The Global Demand Side Platform Market Size Was Valued At USD 16.94 Billion In 2021. The Market Is Projected To Grow From USD 20.77 Billion In 2022 To USD 92.12 Billion By 2029, Exhibiting A CAGR Of 23.7% During The Forecast Period.

Demand Side Platform Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Across all regions, demand for demand-side platforms has been higher than expected compared to levels before the pandemic. According to our research, the world market grew by 21.8% more in 2020 than it did in 2019.

In the scope, we looked at demand-side solutions from big companies like Amazon.com, Adobe, The Trade Desk, MediaMath, and SmartyAds, among others.

Demand Side Platform (DSP) is software that lets advertisers buy advertising space for ad inventory. This software platform is used by agencies and trade desks to buy ad space through a real-time bidding system and an ad exchange. These platforms are used to sell ad space on channels like display, mobile, video, and native. The market is being driven by the fact that advertisers want and use programmatic advertising more and more. DSPs and Supply-Side Platforms are both parts of programmatic advertising (SSPs).

For example, in August 2022, Google added three features for advertising on Connected TV (CTV). To measure the right audience, it added Nielsen Digital Ad Ratings for audience guarantees, advanced programmatic guarantee, and consolidated CTV workflow across YouTube and other CTV apps. Advertisers were able to better plan, manage, and measure performance across channels with the help of these new features.

Market Dynamics:

Latest Trends:

Display ads with a lot of impact are most often seen in video medium. Marketers are putting automated video ad buying into DSPs so that digital video commercials can be sent to more places. It helps get people more involved on social and digital channels, educates the audience, and gives businesses a new way to reach customers.

Also, mobile gaming and home entertainment in any form are creating a chance for demand-side platform providers to reach new audiences that aren't going anywhere. DSPs are used by marketers for gaming ad networks. The landscape of mobile games has changed, giving advertisers a chance to focus on digital advertising.

For example, Tyroo, an ad tech platform, released Comet, a gaming vertical, in APAC in April 2022. With Comet, Tyroo can offer advertising in the vast metaverse and give brands customer-centered experiences. It also helps brands shape their advertising campaigns and make the customer experience better.

Driving Factors:

With new advertising strategies like reaching a specific audience and marketing to devices, platforms like CTV and OTT are very important to how they do things. They help reach more customers and the people you want to reach. Due to the rapid growth of video streaming on OTT platforms like YouTube TV, Apple TV+, and Netflix, CTV display ads are all the rage. For example, in 2020, streaming income in the U.S. grew by 41.2%.

Demand side platforms help businesses promote their brands through these channels and give them full control over their ad campaigns and more ways to reach customers. Also, video ads are very personal and interesting, which helps advertisers reach their marketing goals quickly.

For example, the Google Marketing Platform, Display & Video 360, got new features in May 2022. To make CTV advertising better, the company added more CTV inventory to the Display & Video 360 demand-side platform and added CTV devices to Google audiences.

Restraining Factors:

More and more, fraudulent advertising is becoming a new risk for people who shop online. Consumers see millions of fake ads that lead them to illegal e-commerce sites that scam people and sell fake goods and services. Ad fraud can happen in many ways, like when bad bots make fake ad impressions or clicks, when ads are stacked on top of each other, or when fake "ghost" sites copy real websites to get ad networks to let them in. According to a 2019 report from the China Internet Network Information Center, the rate of digital ad fraud in China has gone up by as much as 40% over the last few years. China spent 30.7% of all money on advertising, while ad fraud in the UK cost only 2.4% of all money spent on advertising during the same time period.

Also, a lot of deceptive ads use social media as a place to spread their lies. For example, a report by tracit.org 2020-21 talked about fraud and gave facts and examples.

Fraudsters took advantage of how popular some video games were by using Google's YouTube to trick people into downloading dangerous apps. Also, scammers used COVID-19 to make money on YouTube by posting easy-to-find videos about overpriced face masks and fake vaccines, which cost consumers more than USD 5 million. In April 2019, a LinkedIn ad for fake Tommy Hilfiger clothing was found.

Segmentation Analysis:

By Type:

Service full or managed DSP has the largest share of the market's revenue because advertisers like it and it has a lot of advertising solutions to offer. In full/managed service DSP, a third party, like an agency, runs and manages the whole campaign with the help of their media strategists' team to reach the right people.

During the forecast period, however, self-service DSP is expected to have the highest CAGR. This will give advertisers full control over their ad campaigns. With the help of their marketing team, marketers can have full control over the process of buying ads, choosing inventory, and running campaign management. Self-service demand-side platforms are effective marketing tools that make it easy for advertisers to buy a large number of high-quality impressions with little hassle. Because of this, the demand side platform market is likely to grow.

By Channel:

Because more people are using CTV ads to reach a large number of customers, the video segment is likely to get the most market share. Advertisers can reach their goals by using video ads to raise brand awareness, change how people feel about the brand, and reach new customers. Also, COVID-19 has made more people stay home and moved viewers from linear to CTV and Over-the-Top (OTT) platforms. This has made more people want to use DSPs. EMI Research Solutions says that in Latin America, the number of people who use OTT subscription services every month will rise to 117.2 million in 2020.

Due to the growing number of internet and smartphone users, mobile advertising is expected to grow at the fastest rate over the next few years. Advertisers are also paying attention to social media and mobile games as places to put ads. For example, the Global Games Market Report says that mobile game sales will bring in USD 36 billion in 2021.

Regional Insights:

During the forecast period, North America is expected to bring in the most money. The region's market is growing because more money is being spent on programmatic ads. eMarketer says that by 2020, about 85% of digital display advertising spending in the U.S. will be done with the help of programmatic technology. Also, market vendors are putting a lot of effort into adding new technologies to their software for the demand-side platform. The region is bringing in big names from all kinds of industries and using demand-side platform software a lot. Also, many large and small regional advertisers are using demand-side platforms for short-term brand-building and performance campaigns.

During the period of the forecast, Asia Pacific is expected to have the highest CAGR. Market players in the region focus on growing their geographic presence by offering advanced demand side platforms in developing countries. The market is driven by the fact that there are a lot of smartphones in the area. Also, the long-term growth of the region is likely to be helped by the use of advertising methods like programmatic advertising and device marketing.

Europe should have a big share of the global demand side platform market. The growth is because advertisers in the U.K., Germany, and France are becoming more interested in DSP software. Zenith predicts that the amount of money spent on programmatic ads in Central and Eastern Europe (C&E Europe) will grow a lot between 2021 and 2024.

In the same way, South America's growing digitalization and industrialization may help the market grow. The Middle East and Africa region is expected to have steady growth because big players are putting a lot of money into finding a solution.

Scope Analysis

Recent Development:

• In June 2022: Basis Technologies released a data visualization solution, Data Canvas, to automate reporting in advertising. Data Canvas aids organizations available in the Basis media automation platform, reducing manual tasks in sharing and building client reports and dashboards.
• In July 2022: SmartyAds partnered with SQUID, a news feed company. With this collaboration, SmartyAds enables advertisers to expand their reach and address audiences, including the tech-savvy youth. SQUID helps SmartyAds in offering news in local languages and broadcasting it through various digital channels.
• In April 2022: Xandr launched deal discovery, inventory library, and activation platform for Invest DSP. With this launch, Xandr enabled the easy discovery of premium inventory to buyers, creating a footprint in the programmatic advertising industry. Moreover, buyers can access publishers across multiple Supply-Side Platforms (SSPs).
• In May 2022: Adform expanded its long-standing partnership with DoubleVerify (DV), a digital media analytics and measurement provider. The partnership enabled advertisers to guard their programmatic campaigns and ensure the media quality in new ways, including connected TV advertising.
• In February 2022: The Trade Desk Inc. launched OpenPath to connect advertisers and marketers with premium publishers. OpenPath allows publishers to integrate with their demand side platform directly accessible to premium publishers.

Market Segmentation

By Type:

• Self Service
• Full/Managed Service
• Others

By Channel:

• Display
• Mobile
• Video
• Native
• Others

By Companies:

• Alphabet Inc. (U.S.)
• com, Inc. (U.S.)
• Adobe Inc. (U.S.)
• The TradeDesk, Inc. (U.S.)
• MediaMath Inc. (U.S.)
• Adform (Denmark)
• Xandr (Microsoft) (U.S.)
• SmartyAds (U.S.)
• Gourmet Ads (Australia)
• Basis Technologies (U.S.)
• Others

Overview of the regional outlook of the Demand Side Platform Market:

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America