Adtech Sees an Uprise in India as Investment Rose 208% to $8 million in CY21PUBLISH DATE: 18 July 2022
Increase in Internet users and favorable market conditions have significantly boosted the growth of the advertising technology (adtech) space, especially among investors. According to the data source by venture capital tracker Tracxn, funding in the ad-tech sector grew by about 208% to eight million dollars in CY2021 and is reported to reach Rs 35,809 crore by the end of 2023.
Various adtech firms have claimed that the fund raised by them have primarily been directed towards product development and expansion of capabilities in digital advertising. For example – With the funds raised, Silverpush aims to create and strengthen its core AI technology solutions offering marketers a granular audience targeting for their ad campaigns.
The data as presented by Tracxn also revealed name of some of the top investors in the sector. Some of the names include, JITO Incubation and Innovation Foundation, IPV, Kalaari Capital, Kettleborough VC, as of date. On the other hand, top funded companies in CY2022 are Zocket ($3.4 million), Coffee ($5,16,000) and Com Olho ($2,41,000).
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E-commerce market is fiercely competitive and the industry is continuously growing. Industry stakeholders have raised concerns that the adoption of adtech space is slow due to its heavy pricing model. Generally, the adtech space is dominated by the digital advertising agencies who charge mostly about 25-30% commission for offering such services. Self service ad-tech platform allows marketers to have direct control of their campaigns which in turn brings the pricing down to about five or 10%. This will further help to bring down the cost in the overall ad world as well.
From targeted and personalized ads to using cutting-edge technologies, adtech allows brands and agencies to connect with their audience directly and convert brand engagement into positive revenue generation. Adtech industry is continuously evolving to a place where technology helps in minimizing revenue leakage and ensuring right right price can be implemented to derive value rewards.