target specific audiences and manage ad placements efficiently. Display advertising, facilitated by ad servers and supply-side platform (SSP), thrives within ad exchanges where publishers offer ad inventory. Data management platforms (DMPs) enable contextual targeting, enhancing ad relevance.
Ad networks amplify reach across diverse platforms. Advertisers monitor ad performance through cost-per-click (CPC), cost-per-mille (CPM), and cost-per-action (CPA) metrics, leveraging ad optimization tools and ad fraud detection to maximize ROI. Ad verification ensures campaign integrity, while ad measurement informs future strategies. Search engine advertising remains pivotal. Ad Tech Innovation continually evolves, driving industry growth. In the dynamic landscape of ad tech software, Demand-Side Platforms (DSPs) and Supply-Side Platform (SSP) facilitate efficient ad transactions, while ad exchanges serve as the marketplace. Ad servers manage ad placement, ensuring optimal visibility for advertisers and publishers. Data Management Platforms (DMPs) enhance targeting capabilities, empowering advertisers to reach their desired audience effectively. Ad network amplify reach, fostering collaboration between advertisers and publishers for seamless ad delivery.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.78% |
Market growth 2024-2028 |
USD 11.5 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.11 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 39% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adform, Adobe Inc., Alphabet Inc., Amazon.com Inc., Criteo SA, InMobi Pte. Ltd., Integral Ad Science Holding Corp., Magnite Inc., MediaMath Inc., Mediaocean LLC, Meta Platforms Inc., Microsoft Corp., NextRoll Inc., OpenX Technologies Inc., PubMatic Inc., Skai, The Trade Desk Inc., Tremor International Ltd., Twitter Inc., and WebFX |
Market dynamics |
Parent market analysis, Market Forecasting, Market Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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