Industry experts have spent decades defining the concept of AdTech. From Telecoming, through our Rouge agency, we are interested in championing this term. That’s why today we dedicate a moment to think about its meaning and its impact in the advertising world. The technology applied to the effectiveness of advertising campaigns seems something essential and innate of digital advertising, it doesn’t seem something new, and maybe it’s because it’s not.
Digital advertising was born with a banner that registered a click-through rate of over 44%, something unbelievable in our days. Since then, the market has surpassed the 200,000 million dollars threshold in the world and has grown at an almost unsustainable speed. Managing this enormous volume of formats and sites was impossible without technology, and it is still impossible today. It is at that moment when the concept of AdTech was born, and since then, it has been changing and getting fatter. The basic idea is “any technology that allows the effective purchase and sale of advertisements and spaces in the digital environment”.
When in 2009, the real-time bidding came into play, the inventory of spaces multiplied and also did the opportunities to impact the user. For these opportunities to be effective, advertising technology is already a must, so the AdTech concept gains weight again. Terms like Artificial Intelligence, Machine Learning, and Big Data, became part of what we understand today by AdTech. Moreover, advertising technology is becoming increasingly complex and complete.
In the coming years, this term will continue changing, integrating new concepts such as algorithms and predictive models. From our point of view, it is not the industry that forces technology development, but the technology that pushes the industry changes. So perhaps for that reason, the word integrates both terms: Advertising & Technology. There is no one without the other. Brands need to understand this symbiotic relationship. And then, only if they decide to take advantage of it through agencies able to offer innovation in this field, they will be able to shine in the digital environment that, far from being saturated, is full of new and creative opportunities.