The AdTech landscape is constantly advancing. The growing privacy concerns and advancements in digital technologies are making marketers stay aware of the trends, tools, and platforms to keep their campaigns going strong.
The rise of marketing technology has pushed advertising technology, or adtech speed up marketing activities double digit.
According to Global Data’s report Adtech Market Overview the internet advertising market size was $438 billion in 2021. It expects to grow beyond 9% between 2021-2030.
Grandview Research AdTech Market Size says the global AdTech market scope was USD 886.19 billion in 2022. Now it expects to expand at 13.7% from 2023 to 2030.
AdTech in 2023 focuses on increasing efficiencies in the customer journey. As this marketing space gears up, key challenges will surface, such as increasing AdTech costs, data privacy, and Customer Acquisition Costs (CAC).
However, as MarTech is becoming a key part of digital marketing, leaders must center key areas where AdTech can generate more revenue.
Advertisers are willing to invest in the latest technology stacks for ads. They understand their abilities, making them more actively adopt AdTech trends around them. With the ability to attract a target audience and generate strong insights, marketers find it necessary for advertisement space.
The technologies associated with the advertisement can be a new venture to improve and generate revenue.
Why AdTech
AdTech is helpful to marketers in finding ways to access customers through contextual data. AdTech also allows marketers to reach customers since it connects them to all media platforms. Advertisement technologies today are powerful as most media platforms support rising technologies like AI/ML.
Marketers can take this opportunity to get and give a comprehensive view of digital marketing performance. They will have to stay abreast of rising trends to stay aware, adopt, and match the pace of ad marketing.
Several components of AdTech are worth notifying and show the necessity for marketers to use. Some features show why it’s an essential asset for brands. AdTech includes demand and supply platforms. Demand-side platforms (DSPs) are for digital advertising buyers to manage programmatic ad buying. At the same time, supply-side platforms (SSPs) are for publishers to sell digital ads.
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Demand and Supply Platforms
DSPs automate ad-buying by identifying the bids required on an ad impression. The decision is made according to the advertiser’s requirements and ad goals. The results of impressions are gained through ad clicks, cost per acquisition, and ROI to optimize ad campaigns. DSPs study the finest ad impressions through real-time bidding (RTB).
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Supply-side Platforms
Supply-side platforms (SSP) manage the sale of advertising while maximizing costs. Publishers use it to sell ad impressions at the highest CPM (cost-per-thousand impressions).
SSPs use publishers’ accounts to bid on ads, ad exchanges, and networks. The main focus of the platform is to drive the costs of ad impressions through a large set of bidders. This results in higher CMPs.
SSPs also increase the efficiencies of the process in these ways. First, they remove traditional back-and-forth negotiations needed between advertisers and publishers. This makes the process faster. Secondly, the platforms allow publishers to use large sets of data automatically.
These ad tech components are essential for marketers to go ahead. These help them to optimize advertisements better and reach the right audiences.
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Agency Trading Desk (ATD)
ATDs include tools that improve planning, buying, and managing advertisements. They are considered a simplified version of DSP. Agency Trading Desks are a worthy option for advertisers investing in a DSP.
AdTech is Advancing Marketing
AdTech refers to purchasing media for potential customers. However, marketing boosts the communication of products and services with such customers. That means advertisement and marketing technologies go hand in hand. Customers and users interact with brands across multiple touchpoints and expect a seamless experience with brand messages and solutions across all digital platforms.
AdTech is advancing marketing as marketers can use CRM data to promote brand campaigns or personalized website landing pages. Using data management platforms (DMPs) makes it easy for marketers to strategize ad content and other associated activities.
Consequently, unique customer data insights through MarTech stacks are used in AdTech. Advertisers can reach customers through IP, email, and other sources at the right time. Overall, advertising technology stacks help to develop customer-centric ads for more engagements.
AdTech Drives People-Centric Marketing
Customer-centric or people-centric marketing with adTech reaches potential customers. Marketers do it efficiently by integrating customers’ preferences and past behavior for advertisements.
The strategy optimizes sales and increases opportunities for positive customer response. This data-driven approach aims to enhance brand image, build loyalty, and a strong market position. These elements help brands to reach their customers faster.
Improving Addressability and Removing Silos
AdTech helps address advertising based on analytics, KPIs, and automation. These provide precise results of how advertisements perform. In other words, technology stacks remove silos that existed in manual processes.
Addressable advertising thus refers to advertising that associates with the personalized interest of customers across different channels. So any ad strategy that falls short can be understood through analytics. By taking insights from addressable impressions, brands can generate revenue and sales.
AdTech also improves the ad process by centering customers’ interest—creating people-centric marketing platforms. Using individual data from purchase history, engagements, demographics, and media consumption, advertisers and marketers link to create a customer-centric strategy for advertising.
Also Read: Reasons to Use Programmatic Advertising for Businesses
The Future of AdTech is Promising
The combination of MarTech and AdTech shows promising potential in expanding digital marketing. Advertising is constantly adapting new aspects and helping marketers to survive and thrive.
Personalized ads make huge differences in how customers are engaged and like content variations. They have impacted the customer journey lifecycle, where customers are more engaged and demand more personalized ads.
However, marketers need to ensure that ads must resonate with audiences and make the most of the tools to have the right database to do it. A single wrong technology use or incorrect command can break ad goals.
So, leaders must invest in technologies that deliver actionable data and function as per business needs. AdTech will help marketers adopt new tools and platforms, more privacy compliance, and data segregation functionalities to help brands connect with their target markets.
The customer-centric approach and data-driven are making AdTech a promising future of advertising. It generates more relevant ads and earns better ROI for advertisers.
