What is Martech + bonus: 3 case studies
The term martech is applied to large projects aimed at achieving marketing objectives. Although everyone involved in digital marketing is dealing with martech because all digital is by nature based on technology.
Martech is not just about bringing the two industries together. It is a deep diffusion. There are many components without which you cannot imagine modern marketing: CRM platforms, e-commerce, search engine optimizers, analytics tools, and software platforms.
MarTech tools are designed primarily to improve the efficiency of the marketer. CRM-systems, Mailchimp, Emarsys, Marketing Automatization Tools, Google Analytics – are all MarTech solutions. They give the expert new possibilities and allow him to establish more active and close communication with the target audience. Besides, with their help, it is possible to establish close interaction of departments, competences, and resources within the company. MarTech actively uses machine learning and big data analytics.
Examples of MarTech solutions include services that analyze and visualize data collected by marketers, build dashboards, and collect all customer-specific data. Another example: platforms that focus on marketing automation, including working with different channels, repetitive tasks, and measuring automation results.
According to a recent study by Wipro, marketers in the U.S. and U.K. are increasingly learning skills related to marketing technology. 81% of those surveyed said that it is important for marketing directors to have skills or individual MarTech skills.
Also, the study found that MarTech skills overshadow the importance of strategy and other previously valuable discounts. Of the three most important skills for the success of CMOs, 47% indicated MarTech. Other skills were rated as follows:
- marketing strategy – 44%;
- business strategy – 37%;
- brand management – 21%;
- sales 15%;
- advertising 13%.
But at the same time, the same marketing directors note that the success of their teams in mastering marketing technologies leaves much to be desired:
- 75% of WSCs praised MarTech for their ownership, and only 6% said their team was at the same high level;
- more than a third of marketing directors believe that only half of the team has the necessary knowledge;
- 51% of WSCs said the lack of the right competencies in the team was a barrier to success.
In an attempt to correct this situation in companies, 83% of respondents have retraining and training programs for marketing specialists at all levels, aimed at development in marketing technologies.
Why has martech become popular
We are now witnessing exponential growth in the range of products, terabytes of new data per unit of time, consumer defocuses, and fierce competition for their attention. The result is confused customers and confused classic marketing, which simply does not have time to rebuild and loses.
All this is the ideal fuel for the development of technology because the algorithms are ultra-fast, ultra-precise, and independent of emotions. It’s a perfect new world. And marketing must fit in with the inevitable global technology of all industries.
Brands have caught the new trend, as evidenced by the numbers. According to a study by Gartner, 29% of global marketing investments in 2018 went to martech, and this is the only area where there is significant growth.
According to Forbes, 75% of the companies surveyed see greater user engagement in data-driven marketing and 6 times greater chances of profit growth. The DZone survey shows that 92% of companies have between 16 and 20 sources of customer data. They are distributed through different channels and are collected in different formats. Communication companies that do not want to stay on the sidelines of history and start investing actively in martech can combine all this into one system.
Martech is the train, data is the ticket
A classic approach to planning advertising campaigns is when a portrait of a consumer is described and based on it the social and demographic characteristics of Central Asia are determined. Then channels of communication are selected from industrial software and a mass campaign is launched through them for the whole audience. But this is if there are large budgets.
At the same time, digital remarketing “catches up” with a person’s interest in a certain product and allows it to bring it to purchase faster with less investment. But here too, punctures are inevitable. For example, when a person has already bought a refrigerator, and for some time he is shown advertising of different models.
Now imagine the situation: the brand will know that a particular consumer who recently bought a refrigerator, also uses the application Delectable Wine (application for search and evaluation of wines – ed). Then the brand shows the consumer a completely new offer – a wine cabinet. How much more likely is it that communication is converted into a purchase? This is how data works – with a built ecosystem of collection and integration from different sources, data can significantly increase ROI (Return On Investment) and optimize marketing investments.
A new level of targeting
Global trends suggest that the consumer is the king. The better you understand and hear the consumer, the more likely he will choose you. And this is not about the abstract “Antonina, 35-40 years old, living in a metropolis”. It’s about living people with unique sets of interests and habits. People behave differently even within ordinary Central Asian groups. Marketing technologies help identify these different audience segments within the usual target groups.
Netflix updates 93% of TV series after the start of the season based on audience engagement data (for comparison: on classic TV channels this figure is 35% on average worldwide). They have taken the content industry to a whole new level and feel good in this game, even with tougher competition. They have 24 nominations for the last “Oscar”, for a minute.
In June 2019, the Internet Association of Ukraine, Center42 and UNIT.City conducted research on marketing technologies and for the first time united Ukrainian martechs into a community. It has more than 160 participants.
For example, a large traffic provider Admixer produces the Admixer Trading Desk software system, with the help of which Amplifi Ukraine media company deploys its own DMP (Data Management Platform, data management platform) for targeted targeting of advertising campaigns. And recently one of Kyiv shopping malls announced that it is going to analyze customer activity using Shopster technology via Wi-Fi. And this is only offline shopping. These events are a teaser to the dynamic blockbuster, where technologies will capture the marketing and advertising industry.
What will happen next
In many countries, the industry has yet to build a stable ecosystem. Now it is just being formed, which means that the doors of the industry are open for a variety of startups. Here are some trends in marketing technologies for the near future:
A growing number of automated platforms to collect consumer data integrate data from different sources, profiles, and segmentation of consumers (Data Management Platforms and Customer Data Platforms).
The mobile-first approach, because in the world now about 64% of all Internet accesses are through smartphones. The speed of 5G technologies will significantly improve the accuracy of local targeting and the possibility of interaction between devices IoT (Internet of Things, Internet of Things – ed.).
The uniqueness and technological platforms allow us to track, measure, and optimize the interaction of brands with the consumer continuously along the way, regardless of channels.
Content optimization boom for voice requests. Already in the world, more than 50% of search queries are carried out by voice through smartphones or smart speakers like Alexa. Consumers want relevant, personalized answers to their questions.
What is the difference between AdTech and MarTech?
Even experienced specialists often mix the concepts of AdTech and MarTech. It comes to the point that they are increasingly being used as synonyms.
We talk about what each term means, whether it is possible to draw a line between them, and what solutions and technologies are presented today in these directions.
What is AdTech
The term AdTech covers a fairly broad area: it includes all technologies related to the collection and processing of data to form, monitor, and evaluate the effectiveness of advertising campaigns.
The data used in AdTech is mainly collected “from outside”, this is third-site-information. For example, WiFi “beacons” that scan a street with an advertising billboard installed detect mobile devices with an active WiFi module to select MAC addresses.
The system analyzes the data collected, determining the area where the advertisement is installed and the number of people who have stopped to view the big board. It also collects the MAC addresses of mobile devices of interested users.
Further, if the owner of such a device passes by interactive advertising (there is also a special term for it – Digital Out Of Home), which is associated with the organizer of the campaign, the screen displays a product that may interest a particular user. As a result, the likelihood that this person will make a purchase is quite high. It is higher than if you show ads of the same product to everyone.
AdTech-enabled solutions help advertisers manage media purchases (desktop, mobile, Connected TV, and digital out-of-home) and use AI algorithms to optimize display costs. One such solution is the Getintent DSP platform, Getintent’s flagship product.
Case of Getintent DSP. What you can’t show men.
In June 2018 ROSST advertising agency conducted the first Russian campaign with the digital indoor format for a pharmaceutical brand. The project had two objectives: promotion of the brand at the point of sale, as well as testing and analytics of a new type of equipment and technology. The project involved 30 ASNA pharmacies in Moscow, the target audience being female visitors aged 25 to 45 years.
Using face recognition technology, cameras placed on displays determined the sex and age of the person looking at the screen. By analyzing this data, the Getintent DSP platform decided to purchase the display. As a result of the project, 179,697 displays were realized, 75% of which were viewed to the end. At the same time, 77% of all viewers were women – the target audience of the campaign.
Wi-Fi-sensors and cameras placed on the display allow targeting the advertising message according to the audience parameters previously unavailable for outdoor advertising: gender and age. Relevant advertising receives greater audience loyalty and, as a result, better quality and more involved contact with the advertising message.
Not all traffic is equally useful.
AdTech is all about advertising in terms of traffic purchases. For example, the SSP platform is AdTech. CPA networks are also AdTech. It is worth adding here that there are a lot of fraudsters in Russia who try to pass off garbage traffic as high-tech.
Fraudsters associated with online advertising make millions of dollars. Advertisers, blinded by the opportunity to buy a large volume of traffic at a very low price, often forget that you need to be as discreet as possible.
So, some time ago was discovered a huge farm of Methbot bots. With its help, cybercriminals managed to generate from 200 to 300 million fake views of ads a day. Another fraudulent scheme called Traffic Alchemist brought its creators about $7 million a month, “laundering” garbage traffic from torrent trackers, porn sites, and pirated streaming resources.
The EasyMerch case. It’s robots, not humans.
Can you count the number of positions on the supermarket shelf in a couple of seconds? Can you quickly and accurately determine the shelf share for each category of goods and compare the data with the planogram?
EasyMerch – a specialized service that allows you to fully automate the responsibilities of merchandisers – copes with such tasks many times faster and more accurately than the human brain. For example, it can recognize dozens of positions in 2-3 seconds, calculate the percentage of the shelf for different categories of goods, compare the layout with the planogram, and detect all inconsistencies.
How does EasyMerch work? Merchandiser makes a shelf photo with a mobile device with a pre-installed system, uploads the photo to the server, and at the output receives an analytical report, which is sent to the management as an attached file to the e-mail.
And one more thing: it is impossible to cheat this program. The service perfectly “understands” when merchandisers send reports from home, use old photos, translate time on the phone, try to hack into the program, etc. It is impossible to forge reports.
New technologies and innovative marketing and advertising products help brands meet the challenges of promoting their products or services much more effectively than before. For the most part, AdTech and MarTech do not overlap and are “honed” for one or the other direction and different professionals. But there are also exceptions, such as the Hyper Audience platform.
Case of Hyper Audience. AdTech and MarTech “in one bottle.”
On the one hand, the platform solves the problems of buyers and sellers: the first helps to place video advertising for the right audience in the most suitable channels, and the second allows you to expand advertising opportunities and equipment.
On the other hand, after displaying ads, Hyper Audience collects feedback on its usefulness and brand recognition through questionnaires. And then uses this data to adjust the ad impressions for a specific user. At the same time, branded marketers get feedback on the quality of the commercials themselves and their brand recognition.
For example, as part of an advertising campaign for one FMCG client, the platform conducted a brand lift test. Two groups were formed from an accessible audience of 60 million unique users to conduct surveys – a test and a control group. Both groups are the target audience of the advertising campaign.
One group showed an advertising video, the other did not. Each user from both groups was shown the same questions, the answers to which were saved and further compared. As a result, statistics were collected for the advertiser about the intention and interest in buying the product, and it was calculated how much the ad recall was memorized. It was found that about 4% of the audience is ready to give feedback on the advertising campaign.
AdTech and MarTech are quite young directions even by the standards of Internet business. The first notable players appeared here no more than ten years ago. However, among the large companies no longer remain such an advertiser who would not have had time to make sure that these technologies can significantly increase the efficiency of interaction with the target audience. The process of “digitizing” marketing communications is in full swing.