According to a recent report by leading technology market analyst Juniper Research, the worldwide AdTech market is expected to increase by 60% over the next five years, with AdTech platforms expected to produce $27 billion in revenue by 2024.
The study found that, in spite of growing concerns over user privacy, improving audience targeting was necessary to promote ad interaction and that this growth was crucial. AdTech refers to the hardware, software, and solutions that improve audience segmentation to maximise the purchase and sale of digital advertising media.
Privacy Concerns Impact Audience Targeting
According to the research, AdTech platforms will need to provide more privacy-conscious data collection techniques and boost transparency regarding data analysis in order to address growing consumer privacy concerns. It was found that in order for AdTech platforms to efficiently identify the most relevant audiences, real-time data collecting and analysis is essential; yet, this is getting harder to do as new data privacy laws come into place.
Platforms Must Improve Data Collection and Management
The paper recommends that AdTech platforms invest in first-party identity solutions and authentication-derived IDs that allow data collection while protecting user privacy in order to address this difficulty. The next step is for platforms to collaborate with Customer Data Platforms, or CDPs, to aggregate this data in real-time and supply up-to-date customer preference data for more focused 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.”
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