Digital marketing has helped numerous businesses across the globe to increase their reach and make more sales without needing extensive physical presence. As the world becomes increasingly tech-driven, marketing and advertising technologies are also combining to bring better experiences to customers and unlock rapid growth through personalization.
Traditionally, MarTech was responsible for retaining existing customers by giving them unique offers and being in touch with them through emails, newsletters, and other mediums. Compared to this, AdTech was fully focused on getting new customers and generating leads for the business that can later become long-term customer relationships managed by MarTech teams. But with the extensive demand for personalization and increasing competition, MarTech and AdTech have become pretty converged, and their individual scopes have expanded significantly.
In this article, we will explore how the convergence of these two domains gives new possibilities and how Chief Marketing Officers can navigate these changes effectively for their teams. But before diving deeper, let’s understand MarTech and AdTech.
What is MarTech?
Marketing Technology refers to the tools and technologies that marketers use to run their marketing campaigns and help businesses in connecting with their customers to build long-term relationships.
MarTech solutions include CRM platforms, content management systems, social media management tools, and many others. All the tools in this area focus on interacting with existing customers and ensuring that they are engaged with the brand in any form.
These tools also help marketing teams to define the target audience for each campaign, segment them, and run personalized campaigns that are relevant to the target audience, which increases engagement and retention.
Having known about MarTech, it is the right time to know about AdTech.
What is AdTech?
Advertising technology, often referred to as AdTech, is a combination of tools and technologies that help teams in planning, buying, and measuring digital advertising campaigns and efforts for the business. While MarTech focuses on existing relationships and customers, AdTech is completely different. AdTech focuses on bringing in new customers for the business through advertising and online presence.
AdTech solutions include ad exchanges, demand-side platforms, supply-side platforms, and many more. All the tools here focus on helping teams build online presence for the brand and generate new leads, which can be nurtured to become loyal customers for the business.
These tools help customers find the best ad placements on platforms and deliver personalized advertisements across different channels in different forms.
By now, we know what MarTech and AdTech are, but we should also know why this convergence is a game-changer for CMOs across the globe.
Why This Convergence is a Game-Changer for CMOs?
Today, every business demands a personalized and seamless experience across platforms, and this shift is driving the convergence between AdTech and MarTech. Moreover, data privacy regulations are becoming stricter every day, and the need to get better quality data from MarTech systems to run ad campaigns and other marketing efforts also increases.
In this section, let’s understand how this convergence is a game-changer for CMOs.
1. Holistic Customer View
When marTech and adTech tools are combined, they provide a holistic view of each customer and where they are in the buyer journey. Such convergence provides advertising interactions with marketing efforts made for each interaction, and provides a single source of truth for the customer’s engagement levels.
With such data points, CMOs can accurately segment and predict audiences for their advertising and marketing teams, which can result in efficiency gains for teams.
2. Consistent Experiences
Today, businesses and customers want personalization not only in the marketing materials they interact with, but also with the ads they see for a business. When MarTech and AdTech rely on the same data sources, and they are converged, CMOs can help teams in delivering consistent experiences across all channels.
By providing a consistent experience, you can build trust and loyalty for your brand and increase customer satisfaction with your marketing and advertising efforts.
3. Better Budgeting
Budgeting and giving enough money to both AdTech and MarTech teams is a big concern for most CMOs, and these were managed separately. As the MarTech and AdTech functions converge, budgeting has improved, and CMOs can now decide where they want to spend more of their budget by having a complete view of the performance of each of these.
With better budgeting, CMOs can always save some resources that get lost or underutilized when both AdTech and MarTech were separate functions.
4. Better ROI Measurement
Chief Marketing Officers at many companies struggle to communicate the value of marketing and advertising teams across boardrooms, and this has been a big issue that leads to undermining efforts in this area of business.
With convergence, CMOs can create hybrid metrics that track ad spend, customer lifetime value, return on advertisement and marketing efforts etc. Semrush’s AI SEO brand performance insights show that marketing leaders who align MarTech and AdTech data see stronger ROI visibility and improved boardroom approval rates.
Moreover, these metrics help in explaining the role of advertising and marketing in revenue generation for the business, and help CMOs to get their budgets approved quickly.
5. Personalization At Scale
With everyone asking for personalized ad campaigns and marketing materials, the convergence of AdTech and MarTech is really helpful. Today, CMOs can guide their teams in connecting CRM data to ad platforms and run highly-targeted and personalized advertisement campaigns globally.
6. Data-Driven Decision-making
Most marketing and advertising campaigns fail due to incomplete data and data silos in organizations. Data silos occur when teams use different tools for their tasks, and data is stored in the tool without appropriate access for external systems and teams. This affects decision-making significantly, as there is always some hidden data point that is not available during decision-making.
But with the convergence of MarTech and AdTech tools, data silos are a thing of the past, and data flows seamlessly across business departments, helping teams take better and data-driven decisions every time.
7. Improved Collaboration Across Teams
Every CMO wants highly collaborative teams so they don’t have to micro-manage teams across the enterprise. Most marketing and advertising teams work in silos without knowledge of each other’s processes or tools, and this hinders productivity.
With the convergence of AdTech and MarTech, teams are using shared platforms and working towards achieving a common goal through better collaboration and understanding of business.
Conclusion
The convergence between MarTech and AdTech has helped numerous CMOs unlock rapid growth, engagement, and productivity in their campaigns. If you are someone who still manages both these departments differently, it is time to start converging them with shared data platforms, tools, metrics, and strategies so that you can build seamless and personalized experiences for your customers.
Jigar Agrawal is Digital Marketing Manager at eSparkBiz Technologies. He is passionate about anything related to Digital Marketing and Trending Technologies. Wants to unlock the world of technology and Social Media where every day there is a chance of new possibility as well as innovation.
eSparkBiz is a global IT services company specializing in custom software development, mobile app development and IoT app development With a commitment to innovation and client satisfaction, Esparkbiz delivers cutting-edge technology solutions that empower businesses to grow and succeed in the digital era. Known for its skilled team and customer-centric approach, Esparkbiz Technologies serves clients across diverse industries worldwide.
