Advantages of AdTech solutions in advertising

What is AdTech

AdTech encompasses platforms enabling the purchase and sale of digital ad space. These systems empower advertisers to target specific demographics, acquire online ad inventory, deploy campaigns, and evaluate their performance. 

The digital advertising ecosystem is intricate, involving advertisers (brands with promotional content), publishers (websites or apps offering ad placements), and various intermediaries. AdTech serves as the connective tissue, furnishing the necessary tools for negotiating, implementing, and managing advertising campaigns across this complex industry.

What does AdTech offer advertisers

AdTech tools allow advertisers to implement cross-channel campaigns, reach the right audience, and analyze performance. Here are the benefits AdTech offers advertisers:

Automation and scaling

With the help of AdTech tools, companies can automatically buy advertising space and optimize advertising campaigns based on real-time results.

Thus, solutions in AdTech are aimed at simplifying the process of launching large-scale advertising campaigns, which no longer require large marketing departments.

Optimization of the advertising budget

AdTech allows users to accurately identify their target audience and reach them without spending a budget on generic advertising.

Tracking user activity on different devices

With AdTech tools, companies can initiate omnichannel campaigns across a wide range of devices. The advantage of this approach is that it is possible to recognize the user by his email address or cookies and compare them with other devices. If a match is found, ad networks will be able to serve ads to re-engage users, providing multiple user touchpoints.

Speed

Because AdTech allows advertising materials to be tendered in a fraction of a second, a business can quickly launch the desired advertising campaign, without lengthy negotiations and selection of the right fee. This increases brand exposure, attracts potential customers, and increases sales in a shorter time.

Algorithmic advertising placement

AdTech is crucial for programmatic advertising, enabling automated, real-time ad buying for targeted audiences. The process works as follows:

• Advertisers use Demand-Side Platforms (DSPs) to set campaign parameters, including target audience and impression goals.
• Ad content is uploaded to online platforms.
• Publishers list available ad spaces on Supply-Side Platforms (SSPs).
• Ad exchanges connect buyers and sellers, facilitating Real-Time Bidding (RTB) auctions.
• SSPs bid on behalf of publishers and ad networks.
• Winning bids result in ad placement, with performance data shared back to advertisers.

This entire ecosystem of platforms, exchanges, and tools forms the AdTech industry, powering efficient, data-driven digital advertising.

AdTech ecosystem

AdTech is the infrastructure that powers programmatic ad placement, the future of digital advertising. It includes several components, the features of which you will learn below.

DSP platform (Demand-side platform)

A DSP platform is an automated platform that allows advertisers to bid, purchase, and place online advertising. It allows advertisers to manage multiple exchange accounts through a single interface and make changes in real time based on campaign performance.

SSP platform (Supply-side platform)

An SSP platform is a platform through which the publisher’s advertising assets (available advertising space) are managed on advertising exchanges. SSP platforms help publishers wholesale and manage their assets, generating revenue through real-time programmatic sales.

Advertising network

Publishers manage their assets and generate revenue directly through advertising networks. An advertising network aggregates offers and assets from multiple exchanges and mediates sales between publishers and advertisers. Ad networks use algorithms to match advertisers with publishers that best match their target audience.

Advertising exchange

An advertising exchange is a technology that combines DSP platforms and SSP platforms, providing convenient and transparent conditions for implementing algorithmic advertising placement. This process is similar to how the stock market connects buyers and sellers. It is essentially an open impression pool that uses algorithms and machine learning to implement the bidding process in milliseconds.

Data Management Platform (DMP)

A data management platform is a centralized database that collects, stores, and uses user data for online advertising. Data management platforms collect data from multiple sources to build a user profile, interests, and online behavior.

AdTech vs MarTech

Some users confuse the concepts of AdTech and MarTech, but there are several clear differences. It is worth noting that MarTech includes all marketing technology products, including tools for managing social networks and content. At the same time, AdTech is a component of MarTech.

Marketing departments at companies are building a set of MarTech platforms that help them communicate with potential customers directly, as well as interact with existing customers through email, social media, and their website. However, they may not be directly involved in the bidding process or online advertising.

In many cases, the intermediary is AdTech platforms, often run by agencies. This is done to automate the process of buying ads and impressions and is performed on behalf of the company.

Conclusion

The benefits of increased ROI, improved targeting, enhanced measurement capabilities, and streamlined operations make AdTech an indispensable tool for modern marketers. As the digital ecosystem continues to evolve, AdTech will undoubtedly play an increasingly crucial role in shaping successful advertising strategies and driving business growth.