PUBLISHER: Markets & Data | PRODUCT CODE: 1778338
PUBLISHER: Markets & Data | PRODUCT CODE: 1778338
Global AdTech market is projected to witness a CAGR of 15.47% during the forecast period 2025-2032, growing from USD 774.95 billion in 2024 to USD 2449.55 billion in 2032. The global AdTech market is on the rise because organizations today want to engage their customers online in a more effective way. As most people spend time on digital devices, more companies are investing in technology to display the right ads to the right audiences at the correct times. These tools present in AdTech markets are developing and being applied to placements and measurement. As a result,
advertisers are reporting better performance.
The global AdTech market is expanding rapidly as companies worldwide seek innovative ways to connect with their target audiences online. Businesses are looking to confirm that their ads are communicating with the right audience at the right time, for which modern AdTech is directly addressing that challenge by applying smart data with automation (for businesses) to engage the right audience. The AdTech market encompasses a wide range of advertising formats, from basic display ads to native and personalized advertising, as well as other formats. However, as digital platforms expand, advertisers are spending greater amounts on systems that allow for effective targeting, measurement, and performance. The growth of digital content through partnerships across various technology platforms will enhance the momentum of the AdTech market. Companies are innovating new collaborative methods/approaches, risking brand association but generating scale to reach better data and larger audiences. The continual increase in demand for more advanced advertising technologies makes the AdTech market one of the fastest-growing areas of digital business.
For example, in March 2025, Taboola partnered with Microsoft Corporation to distribute native display ads via MSN and Outlook. That meant Taboola gained access to first-party data for more relevant ad targeting.
Rise of Interactive Ad Formats Influencing the Global AdTech Market
One of their most significant drivers of growth in the global AdTech industry is the increasing implementation of interactive ad types. Interactive ads aim to capture the user's attention and provide them with the opportunity to engage with the ad. Rather than simply watching or reading, users can click and swipe or interact with the ad in a fun, engaging, and effective way. With new technology, including augmented reality and virtual environments, becoming mainstream, it increases the user experience. These ad types enhance the user experience for those who may not typically engage with traditional digital advertising formats and offer more iterations of the same ad. Not only does this make ads more entertaining, but these types of ads also allow brands an opportunity to engage their customers more deeply. Commonly, individuals will reclaim the experience to remember and remark ad pieces that allow them to engage with the story. Meaning, more effective advertising and increased investment in interactive ad solutions.
For instance, in 2024, with Meta's new Immersive Ad Experience (utilizing augmented and virtual reality), the tool enables advertisers to create formats that engage users interactively, which can be used in both virtual and digital spaces.
Use of AI to Improve Ad Creation Proliferates the Global AdTech Market
The increasing adoption of artificial intelligence (AI) to facilitate and enhance ad creation is also a significant driver for the global AdTech sector, as AI can help advertisers become more efficient and productive by recommending content, creating it, and minimizing or even eliminating tasks. In this way, it functions like a digital intelligent assistant, assisting users in making more effective campaigns without requiring complex technical knowledge. This helps companies zero in on objectives with their ads, answer questions as they appear in real-time, improve the efficiency and effectiveness of the ad, and streamline creative production. All in all, AI will speed up the ad content creation process. Still, even more importantly, it also takes the focus off advertisers, allowing them to develop their strategic vision rather than focusing on mundane and mind-numbing tasks. AI also yields better results by analyzing data points in real-time and generating insights based on those data points.
For example, in October 2024, Microsoft released Copilot to its Advertising Platform, which provides generative AI capabilities to help users create and manage campaigns. This tool combines real-time assistance, creative input, and optimized ad performance.
Solutions Segment Dominates Global AdTech Market Share
The solutions segment currently holds the largest share within the AdTech market, as it encompasses various advertising tools and platforms that enable brands to plan, manage, and optimize their ad campaigns. These solutions feature smart targeting with real-time insights, automation, and cross-platform capabilities. Businesses like these solutions because they make it easier to serve ads to the right audiences at the right time. Businesses are investing in comprehensive AdTech solutions that offer everything from creative development to ad serving and reporting, whether for a small startup or a large organization. As advertising continues to evolve into more digital and data-driven forms, having a good solution is crucial for maintaining a competitive edge. These solutions also help marketers save time and money by offering innovative suggestions and tracking performance. As solutions can be applied to broader uses and demand continues to grow, the solutions segment currently holds the largest share of the AdTech market.
For example, in 2025, Google LLC rolled out Shopping Ads within Google Lens, integrating visual search with the native shopping capabilities of Google Lens. This allowed advertisers to connect with users via a visual product search.
North America Dominates Global AdTech Market Size
North America is at the forefront of the global AdTech market for several reasons, including a substantial critical mass of digital companies, as well as robust infrastructure and early adoption of technologies. Many of the world's advertising platforms are based in North America, and the region has been a launch pad for numerous digital media platforms and innovations. North American companies are typically the first to launch many main tools and services that are soon adopted by other regions. Businesses in North America invest heavily in digital marketing and have a good understanding of the utilization and advertising technologies. The number of top-tier platforms, agencies and marketers creates a competitive and innovative environment. Additionally, there are relevant government, industry, and societal factors that support the digital economy, which in turn support the ecosystem. North America has high internet usage rates and a high percentage of smartphone penetration, which enables brands to reach users online quickly.
For instance, in July 2024, Criteo announced a partnership with Microsoft Advertising to expand its retail media across a network of 225 retail partners worldwide.
Impact of U.S. Tariffs on Global AdTech Market
Tariffs in the U.S. have a destabilizing impact on the AdTech industry because they are rising tariffs on more expensive hardware and technology components, which would likely increase the overall cost of digital devices and servers, potentially affecting infrastructure costs minimally. However, since AdTech is primarily a software industry, the most significant full value impact of U.S. tariffs is likely to be limited. Most digital ad services utilize cloud-based software that alleviates tariffs associated with risks. Still, some companies may experience delays in their supply chains, primarily if they rely on less expensive hardware from overseas for data centers or delivery infrastructure for advertisements.
Key Players Landscape and Outlook
There are numerous entities throughout the global AdTech marketplace that operate across the advertising chain, from ad creation to ad delivery, including targeting and measurement. Some structures consist of large tech platforms, while others involve small startups pursuing innovation. While some companies are focused on programming and buying, others may be concerned with data analytics or retail media. Typical to the industry is the shift from capitalism to automation, personalization, and improved consumer experiences. That leaves the AdTech marketplace to move on to new operating partners and share data analytics to gain a competitive advantage and improved performance. Technology will unleash innovations that will shape the future of AdTech (especially for the growing industry use of online platforms like e-commerce).
For instance, in October 2023, Hivestack announced its partnership with Grupo Expansion to offer programmatic DOOH advertising across Latin America with magazines, podcasts, and digital displays. The Hivestack and Grupo Expansion partnership is another example of the growth of omnichannel AdTech solutions in emerging markets.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.