Adtech to drive Internet advertising industry to $1 trillion in 2030, forecasts GlobalData

  • Published on March 15, 2023

Adtech includes a wide range of technologies such as demand-side platforms (DSPs), supply-side platforms (SSPs), ad exchanges, data management platforms (DMPs), and ad servers. These technologies help advertisers target specific audiences, optimize their campaigns, and measure their effectiveness.

The report also highlights the increasing use of artificial intelligence (AI) and machine learning (ML) in adtech, which enables advertisers to deliver more personalized and relevant ads to their target audiences. AI and ML can also help prevent ad fraud by identifying and blocking fraudulent ad impressions.

Despite the challenges facing adtech, the report predicts that the industry will continue to grow as advertisers shift their focus from traditional media to digital channels. The increasing use of mobile devices and the rise of connected TV are expected to drive growth in the adtech market in the coming years.

The report also notes that consolidation is likely in the adtech industry as smaller players struggle to compete with larger companies like Google, Facebook, and Amazon, which dominate the market. However, new players are also expected to enter the market as the industry continues to evolve and new technologies emerge.

Overall, the report suggests that adtech will remain a key driver of the digital advertising industry and that companies that invest in adtech are likely to benefit from the growing trend towards digital advertising.

Adtech vendors are facing challenges due to data privacy regulations such as the General Data Protection Regulation (GDPR), which requires them to adopt privacy-first approaches and ensure user data is not shared among partners. The withdrawal of third-party cookies from web browsers and privacy-related changes to Apple’s Identifier for Advertisers (IDFA) and Google’s Android Advertising ID (AAID) are also threatening ad targeting practices. As a result, adtech vendors are focusing on first-party data and adopting consent-driven personalization. Data management platforms that operate on third-party data will face an existential threat in the post-cookie world as the industry moves towards first-party data. The adtech industry is primarily dominated by tech giants like Google, Meta, Amazon, and Alibaba, while several pure play vendors will become acquisition targets for these companies over the next three years.