What is MAdTech and why businesses should focus on the trend
MAdTech is an emerging trend and businesses can use it as the first mover’s advantage. Here’s all what you need to know.
MAdTech is the smooth blend of marketing and advertising. The usage of tech is to improve efficiency and ensure optimum usage of resources. This convergence of marketing and advertising is not to be confused as the lines between them keeps blurring out. They remain to be two entities that have their own separate operating environments.
The term MAdTech was introduced by David Raab in 2015. It is quite a tender concept, and now, when we see marketing and advertising taking the support of technology and working in unison, we call it MAdTech.
To understand MAdTech further, you need to know exactly what and how MarTech and AdTech function together.
MarTech
The data is generated by identifiable individuals and advanced associations. The decisions are made by tracking the path of the user. This allows for the advance attribution of the user. Finally, the ad is delivered, which is a personalised message in media that is bought by marketing.
AdTech
AdTech in itself can not generate a data pool that can be used for marketing. It has to rely on external factors. The real power of Adtech lies in delivering advertisements, which are done through RTB (Real-Time Bidding). It is also better at finding and providing behaviour based recommendations. The end result is a targeted message which appears through the portal of paid media.
MAdTech
If AdTech and MarTech work together by giving feedback to each other, they can be far more efficient and will be able to deliver advertisements more effectively. This is what MAdTech is. It brings external pools of data associated with users and their behaviour.
AI-based bidding makes the process faster and ensures that it keeps evolving. There is an ease of content generation as well. The final delivery of the message is a targeted, personalised message that is delivered at the right platform and at right time.
Raab quotes, “Even a fully integrated MarTech stack can’t deliver a wholly consistent customer experience. Advertising still plays a major role in a customer’s brand experience. Moreover, advertising itself is becoming increasingly personalized and interactive. Consumers don’t make a distinction between marketing and advertising interactions. And to meet their expectations, neither can marketers.”
Why should businesses adapt and evolve?
The complexity for brands and businesses have grown exponentially over these years. Marketers now prefer the direct chat option. This new type of marketing thrives when there is greater transparency, enabling brands to not rely just on people’s recollection.
Phones have become the platform where it is possible to reach a customer all the time. But marketing to a target all the time could create a negative impression of the brand in the mind of the consumer.
The consumer too has become more demanding and expects the brand to have its own innovative, unique identity.
MAdTech is useful where understanding a large chunk of people is really impossible without the intervention of technology. Collecting data about the needs of the customer and serving them with precisely targeted advertisements is really important for a business.
How does it work?
Suppose you are a business and there is a MAdTech model, then it will function in the following way.
The budget will be equally available for data and delivery. It will provide you with state of the art technology. Machine Learning and Artificial Intelligence will cause a paradigm shift in the way you operate your business. Using AI and ML enables predicting customer needs and covering every bit of marketing opportunity that is available.
As a business, look at it as a supplement that will allow you to focus on the core of marketing which includes branding, creative development, value definition, and positioning. In short, there is more time to decide which message to deliver to which customer through what platform.
Is it sustainable?
The idea of marketing has been changing over the years. The effect of advertising is slowly fading.
As of now, marketing and advertising are being compiled unit a completely transparent solution under the name of MAdTech. Another thing is that there is real-time communication between brand and business, which is what is the demand of marketers nowadays.
The demand for interaction has come from the side of the customer and this makes the customer feel important where there is consent for being marketed.
It is a future-ready trend as it is already collecting and processing huge pools of data and has expandable bandwidth.
MAdTech takes off the burden of controlling the complete supply chain, which leaves the company to focus on the tasks mentioned above.
Digital advertising through devices improves the chances of reaching the customer at a desired time and place. This puts the market, customer, and the medium on which they both connect are brought together.
Overall, if we look at MAdTech, it is dynamic as well as it has a good amount of room for any change to be accommodating. These are the two basic things that are required for a new trend to sustain and we think that it does make for a great trend to opt for businesses.
Benefits
The best parts of MarTech and AdTech are brought together under MAdTech eliminating the flaws that both of them have.
The scope of personalisation increases with personalised advertisement campaigns that can target certain customer behaviours across various platforms.
Media planning becomes easy and the buying insights are much sharper. MAdTech allows marketers and advertisers to measure their outreach. This creates a domino effect, improving everything that comes with the better quality of data, which thereby results in accurate targeting.
Having one MAdTech solution avoids the problem of choosing from multiple MarTech and AdTech options. It eliminates the confusion in the process, as well as prevents the audience from misunderstanding, and avoids scattered data.
MadTech brings everything together under one software service.
It removes Data Silo which is necessary for AdTech and MarTech to run. Also with AI and ML, we can see better suggestive results.
Can businesses survive without MAdTech?
Is there any industry that is surviving without marketing and advertising? Tech is used to just improve efficiency and use human intelligence for other difficult things. The core marketing values and skills are expected to get the front seat again. MAdTech creates a level playing field by bringing data and delivery by giving it equal access.
In a way, MAdTech is not a completely new concept. It is the result of the evolution due to modern technology. As we have seen in the past, not many businesses survive without the use of technology.
Edited by Kanishk Singh
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)