Three reasons why AdTech and MarTech will merge

31 May 2017

  • Thought leadership
  • Data
  • Digital Marketing
  • Marketing Technology

By: Nikola Hopkinson, Content Manager, ADMA

Should they, shouldn’t they? Will they, won’t they?

The discussion is fierce around the convergence of AdTech and MarTech in the industry, with new predictions about both sides of the argument popping up weekly.

While Forrester’s recent report, “A More Perfect Union: AdTech And MarTech Convergence Will Revolutionise Marketing,” suggests microeconomic trends are driving convergence of the two, Gartner’s Martin Kihn is suggesting that perhaps AdTech and MarTech have already converged as much as they ever will.

Managing Director, APAC at AdRoll, Ben Sharp is on convergence’s side and sees major benefits for both, citing attribution as one of them.

“AdTech attribution is click-based and is heavily performance driven, while MarTech is more value-based. By blending the two, attribution approaches will become much more sophisticated and interesting.”

This “hybrid approach” will address much more of customers’ needs, according to Sharp.

He believes there are three core reasons why the convergence of Adtech and MarTech – or MadTech – is inevitable.

1. Technology is the enabler

Developing technology is increasingly consistent in both areas of the market. Key technology forces – identified by Gartner’s Hype Cycle for Digital Marketing and Advertising, 2016 – like personalisation and real-time marketing are paving the way for the convergence of adtech and martech.

“Technology is becoming partly commoditised and it’s becoming much easier to transfer the technology between the two areas.”

2. Customer push

“As an innovator and disruptor, you [AdTech] are always on the lookout for new products that speak to your customers in a deeper fashion,” Sharp says.

And customers are calling for the convergence of AdTech and MarTech.

“The data within AdTech and in parts of the MarTech world is very similar. Using both capabilities allows for personalised email and onsite retargeting to the customer in a smart fashion,” Sharp says.

“If you can leverage your customer data that you have received from adtech environment and transfer it to the MarTech space by offering personalised, time efficient emails – you’re blending the two in an interesting way.

“If it’s then backed up by the right level of reporting and insight, solving the right business problems, you offer a huge benefit to your customers.”

3. Internal benefits

AdTech companies are the disruptors and innovators.

Larger MarTech players, like Oracle, are acquiring AdTech companies in order to grow and innovate, and through these acquisitions, they’re able to offer additional and interesting solutions.

“AdTech players are also very aggressive in how they go to market in a positive way. So those traditional MarTech players get the added benefit of new business through acquisitions,” Sharp says.

To hear more from AdRoll on the convergence of AdTech and MarTech, join the President of the company, Toby Gabriner at Mumbrella 360 conference. Toby will be part of the panel discussion 'When World’s Collide: The Impact of The Collision Between Martech and Adtech' on Wednesday, 7 June from 3pm.

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