The global AdTech market will grow by 60% over the next five years, with AdTech platforms anticipated to generate $27bn in 2024, driven by ae need to improve audience targeting to increase ad engagement – and despite growing concerns over user privacy.
The research from Juniper Research considers AdTech to include tools, software and solutions that optimise the buying and selling of digital advertising media by enhancing audience segmentation.
An extract from the new report, Global AdTech Market 2024-2029, is now available as a free download.
Privacy concerns impact audience targeting
The research found that rising consumer privacy concerns will require AdTech platforms to implement more privacy-conscious data collection methods and increase transparency around data analysis.
It identified that real-time data collection and analysis are crucial for AdTech platforms to effectively identify the most relevant audiences; however, this is becoming more challenging as new data privacy regulations emerge.
To overcome this challenge, the report urges AdTech platforms to invest in first-party identity solutions and authentication-derived IDs that enable data collection whilst maintaining consumer privacy.
Platforms must then partner with CDPs (Customer Data Platforms) to consolidate this data in real-time; providing up-to-date information on customer preferences to inform more targeted advertising.
Research Author Molly Gatford explains: “As AdTech platforms integrate AI into audience segmentation, they must leverage the consent management features in CDPs to ensure that algorithms only process data from users with explicit consent. This is critical to creating a high-value proposition to advertisers that must maximise return on ad spend in an increasingly privacy-conscious world.”
