A new study from Juniper Research, the foremost experts in technology markets, has found that the global AdTech market will grow by 60% over the next five years, with AdTech platforms anticipated to generate $27 billion in 2024.
The study identified the need to improve audience targeting to increase ad engagement, despite growing concerns over user privacy, as a critical driver of this growth. AdTech includes tools, software, and solutions that optimise the buying and selling of digital advertising media by enhancing audience segmentation.
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.
Platforms Must Improve Data Collection and Management
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 commented: “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.”