Adtech is a term that has crept into our day to day conversation as a general term for what we do, but it has gradually come to represent such a wide spectrum of businesses that it is almost meaningless. It can refer to everything from advertising methods to measurement tools, encompassing simple processes and accessible ideas.
But it is also a catch all term for the increasingly complex process of buying and selling advertising space. Advertising technology has become so advanced in recent years, and developed so rapidly, that many at the coal face are, quite fairly, daunting by the challenges they face.
One major issue for agencies in particular lies in the viability of setting up their own tech stack. What are the advantages? Will it save me time and/or money? What do I need to have in place before I begin? In short, what are the key challenges that will stand between the agency and the successful development of a tech stack through which to trade advertising?
By creating a grouping of technology that can be leveraged to conduct and improve a brand’s marketing activities, an agency will make their day to day processes simpler, more efficient and easier to measure. A proprietary tech stack allows for effective data processing, as there is no clash from the use of different systems, and it eliminates reporting discrepancies.
But while the advantages are clear, setting up your own tech stack has its challenges, both inventorial and operational.
From an inventory point of view there is the fragmented environment – be it web, in-app, CTV, Digital OOH and so on – that has little or no interoperability. Then you have the issue of working across multiple markets that do not have a common language – many local languages are not supported by leading adtech providers.
Meanwhile a lack of transparency of the supply chain makes optimisation difficult and can result in a loss of budgets. And finally there is the simple but very common issue of general ignorance – a lack of understanding from businesses about how they go about developing their own tech stack. Modern technology is not straightforward and cannot be approached casually. Complexities and a lack of understanding will be the key driver that is holding people back.
Operationally the challenges are there too, from the financial logistics of working with different currencies, to the lack of access to audience data and the need to build original first party data. And of course the shift of big brands to in-housing takes away some of the buying power that those accounts bring to an agency.
However, businesses should not be put off by these challenges: all can be overcome. Here are six major benefits to taking control of your digital advertising.
1. Consolidate your media
Owning their own tech stack enables agencies to gather all possible digital media into one place and group it into engaging packages appropriate for different types of clients and businesses.
2. Access an enhanced programmatic supply
By accessing a premium worldwide supply they can offer tailored inventory sets for different advertisers that speak to their KPIs and audiences. This should bring significant efficiencies to their processes and notably improve ROI.
3. Manage your data
Data is the all important factor in producing powerful advertising that works, which means having full access to all the insights and numbers that matter is crucial. If an agency is not relying on an external DSP they can improve their digital marketing effectiveness with precise audience targeting.
4. Increase your profit margins
By setting transparent commissions for all parties additional income can be earned from tech fees, data, and creative usage.
5. Optimize your clients’ advertising performance
You can own all the assets to maximize your results and can stay on top of live campaign performance with precise reports.
6. Set your own rules!
There are no fixed boundaries when you have full independence from other companies’ technology. As well as setting it up so it works exactly for your clients, crucially it also means agencies who operate in more than one marketplace can customise their own tech stack for any local language, currency and financial regulations.
Agencies should not be put off by the idea of taking charge of their own tech. It may seem daunting on paper but all the challenges can be overcome and it will pay dividends in no time at all. Digital ad tech is continuing to evolve and those agencies who are in the driving seat will not only stand to benefit operationally, logistically and financially but so, by association, will their clients.