In the marketing world, adtech and martech may appear similar especially to a novice. Despite their similarities, these two concepts differ quite a bit; a razor-thin line separating AdTech and MarTech. What is the adtech and martech difference? Does one outweigh the other? Let’s find out the nuances of both approaches and dispel the fog around them.
What Is Adtech?
Adtech is the umbrella term for advertising technology. It covers a range of tools and software that can be helpful for advertisers, publishers, and ad agencies to plan, strategize, and manage all digital advertising or monetization activities. Adtech aids companies reduce wasted ad spending as it can target specific audiences.
Studies reveal that total digital ad spending is expected to hit $129 billion by the end of 2021. In short, adtech companies can help businesses maximize the return from their advertising spending by targeting specific audiences.
Examples Of Platforms/Tools Of Adtech
The two major entities that play a crucial role in adtech are – Demand Side Platform (DSP) and the Supply Side Platform (SSP).
Demand-side Platform (DSP): An essential platform for advertisers to buy, search, display video or mobile ads. It enables advertisers to buy ad placements in real-time on the publisher websites made available by ad exchange and networks. Some of the DSP players are Simplifi, Smarty Ads, App Nexus, Trade Desk, and more.
Supply Side Platform (SSP): The platform allows publishers to sell display, mobile ad impressions to potential buyers in real-time. Some of the key SSP players are MoPub, OpenX, Google, App Nexus, and more.
Broader examples also include:
- Data management platforms
- Ad exchanges/network/servers
- Tag management systems
- Programmatic advertising tools
- SEM (Search Engine Manager)
Interesting Read: A One-stop Guide On All You Ever Need To Know About AdTech In 2020
What Is Martech?
Martech is also known as marketing technology mainly used for digital marketing. John Koetsier, VP of Insights for Singular explains, “Every piece of technology a marketer uses to reach a potential customer is martech.” (via Adage)
Martech refers to the platforms and technologies that you use to create your ad media content, collect and analyze data, and reach your target audience.
MarTech is most commonly known for its automation, which allows you to manage multiple channels simultaneously and save time. Furthermore, it also helps marketers obtain more customer information and resolve tasks efficiently, making digital marketing more cost-effective.
There are more than 8,000 MarTech solutions and it is just expected to grow.
Examples of Platforms/Tools Of Martech
Some of the most common examples of Martech include:
- Customer Relationship Management (CRM) software-Salesforce, Hubspot, and more
- Social media management – Hootsuite and Buffer
- Search engine optimization (SEO) tools– Google Analytics, WooRank, Ahrefs, and more
- Content management platforms– WordPress, Squarespace, and more
- Digital analytics tools-MixPanel, KISSmetrics, and more
- Email marketing tools– MailChimp, Magento, and more
- Marketing automation programs
- Lead Magnets
When people discuss “Martech stack”, it means a collection of marketing technology solutions deployed by an organization to reach and convert potential customers.
Interesting Read: The Ultimate A-Z Glossary Of Digital Advertising!
Adtech and Martech Difference
Promotional activities like marketing and advertising go hand in hand. However, advertising is largely sponsored content. Advertisers always pay for the placement of their ads on a channel, website, social network, or connected TV.
On the contrary, marketing starts with understanding your product/service’s unique selling proposition, buyer personas, and channel partners. The aim is to understand the audience, deliver the right message, and generate more leads for the sales team. The marketing mix includes a variety of marketing activities, one of which is advertising.
Speaking of adtech vs. martech, let us comprehend the core differences with the help of the illustrating table below.
Adtech And Martech Convergence
Adtech platforms yield huge anonymous customer data and are not as personalized as data obtained from martech platforms. It relies on third-party data which often affects consumer privacy and utilizes the data for targeted online ad campaigns. They are often not in line with consumer interests and behavior.
Hence, adtech and martech convergence is highly essential. And what is this convergence called?
Adtech + Martech = Madtech
A good quality digital strategy requires a comprehensive approach. Therefore, the silos between adtech and martech need to be broken down for seamless data flow and synchronization.
Katie Wheeler in CMSWire wrote,
“The convergence of AdTech and MarTech can redefine the path of your marketing spend across the platforms you invest in, the data you own, the media you choose and the content you develop.”
For instance, a brand can use adtech and martech specific tools for a holistic marketing strategy. It can use an adtech platform to track the users visiting the website for a retargeting campaign. Then utilize the information in combination with the data gathered from blog analytics, email campaigns, or social media platforms (martech) to understand customer needs, optimize landing pages and personalize messaging for a sophisticated campaign.
The union of adtech and martech is every marketer’s dream as it will enhance customer experience which ultimately yields maximum ROI on the campaign and brings value to the business.
Interesting Read: Programmatic Advertising Platforms in 2020: A Complete Guide
There is a visible difference in the process of adtech and martech. However, we cannot claim that one is better than the other. The coming age will witness a Madtech revolution that will synergize advertising and marketing. It may cause a paradigm shift among marketers. Advertisers and marketers can benefit by deploying both adtech and martech tools to optimize budgets, increase conversion and achieve the best results.
On that note, ending with a quote of Rob Tarkoff, EVP, Oracle Advertising and Customer Experience from AdExchanger Talks podcast,
“It’s now time for the front office to go the way of the back office, which means we have to automate more of the adtech and martech selling and servicing workflow.”
Interesting Read: Your Ultimate Guide to Understanding the Customer Data Platform