Ad Technology (AdTech)

Online Advertising (Global Market)

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2023: The global advertising technology market grew by 5% over the year to reach $367 billion

In 2023, costs in the global advertising technology market (AdTech) reached $366.84 billion. For comparison, a year earlier, expenses in this area were estimated at $349.8 billion. Thus, growth was at the level of 5%, as stated in the Market Research Future review, published in mid-December 2024.

AdTech is a collection of tools and platforms that are used to create, distribute, analyze and manage, as well as optimize advertising campaigns on the Internet. One of the key drivers of the market in question is the widespread use of all kinds of digital devices, including smartphones and tablets. This allows the organization to expand its audience reach, as well as introduce new advertising formats. The wide availability of the Internet, including mobile, also has a positive impact on the industry.

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Фото: Freepik

Technological advances make an important contribution to revenue growth. The integration of artificial intelligence and machine learning improves targeting accuracy, automates optimization processes, and enables real-time changes to ad campaigns. All this increases efficiency and reduces costs. The continued evolution of consumer behavior in the digital space further spurs demand for AdTech platforms that help to adapt faster to changing trends. Qualitatively new opportunities are opening up thanks to augmented (AR) and virtual (VR) reality platforms.

Analysts are also talking about increased demand for personalized advertising. AdTech platforms help you demonstrate the most relevant ads that match the interests of specific user groups. When generating such proposals, data on behavior, preferences and geographical location can be taken into account. The growing popularity of mobile advertising is also expected to continue to drive the market.

The authors of the study identify seven key industry segments: real-time bargaining (RTB - real-time advertising auction), algorithmic advertising procurement, native advertising, video advertising, social media advertising, search engines marketing and audio advertising. In 2023, according to estimates, the first of these areas provided revenue in the amount of $45.6 billion. Algorithmic advertising procurement brought in $120.1 billion, native advertising - $65.2 billion. Video sales are estimated at $70.4 billion. Among the significant players in the global market are named:

• The Trade Desk;
• Meta Platforms (recognized as an extremist organization; activities on the territory of the Russian Federation are prohibited);
• PubMatic;
• OpenX;
• Magnite;
• Yieldmo;
• SmartyAds;
• Amazon;
• Microsoft;
• TripleLift;
• IAS;
• Rubicon Project;
• Google;
• Criteo.

At the same time, analysts highlight a number of restraining factors, including regulatory requirements regarding privacy and cybersecurity. Large data breaches reduce user confidence and damage the reputation of companies. Advertisers and AdTech providers, as noted, need to find a balance between compliance with the rules, ensuring the protection of personal information and maintaining effective advertising strategies for the long-term development of the industry.

Market Research Future analysts believe that in the future, the CAGR in the market under consideration will be 13.4%. Thus, by 2032, the cost of AdTech on a global scale, according to the estimates presented, could reach $1.14 trillion.^[1]

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