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What is the AdTech ecosystem: Quick guide

kokou adzo

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Advertising plays a huge part in everyday life. You will see ads almost everywhere, whether online or offline. With the internet and social media platforms, you will never miss an ad. Digitalization has led to an increase in the number of ads. Today, ads have to be data driven in order to convert customers.

Random marketing strategies will not be effective. Because of this, there is a growing awareness of the AdTech ecosystem according to SmartHub. This focuses on providing valuable insights for all stakeholders in advertising. AdTech provides an effective way to overcome advertising-related challenges. This gives companies the tools necessary for the creation of effective campaigns. The article you’re reading will provide a quick AdTech guide. In it, you’ll know how it works, and why it should be part of your technology stack.

Mode of operation

AdTech includes all tech, every platform, and solution that deals with ads. Creating ads with it is more effective. This is because of the provisions of technical as well as expert knowledge. From its inception in the early 2000s, the ecosystem only had basic tools. That is when there was a surge of ads in the form of banners and popups. Publishers were able to search and use specific keywords that would target customers.

The next phase saw programmatic advertising’s introduction. This means automation when purchasing or selling ads. One of the biggest concepts was real time bidding. Buyers and sellers could, in real time, bid ad inventory.

App and data driven advertisements

When mobile devices had a boom, the industry saw a shift again. There were more in app ads, which made fostering brand-to-customer interaction easier. From 2015 onwards, data driven advertising began to grow. This allowed companies to use insights to create personalized campaigns.

Many people today are concerned about privacy. This has hugely influenced the AdTech ecosystem. Companies are now required to observe regulations that give users control over their data. Any user data violations have resulted in fines.

Another AdTech-influencing concept is AI. This allows brands to provide more interactive experiences, boosting user interaction time. Brands can combine AI with ads to provide better visualization of products.

Main components

To get a better understanding of ad tech, the pieces that form it should be known. Below is a list of the AdTech space’s components:

  • Networks: offers a pool where publishers and advertisers can sell and buy ads
  • Data management platforms: a database that stores user information for creating ads
  • Demand side platforms: provides a platform for advertisers to place bids
  • Supply-side platforms: allows publishers to manage inventory and make revenue through ads
  • Agency trading desk, advertisers and publishers: purchases ads on behalf of clients or directly

AdTech makes the ad buying and selling-related processes automatic. For buyers, real-time access to ads is possible. On the demand side spaces are advertisers, while publishers occupy supply sides.

An advertiser would work with networks in search of a particular ad. The network then broadcasts this knowledge. Publishers list down all the inventory they can. Once this is done, both sides will use real-time bidding. The winner will have the ads put up.

The upside

The general AdTech ecosystem has grown significantly. Currently, the market value is estimated to be worth 626.86 billion US dollars. New tools have made it possible to create more complex solutions. This facilitates marketing campaigns.

It also provides a centralized way of running ads, ensuring they reach the right target audience. Here are some of the reasons AdTech has turned into an invaluable tool for many organizations.

Ad automation

Automation creates a faster way to create and sort ads. Previously publishers would have to do everything manually which takes a lot of time. With automation, companies can create optimized ads that use real-time insights. This creates room for success with each campaign.

Scalability

Automating processes comes with a scalable nature as an additional advantage. You can launch large campaigns without worrying about employing extra people. This is done faster and more effectively as there is less room for human error.

Cost-effective

Investment in an ad tech solution helps you cut down on expenses. First, you will not pay for additional staff because of the automation of many processes. Another way you cut expenses requires spending to be only on ads likely to be effective. General advertising has no place here, as all efforts are placed towards specific target audiences.

Monitoring

Another function that AdTech provides is cross-device tracking. This means you can monitor users across different channels. All you need is an email address. Then you will be able to look for a q match within a specific network. When you do this, it becomes easier to target users. You can start sending users ads through multiple platforms.

It provides a better way to monitor how a campaign is performing. You will also be granted access to relevant data in real time. This provides a better idea of customer experience.

Speed

With an ad tech ecosystem, one’s sole focus is the target audience. Therefore, you won't waste time on anything that will not be productive. The available tools will help you identify the right audience and create ads that add value. You can create campaigns at record speed.

Privacy

There is a growing amount of opposition towards using cookies on websites. That is because they’re associated with illegally getting through the privacy of users. The AdTech ecosystem has adapted to this challenge. It is coming up with better ways of tracking data without compromising user privacy. Examples include:

  • Limiting data availability
  • Eliminating third-party cookies
  • Having users pooled into anonymous pools

Final thoughts

The future of ads is in the AdTech advertising ecosystem. Advertisers can automate processes to create better ads much quicker than before. It also links both relevant parties allowing for the selling and buying of ads via shared networks. You can gather sufficient insights and place bids on ads within a pool.

AdTech is bent on improving customer engagement with ads while still maintaining user privacy. It is an effective way to measure success and continue providing relevant content.

Kokou Adzo is the editor and author of Stri.us. He is passionate about business and tech, and brings you the latest Startup news and information. He graduated from university of Siena (Italy) and Rennes (France) in Communications and Political Science with a Master's Degree. He manages the editorial operations at Stri.us.

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