You don’t have to be in the digital marketing world very long before you are likely to hear the terms “AdTech” and “MarTech”. 

These terms refer to the various types of technologies that are used to help a brand succeed in the digital space.

Although incorrectly, you’ve probably heard AdTech and MarTech used interchangeably. 

Though they are not without their similarities, they are different from one another. Thanks to advancements in recent years in technology, there is no clear-cut line of distinction between AdTech and MarTech.

To truly understand what distinguishes AdTech from MarTech, you must be willing to dig a little deeper and understand what they both are and what they have to offer.

So, if you’re ready, let’s dig in. Here is a look at what you’ll learn below:

#3: Platforms Used

When it comes to online marketing and advertising, there is a multitude of platforms involved. 

These platforms are designed to support specific functions, and most are unique to each of their respective fields. 

The capabilities of each platform can often let you know whether it is designed for AdTech or MarTech.

For instance, AdTech platforms focus on the demand side of things that will operate an advertising campaign or purchase advertisement inventory and sell it, whereas MarTech platforms focus on the customer relationship side of things from attracting them to understanding them.

It’s worth stopping for a second to appreciate just how overwhelming all these platforms can get for someone new. There’s always “the next big thing” cropping up—maybe some AI-driven segmentation tool or a shiny new data visualization dashboard—and suddenly you’re supposed to know if it belongs in your AdTech stack, your MarTech stack, or you just quietly ignore it. Not every platform fits neatly in one box or the other, either. Sometimes, vendors themselves seem undecided, which doesn’t make anybody’s life easier.

And, let’s be honest, the speed at which platforms evolve (or get acquired, merged, rebranded, you name it) adds to the general confusion. It’s kind of like shopping for a phone and finding out halfway through the salesperson’s pitch that most of the features overlap, but the pricing models are from two different universes. The lines keep moving, and you just do your best to keep up—sometimes making it up as you go. If that feels chaotic, well, welcome to the club.

#4: Target Audience

Once a relationship has been formed with a prospect, MarTech is used to keep that relationship going. 

Therefore, there has already been some form of interaction between the customer and the brand when MarTech is used.

At some point or another, data has been collected on the prospect, including name, e-mail, and other identifying information like purchase history. 

This data allows a one-to-one open line of communication that is more personal than what can be offered with AdTech.

With AdTech, however, it is more of a one-to-many approach that is taken. 

More often than not, the brand has yet to be noticed and may even be completely unknown to the consumer, which is where AdTech solutions come into play, introducing the brand to potential customers (brand awareness).

This is when some of the AdTech analytics tools can be extremely beneficial, as they can help you identify where your advertising campaign is strong and where it is weak. 

Clickthrough rates and viewing numbers are just a couple of the analytics that can be measured.

#5: Billing Model

More often than not, MarTech solutions are paid for based on a monthly fixed subscription fee and are delivered via the cloud. 

This makes these solutions, which are often SaaS (Software as a Service), simple and predictable for your marketing budget. 

In addition, MarTech companies will usually sell their services or software directly to marketers.

However, AdTech solutions can change from one billing cycle to the next. 

While they may be based on a fixed fee, they tend to work off of metrics like CPM. Sometimes, advertising agencies bill with a commission on top of the regular ad spend of the CPM. 

AdTech companies tend to sell their products to a broader market than MarTech, including advertising and media agencies.

AdTech vs MarTech: Can They Work Together?

One of the reasons that people get MarTech and AdTech confused with one another is because the lines can get blurred every once in a while. 

Rather than using the two individually, a lot of companies have come to the conclusion that the two together can offer incredible benefits.

When AdTech and MarTech tools are used in combination with one another, businesses can get a complete look at their overall digital marketing strategy. 

Many of the MarTech tools have started to offer similar functionalities that were once only available in the AdTech solutions.

As the habits of consumers continue to change and become tailored to the digital world, this is all more important than ever before.

AdTech platforms can be utilized to determine a buyer’s journey on a brand’s website. 

With this information, an advertising campaign can be used to target customers based specifically on the data previously gathered. 

This offers a more personalized approach and ensures that you are targeting what the prospective customer truly wants and needs at that given time.

When AdTech and MarTech are used together, you can further improve your advertising and marketing efforts so they are tailored to your audience and their digital behavior. 

In the end, you reap a high return on your marketing investment.

Wrap Up

Although there are very distinct differences between AdTech and MarTech, as well as benefits when they are used on their own, these can be used with one another to reap even more benefits.

When you are looking to take your brand to new heights, combining your AdTech and MarTech efforts can allow you to see the bigger picture when it comes to your target market and overall digital marketing strategy.

Before long, the seamless syncing of these two digital technologies will be the holy grail that every advertiser and marketer is looking for, as it will provide brands with the power of knowing what customers want and need before they ever have a chance to realize it themselves.

Take this MarTech Stack Evaluation to determine where you stand with MarTech and what your next steps should be.

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