What is Adtech? Using Ad Technology Correctly

Adtech, an acronym for Advertising Technology, refers to digital advertising technology used to plan, design, and measure marketing and advertising campaigns. Adtech for businesses includes various advertising and analytics tools, ranging from buying and selling ads to analyzing target audience data. Used correctly, it optimizes the automation, scalability, and profitability of advertising campaigns.

The catchy term “adtech” covers the broad fields of digital advertising and ad technology. So-called ad technology refers to a wide range of tools, software, and services that adapt to the requirements of digitalization and update advertising campaigns.

Let’s explore adtech development solutions for companies that are therefore the basis for successful digital advertising campaigns and are becoming increasingly important.

Difference between ad tech and mar tech

Before taking a closer look at ad tech and its different types, it is indispensable to distinguish advertising technology from marketing technology, or mar tech for short. Although the boundaries are indeed blurred, there are clear differences between advertising and marketing.

The most influential distinction: Marketing refers to the measures and strategies with which companies position their products and services on the market in a target-oriented manner, stand out from the competition, and build customer loyalty. Advertising, on the other hand, serves to consolidate market position, generate visibility, reach many customers or specific targets, and advertise effectively.

Advertising Technology Fundamentals

The range of advertising technologies that underpin adtech is vast. The most important aspects and platforms include technologies and software tools for:

• Programmatic Advertising
• Demand-Side Platforms
• Supply-Side Platforms
• Agency Trading Desk

These are often offered and provided to advertisers as services, even managed by agencies.

Programmatic advertising

Using intelligent software and fully automated processes, personalized ads are purchased and displayed on suitable advertising spaces and as a versatile advertising inventory. The advantages of PA are flexible scalability and the ability to plan the coverage of advertising. campaigns, real-time advertising, and transparent and target-oriented performance measurement.

PA works simply: whenever suitable advertising inventory is available, companies can buy ad space instantly without manual intervention thanks to Programmatic Buying and Real Time Bidding (RTB), as well as play ads directly through Real Time Advertising (RTA). Through the use of algorithms, machine learning, data mining, and automated workflows, advertising campaigns can then be implemented effectively and automatically aligned to target audiences and purchasing behaviors.

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Demand Side Platform (DSP)

Demand-side platforms (DSPs) are adtech development solutions that enable companies to purchase advertising inventory, such as video, display, or mobile ads, programmatically via real-time bidding. To meet the demand (“demand-side”) for advertising space, advertisers use networks, inventories, and ad exchanges of publishers specializing in online advertising.

The Attekmi experts highlight DSP software for direct integration; ads can be efficiently served based on the target audience and the profitability of the ad space and played on multiple websites in parallel. Advertisers focus on purchasing the right ad space for the desired target audience and within the planned budget. 

Supply Side Platform (SSP)

In contrast to DSPs, supply-side platforms are software tools for publishers to offer digital ad inventory (e.g., video, display, native ads) in an automated manner. Publishers and SSPs can focus on specific ad types and inventory or offer advertisers a diverse assortment. Through the SSP software, publishers connect with ad exchanges to make bids available for auction. The DSP’s bid level decides which advertiser receives the ad spaces or media. 

Agency Trading Desk (ATD)

Agency Trading Desk (ATD) refers to tools or services that are closely linked to the Demand-Side Platform. ATD consists of planning and purchasing advertising via a DSP. Particularly important is the integration of inventory sources, advertising networks, and ad exchanges, as well as measuring the success of the purchased advertising media.

Using the Agency Trading Desk, advertising strategies and campaigns with integrated DSP are not only planned, prepared, networked, and executed but are also optimized through analytics. The aim is to use the advertising budget as efficiently as possible and to place advertising across different channels as effectively as possible.

Closely related to the ATD is the ad server, through which advertisers, publishers, and agencies store advertising inventory and related tools to be played on advertising spaces after purchase. The ad server (ad server) determines the type and location where advertising is displayed. An ad server can also be used to evaluate success statistics and advertising campaigns.

Other types of adtech

Since adtech software development offers a wide range of tools and platforms, you should also consider the following types of ad tech:

To exchange

Ad networks, better known as ad exchanges, can also be considered advertising exchanges and digital marketplaces for exchanging ads. Here, publishers can make ad inventory available, while advertisers use their desired budget for suitable advertising media via Real Time Bidding.

Data Management Platform (DMP)

Data management platforms are used to collect and manage data, for example, in relation to the offering of advertising inventory or the purchase of advertising media. Combined with data mining tools, organized data management can be achieved by creating buyer personas and using omnichannel marketing and predictive analytics, thus leading to more efficient advertising campaigns.

Search Engine Marketing (SEM)

Strategically placed keywords often determine the visibility of advertising, target audiences, and the purchase of offers. As a component of online marketing, search engine marketing (SEM) allows you to acquire advertising space for valuable or sought-after keywords to address new target audiences or generate greater coverage. In this regard, please also consult our SEO optimization glossary.

Tag Management System

A tag management system manages, organizes, and updates your various marketing and advertising tags through automation and container logic. This saves you from having to adapt your entire source code for new ad campaigns or website revisions.

Native advertising platforms

Native advertising platforms are not so much a tool as a measure to organically integrate advertising content into web content, for example, as recommendations, suggestions, or in-feed advertising.

Ad Prediction Software

Optimal use of advertising budgets can be achieved through ad forecasting software, which evaluates customer purchasing and usage behavior, provides a summary of expected costs for advertising inventory and ad placement, and offers budget optimization through targeted goals and estimated costs.

Conclusion

The amount of money that companies are investing in digital advertising campaigns shows the importance of forward-looking digital advertising strategies through adtech and martech. However, the world of e-commerce is becoming increasingly complex. Flexible and powerful structures are needed to place advertising effectively and cost-efficiently.

With adtech tools, e-commerce requirements can be managed, target groups can be identified and addressed through different channels, and advertising can be placed profitably. Efficiency, cost savings, scalability, and networking are, therefore the major advantages that advertisers and publishers enjoy through automated adtech processes.