Ad Tech Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 0.79 Billion |
| Market Size (2029) | USD 1.37 Billion |
| CAGR (2024 - 2029) | 11.54 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Ad Tech Market Analysis
The Ad Tech Market size is estimated at USD 0.79 billion in 2024, and is expected to reach USD 1.37 billion by 2029, growing at a CAGR of 11.54% during the forecast period (2024-2029).
The ad tech market has witnessed considerable growth over the past few years, driven by the growing use of digital devices and the Internet. With the increasing adoption of smartphones and social media platforms, digital advertising has become essential to marketing plans for businesses worldwide.
- The continuous shift from traditional to online advertising is the main driving force behind the market's growth. The proliferation of the Internet and the increase in the number of Internet users has made it possible to reach a larger audience through digital ads. People spend more time online for work, entertainment, and socializing, and advertisers can now reach them online.
- 5G technology is expected to significantly impact ad tech demand growth, offering lower latency, faster download speeds, and improved network efficiency. These advances introduce new opportunities for ad tech companies to provide targeted, innovative, data-driven advertising solutions to enhance user experience.
- The online and e-commerce services sector also significantly boosted during the pandemic. As more people turn to digital services such as online shopping, companies in these industries have increased their advertising spending to reach potential audiences. This has increased the demand for online advertising, especially on search engines and social media platforms.
- However, a lack of public awareness of ad tech practices has led to augmented regulatory concerns. Consumer protection agencies are becoming increasingly concerned about data being used and collected for advertising efforts, leading to strict regulations that threaten the growth of the ad tech industry.
- The COVID-19 pandemic has brought about significant transformations in the advertising industry, and several of these changes are expected to have a long-lasting impact on the sector. With reduced consumer spending and economic uncertainty, many brands have opted to decrease their advertising budgets, leading to an overall decrease in ad spending. This decline has been particularly noticeable in traditional media platforms such as radio, television, and print media, which have experienced a sharp decrease in advertising revenues. On the other hand, as people spend more time at home and engage with digital media, there has been a substantial increase in digital ad spending. This upward trend is predicted to persist even after the pandemic subsides as more individuals become acquainted with e-commerce and digital channels. Overall, the pandemic has augmented the industry's shift to a more data-driven approach and digital advertising channels, with long-term effects for the sector's future.
Ad Tech Market Trends
Mobile Devices and Smartphones to Witness Significant Growth
- Advertising on mobile devices acts as a significant tool for firms to connect with and interact with their target audience. Small firms in the business sector may make use of the visual aspect of the sector to create engaging advertising on mobile devices that highlights their offerings and distinctive brand identities.
- Furthermore, there are several forms of advertising for mobile devices, such as image text and banner ads, click-to-call ads, click-to-message ads, and click-to-download ads. Additionally, due to their mobility and ease, people ultimately choose smartphone devices over laptops or desktops. Also, due to the former's ability to undertake similar tasks, mobile platforms are predicted to become increasingly profitable.
- Modern marketing strategies that would empower firms and bring them into the fourth industrial revolution include digital advertising and mobile marketing. In due course, it would supply the essential advertising channels and prove to produce a good influence on the online advertising market, given the significant number of SMEs transitioning to online sales, rising smartphone usage, and the lack of on-ground events or exhibits in the near future.
- According to Ericsson, the total number of smartphone mobile network subscriptions worldwide reached around 6.4 billion in the recent years and is forecasted to surpass 7.7 billion during the forecast period. China, India, and the United States are the countries with the most significant number of smartphone mobile network subscriptions. Hence, with the rise in the overall number of smartphone mobile network subscriptions worldwide, the market is expected to witness ample opportunities to grow within the market sector.
- Therefore, as more customers use their mobile devices to explore and buy things, mobile advertising is becoming more crucial for the fashion business. In order to reach and interact with their target audience, firms are increasing their investment in mobile advertising significantly.
Asia-Pacific Expected to Witness Major Growth
- China’s economic growth and a rising tech-savvy population have resulted in higher penetration of internet consumption and mobile device penetration in recent years. Due to the increased proliferation of social media, the ad tech industry is growing rapidly in the country. China hosts several tech giants such as Baidu, Tencent, and Alibaba. The rising inclination toward video-based platforms has also increased the demand for various advertising formats in the region.
- The digital revolution and growing internet penetration are driving the ad tech market in India. The rise of online shopping and other digital services, as well as increasing demand for digital advertising, especially on search engines and social media platforms, have compelled businesses in the Indian ad tech industry to increase their advertisement spending.
- The ad tech market in Japan is anticipated to grow due to increasing investment in data, automation, artificial intelligence, and programmatic advertising. The emergence of new market players and innovation plays a critical role in the ad tech ecosystem in Japan. Mobile ad spending is projected to increase in Japan during the forecast period, attributed to the country’s expanding mobile app ecosystem, representing a massive opportunity for ad tech companies. Japan also has an increased influx of video advertising serving platforms entering the Japanese market.
- The rising digital and internet penetration in Australia is bolstering the growth of the regional ad tech market. The rising adoption of artificial intelligence (AI), machine learning (ML), Virtual reality (VR), and augmented reality (AR) technologies is expected to provide lucrative growth opportunities for advertising technology players. The growing use of social media apps and the rising gaming industry also create numerous options for the ad tech market growth in Australia.
- Increased investments, public-private partnerships, and the ever-growing digital gaming market are projected to provide tremendous opportunities for marketers to attract audiences in highly interactive out-of-home (OOH) environments in South Korea. Programmatic Digital out-of-home advertising is opening up new revenue streams for media owners to drive additional revenues.
- A combination of creative innovation, technical adoption, and a dedication to ethical advertising define New Zealand’s position in the global ad tech market. Because of the market’s projected expansion and emphasis on regional specifics and legal compliance, New Zealand is positioned to have a significant impact on the changing face of digital advertising.
Ad Tech Industry Overview
The Ad tech market is fragmented, with high competition among large and small companies. Some of the players include Adobe, Google LLC, Amazon.com Inc., Meta Platform Inc., and Quantcast. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- October 2023 - Meta launched its first generative AI features for advertisers, allowing them to use AI to create backgrounds, expand images, and generate multiple versions of ad text based on their original copy. The first among the trio of new features allows an advertiser to customize their creative assets by generating multiple different backgrounds to change the look of their product images. Another feature, image expansion, allows advertisers to adjust their assets to fit different aspect ratios required across various products, like Feed or Reels.
- July 2023 - Omnicom has partnered with Google to integrate the latter’s generative AI models into its Adtech platform. The integration aims to improve the capabilities of Omnicom’s Adtech platform while providing personalized and effective advertising opportunities.
Ad Tech Market Leaders
-
Google LLC
-
Amazon.com, Inc.
-
Meta Platform, Inc.
-
Quantcast
-
Adobe
*Disclaimer: Major Players sorted in no particular order
Ad Tech Market News
- October 2023 - Amazon Ads launched image generation in beta, a generative AI solution designed to remove creative barriers and enable brands to produce lifestyle imagery that helps improve their ads’ performance. This solution is helpful for advertisers of all sizes, allowing those that do not have in-house capabilities or agency support to more easily create brand-themed imagery,
- September 2023 - Google launched video view campaigns (VVC), the solution for advertisers to get the most views across YouTube’s video formats by delivering the best-performing creatives to audiences more likely to consider the brand. All advertisers can use VVC to serve their campaign to relevant audiences more efficiently and effectively, powered by Google AI.
Ad TechMarket Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 An Assessment of the Impact of COVID-19 on the Industry
- 4.3 Impact of Macroeconomic Trends
5. MARKET DYNAMICS
-
5.1 Market Drivers
- 5.1.1 Rise in the Adoption of Smartphones and Social Media
- 5.1.2 High Precision, Effectiveness, and Cost Efficiency of Digital Advertising
-
5.2 Market Restraint
- 5.2.1 Rise of Click Bots and Install Hijacks Amid Low Public Awareness
-
5.3 Digital Transformation in Advertising
- 5.3.1 Increased Access of Customer Data for Publishers
- 5.3.2 Generation of New Revenue Streams
- 5.3.3 Better Viewer Experience Through Personalization Through Recommendation Engines
- 5.3.4 Location-Based Advertising
- 5.3.5 Customer Behavior Analytics Helping with Spending Pattern
- 5.3.6 Increasing Partnerships and Collaboration with Technology Companies
6. MARKET SEGMENTATION
-
6.1 By Platform
- 6.1.1 Supply Side Platform (SSP)
- 6.1.2 Demand Side Platform (DSP)
- 6.1.3 Ad Exchange
- 6.1.4 Data Management
-
6.2 By Ad Format
- 6.2.1 Video Advertising
- 6.2.2 Social Media
- 6.2.3 Search Advertising
- 6.2.4 Email
- 6.2.5 Other Ad Formats
-
6.3 By Device Platforms
- 6.3.1 Desktop
- 6.3.2 Mobile Devices and Smartphones
- 6.3.3 Other Device Platforms
-
6.4 By End-user Industry
- 6.4.1 Retail and E-Commerce
- 6.4.2 Healthcare
- 6.4.3 BFSI
- 6.4.4 Services (Hospitality, Tourism, Legal Services)
- 6.4.5 Telecommunications
- 6.4.6 Other End-user Industries
-
6.5 By Geography
- 6.5.1 North America
- 6.5.1.1 United States
- 6.5.1.2 Canada
- 6.5.2 Europe
- 6.5.2.1 United Kingdom
- 6.5.2.2 Germany
- 6.5.2.3 France
- 6.5.2.4 Spain
- 6.5.2.5 Italy
- 6.5.2.6 Rest of Europe
- 6.5.3 Asia-Pacific
- 6.5.3.1 China
- 6.5.3.2 India
- 6.5.3.3 Japan
- 6.5.3.4 Australia
- 6.5.3.5 South Korea
- 6.5.3.6 New Zealand
- 6.5.3.7 Rest of Asia-Pacific
- 6.5.4 Middle-East and Africa
- 6.5.4.1 Saudi Arabia
- 6.5.4.2 United Arab Emirates
- 6.5.4.3 South Africa
- 6.5.4.4 Nigeria
- 6.5.4.5 Egypt
- 6.5.4.6 Rest of Middle East and Africa
- 6.5.5 Latin America
- 6.5.5.1 Brazil
- 6.5.5.2 Mexico
- 6.5.5.3 Argentina
- 6.5.5.4 Colombia
- 6.5.5.5 Rest of Latin America
7. COMPETITIVE LANDSCAPE
-
7.1 Company Profiles
- 7.1.1 Google LLC
- 7.1.2 Amazon.com, Inc.
- 7.1.3 Meta Platform, Inc.
- 7.1.4 Quantcast
- 7.1.5 Adobe
- 7.1.6 Adform A/S
- 7.1.7 MediaMath
- 7.1.8 Microsoft Corporation
- 7.1.9 Zeta Global Holdings Corp.
- 7.1.10 Mediaocean
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
** Subject To AvailablityAd Tech Industry Segmentation
Advertising technology, or ad tech, is a collection of software and tools advertisers use to reach audiences, analyze their effectiveness, and conduct digital advertising campaigns. Ad tech focuses on developing data-driven marketing strategies tailored to the target audience.
The Ad tech market is segmented by platform (supply-side platform (SSP), demand-side platform (DSP), ad exchange, and data management), by ad format (video advertising, social media, search advertising, email, and other ad formats), by device platforms (desktop, mobile devices and smartphones, and other device platforms), by end-user industry (retail and e-commerce, healthcare, BFSI, services [hospitality, tourism, and legal services], telecommunications, and other end-user industries), and by geography (North America (United States, and Canada), Europe (United Kingdom, Germany, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, New Zealand, and Rest of Asia-Pacific), Middle East and Africa (Saudi Arabia, United Arab Emirates, South Africa, Nigeria, Egypt, and Rest of Middle East and Africa), and Latin America (Brazil, Mexico, Argentina, Colombia, and Rest of Latin America). The report offers market forecasts and size in value (USD) for all the above segments.
| By Platform | Supply Side Platform (SSP) | |
| Demand Side Platform (DSP) | ||
| Ad Exchange | ||
| Data Management | ||
| By Ad Format | Video Advertising | |
| Social Media | ||
| Search Advertising | ||
| Other Ad Formats | ||
| By Device Platforms | Desktop | |
| Mobile Devices and Smartphones | ||
| Other Device Platforms | ||
| By End-user Industry | Retail and E-Commerce | |
| Healthcare | ||
| BFSI | ||
| Services (Hospitality, Tourism, Legal Services) | ||
| Telecommunications | ||
| Other End-user Industries | ||
| By Geography | North America | United States |
| Canada | ||
| By Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Spain | ||
| Italy | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| Australia | ||
| South Korea | ||
| New Zealand | ||
| Rest of Asia-Pacific | ||
| By Geography | Middle-East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| South Africa | ||
| Nigeria | ||
| Egypt | ||
| Rest of Middle East and Africa | ||
| By Geography | Latin America | Brazil |
| Mexico | ||
| Argentina | ||
| Colombia | ||
| Rest of Latin America |
Ad TechMarket Research FAQs
How big is the Ad Tech Market?
The Ad Tech Market size is expected to reach USD 0.79 billion in 2024 and grow at a CAGR of 11.54% to reach USD 1.37 billion by 2029.
What is the current Ad Tech Market size?
In 2024, the Ad Tech Market size is expected to reach USD 0.79 billion.
Who are the key players in Ad Tech Market?
Google LLC, Amazon.com, Inc., Meta Platform, Inc., Quantcast and Adobe are the major companies operating in the Ad Tech Market.
Which is the fastest growing region in Ad Tech Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Ad Tech Market?
In 2024, the North America accounts for the largest market share in Ad Tech Market.
What years does this Ad Tech Market cover, and what was the market size in 2023?
In 2023, the Ad Tech Market size was estimated at USD 0.71 billion. The report covers the Ad Tech Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ad Tech Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Ad TechIndustry Report
Statistics for the 2024 Ad Tech market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ad Tech analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
