The Only Ad Tech Guide You Need
Technology has disrupted all traditional industries and sectors in today’s internet age, advertisement and marketing included. While it has been around for some time now, AdTech, sometimes also referred to as ad tech, is truly seeing the dawn of light and getting noticed by ad agencies today.
In fact, thought transforming regularly, advertising had never seen the drastic transformation in the last decade since the time digitization began. This is primarily due to how industry today interacts with its customers and the growth of technology in advertisements.
Even the advertising agencies today believe that being associated with these ad tech companies makes them more attractive to prospective clients. If you are still wondering what this AdTech is and why it is even essential, read on.
What is Ad Tech
Ad Tech or AdTech is short for Advertising technology. All the various technological tools, digital platforms, and software used by advertisers today to deliver their advertisements to their target audience together form an ad tech ecosystem.
From planning and executing marketing strategies to analyzing the performance of these advertisements and everything else in between, ad technology helps the advertisers with all. With adtech, advertisers can optimize their budget allocation and utilization.
The more tech ad gurus adopt for advertising, the more targeted and focused their ad spends become, reducing wastage and improving their reach.
Examples of What Ad Tech Can Do
One comes across many examples of adtech in today’s world of technology ads and doesn’t even realize it. For instance, we have all interacted with a brand on multiple channels at various times. These channels could include mobile, desktops, laptops, videos, etc.
If you had noticed, there would have been subtle changes in the kind of interaction you receive when you interact with the brand for the first time versus when you have had multiple interactions. This kind of dynamic ad insertion is called Omnichannel marketing to reach the target audience across various channels at once.
Similarly, the ability for advertisers to buy target audiences instead of time slots for their advertisements is possible through the world of programmatic ads. With programmatic ads and other digital advertising technology on the rise, many clients prefer to outsource their programmatic media buying efforts.
This service provided by the advertising agencies, called an Agency Trading Desk (ATD), seems to be gaining popularity today. From Google and Adobe to even young startups, many companies are involved in advertising technology. Some other examples of advertising tech companies from the many available include:
Types of Ad-Tech Companies & How to Choose The Right Tech
With the rise in tech advertising worldwide, AI and automation have been the talk of the town in the advertising and marketing world. As time progresses, this domain is getting even more complex and sophisticated. This had lead to the emergence of many specialized systems to assist with today’s tech advertising.
However, for the convenience of the users, broadly, ad tech companies can be classified under 5 major categories:
- Demand-Side Platforms (DSP): An automated system that uses a real-time bidding process to automate advertisers’ programmatic ad buying process. Using a single interface, advertisers can now simultaneously purchase ad impressions from multiple sources in milliseconds.
- Supply-Side Platforms (SSP): An automation platform that helps publishers sell ad impressions to various DSPs, ad networks, and ad exchanges. To assist inventory sales through a single interface, SSP helps integrate all these technologies together.
- An Ad Exchange: These are the online marketplaces for publishers and ad buyers to buy and sell the unsold inventory of ad impressions. In a marketplace where publishers publish their unsold inventory, the ad buyers need to bid for this inventory through real-time bidding to win them over. These marketplaces are usually automated for technology adverts companies to compete on.
- Data Management Platforms (DMP): A support platform for DSP and SSP, DMP’s help users store and analyze the data about the various ad campaigns and their audiences. This data is then used by tech ads media buyers and publishers to take more calculated, data-oriented decisions.
- Customer Data Platforms (CDP): Some of the best tech ads and new technology advertising is possible only by knowing every detail about the target audience and their journey. A CDP helps data from other systems and helps build profiles of the customers for targeted advertising.
Literally meaning direct agreement between a seller and buyer for ad impressions, programmatic direct does not involve bidding at the ad exchanges. Here the publisher directly invites the buyer to buy the impressions.
Traction, Benefits, and Future of Ad Tech
With the rise in competition for attention from the same audience and the need for intelligent advertising, the opportunities with Ad Tech for various agencies to set a mark for themselves are plenty.
Today, agencies and advertisers can offer relevant targeting, thanks to data about the consumers. This has directly resulted in drastic improvement in brands interaction with the prospects. With adtech, connecting all channels of advertising is already a reality. With targeted marketing, retargeting too is seeing unprecedented popularity.
In fact, if one goes by the numbers available, advertisers today spend as much as 90% of their budgets on retargeting. With ad tech, advertisers can isolate audiences that are likely to convert and communicate directly with them. Reaching goals with adtech has become that much more possible for advertisers and marketers alike.
How Retracting Works?
As the world walks more profound into the digital era, the data available about the target audience will only rise. With ad tech already a powerful tool available for advertisers and marketers worldwide, their hunger for new technology in advertising and more ad serving technologies will only grow further.
With technology and advertising going hand in hand, who knows, facial recognition advertising and other virtual reality ads may be the new future for advertising.
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