Fairfield Market Research has released preliminary findings indicating a promising growth outlook for the global Demand Side Platform (DSP) Market in the coming years. The report highlights the key drivers and challenges shaping this dynamic market, as well as the impact of the COVID-19 pandemic.
Rising Adoption of DSP for Programmatic Advertising
Easy Management and Enhanced Reporting Propel Market Growth
The global demand for DSPs is on the rise, driven by the growing adoption of programmatic advertising. Key factors contributing to this expansion include the increasing availability of digital advertising inventories and the benefits of speed, smart advertising, precise targeting, and research offered by DSPs. These platforms leverage advanced technologies like machine learning and artificial intelligence to automate data-driven advertising, thus enhancing their appeal in the market.
Programmatic Advertising Gains Traction
Businesses seeking more effective and successful ad campaigns are turning to DSPs for programmatic advertising. The surge in ad transactions, particularly in Connected TV (CTV) and over-the-top (OTT) solutions, has significantly boosted the demand for DSPs. Mobile OTT and CTV applications have played a pivotal role in this growth, offering better opportunities to reach target audiences through digital advertising.
Data-Driven Decision Making
The exponential growth of website data and applications, driven by increased online user activity, has further fueled the adoption of DSPs for programmatic advertising. DSPs analyze this data to optimize advertising effectiveness, helping advertisers place bids strategically. Nevertheless, challenges such as a lack of understanding and hidden costs remain barriers to market growth, signaling the need for innovative solutions.
COVID-19 Impact on the Market
The COVID-19 pandemic presented unprecedented challenges to global trade and economic activities. While some industries struggled, the demand side platform market found opportunities during this period. With more people relying on social media and online shopping, businesses increased their advertising spending. The explosive growth of e-commerce, online shopping, and gaming industries contributed to the resilience of the demand side platform market during the pandemic.
Effective Data Exchange Management in the Media Industry
The demand for DSPs continues to grow, as they simplify inventory purchasing and streamline media buying processes across various sources. This demand is fueled by the need to manage and optimize data exchange in the media sector through a unified interface. However, the high cost of software and a shortage of technical professionals may hinder market growth.
Rapid Growth in CTV and OTT Ad Transactions
Innovative advertising strategies centered on platforms like CTV and OTT have resulted in increased customer reach and engagement. The rise of video streaming through OTT services like Netflix, Apple TV+, and YouTube TV has placed CTV display advertising in the spotlight. DSPs play a critical role in enabling companies to advertise effectively through these channels while providing full control over their campaigns.
Challenges Posed by Fraudulent Activities
The advertising industry faces a growing threat from fraudulent advertising, including false advertisements and deceptive practices. Ad fraud, perpetrated by malicious bots, false ghost sites, and other means, poses significant risks to consumers. Strategies such as ad stacking and fake impressions are used to deceive users, leading to financial losses. Addressing these challenges remains crucial for the demand side platform markets sustainable growth.
Self-Service DSPs on the Rise
Self-service DSPs, offering advertisers complete control over their campaigns, are expected to experience strong growth in the coming years. Marketers can exercise control over ad purchases, inventory selection, and campaign management with the assistance of these platforms, making them highly effective marketing tools.
Growing Social Media Consumption and Smartphone Adoption
The video segment, driven by the increasing use of CTV advertising for broad customer reach, is expected to dominate the market. Marketers utilize video advertising to influence brand perception and acquire new clients effectively. The COVID-19 pandemic accelerated the shift from linear television to CTV and OTT services, further boosting the demand for DSPs.
North America Leads the Way
North America is poised to capture a significant portion of the demand side platform market due to the widespread use of DSPs for programmatic advertising. Factors contributing to the regions dominance include the extensive use of smartphones, online applications, and the populations reliance on the internet. North America is also expected to witness increased spending on programmatic ads, driving market growth.
Global Demand Side Platform Market: Competitive Landscape
Key players in the Demand Side Platform (DSP) market include Alphabet Inc., Amazon.com, Inc., Adobe Inc., The TradeDesk, Inc., MediaMath, Inc., Adform, Xandr (Microsoft), SmartyAds, Gourmet Ads, and Basis Technologies. These companies play a crucial role in shaping the competitive landscape of the DSP market.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/demand-side-platform-market
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COMTEX_440962132/2840/2023-09-26T06:04:17
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