AdTech Market Report 2025

The adtech market size has grown strongly in recent years. It will grow from $731.14 billion in 2024 to $795.41 billion in 2025 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to digital advertising growth, targeted advertising, data analytics and insights, programmatic advertising, mobile advertising surge.

The adtech market size is expected to see strong growth in the next few years. It will grow to $1.15 trillion in 2029 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to privacy regulations and compliance, emergence of new ad formats, emergence of AI and machine learning, video advertising dominance, cross-channel advertising solutions. Major trends in the forecast period include contextual advertising resurgence, blockchain for ad transparency, dynamic creative optimization (DCO), shifting ad budgets to connected TV (CTV), adaptive and context-aware advertising, e-commerce integration.

The escalating demand for digital advertising stands as a driving force behind the burgeoning growth of the ad tech market. Digital advertising, conducted through online channels such as websites and streaming platforms, utilizes ad tech software platforms. These platforms facilitate the purchase of advertising space, enabling more efficient campaign planning and measurement for brands and agencies. According to a report by Simplilearn Solutions Pvt. Ltd. in February 2023, global digital advertising expenditures increased by 2.4% in 2022 and are projected to soar to $645 billion by 2024, marking a substantial rise from $389 billion in 2022. This surge in digital advertising demand serves as a pivotal catalyst propelling the ad tech market's expansion.

The growing prevalence of mobile devices is anticipated to drive the growth of the ad-tech market in the coming years. Mobile devices are portable electronic gadgets that are small, lightweight, and typically powered by an internal battery, allowing users to carry and use them without being tethered to a fixed location. The mobile platform's capability to capture user attention in various contexts, combined with advancements in data analytics and AI, enables advertisers to present more relevant and engaging content. This shift toward mobile-centric advertising is not only transforming marketing strategies but also contributing to the overall growth of the ad-tech market. For example, in November 2022, the International Telecommunication Union, a Switzerland-based agency of the United Nations that addresses a variety of technology and communication issues, projected that by 2022, 73% of individuals aged 10 and older would have access to a smartphone, reflecting a 7% increase in the proportion of the population using the Internet. Therefore, the expanding proliferation of mobile devices is fueling the ad-tech market.

Technological advancement emerges as a prominent trend shaping the ad tech market landscape. Major industry players are dedicated to innovating solutions aimed at fortifying their market positions. For instance, in June 2022, Vodafone Idea Limited launched its Vi Ads platform, leveraging artificial intelligence (AI) and machine learning (ML) to offer marketers a programmatic media buying platform. Vi Ads presents a self-service interface empowering marketers with complete campaign control across multiple channels, including Vi-owned digital media such as Vi App, Vi Movies, TV App, as well as traditional channels such as SMS and IVR calls. This combination of advanced functionalities and user-friendly features caters to both large agencies and small-medium businesses, reflecting the increasing emphasis on technological innovation within the ad tech market.

Prominent entities within the ad-tech market are adopting a strategic partnership approach to elevate their advertising solutions. Strategic partnerships involve leveraging mutual strengths and resources for collective benefits and success. For instance, in January 2023, MGID, a US-based ad-tech services provider, announced a strategic partnership with G/O Media Inc. This collaboration is designed to leverage MGID's multi-format upscale demand, brand-safety approaches, and award-winning technology. The partnership emphasizes MGID's commitment to enhancing advertising solutions, offering advertisers improved Return on Advertising Spend (ROAS) in a brand-safe environment. MGID's contextual intelligence audience segmentation service will be utilized across an expanding roster of premium publishers, including renowned publications such as Microsoft, Newsweek, Real Clear Politics, The Times of India, and more. G/O Media Inc., a US-based company overseeing several digital media outlets, joins hands with MGID in this transformative partnership.

In February 2023, Marketing Technology Solutions (MTS), a US-based marketing technology firm providing advertising services, acquired a 67% stake in Buzzoola Group, comprising Buzzoola Internet Technologies LLC and Buzzoola Advertising Technologies LLC, for an undisclosed sum. This strategic acquisition by MTS aims to bolster its ad tech development, expedite advancements in its ad tech business, and solidify its position within the advertising market. Buzzoola Group, a Russian-based advertising technology company, becomes an integral part of MTS, consolidating their strengths to drive innovations and capture a larger share of the advertising landscape.

Major companies operating in the adtech market include Google LLC, Meta Platforms Inc., Oracle Corporation, Criteo SA, Adobe Inc., Amazon.com Inc., The Trade Desk, Alibaba Group Holding Limited., Salesforce Inc., Telaria Inc., Mobvista Co. Ltd., Magnet Digital.io, Microsoft Incorporation, WPP plc, Omnicom Group Inc., The Interpublic Group of Companies Inc., MediaMath Inc., 4INFO Inc., Adtile Technologies Incorporated, Afilias Inc., Xandr Inc., mBlox Inc., Media.net, Metaverse Mod Squad Inc., Neustar Inc., Newsmax Media Inc., OpenMarket Inc., OpenX Technologies Inc., OrangeSoda Inc., Proxim.ai Inc., Quantcast Corporation, Magnite Inc., Taboola Inc., StackAdapt Inc.

North America was the largest region in the Ad tech market in 2024. The regions covered in the adtech market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the adtech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Advertising technology, often referred to as ad tech, encompasses a range of tools and software employed by advertisers to connect with audiences, execute digital advertising campaigns, and assess their impact. Ad tech is oriented towards the creation of data-driven marketing strategies tailored to suit the preferences of the target audience.

The primary product types within the ad tech market include web-based, cloud-based, on-premise, and other variants. A web-based system enables users to access a software platform through a computer and an internet connection. This approach allows multiple users to access the same version of an application, facilitating collaborative use of web-based advertising technology.

The various solutions include demand-side platforms (DSPs), supply-side platforms (SSPs), ad networks, data management platforms (DMPs), and others. The various advertising types include programmatic advertising, search advertising, display advertising, mobile advertising, email marketing, native advertising, and others. These are applied in various applications such as large enterprises, small and medium-sized enterprises (SMEs), and others, and are used by various industry verticals such as media and entertainment, BFSI (banking, financial services, and insurance), education, retail, and consumer goods, IT and telecom, healthcare, and others.

The Ad tech market consists of revenues earned by entities by providing advertising technology services such as display advertising, video advertising, mobile advertising, and native advertising technology services. The market value includes the value of related goods sold by the service provider or included within the service offering. The advertising technology market also includes sales of different types of devices such as computer, computer peripherals used in providing advertising technology services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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