How Adtech Sector is Booming Currently
Amitt Sharma, Founder and CEO, VDO.AI
One of the most significant contributions of the adtech sector has been to reduce the gap between reality and desire. The overall evolution of the advertising industry, where the sector moved forward from maximizing reach to a more personalized and laser targeting approach, could be attributed mainly to Adtech. The industry has contributed to the effectiveness of advertising channels for advertisers to collect massive amounts of audience data and determine the target audience more accurately.
This is perhaps the reason why the Adtech industry is growing at an unprecedented pace. With the current market size of Rs. 539 billion, the sector will be one of the most significant contributors to the national GDP with an estimated proportion of 0.50%. From the perspective of the Indian market, the AdTech sector has demonstrated high growth rates and will continue with a CAGR of close to 20%, making it one of the fastest-growing sectors.
The article takes account of the most crucial factors that support the overall boom that the sector is witnessing currently:
The opportunity for brands and publishers
Adtech's popularity could be justified because of the opportunities it provides to both brands and publishers. Since brands and advertisers have a budget and marketing objectives in mind whilst planning a campaign, Adtech ensures that such goals are achieved, and the brands have complete control over the spending and can monitor the campaign's reach through real-time analytics. For the publishers, Adtech provides multiple integration options and faster content delivery. This is why the overall impact of the advertising campaign is way more than the traditional processes.
The Contributing Factors
The rise of technological advancements: SPO, CTV and OTT Advertising
Buying and selling digital ads has become quite complex over the years, which is why, there was a need for a specialised system to help marketers and companies eventually benefit when spending a significant amount of advertising budget on digital media sources. Hence, AdTech emerged as a process that helped streamline the entire marketing process by enabling the advertisers to buy impressions and select audiences across many publisher sites. AdTech helps advertisers and agencies in effectively managing integrated campaigns.
Supply Path Optimisation
SPO is not a fresh idea, but with the growing emphasis on openness, its usage is projected to skyrocket in 2022. Programmatic advertising has grown in popularity over the years, thanks in part to the development of header bidding. The popularity of programmatic advertisement could be further attributed to the benefits such as better campaign performance, real-time optimisation, lesser wastage, and contextual campaigns that it offers against traditional digital advertising.
CTV and OTT Advertising
Connected television can be supported by any device designed to help multimedia and Internet streaming. Smart television is a subset of connected television. As a result, CTV advertising on the same Internet-connected device may be possible. Revenues from OTT video advertising are fast increasing (around 64% of the total revenue of close to $1.4 billion in 2020). Moreover, CTV publishers are leveraging lucrative ad monetization solutions through intelligently managed Unified Auction. Broadcasters can access this advanced bidding technology by enabling multiple demand sources to bid at the same time.
Adtech leading the way for Martech
The country is witnessing an overall increase in the adoption of digital tools. Owing to lower cost (of advertising), huge ROI, easy quantifiability, and flexibility, the adoption rates are rather rapid in all parts of the country. It’s no longer a one-size-fits-all market. Adtech is the cornerstone of optimizing marketing investments to create a single view of the customer for a more targeted and personalized experience. While MarTech technologies help streamline, and scale marketing activities, AdTech has gained popularity because the marketers want to achieve results from the integrated campaigns making the overall process more quantifiable to strike the right chords with the customers.
To sum up, there are different reasons why the AdTech sector in the country has witnessed a significant boom recently. Besides the mentioned points, another factor has supported the overall increase in relevance of the sector. This could be attributed to the focus on ROI as the criteria for adjudging the success of digital campaigns and AdTech processes. When measuring results, the main focus is on return on investment (ROI). This is due in large part to the changing cookie situation. Cookie deprecation impacts how publishers acquire user data and create measurement methods. Hence, contextual targeting as an effective means of advertising could remerge, and AdTech will become an essential player in the entire change that the sector is witnessing.
DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.