Advertising technology, or adtech, refers to the software tools advertisers use to efficiently target potential prospects, deliver the ads effectively across multiple channels, and analyze the results of advertising efforts. It also seeks to tell advertisers whether they are getting the best returns on their budgets.
In order to get content to potential prospects at the right time, adtech startup firms and adtech professionals reach into a large and growing toolkit. Two important themes within the field are:
- Programmatic advertising: A practice in which you target and reach specific audiences in a focused way, rather than the spread-shot approach of advertising on, say, a prime-time show and hoping you’ll get lucky. A media plan employing programmatic advertising should allow you to place ads with select audiences on mobile, television and desktop devices.
- Omnichannel marketing: Marketing intelligently across an array of channels, such as video, laptop, smartphone, etc. By “intelligent,” we mean varying the ad content that an individual sees based on prior experience with that person. For example, a person who is first introduced to a product or service will get a different message than that received by consumers who have already engaged with the offering. The message is crafted to acknowledge and exploit the differences among media channels.
Using good data and lots of it (i.e., big data), ad tech agencies position ads where they’ll be the most effective. Of course, we are viewing adtech from 30,000 feet here. At ground level, you’d see dozens of small adtech shops innovating new tools and techniques to give advertisers an edge against their competitors. These bright young entrants to the field help facilitate trends, such as:
- video advertising, include live-stream
- migration from client-side to servers for esoteric techniques (header bidding, ad serving, etc.)
- advertising in augmented and virtual reality realms
- cross-device tracking spanning desktop and mobile devices
- better search-engine targeting
- enhance privacy protection
It’s not the technical challenges that stymie adtech startups, it’s the funding. Turning great ideas into profitable companies requires a good deal of seed money, from venture capitalists, private equity firms, crowdfunding, accredited investors and private placements. In other words, adtech startups must understand everything about their field plus a good deal about raising money.
Prospectus.com is a leading provider of adtech startup business plans, investor offering prospectus documents and offering memorandum writing services. We help startups raise money by providing the documentation required by accredited investors and regulators. Our services are equally suited to established companies seeking additional capital. We can arrange capital introductions, create private placement/offering memoranda, help you develop your business plan, and much more.