MadTech represents the coming together of two industries - AdTech and Martech. That's Advertising tech and Marketing tech respectively. It's not a new tech that stops your marketers from being angry with the sales team. That's a whole other kettle of fish.
What's even the point of it then? I hear you ask. Well, this fancy cocktail of advertising and marketing results in the most complete view of the customer across all channels.
Because these two powerhouses tended to live in their own bubbles, offering tools and results for publishers separately. But this separation is no longer as distinct as before. Though this might seem like a strange new world, in fact, it offers companies the chance to better understand potential customers, utilise first-party data, and drive revenue.
2023's consumers can now interact with brands through so many different streams and expect a top-notch personalised experience. This new consumer means traditional marketing has been transformed and evolved into a tech-driven discipline.
In fact, a recent survey by Deloitte has found that brands such as Netflix have near-enough overtaken their traditional counterparts. These platforms are used by more than 42% of American households and have overtaken live television as the viewing method of choice.
Millennials take this a step further, with 57% of their viewing being contained to their mobile devices. So, we can see from this change in behaviour alone that the landscape has shifted significantly.
Basically, in a world of digital advertising and data-driven marketing, marketers had to turn to a more elevated approach. This is where MadTech comes in.
So, let's jump in. But first up, some definitions:
MadTech is the merger of marketing technology and advertising technology. Pretty simple right? Well, yes and no.
Basically, the whole thing is based on the emphasis on quality over quantity. As we've mentioned, technologies are evolving so quickly, bringing game-changing innovations to online marketing and advertising, so the industry has adapted. It has now become more dynamic than ever. Now, there is a distinct and deliberate focus on people-focused marketing, and for good reason.
Coined in 2015 by David Raab, MadTech brings together the individual reach of MarTech with the massive data treasure piles of AdTech. So, when these two industries combine, publishers can cultivate customers across a bunch of digital platforms.
So, by sitting in the middle of these two industries, MadTech can play a crucial role. MadTech can allow companies to successfully deploy the right tools and strategies in order to generate disruption in the marketplace.
We all know the problems that come with data - both gathering and deployment. Companies are sitting on a trove of customer data, from purchasing behaviour, order history, demographics and beyond. MadTech means that all this gathered data can be combined, helping marketers and advertisers form a more comprehensive picture of their audience.
āEven a fully integrated MarTech stack canāt deliver a wholly consistent customer experience," says David Raab.
"Advertising still plays a major role in a customerās brand experience. Moreover, advertising itself is becoming increasingly personalized and interactive. Consumers donāt make a distinction between marketing and advertising interactions. And to meet their expectations, neither can marketers.ā
In his opinion, MadTech is the solution, which will help companies ādeliver a unified, consistent and highly personalized experience across all touchpoints.ā
According to MadTech proponents, MarTech and AdTech platforms alone aren't enough. Each field working alone can't be the all-encompassing tech that companies need in the current landscape, as neither covers the entire customer journey. So, as both types of tech rely on each other, it makes sense for the two to become part of the same ecosystem.
In fact, even in this early stage, 35% of firms have said they've acted on the convergence of MarTech and AdTech, with the majority of companies being in the planning stages of the so-called MadTech revolution. This is to the point where only 7% haven't planned for MadTech yet at all.
In recent years, a lot has changed. From buyer and shopper habits to social media influence, the need for transparency, to the marketing and business spheres themselves, tech has shaken things up. Tech, advertising, and media have come together to change the way customers consume - both in terms of products and content.
The convergence of these fields means that marketers have to change the way they advertise, as it has impacted platforms, people, planning, and processes.
So, MadTech makes it possible for companies, despite their budget, to gain access to both data and delivery. This makes the playing field much more equal - the only differentiating factor will be what decisions a marketer makes. So, essential marketing skills like branding, creative development, positioning and value will be just that - essential.
Let's look at some new tech in particular.