What is Adtech 1

According to the latest Martech report by the accounting firm Moore Stephens and the consulting firm WARC, the global martech market is growing rapidly and has now reached a market volume of 99.9 billion US dollars. Martech? Exactly. The term buzzes more and more frequently through the marketing universe as a buzzword and we come across the term regularly in our everyday life as PR professionals for the tech industry. But very few should be clear what is behind it. And while we're at it, what is adtech? Aren't Ad- and Martech the same thing? An attempt at definition.

Advertising is not just marketing

The obvious first: The words adtech and martech are each word compositions, consisting of advertising and technology or marketing and technology. So the first clue is the difference between marketing and advertising. Marketing describes a corporate strategy for market positioning, including advertising. Advertising is simply advertising - the somewhat clumsy daughter of marketing. So far so good.

Basically, Adtech and Martech are collective terms for every type of technology, software or tools that are used in online marketing. But if you take a closer look, there are three distinguishing features:

1. The application

Adtech solutions are often more IT-heavy, which means that an algorithm works independently, as is the case, for example, in programmatic advertising. In this sense, Adtech does not take place with the marketer himself, but is handled by specialized agencies or the technology provider. Martech solutions, on the other hand, such as an email marketing tool, can easily be controlled by content and marketing managers themselves.

2. The targeting

While adtech solutions are mainly used in a one-to-many environment, companies often use martech solutions to establish direct customer relationships (one-to-one environment). Example: An advertising banner on a website reaches many users at the same time. The advertising medium is intended to address the broad masses within a target group. In contrast, a CRM system is used to address customers individually, for example with a personalized discount coupon for a birthday.

3. The tracking

Adtech solutions often set cookies to collect user data. They usually reflect a buying interest or shopping habits and are suitable for direct marketing in the B2C segment. When surfing the web, the user is shown banners based on his or her personal interests. Martech solutions, on the other hand, are based on so-called personally identifying information - PII for short. This includes detailed information about a person such as name, address, telephone or credit card number. Querying the PII can, for example, result in users receiving customized offers for supplementary dental insurance by email if they have provided information about their health.

In fact, it is difficult to make a precise distinction between adtech and martech. That is why we believe that the two terms will merge over the next few years. Due to the size of the market alone, there is a tendency that Martech could displace the term adtech.

About Ms. Wenk

Ms. Wenk is a PR agency for digital companies, platforms and internet technology providers. For more than ten years, the agency has been successfully advising tech companies and start-ups on communicative external presentation in business and specialist media. On the Frau Wenk blog we regularly report on the latest trends in digital marketing, share PR hacks and publish interviews with journalists and experts from the PR and communications industry.

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