In recent years, we’ve seen some telltale signs that the subscription model was on the rise. Users rejoiced at the ad-free experience of various streaming platforms and services, and consequently, ad revenue as a monetization model was written off as soon-to-be-obsolete. But was that really the case?
The growth of reader revenue derived from subscriptions reached its peak around the same time the pandemic rolled in and reshaped our lives and spending habits for good. However, as it turned out, not every business could integrate a subscription-based model as successfully as streaming services have done.
Once again, publishers found themselves in the loving and familiar embrace of ad revenue. Streaming services stuck by their subscription model, but most everyone else realized that the future of monetization lies in ads. Now, all forecasts display an increase in internet advertising spending in the US with no signs of it slowing down any time soon.
For the ad model to continue its success, advertisers, publishers and audiences need to find some common ground. That’s where AdTech comes into play.
Tango for two
Every past conversation regarding digital marketing has focused solely on the advertisers and publishers. Initially, it was the ad agencies that would pull all the weight of getting publishers and advertisers into the same room (let alone on a dance floor) and cutting a deal between them.
With all the advances in technology, ad agencies were soon replaced by ad networks and exchanges that facilitated communication between publishers and advertisers in equal measure. On the other hand, SSPs and DSPs focused on either publishers or advertisers respectively, and provided their services to only one of the two parties involved.
In this context, users were nothing more than data points freely traded between the two sides to maximize the publishers’ revenue and the ad campaign’s reach.
However, if there’s one thing that the rise of the subscription model has taught us, it’s that the audience is more than capable of demanding quality content that suits all their needs.
Long gone are the days when users would suffer constant pop-up ad interruptions and low-quality website design. Audiences are demanding content that’s not only free but also available in a distraction-free, uncluttered environment that lets them peruse content without disruptions.
But free and uncluttered content is only a tiny fraction of the greater picture. Individual users want so much more, and communicating their wants and needs to publishers and advertisers could be beneficial for everyone involved.
We already had access to vast amounts of data that facilitated inventory trading between publishers and advertisers. But, we needed to know a bit more about users’ attitudes and behaviors on pages they have visited. That is when AdTech came in and brought all three sides of the story together under a system that groups all relevant analysis and management tools specific to programmatic advertising.
AdTech introduces the audience
AdTech came as a response to a very real problem of handling the overabundance of user data. It expedited the analyses of data, thus minimizing budget spending and increasing the efficiency with which the ad campaigns were operating.
What AdTech does is create a single ecosystem for advertisers, publishers, SSPs, DSPs, ad exchanges and all the other players who participate in the inventory trade process. It then introduces the audience data (first-party or third-party) into the mix, allowing advertisers to deliver products precisely to the customer they were hoping to reach.
Using data that describes the users’ behaviors, attitudes, values and attributes, AdTech streamlines the process of finding the perfect customer for each ad creative.
Finding that perfect customer involves tracking more user data than ever, including session time, scrolling, media views, clicks, highlights, referring sites, search queries, demographics, etc.. It’s more data than users would expect is being collected, but less than what regulators prescribe.
The end result is content that’s exceedingly relevant to the user, which translates to all the revenue publishers and advertisers could account for.
No matter what your role is in this big dance, you can benefit from the right kind of technology that envelops all three parties involved. Advertiser, audience or publisher — with AdTech on your side, you’ll derive more value than ever from every single piece of content out there.