As technology keeps growing and giving advertisers new opportunities, it’s likely you’ve heard the term AdTech. Here, I’ll explain what it means, how it can help your brand, and how it differs from martech.
What Is AdTech?
AdTech is short for advertising technology, which means the software, services, and other tools that advertisers and publishers use to connect with each other when buying, selling, placing, and analyzing advertisements. This type of technology is specifically used in programmatic advertising, which is the system of automated buying and selling.
Types of AdTech in the AdTech Ecosystem
The AdTech ecosystem is made of platforms that work together to get ads viewed by the right people at the right time on the right channels. Examples include:
Demand-Side Platforms
A demand-side platform, also called a DSP, is where advertisers bid in real time to secure online advertising space. Advertisers can act on live information and target their purchasing accordingly across multiple platforms using just one interface.
Supply-Side Platforms
A supply-side platform, also called an SSP, is the publisher’s side of things. Websites, streaming services, and apps use them to connect with demand-side platforms and other exchanges. SSPs help manage and sell a publisher’s inventory, also known as the available ad space on a given service.
Ad Exchanges
An ad exchange is the valuable middleman that connects the SSP and DSP so they can do business. Using machine learning and algorithms, ad exchanges keep the transactions flowing at a rapid-fire pace via real-time bidding.
Ad Servers
Ad servers work with both sides of the transaction by storing creative assets, deciding which ads to showcase, and delivering the ads to the appropriate channels. They also collect data and report on the performance of the various campaigns.
What Are the Benefits of AdTech to Advertisers?
Speed, Scale, Precision
AdTech is an essential part of doing business, as it automates the process and makes quick decisions that can help advertisers land on the right channels. “AdTech is key for speed, scale, and precision,” says Taron Flood, growth marketer and newsletter operator. “You can reach the right person, at the right time, with the right message, without needing to manually negotiate every single media buy.” As AI-powered customer targeting and ad optimization becomes ever more advanced, this process will only continue to improve.
Access to Real-Time Data
By giving access to real-time data, it provides transparency into campaign success and guides future decisions. “It closes the loop between spend and impact. You’re not just buying impressions, you’re buying outcomes, with performance data to back it up, ideally,” says Flood. “AdTech has become a game-changer for brands trying to move quickly or stretch a budget.”
Segmentation
AdTech helps segment audiences in ways that benefit advertisers looking to target specific niches. This can include behavioral data, demographics, or personal interests. The technology can then send personalized ads based on this information, which can increase the viewer’s feeling of connection with the brand.
What Challenges Do Marketers Face With AdTech Today?
Trust and Ad Placement
Trust is a big issue, says Flood. “With so much automation, marketers don’t always know where their ads are showing or how their data’s being used,” he says. “That makes measurement murky and accountability harder to pin down.” Automated buying means ads might show up on platforms that are not an optimal fit for a brand’s voice or optics.
Changing Privacy Laws
Privacy laws keep changing, and currently 20 states have comprehensive data laws in place. While consumers say they want personalization, advertisers have to walk a fine line between making a consumer feel seen and making them feel invaded. Therefore, the AdTech industry is always having to evolve and create new ways to track consumers and gain relevant data, without breaking any security and privacy rules. “There are constant platform changes, which means there’s always something new to adapt to or understand,” says Flood.
Ad Fraud
Another challenge with AdTech, as it relates to programmatic advertising, is the prevalence of ad fraud. This is when bots, run by scammers, simulate site visits and ad clicks to run up metrics. When advertisers don’t know about the fraud, they continue to spend, thus wasting ROAS (return on ad spend) and shrinking ROI (return on investment).
AdTech versus Martech: What’s the Difference?
AdTech and martech (marketing technology) help advertisers and marketers in different ways. While advertising technology facilitates the ad-buying process, martech helps brands connect with potential customers online via social media, email, websites, and other digital platforms. Martech is used for engaging shoppers, driving purchases, and maintaining loyalty throughout time. It includes things like CRM (customer relationship management) platforms, identity resolution platforms (which help create a cohesive view of ac customer based on various data touchpoints), and customer journey analytics, which help marketers chart an individual’s path to purchase and beyond.
Key Takeaways
AdTech, or advertising technology, refers to the tools used to buy, sell, place, and analyze advertising. It is different from martech, which is used to connect with consumers and track their behavior from awareness throughout loyalty. AdTech works via automation and real-time bidding, and it is an important part of the advertising ecosystem.
Frequently Asked Questions (FAQs)
What is an example of AdTech?
Examples of AdTech include demand-side platforms, supply-side platforms, and ad exchanges.
What is Google AdTech?
Google owns the market’s largest ad exchange, as well as a publisher ad server and two ad-buying tools (one for small and one for large advertisers). As of April 2025, a judge has ruled that Google holds an illegal monopoly in AdTech, which could lead to a breakup of its ad products. At the time of writing, the company is appealing the ruling.
What alternatives to AdTech do advertisers have today?
Direct publisher deals, newsletters, and influencer partnerships are some of the alternatives to AdTech, says Flood. “These all offer something AdTech can’t: Control, context, and often, deeper audience trust. There are probably some downsides around scale, and maybe efficiency, too.”
While these alternatives usually require more manual work, creative lift, and time to see results, it could be worth your time and efforts, says Flood: “If your goal is brand building or niche targeting, going off-platform can be a smart move.”
