15 Crucial Differences Between Adtech And Martech You Need To Realize

Today, the modern marketer’s toolkit consists of a slew of technologies that assist their marketing and advertising strategies to succeed. Among them, the most popular technologies are adtech and martech.

Diffrence_Martech__AdtechWait!! Being a digital marketer are you unaware of adtech and martech?

Marketing has become increasingly complex since the digital revolution transformed the industry.

It has currently become necessary for businesses to understand how to utilize these new digital marketing technologies.

Because adtech and martech started out as a trend, but gradually transformed from being an experiment to a standard.

However, the existing confusion surrounding how adtech and martech work differently have created a sense of mystery.

Moreover, as long as this question remains unanswered, the overall value and effectiveness of both advertising technology and marketing technology will stay an issue.

So, to get a definitive difference between adtech and martech, it’s essential to understand what is adtech and martech first.

Also, defining these technologies in-turn supports you to understand their limitations and advantages better.

Curious enough to know?

Let’s first enter into the world of adtech and then know about martech.

Advertising technology

The term adtech is the acronym for advertising technology.

It refers to various forms of analytics and digital tools used in the context of advertising.

Advertising technology refers to all software used for conveying, displaying, focusing and controlling online ads.

Adtech, by default, is online advertising, allowing extensive prospecting, for building a base, for creating a brand.

Adtech mainly aids in the programmatic selling and buying of advertisements.

It encompasses technologies such as demand-side platforms and ad networks and exchanges that publishers use to sell their digital ad space.

Adtech covers the dense database of all digital identities (also known as demand-side platforms) and the data management platforms.

For your convenience, let’s have a look at the three main players of adtech:

1. Audience targeting

Ability to target ads using specific criteria to identify intended recipients. This excludes most paid search advertising, which targets keywords as a proxy for intent, and various run-of-network and sponsorship arrangements.

2. Programmatic buying 

It refers to the automation of buying and trafficking processes for audience targeted ads. It excludes direct publisher and ad network contracts specified by standard insertion orders.

3. Real-time bidding

This refers to the subset of programmatic ads that are bought and sold in real-time on auction-based exchanges.

Now, let us know about martech.

Marketing technology

Martech is the combination of marketing and technology.

Martech eventually has found its way to become the buzz in the minds of B2B and B2C marketers.

Marketing technology helps you weave a steady relationship with the customer leading to long-term success.

Martech comprises of tools and technologies to manage marketing processes, workflows, customer relationships and customer analytics.

An average martech stack consists of 17 tools.

I am listing out the necessary tools of martech stack to make the most out of your investment.

1. Customer Relationship Management

This tool is actually used to manage interactions throughout the customer lifecycle.

2. Marketing Automation Platforms

There are various automation platforms. Among them the most commonly used ones are email, and SMS. 

3. Analytical Tool

Finally, an analytical tool will measure the success of your various marketing efforts.

As consumers today demand and expect more than ever, personalized experiences from brands, marketers need to integrate these tools strategically.

While this has improved marketing in general, it has also complicated things up.

Martech on its own is innovating at an extreme pace and marketers are having a tough time to keep up.

Hence it might have occurred to you that whether it is necessary to know the significant differences between adtech and martech?

No worries.

I will be taking you through a tour featuring the bifurcation between adtech and martech.

What are the differences between Adtech and Martech?

Don’t you agree that advertising technology (adtech) is one facet of marketing technology (martech)?

The difference between adtech and martech subject to the very distinction between what role marketing and advertising play respectively.

Advertising technology and marketing technology have a similar goal: driving sales.

However, the execution and channels they use are slightly different.

The fundamental difference between adtech and martech is their respective target audience.

Adtech targets anonymous audiences, whereas Martech generally targets known customers.

Further, to this primary difference, I have compiled a list of differences surrounding all fields.

1. Role    

Advertising technology is the technique of making your product and service known to the marketplace.

It is mostly spreading the word about what a company has to offer.

While marketing technology is the mother term for an array of activities.

Basically, strategies which include planning, product pricing, distribution, sales strategy, customer support, market research and community involvement to help the product reach the customer.

2. Coverage 

Adtech covers the demand-side platforms, data management platforms, ad networks, and exchanges.

Publishers use them to sell their digital ad space.

Marketing tech encompasses all aspects of marketing, including Customer Relationship Management platforms, creative, design, SEO and even adtech.

3. Channel

In adtech the channel through which marketers reach an audience is by using 3rd party paid media.

However, in martech, the channel used to reach the audience is through personalization using owned media.

4. Customer data

Understanding your customers starts with analyzing the data you have on them.

In this respect, adtech focuses on using cookies augmented with 3rd party and behavioral data to build campaigns.

While martech utilizes first-party collected personally identifiable information (PII) to segment customers.

5. Communication

Adtech only allows one-way communication between advertisers and customers.

However, in martech, there will be two-way communication between marketers and customers.

6. Mode of operation

Agencies and other partners are the key players in the adtech industry.

However, martech companies usually work in a brand direct solution.

7. Digital history

Every customer has a digital footprint as long as they are online.

Creating a database of the behavior of customer activities is a must nowadays.

Adtech fails in this aspect to maintain a database of previous customers.

However, in the martech, marketers with the help of tools can have a complete list of previous customers and their purchases.

8. Retargeting

You go online to buy a product, but do not complete the purchase, related advertisements come up to you as a notification? Isn’t it?

This is called retargeting.

There is usually no retargeting to customers in the adtech industry.

However, in the martech industry, every day various new methods of retargeting to customers are coming into the picture.

9. Revenue model

Adtech is typically based on media. They collect revenue based on the volume of advertising that their clients have generated.

To put up in simple words, users pay for adtech on a performance basis.

On the other hand, martech often works on a SaaS business model.

They collect a subscription fee, which is recurring regardless of the volume. These are generally renewed on an annual contractual basis.

10. Adaptability

Adtech is much more vulnerable to changes in the behavior of consumers.

However, martech is less vulnerable to changes in the behavior of consumers.

11. Nature

Advertising is more transactional. Moreover, its motto is- driving impressions and increasing engagement.

Whereas, marketing implies continuing the relationship with a known person.

12. Customer journey

Adtech only has a partial view of the customer journey.

It comes into play only when one has expressed interest through the advertisement.

On the other hand, martech focuses on the full customer journey.

Starting from selection, sale and beyond. It helps marketers analyze customer behavior and manage marketing processes on it.

13. Innovation

The innovation scope in case of advertising technology is very less. 

Whereas, in martech, developing and innovation of new software and tools take place continuously.

Scott Brinker stated, “Marketing technology is evolving faster than most marketing organizations can absorb it.”

14. Customer insights and nurturing leads

If Customer is the KING, then their behavior is the QUEEN.

The target of every marketer is to offer each customer the right content that’s relevant to their behavior.

Also keeping in mind that it reaches them at the right time, through the channel of their preference.

Customer behavior drives this experience.

Moreover, you can collect all of it: behavioral data from the DMP, from your mobile app and more.

Once aggregated, that data will give you a clear understanding of your customers’ behavior.

You will be able to engage them while continuing to enhance their profiles as you lead them down the path toward conversion.

As in the adtech industry, it is not able to gain customer insights and nurture the leads.

On the other hand, the strength of martech lies in its capability to gain customer insights and nurture the leads.

15. Metrics

In the case of adtech, the involvement of data analytics is not present.

Thus making it difficult to measure the outcome of a communication channel.

However, martech tracks down data more precisely aiding you to measure the result.

Closing Thoughts

Marketers tend to love data.

Loads of data, in fact.

Moreover, that’s all a good thing.

With more data streaming in every hour, we are seeing more and more reliance on tools in the coming years.

Based on the data interpreted by them, marketing organizations can now evaluate the effectiveness of their marketing activities.

Adtech and martech are serving as enablers, guiding them to make data-driven marketing decisions.

Adapting your business strategies to these technology shifts proactively is required.

It will give you a distinct advantage to reach more customers, and capture greater leads and revenue.

As ultimately, both the technologies can help, but it’s YOU who should be able to take the call.

Being a marketer delivering the best should have always been your aim.

And the only way you can accomplish this is with the right tools and technologies in place.

Because brands that mix technology and data to offer personalized experiences are seeing revenue increase from 6% to 10%.

Making it imperative that adtech and martech have a shining future ahead.

So, who according to you became the winner in the battle between adtech and martech?

Share us your opinions!

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