Advertising Tech (Adtech) - Thematic Research

Advertising Tech (Adtech) - Thematic Research

Summary

Advertising Technology (adtech) is a blanket term covering all software and services used to deliver and target digital advertisements. It is the backbone of the internet advertising industry. Worth $438 billion in 2021, internet advertising will become a $1 trillion industry by 2030, according to GlobalData forecasts. Adtech will play a vital role in this growth.

Adtech’s emergence over the past 25 years has been driven by the rise in the number of internet users; the emergence of mobile, social media, ecommerce, and streaming platforms; and the growing sophistication of analytics tools. However, it is under scrutiny from data privacy regulators for its role in mishandling users' data.

Key Highlights

• Adtech vendors have been forced to rethink their strategies due to the emergence of legislation such as the EU’s General Data Protection Regulation (GDPR). They must adopt privacy-first approaches and ensure that user data is not shared among partners. In addition, 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 threatening longstanding ad targeting practices. As a result, data collection methods are changing, with adtech vendors 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.
• In competitive terms, the adtech industry is primarily a face-off between tech giants like Google, Meta, Amazon, and Alibaba and pure play vendors like The Trade Desk, MediaMath, and Amobee. The tech giants dominate the market with their massive user bases and sophisticated adtech walled gardens. Several pure play vendors will become acquisition targets for Big Tech vendors over the next three years.

• This report provides an overview of the adtech theme.
• It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
• It includes comprehensive industry analysis, including forecasts for the global internet advertising market to 2030.
• It contains details of M&A deals driven by the adtech theme, and a timeline highlighting milestones in the development of adtech.
• The detailed value chain comprises three distinct segments: demand-side, intermediaries, and supply-side.

• Adtech plays a vital role in a brand’s visibility among existing and potential consumers. It covers the entire ad campaign process, from identifying and targeting the right audience to managing channels and selling ads to publishers. Subsequently, adtech companies help brands measure the effectiveness of their ads and understand the customers’ interests.
• The rapid rise in the number of internet users, the increasing digitalization of businesses, and the growing sophistication of analytics tools are key factors driving the growth of the adtech industry.
• This report provides an invaluable guide to this important theme, including details of the leading players and up-to-date market forecasts.