MadTech: A Revolution Between Martech and Adtech

Have you heard of the new buzzword MadTech?

Do you think it’s just an addition to the already crowded dictionary of the MarTech and AdTech stacks ?

Break all your myths here! Dive down!


In this article, we shall talk about all the following vital knowabouts of MadTech:

So, let us go forth and unravel the mysteries of MadTech!

What Is MadTech?

In simple words, MadTech is the convergence or intersection of Marketing and Advertising Technology. Some time back the advertising industry grew to leaps with people-based marketing and ever since it is all dynamic.

MadTech is particularly relevant at the moment as technologies are quickly advancing and have allowed for significant innovations in online marketing and advertising.

How Did MadTech Emerge into the Picture?

David M. Raab first coined the term MadTech in 2015. It stands for marketing, advertising, and technology. It well represents the current scenario of marketing and advertising technology intertwining itself with data.

Statistics say that,

  • 35% of firms today have acted on converging martech/ adtech.
  • The majority of firms today are in the planning stage for the MadTech revolution.
  • While only 7% didn’t plan for MadTech yet. (source: martech advisor).

So, the convergence of Martech & Adtech isn’t a myth, but a reality. 

Now the Bigger Question- Why MadTech?

  • Firstly, in recent years, marketing and business spheres have entirely changed. Shoppers have grown, and so have buyers. Social media excites the whole situation too. Marketing needs to be transparent and accurate to succeed. The demand for transparency accounts for the emergence of MadTech.
  • Secondly, MarTech lacks quality data. Only a very less percentage of marketers can agree that they possess a robust data acquisition technology while the others fail to have so. MadTech came up to solve the needs of data quality enhancement.
  • Thirdly, AdTech is facing serious issues of cross-border complexities. To combat the challenges of attracting and retaining global users and dealing with multi-billing currencies, a new strategy called MadTech had to emerge.
  • Fourthly, MarTech is going through major changes. Consumers don’t buy things blindly. They have real conversations with brands they admire and wish to strike a purchase with. MadTech uses automated content personalization and advanced analytics across all touchpoints.

 In addition, there is more to it…

  • AdTech demands for disruptive technologies like the Internet of Things, Artificial Intelligence etc. compels the birth of MadTech by AdTech joining hands with MarTech and bridging the needed gaps. 
  • Brands have to struggle to create a mark and keep reminding the audience that they exist. Customer experience shapes the perceptions of another customer. That is to say, it’s all so complicated. To deliver personalization at a par level, MadTech comes to rescue.
  • AdTech and MarTech co-exist at the opposite end of a sales funnel. It has been quite a difficulty in marking a clear line of differentiation between the two. But all this is tiring to be understood. MadTech is what connects the dots between the two.  To simplify it all, was the need for MadTech!

What Are the Components of MadTech?

As the name implies, MadTech is a world between MarTech and AdTech. It includes the elements of marketing, advertising, and technology. Let us start noting down the components of MadTech. To begin with,

MarTech or Marketing Technology:

Traditionally, marketing technology is how you nurture and communicate with your known audiences. It helps marketers in creating, running, and managing marketing campaigns and conducting onsite marketing. 

Marketing technology includes a lot of dynamics. Let us talk about a few:

  • Web-analytics tools to analyze data that is collected by websites or mobile apps and are used to enhance the user experience of a website, measure the performance of marketing activities, and discover how users interact with a website.
  • CRM platform that stores and manages a company’s interactions that they’ve had with current and potential customers.
  • Social-media-management platforms to allow marketers to create, schedule, and measure their social media posts and activities.
  • SEO and content-optimization tools that enable marketers to improve their ranking position on search engines.
  • Using CDPs, marketers can manage all their data in one place, create audiences from it, and utilize it in their marketing activities.
  • After that, Personalization tools that tailor the messages of a website and match the needs and interests of individuals based on their known information.
  • In addition, Consent Management Platforms (CMPs) that help in taking consent from the visitor to use their digital identity for marketing efforts.

AdTech or Advertising Technology: 

Advertising technology is about communicating with “unknown” audiences. They are the people who are not yet fully aware of your products and their benefits.

That is to say that you can still target specific audiences who actively seek your services or who briefly interact with your brand, while you may not have detailed information about potential customers.

Similarly, advertising technology also includes a number of specific technology platforms:

  • Demand-side platforms (DSPs)- It uses various ad exchanges and supply-side platforms through one user interface and allows the media buyers in running advertising campaigns and buying inventory from publishers on an impression-by-impression basis. 
  • Supply-side platforms (SSPs)- SSPs allow them to receive the most yield from their inventory and gain clearer audience insights and helps publishers sell their inventory to advertisers via a number of different ad exchanges in an automated and efficient way.
  • An ad exchange platform- facilitates the buying and selling of impressions between advertisers who place their offers via DSPs and publishers who put their inventory up for sale.
  • The ad network- takes a publisher’s unsold inventory, packages it up, and offers it to advertisers on a CPM basis.
  • Ad server platform- helps in storing creatives or ads, making decisions about which ads to show on a website, serving them, and collecting and reporting the data (such as impressions, clicks, etc.)
  • Search engine marketing (SEM) platforms that assist in the promotion of websites to ensure good visibility in paid search engine results pages (SERPs) and many more.

The Convergence Of MarTech and AdTech Isn’t a Myth, but a Reality. Look at This!

martech adtech madtech

MadTech is bridging the gaps between MarTech and Adtech, and the combination is all you need as a game-changer in the current scenarios of the marketing and advertising world.

How Does MadTech Benefit?

  • Firstly, in both MarTech and AdTech, you aggregate and process vast amounts of data. Martech has become the recent favorite of marketers as it helps them in knowing and tracking market needs and combine marketing and advertising into a seamless category. 
  • Secondly, MadTech enables marketers to get better insights and streamlined media streamlining buying with the connection. Connection takes in customer data from POS, loyalty programs, e-commerce platforms, social media interactions, etc. and makes action through digital advertising.

MadTech is the conglomeration of both MarTech and AdTech. So,

  • Thirdly, the MadTech stack comprises Informing media buys, which enable marketers to make an emotional connection with customers because it helps in customer identification and engagement at a more detailed level.
  • In addition, MarTech and AdTech are equally driven by data. MadTech helps in eliminating data silos. For instance, you can combine the customer data (first-party) data of a brand from various MarTech platforms with advertising channels data (third-party data) together and create audiences to perform people-based marketing.
  • After that, MadTech allows marketers and advertisers to better understand, assess, and measure their media buys, ad inventory, and outreaches. With better metrics, comes effective campaigns that consequently leads to growth in acquisition and revenue
  • Finally, MadTech benefits in two ways. Marketers know more about their existing customers, and because they better know them, it becomes easier to streamline audience targeting to new, potential customers. This reduces advertising efforts and costs.

Winding Up: How to Win It with MadTech

In conclusion, MadTech is not just a fancy term coined to overcrowd the overpopulated market nomenclature. It surely is far from it. MadTech has only emerged as a tendency.

However, it is not an invention, but it is an observation that connects both marketing and advertising as puzzle pieces. MadTech is connecting the dots between marketing and advertising. 

Evaluate your current strategy. Ask yourself if your marketing technology is relevant to your requirements? Do you run digital advertising? Introspect on how to connect the dots to ensure that you meet your goals. Stay informed.

Therefore, the picture is quite clear. The new buzzword has a lot to do with your business goals and strategies. It is definitely expanding all the horizons for you.

Above all, it would be mad to ignore MadTech because MadTech  is here to stay!

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About Sonali Gupta

Sonali is a technical content writer who loves to blend her creativity with rational ideas of business and technology. She intends to keep it up with the digital trends and accommodate within herself the upcoming trades. She writes expert resource materials related to the Martech and adtech world. Previously worked as a banker, she has been a student of Economics and Human Resources. An ardent believer of Universe and optimism, she writes poetry and quotes to satiate her soul. Always keen about nature, travelling, music and photography.

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