The advertising technology (adtech) sector is rapidly evolving into a nearly $1 trillion market, presenting considerable monetization potential through user interactions on mobile apps and streaming services. Industry leaders such as AppLovin and The Trade Desk are striving to capture this growth but have experienced stock price volatility in 2025 due to market corrections. AppLovin, in particular, has leveraged its advanced AI capabilities to achieve significant revenue increases and profit growth, while also diversifying into new advertising verticals like e-commerce and CTV, raising questions for potential investors about whether now is the time to invest or observe.
AppLovin is shifting its focus towards new advertising verticals like e-commerce and connected TV (CTV), harnessing the power of its AI-driven AXON engine for optimization.
Despite the market correction, AppLovin has demonstrated significant growth with a 75% jump in advertising revenue and a 343% increase in net income in 2024.
The Trade Desk faces a similar plight, down 53% year to date, yet continues to enable brands and publishers to harness audience engagement for monetization.
Investors are now faced with a dilemma: should they buy into the adtech dip amid volatility, or wait for clearer signals of stability?
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