The convergence of AdTech and MarTech isn’t a new concept. As long ago as 2011 Adobe, for instance acquired audience optimisation platform DemDex, however, the process has accelerated recently. There seem to be far more pros than cons to these two technologies coming together, but it’s not going to be a smooth road to consolidation.
The end goal for a marketer is that their customer is taken on a seamless path to purchase. As we in the industry know, there are many technologies at play and cogs turning in the background to push that process along in the smoothest possible way.
So why have these two seemingly connected technologies not completely merged? There are the top five roadblocks currently standing in the way.
- Different customers There are very few BIG players in the advertising game. Those top 100 companies make up a large chunk of the total media spend. MarTech is kind of the opposite, with a different pricing model to AdTech.
- Decision makers vary AdTech budgets are in the hands of marketers, whereas often IT managers can be behind MarTech budgets. Software licenses and cloud services that affect the marketing team should be a decision made either by the marketing team or with consultation from the marketing team.
- Required talent It can be incredibly difficult to find talent with experience running or even using both types of platforms so, as the industry merges, talent is expected to essentially double their skill set overnight.
- Measurement These disciplines measure success very differently and vendors need to find a way to package up results and manage client expectations.
- Pricing models MarTech tends to be a subscription model, whereas AdTech is charged on performance — generally with a CPM or CPA model.
The Convergence of AdTech and MarTech whitepaper digs even deeper into these roadblocks showing that for a truly successful convergence we have a few serious creases to iron out.
About the Author
Ben Sharp is the Vice President and Managing Director, APAC at AdRoll, which is a member of the Which-50 Digital Intelligence Unit. Members contribute their expertise for the benefit of our readers. Membership fees apply.