The Role of Advertising Technology in Driving Revenue Growth

The significance of advertising technology, commonly referred to as ad tech, is hard to overestimate in the contemporary business world of the digital age. Since the ability to target the right consumers, ad budgeting and performance measurement in real-time, ad tech has emerged as a key engine to growth in revenue among both the brands and publishers.

What is Ad Tech?

Fundamentally, ad tech refers to the software and platform that facilitates selling, buying, measuring and delivering of digital advertisements. Demand-side-platforms (DSPs) and supply-side-platforms (SSPs) are now replaced by ad servers and data management platforms (DMPs) automating processes previously done manually and opaquely and inefficiently. It is through this automation that companies are able to roll out campaigns quicker and scale well in addition to being able to optimize ad spend more intelligently.

The Revenue Growth With Ad Tech.

• Accurate Advertising and Less Wastage.

Among the largest revenue leverages provided by ad tech, there is the capability to target the right audience at the right moment with the right message. With advanced data analytics and audience-segmentation technology, brands are able to reduce wasted impressions and prioritize those consumer segment(s) with the highest likelihood of conversion. Budgets are better used and more of the ad spend is used to deliver real results, in the form of leads, sales and subscriptions and not merely awareness.

• Optimised Ad Spend/Placement.

Smart bidding, dynamical placement and performance-driven response are driven by advertising technology. In case, platforms will be able to determine the most effective ad spaces and bid suitably. This implies that the budgets are moved to placements that have a greater upside and moved out of the non-performing inventory. The outcome: increase in ROI per rupee outlay and direct correlation between ad investment and increase in revenue.

• Improved Performance and efficiency of Campaign.

Due to the automation of many campaign tasks that ad technology provides, marketers use less time on manual tasks and more time on strategy, creative optimisation and scaling of what works. This performance allows a quicker iteration and improved performance, which leads to revenue increase, due to less time to market and responsiveness to trends.

• Measurability and Decisions made with Insight.

Among the largest changes in advertising, one may mention the replacement of the spray and pray approach with the use of data-driven decisions. Ad tech gives insight into performance of campaigns across channels, cost per acquisition of campaigns, and revenue attribution to campaigns. Better measurement leads to increased accountability, and the more the advertising spend can be aligned with the outcome of the growth, the more predictable the growth will be.

• New Revenue Opportunities = New Formats and Channels.

The technology of advertising is changing to enable newer forms of ads, including in-app, connected TV (CTV), native ads, and shoppable videos, and these also promise new prospects of monetisation. Using these new channels, publishers and advertisers are finding new incremental sources of revenue, they are staying ahead of the pack and they are reaching wider audiences which traditional media could not have provided them with.

Strategic thinking & best practices.

• Predominantly, align technology with business objectives: Ad tech implementation is insufficient; the stack needs to be configured in a manner that will facilitate revenue objectives. The advert technology approach should mirror the goal be it e-commerce sales, lead generation or subscription growth.
• Put data quality and segmentation first: The precision targeting advantage does not work until data is accurate, up to date and ethically gathered. Ineffective information compromises productivity.
• Measures results, not results: Clicks and impressions are handy but the actual number is how many converted and how that conversion resulted in revenue.
• Test and refine: Automation of ad tech to test creatives, placements and channels. Continue to scale that which works, stop that which does not.
• Keep up with privacy changes: With the rise of regulations and tracking technologies, ad tech strategies must change to ensure that performance is not compromised in favor of compliance.

Looking Ahead

The future of the advertising technology is very promising- and rich in revenue. With the rising presence of automation, artificial intelligence and channel innovation, the companies that use ad tech will be more likely to seize the growth in an increasingly complex and fragmented media landscape. It is an idea that has fallen within the history of progressive thinking, such as that expressed by visionary thinkers such as Evan Rutchik who point to how smarter ad tech stacks are reshaping the ways advertisers scale and monetise.

To conclude, advertising technology is much more than a list of tools, it is a revenue growth engine. Ad tech can help brands and publishers realize the profit of advertising investment into the actual business results when used with the appropriate goals and objectives, data, measurement and agility. And in a time where growth is more difficult to gain and costly to purchase, such a power to connect advertising with revenue is a game-changer.