What is AdTech and How to Use it to Your Advantage
Nowadays, digital advertising best practices paired with advertising technologies are essential to any business strategy. From striving to connect effectively with your target audience to ensuring campaign efficiency, measurable results, and a more significant financial income, AdTech is the way to go.
But now you may wonder what is AdTech and how you use it, right?
So, whether you are a marketing professional, publisher, or advertiser, this article covers you as we explore key concepts and terms essential for navigating the world of advertising technology.
Let’s explore the endless possibilities that await in the dynamic world of digital advertising technologies!
What is AdTech?
AdTech is an umbrella term encompassing tools and software for effectively buying and selling digital advertising, also known as a mobile application or website ad space.
Due to its properties, AdTech also allows you to connect with your targeted audience, deliver impactful ads, and measure the success of your campaign efforts.
Moreover, AdTech has multiple key players within its ecosystem, such as advertisers and publishers. These players help publishers and advertisers achieve their desired campaign results by offering them platforms and tools to plan, set up, launch, and manage advertising campaigns.
Therefore, there are seven AdTech solutions available for you to choose from:
- Demand-Side Platforms (DSPs);
- Supply-Side Platforms (SSPs);
- Agency Trading Desks (ATD);
- Ad Servers;
- Data Management Platforms (DMP);
- Ad Networks.
Advertisers leverage AdTech’s capabilities to achieve precise targeting, ROI analysis, and comprehensive customer insights, while publishers benefit from increased ad impressions and revenue streams.
As the digital landscape evolves, AdTech remains at the forefront and, thus, is expected to grow at a Compound Annual Growth Rate of 16.1% from 2024 to 2030.
Why is AdTech Essential for Advertisers and Publishers?
AdTech acts as a facilitator, optimizing efficiency and revenue for publishers and advertisers alike.
For example, on the demand side, advertisers can strategize to reach their target audience at the best price. This is achieved through personalized programmatic campaigns, ad targeting, and retargeting of potential clients, all made possible by AdTech.
AdTech also helps advertisers manage and deploy complex campaigns across many websites while keeping the targeting as specific as possible. Nowadays, AdTech platforms allow advertisers to create original, interactive ads that no other traditional medium allows, even surpassing some of the mainstream digital ad options in innovation.
In contrast, AdTech enables publishers to create full-funnel marketing strategies based on programmatic software to monetize their digital assets by displaying advertisements in designated ad spaces, generating revenue on the supply side.
Advertising technologies help publishers streamline inventory monetization and track essential assets, often within a single interface.
However, AdTech and MarTech shouldn’t be confused, as most businesses do. Read further to discover more.
AdTech and MarTech: Understanding the Differences
AdTech and MarTech are two distinct concepts often mistaken for one another. While AdTech manages ad spending and media buying, Martech automates and refines marketing strategies.
AdTech tools help businesses run digital ad campaigns and enable publishers to sell ad space to advertisers. On the other hand, Martech encompasses various tools that automate and refine marketing efforts across different online and offline channels.
AdTech primarily focuses on paid channels using advanced audience insights to reach consumers effectively. In contrast, Martech leverages owned channels such as social media and email, utilizing first-party data to create tailored strategies.
Key Components in Ad Technologies
Programmatic advertising revolutionizes media buying and selling through automated technology. It allows advertisers to precisely target audiences based on data insights. It operates as an online marketplace where publishers and advertisers connect effortlessly.
Automating ad purchases across multiple platforms ensures efficiency, transparency, and real-time optimization. With the power of AI and machine learning, ads are delivered to the most relevant audience at the perfect moment, making it a cost-effective solution for all involved.
Programmatic Direct is your backstage pass to advertising success! No intermediaries, no fuss – just direct deals between advertisers and publishers. Snag prime ad space effortlessly, easily reach your audience, and lock in fixed creative management platforms (CMPs) for smooth sailing. It is efficient, it is automated, and it is your ticket to advertising greatness!
Real-time bidding (RTB) has changed digital advertising by allowing advertisers and publishers to trade ad spots quickly. This technology optimizes ad placements in real-time, making display advertising more exciting. Display ads have improved from simple banners to interactive experiences encouraging users to click and explore.
Initially, advertisers, publishers, and users started digital advertising. Then, ad networks, led by DoubleClick, changed how ads were distributed and managed. Ad networks purchase publisher traffic and sell it based on cost per click (CPC) or cost per thousand impressions (CPM), optimizing placements to fit budgets.
7 Types of Advertising Technologies Good for Your Business
As we know, publishers sell their ad spaces using Supply-Side Platforms, like Sevio Ad Manager, to curate diverse content formats and collaborate with ad networks to sell their inventory.
Therefore, publishers directly sell ad slots to advertisers by employing first-party ad servers, ensuring tailored ad placements.
In contrast, advertisers invest in ads to raise brand awareness, generate leads, and increase sales. They collaborate with ad agencies, other AdTech platforms, and media partners to plan, execute, and optimize their campaigns.
However, businesses need to understand that there are multiple AdTech solutions within the advertising technology ecosystem. So, read further and choose what fits your business best.
1. Supply Side Platforms
The Supply-Side Platform, or SSP, helps publishers sell ad space on their websites or apps quickly and efficiently. It simplifies the process of online advertising and empowers publishers to find suitable ads quickly, negotiate bids in milliseconds, and deliver targeted ads to specific audiences.
It is like having a trusted friend in advertising who makes managing ad space simple and user-friendly. Thus, Supply-side platforms (SSPs) efficiently manage publishers’ ad inventory across ad exchanges, maximizing revenue through real-time programmatic selling.
2. Demand Side Platforms
A Demand-Side Platform automates ad inventory purchasing, streamlining the decision-making process and empowering advertisers to optimize and track campaign results effortlessly.
DSPs save time and money by reaching the right audience across multiple websites at the right time. Thus, they are the go-to tools for advertisers seeking to conquer digital advertising.
3. Ad Networks
Ad Networks are the intermediaries between publishers and advertisers. They bundle unsold ads from multiple sources and offer them to advertisers. They use algorithms to match advertisers with the best publishers for their target audience.
Moreover, Ad Networks simplifies ad sales by consolidating bids and inventory from various exchanges.
4. Ad Exchanges
An Ad Exchange digital marketplace uses real-time bidding to optimize ad space trading. Unlike Ad Networks, Ad Exchanges rely on technology to make transactions smoother and more efficient. They also offer advertisers control, ensuring ads appear where desired and at the right cost.
Ad Exchanges are like the stock market of digital advertising, using algorithms to optimize bidding and connect buyers and sellers in dynamic auctions. Therefore, they offer a reliable mechanism for advertisers to access ad inventory and maximize publishers’ revenue.
5. Ad Servers
An Ad Server is a technology that delivers and manages online ads while providing essential performance metrics. It stores campaign assets and facilitates relationships between advertisers and publishers.
6. Agency Trading Desks
ATD or Agency Trading Desk simplifies media planning and buying across channels, benefiting brands of all sizes. It is a simplified version of the demand-side platform (DSP) for advertisers not yet ready to dive into complex ad tech, thus offering valuable resources to maximize advertising efforts without hassle.
7. Data Management Platforms
Data Management Platforms, or DMPs, bridge AdTech and Martech by gathering and organizing audience data from various sources to create behavior-based audience segments.
Advertisers leverage DMPs to better understand potential customers, personalize ads, allocate budgets effectively, and measure campaign success.
DMPs centralize first- and third-party data, providing insights into users’ demographics, interests, and online behavior, optimizing strategies, and reducing ad spending.
Additionally, DMPs analyze incoming user data to create target audience personas for precise message customization, ultimately improving campaign efficiency and profits.
Top Adtech Platforms for 2024
As previously mentioned, numerous types of advertising technologies serve specific purposes. However, various platforms offer these services. Let’s take a closer look at the most important platforms that offer these services and explore more details about them.
Amazon DSP
Amazon DSP is a platform that enables advertisers to purchase ad space and traffic impressions through real-time bidding (RTB), connecting them with ad networks, ad exchanges, and SSPs to reach their target audience more effectively.
Moreover, Amazon DSP offers display, video, and audio ads programmatically.
Coinzilla
The Coinzilla Ad Network platform is designed to facilitate relationships between buyers and sellers, directly connecting publishers with advertisers selling their inventory based on the advertiser’s budget through bulk selling and a transparent CPM pricing model.
This straightforward approach makes Coinzilla a crypto user-friendly platform, ensuring a hassle-free experience for advertisers.
Sevio Ad Manager
The Sevio Ad Manager SSP is designed for publishers, simplifying the ad space selling process. It links publishers with ad exchanges, DSPs, and ad networks, enabling them to sell their inventories and participate in bidding processes to maximize revenue.
Eskimi
Eskimi is a comprehensive programmatic advertising platform that equips advertisers with many features, enabling them to purchase inventory in real time through ad exchanges. The platform provides valuable insights into audience interests, device usage, and locations, enhancing ad-targeting efforts.
Adobe Audience Manager
Adobe Audience Manager is a versatile data management platform suitable for businesses of all sizes. It allows marketers to create and identify customer segments across channels and offers a holistic view of audiences.
Trends and Challenges in the Ad Tech Domain
The Adtech industry has experienced tremendous growth in the last two decades, thanks to technological advancements and an increasing number of providers. These advancements have made buying and selling advertising space more efficient. Innovations such as generative AI, 5G connectivity, and big data analytics have further revolutionized the industry.
However, 2024 will be a significant year for Adtech. The phasing out of third-party cookies presents both challenges and opportunities. Companies that have invested in identity resolution, data clean rooms, and unified IDs are better equipped to navigate these changes.
Google’s introduction of IP masking adds another layer of complexity, particularly for attribution in Adtech. The status of Chrome APIs is unclear, leaving room for alternative solutions like data clean rooms, which are gaining popularity among companies aiming to enhance technology advertising and marketing return on investment (ROI).
The adoption of privacy-friendly first-party data and technologies such as contextual advertising and universal IDs is expected to increase in 2024. Technological innovations, including AI-driven solutions and enhanced data analytics, will drive targeting precision and campaign optimization.
AI algorithms will play a crucial role in real-time ad creative optimization, ensuring dynamic content evolution based on user interactions and preferences. Meanwhile, the global expansion of 5G networks underscores the importance of seamless connectivity, with telecom operators and IPX providers playing key roles in driving advancements.
Augmented reality (AR) and virtual reality (VR) are emerging as essential components of advertising, offering immersive and interactive experiences. Brands can leverage AR/VR ads to engage users in virtual product interactions, enhancing the overall advertisement tech experience.
Ready to enhance your ad performance?
Advertising technology may seem complex, but it has revolutionized the advertising industry, improved traditional methods, met specific needs, and is constantly evolving. Thus, successful campaigns heavily depend on AdTech.
Moreover, as AdTech advances, brands gain more efficient ways to reach their audience, so why not leverage this cutting-edge technology ad to optimize your campaigns and maximize your budget?
By mastering available tools and ad technology, advertising professionals can create impactful ads that connect with their target audience.
