MarTech and AdTech have more in common than you think

Two front doors next to each other. Door on the left surrounded by pink painted bricks while the door on the right is surrounded by light blue painted bricks.
  • Dennis Self

    Chief Executive Officer

MarTech and AdTech are two crowded industries with countless vendors claiming to accomplish nearly identical things for their customers. Vendors take different approaches to their products — some specialize in niche channels while others provide holistic solutions to the entire scope of brands’ needs. This results in brands purchasing dozens of disparate technologies to accomplish their advertising and marketing goals. 

Yet as marketers and advertisers demand more powerful technology to accomplish our jobs, many believe that MarTech and AdTech are beginning to converge. Executives have been prophesizing this convergence for years, but recent industry shifts reveal that MarTech and AdTech are increasingly faced with the same challenges. It may finally be time for us to come together to create a new kind of marketing and advertising experience.  

Data limitations spur the convergence of MarTech and AdTech 

Think back to your initial reaction when major tech players began to end support for third-party cookies. If you’re an advertiser, you may have panicked slightly — how could you possibly know who you were advertising to? Given cookies are how most AdTech companies identify people without telling them, many saw a devaluation in the industry. 

At the time, most marketers brushed off the shift because we’re focused on owned channels rather than third-party ones, so cookies don’t affect us as much. But now that Apple will stop enabling marketers to track email campaign performance metrics like clickthrough and open rates, MarTech and AdTech have something in common suddenly: a roadblock to data.  

New rules and regulations, along with new company policies, have forced both MarTech and AdTech into rethinking how we mine information for our customers. This could be the beginning of the true convergence between MarTech and AdTech: a consolidated route to customer data once it becomes less accessible will be necessary for these solutions to thrive and continue adding value to their customers.  

The new, better route to data 

Over the past few years, data hacks, breaches, and scarily accurate campaigns have left sour tastes in consumers’ mouths. Tech stacks were becoming so reliant on customer data that marketing was losing its human touch. Even before laws like GDPR and company policies like Apple’s were announced, data reformation was needed. 

Now new regulations are in place, forcing us to rethink data collection. We’ve been collecting first- and third-party data automatically in the background — browsing histories, profile demographics, behaviors within channels — the amount of data is endless. Zero-party data, on the other hand, is data that consumers intentionally and proactively share such as purchase intentions. It’s often less prolific because of this, but surveys are one way brands can collect this kind of data from customers and prospects.  

MarTech and AdTech providers should pivot more towards zero-party data soon. Spend less effort (and dollars) on collecting customer data — instead, just ask them for it. Let them know what you plan to use it for, such as personalizing and elevating their shopping experience. Consumers love personalized experiences but don’t want to feel tracked. If you let them know what you’re doing, and they proactively provide information to you, it won’t be seen as creepy, but thoughtful. This data will take longer to obtain, but it will be more valuable because it’s directly from the consumer. 

Creating a new marketing and advertising experience 

Finding new opportunities for data collection in MarTech and AdTech will lead to a new approach to marketing and advertising where the consumer is at the center. It seems simple but collecting the information consumers actually want to share and leaving third-party data behind will create a foundation of trust between your brand and its customers. By giving consumers more direct control over the data they share, we’re able to create a new kind of marketing experience where the consumer’s desires are driving everything we do — every message we send, channel we chose, and action we prompt consumers to take. Many marketers claim to launch personalized campaigns that accomplish this, but if they’re not leveraging zero-party data, this isn’t a reality. 

As marketing and advertising converge on the route to data, MarTech and AdTech will too. As this evolution takes place, ensure your tech stack is prepared by leveraging technology with open APIs that can more easily integrate with each other. 

So, while the convergence hasn’t begun quite yet – it's on its way. Brands will need to be prepared with tech that works for them, open APIs to connect their different systems, and tactics for collecting zero-party data. With these strategies, brands can realize a new consumer-centric approach to marketing and advertising.

Written by
  • Dennis Self
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    Chief Executive Officer

    Dennis Self is the CEO of Acoustic. Previously, Dennis was the President & CEO of Acxiom, and he led the sale of the company to IPG. He has also held senior roles at Deloitte, Gilead Sciences, and Electronic Arts. Throughout his career, Dennis has focused on helping customers connect business results to their marketing, data, and technology investments. He also served in the U.S. Navy Reserve as a Supply Corp Officer. Dennis received his bachelor’s and master’s degree in management information systems & decision sciences from Old Dominion University and his MBA from the University of Chicago Booth School of Business. 

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