What is AdTech?
Advertising Technology (AdTech) refers to the software, platforms, and tools used to plan, execute, manage, and analyze digital advertising campaigns. It encompasses everything from demand-side platforms (DSPs) to ad servers, attribution tools, and creative optimization platforms.
In mobile advertising, adtech enables advertisers to reach billions of users across apps and mobile web, while helping publishers monetize their inventory efficiently.
The AdTech Ecosystem
| Component | Function | Examples |
|---|---|---|
| DSP (Demand-Side Platform) | Buy ad inventory programmatically | The Trade Desk, DV360, AppLovin |
| SSP (Supply-Side Platform) | Sell ad inventory for publishers | Google Ad Manager, PubMatic |
| Ad Exchange | Marketplace connecting buyers/sellers | Google AdX, OpenX |
| Ad Network | Aggregate inventory from publishers | Unity, ironSource, Vungle |
| MMP (Mobile Measurement Partner) | Attribution and analytics | AppsFlyer, Adjust, Branch |
| DMP (Data Management Platform) | Audience data management | Oracle, Salesforce |
| CDP (Customer Data Platform) | First-party data unification | Segment, mParticle |
How AdTech Works
The typical programmatic ad serving flow:
- User Opens App: Publisher's app sends ad request to ad server/SSP
- Bid Request: SSP sends bid requests to connected DSPs
- Bidding: DSPs evaluate user and decide bid amount (~100ms)
- Auction: Exchange runs auction, highest bidder wins
- Ad Served: Winning creative is displayed to user
- Attribution: If user converts, MMP attributes to campaign
Key AdTech Trends
- Privacy-First: Shift away from device IDs toward contextual and cohort-based targeting
- AI/ML Optimization: Machine learning for bidding, targeting, and creative optimization
- Consolidation: Major players acquiring point solutions for integrated stacks
- In-App Bidding: Header bidding moving into mobile apps
- CTV Growth: Connected TV becoming major adtech opportunity
Pro Tip: Build Your Stack Strategically
Don't use too many overlapping tools. Focus on a core DSP for buying, an MMP for measurement, and a creative tool for optimization. Integration quality matters more than feature count.
Choosing AdTech Partners
Key considerations when selecting adtech vendors:
- Integration: How well does it connect with your existing stack?
- Transparency: Can you see where ads run and actual costs?
- Scale: Does it reach your target inventory and audiences?
- Support: What level of service and expertise is provided?
- Privacy Compliance: Is it ready for GDPR, CCPA, and ATT?