A new study from Juniper Research predicts a 60% growth in the global AdTech market over the next five years, with AdTech platforms expected to generate $27 billion in 2024.

The study identifies improved audience targeting as a key driver of this growth, despite increasing concerns over user privacy. AdTech includes tools, software, and solutions that optimise the buying and selling of digital advertising media by enhancing audience segmentation.

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. 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.

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 are advised to partner with Customer Data Platforms (CDPs) to consolidate this data in real-time; providing up-to-date information on customer preferences to inform more targeted advertising.

Research Author at Juniper Research, Molly Gatford, said: "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."