The age of social media has pushed agencies to bring out innovative ways to interact with relevant users. And investing in adtech has proved worthy of every penny shelled out. Adtech refers to the software and tools that brands, agencies, and publishers use to target, deliver and measure their digital advertising efforts. The adtech streamlines the complex process of buying and selling digital ads to reach the target audiences.
The adtech software platforms help organizations and brands purchase advertising space. They also help publishers price and sell their ad space. Adtech allows brands to make the best use of their budget and help maximize their return on investment in digital marketing. The adtech methodologies deliver the right content at the right time to the right audiences. In short, the adtech landscape help advertisers strategically plan and optimize their advertising campaigns.
Different types of adtech:
- Demand-side platforms
- Supply-side platforms
- Ad exchange
- Search engine marketing platform
- Data management platforms
Importance of adtech in post COVID economy:
The outbreak of the COVID-19 pandemic has not only changed the consumer behavior but also the advertising sector. The online ecosystem laid the foundation for increased consumption of digital technology – a massive rise in TV viewership, and a rise in the use of social media platforms and streaming services. Not to forget about the dramatic growth of gaming. However, the scenario is eventually changing. Businesses are recovering by digital advancements. The adtech services are especially helping businesses to grow and reach global audiences.
The dynamic and multifaceted adtech industry is enabling innovation and creative competition across the digital economy. The adtech tools are helping advertisers save time, reduce costs and grow their reach in the domain of increased competition. It is the backbone of the Internet advertising industry. According to GlobalData analysis, the Internet advertising industry is set to grow from $438bn in 2021 to $1 trillion in 2030.
Organizations are surprisingly speeding up in creating more digitally enhanced offerings as many of the changes brought in by the COVID-19 pandemic could be here for the long haul. To stay competitive in the new economic environment, the adtech strategy is playing a significant role. The trend still shows that digital adoption is taking a quantum leap at the industrial level. 80% of client interactions are still digital in nature. Considering the economic change by this health crisis, the adtech Software global market is growing at a fast pace to help businesses achieve a strong marketplace.
The adtech vendors are focusing more on first-party data and are adopting consent-driven personalization to dominate the market of massive user bases. The pandemic has caused advertisers of all sizes to rethink the type of ad campaigns they should run. Customer acquisition is now a priority. Brands are becoming more conscious of building value-based marketing to form a deeper connection with the customers’ identities and drive customer engagement. They are prioritizing ‘survival for the present situation rather than finding new ways to build-brand for the future. This is more due to the change in people’s media and consumption habits which are forcing them to rethink what best can be done.
With TV viewers moving to other distribution platforms, notably Over-The-Top (OTT) providers, consequently, many of the largest media companies have increased their investment in OTT services in recent years. With the coronavirus accelerating consumers’ growing preference for D2C (Direct-to-Consumer) content, advertisers are also revamping their ad services. They are focusing more on measures to improve the ROI on investment across different media, devices, and platforms.
Many companies are working together to support the growth of a healthy digital ad economy system across different technologies – apps, connected TV, web display, and many more to add to connect more easily to the audiences.