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Adtech and martech worlds collide

Tom Kaneshige | May 28, 2015
People not in the branding business don't see much difference between advertising and marketing. As new-age advertising technology, or adtech, and marketing technology, or martech, logically merge, what's the problem? For advertising agencies, which have been on the frontline of branding since the late 18th century, a lot is at stake.

Ad agencies: You can take away my adtech, when you pry it ...

Ad agencies, though, don't really want to give up adtech. It's a cash cow due to the scale of advertising, boasts terrific underlying data capability, and makes ad agencies valuable in the eyes of the client.

"Adtech has money and data and scale, and it has a constantly renewing engine of desire by the CMO," says Michael Darviche, managing director at Bridge22, an adtech and martech consultancy. "The adtech industry starts to be really powerful in executing a lot of the same kinds of concepts that the martech world did."

Nevertheless, the forces putting adtech and martech on a collision course seem unstoppable. Middlemen ad agencies will be the most impacted, and they'll have to find new roles. Rapidly evolving technology, as well as the importance of a customer data lake, practically demands it.

"We're at a moment in time where martech is bridging with adtech," Darviche says, adding, "They need each other in order to continue to invent."

 

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