Another day, another new marketing term. You may have heard “AdTech” floating around in brand discussions but might not know exactly what it means. Or what it could mean for your brand reach and impact. Lucky for you, this blog will answer those questions and more. 

So, what is AdTech anyway?  

AdTech, as you probably guessed, stands for “advertising technology.” It’s a term used for the software and tools that advertisers use to target, deliver, and analyze ads. An agency (like Savy) will use AdTech in several ways to get brands noticed by the right consumers.

Think of it this way: if you’re playing a game of darts, you choose one dart at a time and try to get as close to the target as possible. Sure, you could grab a handful to throw at once and see which ones stick, but it won’t be as efficient. 

In advertising, you could try to target a wide audience and see where it sticks. But you’ll lose time and money in the process. When you, or your agency, uses AdTech for your brand, your content is more likely to hit the target. 

AdTech replaces the traditional placement buys with integrated ads “using high-level data and technology.” In today’s digital-forward world, the tools at our disposal are more specific and efficient than ever. 

AdTech vs. MarTech 

It’s worth briefly noting the difference between AdTech and MarTech (Marketing Technology). While the two are very similar, MarTech refers to “everything used in a digital marketing strategy,” not just the technologies to get this strategy into the marketplace. In other words, AdTech is a subset of MarTech. 

…And how does it impact brands? 

Just like most technological advances, AdTech relies on data. In this case, the data is coming from your customers (and potential customers) from third-party or first-party sources. This user data is then used for ad targeting and, ultimately, conversions. Some examples of user data are referring sites, search queries, time of session, behavior on-site, and demographics. Data sourcing aside, AdTech benefits your brand because it…

Reaches a more targeted audience

When using AdTech, brands can connect all advertising channels. In addition to being convenient, this also eliminates “clunky, unnatural advertising that irritates users and frustrates agencies.” Furthermore, implementing AdTech software allows for cross-platform consistency that’s hyper-targeted. Another function of AdTech is retargeting users, which connects with users’ journeys on the web to bring them back to your site.

Reduces costs

Remember those darts? Well, imagine if each of them represented 25 percent of your yearly marketing budget. Of course, you’d probably be a lot more conservative with your throws. When it comes to AdTech, the more targeted approach helps reduce overall campaign costs––with better results for your brand. 

Allows for greater customization 

The future is highly customized. So it makes sense that effective ads will be as well. AdTech helps integrate custom content across channels so your brand can connect with consumers (and give them a nudge) in ways that feel entertaining, not repetitive. 

Streamline advertising for greater ROI 

Nearly everyone uses smart devices these days. That’s why most AdTech softwares “expedite advertising on smartphones and tablets.” However, these platforms also allow for streamlined digital and print advertising, which can increase your brand’s target market and ROI. 

Types of AdTech 

Before you apply AdTech to your brand, it helps to understand the seven main types. 

Demand side platform (DSP)

DSP platforms simplify the buying process for advertisers with automated systems and real-time bidding through a single interface. Advertisers make these targeted ad buys through the DSP but can also “track campaign performance and use this data to improve ad targeting and media buys.” 

Supply side platforms (SSP) 

On the flip side are supply side platforms (SSPs) that “serve publishers looking to sell ad inventory to generate ad revenue from their websites or apps.” SSPs often integrate with other AdTech platforms (like DSPs and ad exchanges) to sell ad impressions to publishers. 

Ad server

Ad servers are used to manage (web) ad placements, launch campaigns, and match publishers to advertisers through a single interface. They also play a big role in data collection that helps optimize campaigns. 

Agency trading desk (ATD)

An agency trading desk (ATD) is a set of tools “for planning, buying, and managing the advertising on various channels.” This platform gives agencies a simplified version of DSPs (but without direct access to inventory). 

Data management platform (DMP)

DMPs, or data management platforms, do what you’d think––they allow for data management, storage, and analysis for ad campaigns and audiences. Your marketing agency will use DMPs to make more effective ad purchases with hyper-targeted audiences.  

Customer data platform (CDP)

A CDP, or customer data platform, helps to bring together data on leads and customers. These platforms collect user data (online and off) through third and first parties and create unified profiles that marketers then use for customer analysis. 

Ad exchange 

Lastly, an ad exchange is an AdTech system “that provides a marketplace for ad buyers and publishers.” With real-time bidding, these automated transactions allow for exchanged data to better segment and target audiences. 

The future of AdTech and your brand 

Yes, AdTech is another term to remember. But as digital technology expands across industries, it’s worth considering. You can hyper-target your audience, reduce costs, and allow for more customization. Plus, with the experience of an agency, using AdTech is a double win. See what Savy can do for your brand.