Claims that new data protection legislation will stifle the growth of the global adtech market appear to be well wide of the mark, with a new forecast predicting the industry will almost triple in size from $579.4bn this year to nearly $1.5 trillion by 2030.
That is according to a new report by Markets & Markets, which maintains the industry will witness a compound annual growth rate (CAGR) of 14.5% during the forecast period, due to increasing demand for data-informed marketing strategies and the growing popularity of audio streaming and podcasts.
While Meta, Microsoft, Google, Amazon, Apple and Netflix will continue to dominate the market for ad space, it is the services segment that will grow more rapidly.
Managed services are vital in properly functioning adech solutions and are designed to help businesses efficiently navigate the complexities of digital advertising, offering various solutions from campaign management to data analytics.
A key driving factor behind the increasing demand for managed services is the intensifying competition in the digital advertising landscape. As adtech becomes more intricate, companies seek external expertise to optimise their ad campaigns, reach their target audiences, and maximise return on investment.
When it comes to solutions, the data management platforms segment is expected to register the highest growth rate during the forecast period, with advancements in technologies including the development of cross-device targeting capabilities.
DMPs can now track users across multiple devices, such as smartphones, tablets, and laptops, allowing advertisers to deliver more consistent and relevant ad experiences across all devices.
Several factors, including the increasing demand for targeted advertising, the growth of digital advertising, and the increasing availability of data, will further accelerate the growth of the DMP market.
By region, Asia Pacific is witnessing significant technological innovation in the adtech market. Its expansion is attributed to several driving forces, including the robust growth of the digital landscape, the increasing prevalence of Internet access, and the widespread adoption of smartphones.
Countries such as China, India, and Indonesia have emerged as pivotal destinations for advertisers seeking to connect with a vast and diverse audience. Furthermore, the Asia Pacific region is currently experiencing a surge in programmatic advertising, bolstered by the integration of AI and machine learning technologies, which enable advertisers to achieve more precise targeting and real-time campaign optimisation.
The report cites a number of key moves as crucial to its forecast. In August, Meta acquired CRM platform Kustomer for$1bn. This acquisition is seen as a way for Meta to expand its advertising business to include more customer data.
This is despite Meta finally bowing to pressure to offer consumers an opt-in and opt-out box to consent to receive personalised ads on both Facebook and Instagram and the recent launch of an ad-free paid for subscription service.
Meanwhile, also in August, Amazon Ads launched a Household Reach & Frequency measurement reporting capability, which allowed connected TV (CTV) advertisers to measure the effectiveness of their campaigns more accurately and to plan and optimise them more effectively. It is claimed that advertisers can now access reach and frequency insights both at the viewer and household level.
In addition, in July 2023, Meta and Microsoft partnered to bring Meta’s advertising platform to Microsoft’s cloud computing platform, Azure. This partnership will allow Meta to reach a wider audience of advertisers and provide them with more data and insights.
Finally, in June, Adobe unveiled Generative Recolor (beta), the first integration of Adobe Firefly in Adobe Illustrator, enabling designers to quickly experiment with colours using simple text prompts. The new release advances Adobe’s vision of empowering creators of every skill level with Firefly as a creative co-pilot, bringing their visions to life at the speed of imagination.
However, with privacy campaigners, including the likes of Max Schrems at NOYB and Dr Johnny Ryan at the Irish Council for Civil Liberties, watching like hawks, you would not bet against there being a spate of new legal challenges against the adtech industry in the coming months and years.
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