MadTech: A Revolution Between Martech
and Adtech
Have you heard of the new buzzword MadTech?
Do you think it’s just an addition to the already crowded dictionary of the M
arTech
and AdTech stacks ?
Break all your myths here! Dive down!
What Is MadTech?
In simple words, MadTech is the convergence or intersection of Marketing and
Advertising Technology. Some time back the advertising industry grew to leaps
with p
eople based marketing and ever since it is all dynamic.
MadTech is particularly relevant at the moment as technologies are quickly
advancing and have allowed for significant innovations in online marketing and
advertising.
How Did MadTech Emerge into the Picture?
David M. Raab first coined the term MadTech in 2015. It stands for marketing,
advertising, and technology. It well represents the current scenario of marketing
and advertising technology intertwining itself with data.
Statistics say that,
● 35% of firms today have acted on converging m artech/ adtech.
● The majority of firms today are in the planning stage for the MadTech revolution.
● While only 7% didn’t plan for MadTech yet. (source: martech advisor).
So, the convergence of Martech & Adtech isn’t a myth, but a reality.
Now the Bigger Question- Why MadTech?
● Firstly, in recent years, marketing and business spheres have entirely changed.
Shoppers have grown, and so have buyers. Social media excites the whole situation
too. M
arketing needs to be transparent and accurate to succeed. The demand for
transparency accounts for the emergence of MadTech.
● Secondly, MarTech lacks quality data. Only a very less percentage of marketers can
agree that they possess a robust data acquisition technology while the others fail to
have so. MadTech came up to solve the needs of d ata quality enhancement.
● Thirdly, AdTech is facing serious issues of cross-border complexities. To combat
the challenges of attracting and retaining global users and dealing with multi-billing
currencies, a new strategy called MadTech had to emerge.
● Fourthly, MarTech is going through major changes. Consumers don’t buy things
blindly. They have real conversations with brands they admire and wish to strike a
purchase with. MadTech uses automated content personalization and advanced
analytics across all touchpoints.
In addition, there is more to it…
● AdTech demands for disruptive technologies like the Internet of Things, Artificial
Intelligence etc. compels the birth of MadTech by AdTech joining hands with
MarTech and bridging the needed gaps.
● Brands have to struggle to create a mark and keep reminding the audience that they
exist. Customer experience shapes the perceptions of another customer. That is to
say, it’s all so complicated. To deliver personalization at a par level, MadTech comes
to rescue.
● AdTech and MarTech co-exist at the opposite end of a sales funnel. It has been quite
a difficulty in marking a clear line of differentiation between the two. But all this is
tiring to be understood. MadTech is what connects the dots between the two. To
simplify it all, was the need for MadTech!
What Are the Components of MadTech?
As the name implies, MadTech is a world between MarTech and AdTech. It includes
the elements of marketing, advertising, and technology. Let us start noting down
the components of MadTech. To begin with,
MarTech or Marketing Technology:
Traditionally, marketing technology is how you nurture and communicate with your
known audiences. It helps marketers in creating, running, and managing marketing
campaigns and conducting onsite marketing.
Marketing technology includes a lot of dynamics. Let us talk about a few:
● Web-analytics tools to analyze data that is collected by websites or mobile apps and
are used to enhance the user experience of a website, measure the performance of
marketing activities, and discover how users interact with a website.
● CRM platform that stores and manages a company’s interactions that they’ve had
with current and potential customers.
● Social-media-management platforms to allow marketers to create, schedule, and
measure their social media posts and activities.
● SEO and content-optimization tools that enable marketers to improve their ranking
position on search engines.
● Using CDPs, marketers can manage all their data in one place, create audiences
from it, and utilize it in their marketing activities.
● After that, Personalization tools that tailor the messages of a website and match the
needs and interests of individuals based on their known information.
● In addition, Consent Management Platforms (CMPs) that help in taking consent from
the visitor to use their digital identity for marketing efforts.
AdTech or Advertising Technology:
Advertising technology is about communicating with “unknown” audiences. They
are the people who are not yet fully aware of your products and their benefits.
That is to say that you can still target specific audiences who actively seek your
services or who briefly interact with your brand, while you may not have detailed
information about potential customers.
Similarly, advertising technology also includes a number of specific
technology platforms:
● Demand-side platforms (DSPs)- It uses various ad exchanges and supply-side
platforms through one user interface and allows the media buyers in running
advertising campaigns and buying inventory from publishers on an
impression-by-impression basis.
● Supply-side platforms (SSPs)- SSPs allow them to receive the most yield from their
inventory and gain clearer insights into their audience and helps publishers sell their
inventory to advertisers via a number of different ad exchanges in an automated and
efficient way.
● An ad exchange platform- facilitates the buying and selling of impressions between
advertisers who place their offers via DSPs and publishers who put their inventory
up for sale.
● The ad network- takes a publisher’s unsold inventory, packages it up, and offers it to
advertisers on a CPM basis.
● Ad server platform- helps in storing creatives or ads, making decisions about which
ads to show on a website, serving them, and collecting and reporting the data (such
as impressions, clicks, etc.)
● Search engine marketing (SEM) platforms that assist in the promotion of websites to
ensure good visibility in paid search engine results pages (SERPs) and many more.
The Convergence Of MarTech and AdTech Isn’t a Myth, but
a Reality. Look at This!
MadTech is bridging the gaps between MarTech and Adtech, and the combination
is all you need as a game-changer in the current scenarios of the marketing and
advertising world.
How Does MadTech Benefit?
● Firstly, in both MarTech and AdTech, you aggregate and process vast amounts of
data. Martech has become the recent favorite of marketers as it helps them in
knowing and tracking market needs and combine marketing and advertising into a
seamless category.
● Secondly, MadTech enables marketers to get better insights and streamlined media
streamlining buying with the connection. Connection takes in customer data from
POS, loyalty programs, e-commerce platforms, social media interactions, etc. and
makes action through digital advertising.
MadTech is the conglomeration of both MarTech and AdTech. So,
● Thirdly, the MadTech stack comprises Informing media buys, which enable
marketers to make an emotional connection with customers because it helps in
customer identification and engagement at a more detailed level.
● In addition, MarTech and AdTech are equally driven by data. MadTech helps in
eliminating data silos. For instance, you can combine the customer data ( first-party)
data of a brand from various MarTech platforms with advertising channels data
(third-party data) together and create audiences to perform people-based
marketing.
● After that, MadTech allows marketers and advertisers to better understand, assess,
and measure their media buys, ad inventory, and outreaches. With better metrics,
comes effective campaigns that consequently leads to growth in acquisition and
revenue
● Finally, MadTech benefits in two ways. Marketers know more about their existing
customers, and because they better know them, it becomes easier to streamline
targeting to new, potential customers. This reduces advertising efforts and costs.
Winding Up: How to Win It with MadTech
In conclusion, MadTech is not just a fancy term coined to overcrowd the
overpopulated market nomenclature. It surely is far from it. MadTech has only
emerged as a tendency.
However, it is not an invention, but it is an observation that connects both
marketing and advertising as puzzle pieces. MadTech is connecting the dots
between marketing and advertising.
Evaluate your current strategy. Ask yourself if your marketing technology is
relevant to your requirements? Do you run d
igital advertising? Introspect on how to
connect the dots to ensure that you meet your goals. Stay informed.
Therefore, the picture is quite clear. The new buzzword has a lot to do with your
business goals and strategies. It is definitely expanding all the horizons for you.
Above all, it would be mad to ignore MadTech because MadTech is here to stay!
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