Is the use of advertising technology (aka ad tech), as a terminology, becoming obsolete? For some in the industry, the switch to marketing technology (aka mar tech) from ad tech has happened almost automatically. You may wonder, if a label really makes any difference in the business of marketing. The answer is — it does, a lot.
Labels have helped the industry categorise who fits in which strata of the value chain, and what that means for a company and its growth. Simply put, marketers or chief marketing officers, who are the buyers, are right on top. Media owners or service providers (some prefer calling them vendors), who are essentially the sellers, follow after.
Not very long ago, ad tech was seen as the disrupter that was going to change the business of marketing. Technology and automation were to make the system more efficient, reliable and competent, decreasing wastage, manual labour and doing all the heavy lifting that would have allowed the human capital to focus on creativity and strategy. That scenario is yet to manifest itself. But in the meanwhile, newer problems in the list of issues, beginning with transparency, have surfaced.
Mar tech, on the other hand, which was once limited to the likes of lead generation and email marketing, has changed now for the long-haul players, .
As one dives deeper into the industry’s change agents, understanding mar tech versus ad tech is becoming clearer. The wider definition and acceptance of mar tech is a positive signal really. It means that CMOs are finally involved in this discussion. It is no longer just about throwing up theories in conferences and executing in silos. CMOs are asking for the bigger picture, where ad tech has become but one subset of the big game.
Mar tech now is about programmatic and machine learning. It includes artificial intelligence and virtual and augmented reality. It is about the internet of things and data and analytics. Mar tech demands a discussion that puts technology at the centre, where data-driven marketing is becoming important and business decisions are not based on gut feel or recycling conventions.
The change is important and agencies, media owners and ad tech players will have to accept it sooner than later. Players with long-term aspirations have to seriously think about offering a holistic suite of services.
One of the first fallouts of a modernising marketing world was the end of the one-stop shops to make room for a group of independents that aimed to be the best in class, focussing on one area. In many ways, with marketing technology, the industry is coming full circle.
Google, Facebook and Microsoft are looking to become one-stop shops. While CMOs are asking relevant questions now, they have largely accepted that these players are dabbling with conflicting interests and, as some industry leaders describe it, grading their own homework. This is one exception CMOs will not make for legacy media players. Can you imagine GroupM selling STAR India spots on one hand while representing the marketer on the other? Safe to say, unlikely to happen in India.
Marketers are biased towards companies providing complete solutions, and this is why mar tech is becoming important for those who want to exist five years later. As the value chain becomes more complex, ad tech will get pushed down further, and mar tech companies will set future agendas. They will signal the way marketers will spend and what the marketing dollar will look to achieve. The move to mar tech is a mindset change — one that is needed for technology to truly redefine marketing.
