In fact, we project that spend in the video ad tech space will reach close to $6 billion by 2023 – up from just under $1.7 billion as of 2018.
Data Is Driving The Market
One of the major factors driving the investment in digital advertising is the promise of rich data. Advertisers hope that the opportunity to learn more about viewers and dive deep into analytics will help reduce churn and create new revenue opportunities.
The volume of data will undoubtedly continue to grow, despite growing consumer concerns about data privacy. That’s because 5G technology and the Internet of Things will bring more connectivity to the video space, which will in turn increase the value for ad technologies.
Cross-Channel Advertising Is Taking Shape, But Slowly
While traditional video services remain the primary source of content for a large number of households, connected televisions and over-the-top streaming options are rapidly gaining in popularity. Mobile video has also changed the nature of video consumption, and with advances in 5G on the horizon, mobile will become an even more pervasive channel in the near future.
Cross-platform advertising will allow advertisers to reach consumers across all of these channels. As a result, companies like Comscore, Comcast/FreeWheel, clpyd, Imagine Communications, and Taptica are starting to, or will, address this need. However, this type of campaign ad management is not yet ready for prime time, and will take some time to develop and perfect.
Other ad tech capabilities, such as location-based tracking and augmented reality, have not gained traction with consumers. As a result, they are not yet on the roadmap for most companies.
Barriers To The Market
While the emergence of new technologies and the allure of data will contribute to the growth of the ad tech market, there are some hurdles that remain in place:
- Privacy regulations and consumer concerns
- Fragmented or siloed measurement and data sources across platforms
- Relatively slow adoption rate of standards
Learn More About The Emerging Ad Tech Market
As part of our Video and Cloud Research Service, our analysts help stakeholders stay ahead of the latest trends and market changes impacting their businesses. Our latest Application Analysis report, Advertising Technologies in Video Services, provides in-depth analysis for the ad tech market.