Advertising Technology has now become one of the fastest-growing industries in the world, and plenty of businesses are flourishing because of it. As we move forward into a more mobile-centric world, opportunities for ad tech to grow will arise. One such opportunity involves ad tech companies using big data, and the combined are like a love match made in heaven.
What is Advertising Tech?
Advertising tech, or ad tech or ad: tech for short, refers to any technical or software-based services that can be used for controlling online ads. Whether you’re using advertising tech to deliver ads, target audiences or display ads on a variety of different platforms.
What is Big Data?
Big Data is all about using analytics and capturing user data to provide more accurate targeting. Any algorithm that can predict user behaviour, understand their likes and dislikes, and provide adverts accordingly can be defined as an algorithm for big data, and as online marketing and advertising evolve, so are the algorithms and analytics available for publishers.
How Does Big Data Affect Advertising Technology Positively?
Simply put, more advertisers using advertising technology are spending an increasing amount per ad to gain pinpoint targeting on users that will benefit from their adverts. With big data, publishers can earn more for displaying ads, whilst advertisers are benefiting from using highly analytic and algorithm-based ads that are used to target the right audiences.
Advertising technology companies are collectively investing millions into big data in the hopes to work upon predictive analytics and ad algorithms. The end goal is to create highly versatile ads that don’t just target the right audiences, but also provide adverts timely at the most convenient moments.
An advertiser’s dream is to have each ad displayed to a person who’d both benefits from and appreciate viewing the ad in question, and with big data, advertising technology companies may be able to get incredibly close to this dream.
Big Data Driven Ads Don’t Have to Be Pricy
One pitfall that big-data-centric ads currently face is cost-related. Highly targetable and versatile ads are going to be more expensive; the demand is higher, and the costs associated with developing the algorithms and analytics in place need to be recuperated.
However, the end consumer of big data-driven ads shouldn’t need to worry about upping their budget. More and more ad tech companies are now dropping the middleman to provide ad inventory directly to their customers, and this is helping to drop prices significantly.
By cutting out the middleman, not only does the purchaser of ad inventory receive offers for better prices, but the ad tech companies selling the inventory can also put more of their budget into improving their analytics and algorithms for big data-driven ads, further increasing their potential.
Ad tech companies can then provide a more personalised experience for each customer, as the exchange between an advertiser and the company will be more direct without a middleman or third party involved.
It’s becoming very clear that big data is incredibly useful, and if ad tech companies make the most out of it, personalized advertising can only improve as the industry evolves.