According to a new report conducted by Juniper Research, the leading specialists in technology markets, the worldwide AdTech market will increase by 60% over the next five years, with AdTech platforms expected to produce $27 billion by 2024.
The survey found improved audience targeting as a crucial driver of ad engagement, despite growing worries about user privacy. AdTech refers to tools, software, and solutions that optimize the buying and selling of digital advertising media by improving audience segmentation.
Privacy concerns affect audience targeting
The study discovered that increased consumer privacy concerns will necessitate AdTech platforms implementing more privacy-conscious data collection methods and increasing openness surrounding data analysis. It concluded that real-time data gathering and analysis are critical for AdTech platforms to efficiently identify the most relevant audiences; however, this is getting increasingly difficult as new data privacy restrictions emerge.
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The research encourages AdTech platforms to invest in first-party identification solutions and authentication-derived IDs that allow data collection while protecting user privacy. Platforms must then collaborate with CDPs (client Data Platforms) to consolidate this data in real time, thereby offering up-to-date information on client preferences for more focused advertising.
Molly Gatford, a research author, commented: “As AdTech platforms integrate AI into audience segmentation, they must apply CDP consent management capabilities to ensure that algorithms only process data from users who have given express approval. This is crucial to developing a high-value proposition for marketers who must maximize return on ad expenditure in an increasingly privacy-conscious society.”
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