The convergence of martech and ad tech is a hot topic, but when will the two finally make their marriage official? Several things have hindered the union, but they’re finding common ground in the video.
Many people have attributed the divide to a difference in business models. On one hand, ad tech utilizes a media-based model, which is based on the volume of advertising purchased, aka the CPM model. Martech, on the other hand, relies on the much more predictable (and increasingly value-driven) SaaS revenue model.
(Digiday’s Yuyu Chen has a great June 2016 article on ad techs embracing a SaaS model.)
At a macro level, the core difference between the two can be put as simply as the separate roles of marketing and advertising departments– the former a mixed bag of paid and earned tactics while the latter is more (typically) a volume-based paid business. And, of course, it’s important to remember that advertising is a part of a broader marketing mix.
Video Marks the True Convergence of Marketing and Advertising Technologies
Martech is the blending of marketing and technology, and leveraging that technology to accomplish goals and objectives like, creating a brand, creating a message and content, and understanding your audience. Advertising, and ad tech by extension, can be thought of in some ways as the pipes or plumbing, the primary mechanism to get that message and brand to the consumer.
Historical ad tech served simple, static, display advertising, eventually maturing to more dynamic rich media display advertising. Then, enter video — the convergence point where marketing’s feedback loop and all subsequent messaging/ storytelling appears in a video ad served up to the right person, at the right time and place.
A Cisco forecast predicted that by 2020, 82% of consumer internet traffic will be video. And with the growing needs for video content to fill that void, comes the growing need for the technology to produce it, market it, and get it in front of the right people.
Creating and managing a video campaign relies heavily on the technology that martech provides, like producing content that will emotionally resonate and represent the brand, hosting the content, and measuring the overall ROI of the campaign. Scaling the distribution of the video and targeting it to the broadest, but most relevant audience then becomes an ad tech challenge.
Martech and Ad Tech Increase Targeting Capabilities Together
Both martech and ad tech also provide a level of customer data. Martech provides first-party customer data, while ad tech provides anonymous data on a much larger group of consumers. Together these insights can complement each other, resulting in increased targeting capabilities.
Recommended Read: 5 Ways CMOs can Include Programmatic for Video Advertising in 2017
Video advertising is also increasingly delivered alongside content, sometimes as native video which is slowly being adopted more and more by big publications (eg. Newsweek, Sports Illustrated). But, one of the main purposes of the native video is to feel more like “content” and less like a “TV ad,” in an effort to redefine the clunky obtrusive ads consumers all know and hate. And converging the marketing data to inform the content, with the ad tech data to understand the audience and targeting, truly transforms the user experience.
Embrace the Multi-Platform World with the Heavenly Match
This also leads to another point where the two complement each other in regards to owned and paid media. It’s a multiplatform world, and we currently live in a time where the same video might run on an owned and operated a brand website, a publication targeting consumers, and all the social platforms — and managing measurement across all is vital.
So sure, maybe the two technologies traditionally stem from different departments or generally use different business models, but that’s small potatoes in the grand scheme of things. And, when it comes to video, for martech and ad tech, all signs point to a match made in heaven.