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What Is Advertising Technology (Ad-tech) and How Does It Work?

Ad tech

Advertising in today’s digital world will never be the same again – thanks to the rise of AdTech.

Like it or not, advertising technology has revolutionized the way brands connect with their audiences and the way advertisers and publishers interact with each other. In the current digital era, the internet is a field of endless opportunities.

Unsurprisingly, with the number of time users are spending online, the Digital Advertising sector is blooming. Owing to this, the term ‘Ad Tech’ has surfaced with many businesses looking for ways to use AdTech that will give them monetary benefits.

What is AdTech?

Ad Tech, short of Advertising Technology is a term used for systems and programs that help you manage and analyze your advertising campaigns. Basically, it covers the entire delivery process, right from the content of your ad and who it should be displayed to. Using data and analytics, Ad Tech helps businesses see the ‘bigger picture’ and helps them reach a more relevant audience, with lesser budget.

Both supply and demand sides significantly benefit from advertising technology, so media-traders need to know at least the basics of it to leverage its strong points.

Advertisers: successful ad campaigns targeted at high-value audiences
Publishers: ad inventory sold at the best possible price

In essence this has always been the point of advertising and the relationship between the advertiser (demand) side and publisher (supply) side goes back as long as the concept of advertising has existed.

Why do we need ad tech?

The huge evolution from traditional mass media advertising to digital advertising is no breaking news now. As a result of digitization, people have heard it and found ways to leverage it to the core. Digital advertising has grown to be one of the most effective ways for businesses of all sizes to expand their reach, find new customers and diversify their revenue streams, and India is no exception here.

The industry has evolved a lot, from being a bunch of small scale businesses to a full-fledged industry. As a matter of fact, the second largest growing market in Asia after China is Indian industry.

Reaching Higher With Ad Tech

Ad tech has grown rapidly, and it’s showing zero signs of slowing down.

As it continues its spread, agencies will be able to take advantage of ad tech’s opportunities to develop more integrations, more data sharing, extended reach across all channels, and cleaner integrations against content.

The Present And The Future

The advertising and marketing sector is expected to enjoy a good run. A huge growth is expected in retail advertising, on the back of factors such as several players entering the food and beverage segment, e-commerce gaining more popularity in the country, and domestic companies testing out the waters. The rural regions are now getting more focus and will now be seen as a potentially profitable target.

For instance, in the automobile sector, the focus of two-wheelers in rural areas could mean more launches and more advertising spends. The telecom sector could see growth as well, driven by better smartphone penetration and service providers cutting down on prices.