The Three Trends Driving Ad And Martech Together (& What It Means For Adland)

The Three Trends Driving Ad And Martech Together (& What It Means For Adland)
SHARE
THIS


What best describes you?

B&T’s been following the convergence of ad and martech (and the profound impact that it will have on agency land) pretty closely of late. In our latest instalment, agitator, Andrew Birmingham, editor of www.which-50.com, offers even more proof and some dire warnings, too…

The worlds of marketing technology and advertising technology developed in parallel for two decades. But now three important industry trends are bringing another layer and analytics to the customer experience and CMOs desire to bring platform proliferation under control.

But while the volume around the merger of these two disciplines is likely to increase in the medium term, it is important to understand that technical, structural, financial and cultural impediments remain.

For instance companies already struggling just to marry their own internal data sets together let alone integrating with a plethora of third parties. Regulatory and licencing issues around data abound, and the business models in ad tech and martech are often very different.

Then there is the small matter of industry structure. Brands typically have more direct control over their marketing technology but are more likely to work with agencies on ad tech.

But with these caveats acknowledged, what’s driving the twin pillars of a CMOs tech stack together?

Walled Gardens

Earlier this year (financial consultants) Morgan Stanley made what seemed like a bold and controversial prediction. That said that in the first quarter Facebook and Google would account for 85 percent of all the new digital advertising dollars in the US market.

Eighty. Five. Percent!

Their prediction generated a predictable response from other publishing channels although subsequent analysis by third parties based on Facebook’s and Google’s published financial results, and IAB data about ad spend tended to bear out the Morgan Stanley analysis.

While the implications for such a consolidation were clear for rival publishers, lost in the debate were the obvious implications for the ad tech sector. That so much money would consolidate around two brands with almost such extraordinary and unrivalled user data presents an existential challenge every other adtech in the market.

That has some industry leaders like Marketo’s Phil Fernandez arguing that adtech as a sector will shrink to just a handful of participants by 2020.

As companies like Google and Facebook hoover-up ever increasing percentages of the pie and they are also extending the advertising utility of their offering to try and keep their clients inside the walled garden. And with their massive trove of data they are well placed to deliver increasingly sophisticated analysts services either directly or via platform partners.

Analytics

Seamless integration at the data layer is critical for companies who wish to be able to provide sophisticated and personalised experiences for their customers and consumers. That means all data, not just advertising.

The ability to read a prospect’s digital finger prints across all their online behaviour and to respond with appropriate content at the speed of web deliver will be a critical competitive advantage to brands.

But it is no easy feat. Quite apart from the obvious technical challenges, finding staff with the capabilities to read the rarer signals in the noise is difficult, verging on impossible. Typically data scientists are earning around $120,000 a year and those with social analytics skills can command upwards of $200k a year according to research by the Institute of Analytics Professionals of Australia (IAPA).

To deliver the great customer experiences demanded by customers today companies need to tame internal information silos. But even that is not enough, they also need to allow for the free and instant flow of information across company boundaries and out to partners and suppliers.

For instance, the first party data contained in a CRM needs to be married instantly to third party data such as cookies generated by a digital advertising campaign via a services such as a data management platform.

Likewise the ability to access new data sources on demand will be just as critical.

And companies want to be able to interrogate and manage this data with as little complexity as possible and to enable it to be incorporated into all their campaign activity.

Marketing Clouds

That’s where the third big trend driving the merger of adtech and marketing tech comes together.

The last few years have seen the emergence of sophisticated platforms such as Oracle Marketing Cloud to meet the gather hew from marketers for control over the burgeoning martech and adtech space.

Scott Brinker, editor of chiefmartec.com, currently tracks 3800 companies offering solutions for marketers and he recently told attendees at the ADMA Techmix conference in Sydney that the figure could well swell to over 5000 by next year (in fact we have a bottle of Penfold’s Grange riding on it.)

Marketers want tools to manage and control the gathering complexity of their ad tech platforms.

While no one expects a single vendor to provide all the solutions from a marketing cloud its clear that CMOs have growing expectations about what they regard as core functionality and just as clearly that will include integrated advertising and marketing technology systems.

The reasons is simple enough, and best described recently by Kevin Akeroyd the GM of Oracle Marketing Cloud: “Ads are becoming customer engagement channels, they are not just ads anymore.”

Please login with linkedin to comment

Latest News

OMD Announces New MD For Melbourne
  • Media

OMD Announces New MD For Melbourne

OMD unveils new Melbourne MD, and it certainly wasn't among any of B&T's picks. Not that we were picking, mind you.

Sydney Festival Chooses Brightcove To Enhance Online Video Content
  • Media

Sydney Festival Chooses Brightcove To Enhance Online Video Content

Video cloud service Brightcove has announced that Sydney Festival has selected the platform to improve its user experience through online video content. Brightcove will do so by removing third-party branding and pre-roll ads, as well as adding autoplay functionality, ahead of the event in January. Leveraging the Brightcove video platform to host and publish video […]

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

Remember the old Palmolive soap ad that asked, "Don't wait to be told"? This is sort of similar, albeit sans any suds.

Opinion

by Peter Harris

Peter Harris
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’
  • Advertising
  • Media

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’

Outdoor media company QMS Media has strengthened its digital outdoor presence in Victoria, unveiling an iconic digital billboard in the heart of Melbourne’s famous sporting precinct. The launch of ‘The G’ sees QMS’ landmark digital portfolio ‘bookending’ arguably one of the most iconic and in-demand digital outdoor locations in Australia – Richmond Station Bridge – […]

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante
  • Advertising
  • Campaigns
  • Marketing

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante

As part of the HSBC World Rugby Sevens Series, the Sydney 7s event returns in January complete with a new brand identity, creative strategy and media campaign. With the 2017 Sydney 7s a sell-out event, the challenge for 2018 was to carry that momentum into the third year, defining Sydney’s place as the new ‘go-to’ […]

Bound Round Launches Family Travel Publication for Aussies
  • Media

Bound Round Launches Family Travel Publication for Aussies

Family travel platform Bound Round has announced the launch of its first e-magazine to Australian consumers. Travel Bound is a family-focused, digital quarterly publication available on all Virgin Australia flights through the carrier’s in-flight entertainment system, and is also available for consumer download via the Bound Round website. Bound Round founder and CEO Janeece Keller […]

SBS Unveils New Look, New App For SBS News
  • Media

SBS Unveils New Look, New App For SBS News

Do you like say "I only watch SBS" in an attempt to sound smarter than you are? Well, why not pretend to read this too?

by B&T Magazine

B&T Magazine
Ex-Samsung CMO Joins Amazon Australia As Marketing Director
  • Marketing

Ex-Samsung CMO Joins Amazon Australia As Marketing Director

Amazon Australia has appointed former Samsung Electronics chief marketing officer (CMO) Arno Lenior to lead its marketing division. Lenior worked as Samsung’s CMO for more than three years before departing in 2015. According to his LinkedIn profile, he has also held CEO roles at VR company Virtical and brand consultancy Blue Ocean Brands, and joined […]

by B&T Magazine

B&T Magazine
News Corp Names Its Car Of The Year
  • Marketing

News Corp Names Its Car Of The Year

News announces its annual Car Of The Year and it's not what you'd expect. Well, we certainly didn't expect it anyway.

Aussie Tennis Open & Country Road Announce New Partnership
  • Marketing

Aussie Tennis Open & Country Road Announce New Partnership

The Australian Open has partnered with iconic Australian clothing and lifestyle brand Country Road to supply the uniforms for next year’s tournament. Confirmed today as the official fashion lifestyle Partner of Australian Open 2018, one of Australia’s most loved brands will be worn by thousands of tournament staff at Melbourne Park in January. On-court officials including the chair and […]

Andrew O’Keefe Quits His Weekend Sunrise Duties
  • Media

Andrew O’Keefe Quits His Weekend Sunrise Duties

After 12 years with Weekend Sunrise, Andrew O’Keefe has decided to step away from his hosting and reporting duties. O’Keefe will continue his full-time role as host of Seven’s quiz show The Chase Australia, as well as focus on other projects with the Network. “The ideal job is doing work you love with people you love,” O’Keefe […]

Study: Brand Loyalty Hinges On Customer Support Experiences
  • Marketing

Study: Brand Loyalty Hinges On Customer Support Experiences

Fast and effective support will be a competitive differentiator for companies looking to win over digitally transformed customers and employees, new research has revealed. According to a study by IDC and LogMeIn titled Support Services as a Competitive Differentiator, nearly 67 per cent of consumers said that customer satisfaction was more important than price when […]

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform
  • Advertising
  • Media

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform

The Outdoor Media Association (OMA) has announced the appointment of Red Ant Design to build the out-oh-home (OOH) industry’s first automated proposal platform (APP). After an extensive global search and industry consultation, the decision to build the system in-house with a local Australian company was made. The APP will be built in an agile process, […]

Nick Ballard, Managing Director
Australia & New Zealand, BlisMedia
  • Marketing
  • Technology

Blis Unveils New Consumer Behaviour Analytics Tool For Maketers

Location data technology company Blis has launched an analytics tool that allows marketers to analyse consumer behaviour – from audience profiling, to exposure, to attribution – by capturing and activating mobile movement data. Smart Trends offers robust in-store consumer behavioural insights and in-store comparison of multiple location types and brands, allowing marketers to break down demographic, […]