Home AdExchanger Talks On The Verge Of Convergence

On The Verge Of Convergence

SHARE:
Heather Macaulay, president, MadTech

How long have we been talking about the coming convergence of ad tech and mar tech? Feels like forever.

There are AdExchanger articles dating back to 2015 that talk about how we’re on the cusp of creating a more unified customer journey – and yet, progress has been slow.

But it’s finally starting to happen, and the time couldn’t be more ripe, says Heather Macaulay, president of product-focused consultancy MadTech, speaking on this week’s episode of AdExchanger Talks. (The penultimate pod of 2024!)

Customer expectations are “higher than ever,” Macaulay says, and to meet them, companies need an integrated approach to advertising and marketing data.

There are three interrelated drivers accelerating the convergence, she says.

One driver is the shift away from third-party signals toward first-party data. Second is the rise of cloud-based platforms that allow data to more easily flow between different parts of an organization. And third, customers have less than zero patience for bad experiences.

“I think it was Scott Brinker who said it: ‘Customers will benchmark the greatest brand experience they had and subconsciously compare all their other experiences to that,’” Macaulay says.

When customers get bombarded with emails or retargeted with a product they already bought, they don’t know – or typically care – why it’s happening. They’re not sympathetic to the fact that there may have been a platform breakdown, say, or that different tech tools aren’t talking to each other. They just remember the less-than-stellar interaction.

“To the average consumer, it’s just frustration and annoyance,” Macaulay says.

So will 2025 finally be the year of ad tech and mar tech convergence? Probably not. There’s still a long row to hoe. But the scene is set, she says, and the technology is there.

“There’s really no excuse for us not to talk more and for the platforms to not communicate as seamlessly as they need to be,” Macaulay says.

Also in this episode: Don’t underestimate the importance of data connectivity, what it means to be a product-focused consultancy – “Organizations don’t just need strategy,” Macaulay says, “they need hands-on development” – and New Year’s resolutions for the advertising industry. Plus: Supporting small, family-owned regional wineries.

Must Read

PubMatic’s Agentic AI Is Going Beyond Direct Deals

PubMatic has run more than 30 fully autonomous, end-to-end agentic campaigns through the SSP’s AgenticOS platform, in addition to more than 1,000 direct publisher deals.

The Trade Desk Has A Grand Vision, But Needs A New Breed Of CMO To Make It A Reality

TTD CEO Jeff Green laid out the DSP’s plan for winning in a new world of advertising that – AI aside – necessitates major changes in how marketers behave.

A Publisher Didn’t Get Its UID2 Setup Right. The Trade Desk Didn’t Notice. What Went Wrong?

TTD confirmed that this CTV publisher’s errors would have made its UID2s useless for ad targeting. But TTD also said it wouldn’t have had enough information to flag the issue.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Criteo Faces Tough Headwinds Until Agentic AI Ad Revenue Materializes

Criteo shares dropped by 20% Wednesday morning after the company reported shaky Q1 earnings and revised its guidance downward for the rest of the year.

Disney’s New CEO Is Focused On Two E’s: Engagement And ESPN

On Wednesday, Josh D’Amaro led his first earnings call as the new CEO of Disney. The company closed last quarter with $25.2 billion in revenue, a 7% year-over-year increase. Disney Entertainment advertising revenue rose 5% YOY, but ESPN ad revenue was down 2% YOY, although subscription and affiliate revenue was up 6%.

People Inc. Looks Inward For Growth As Its Search Traffic Downsizes

People Inc. previewed plans to downsize by focusing mainly on its key properties. The strategy makes sense considering its publishing portfolio has lost about two-thirds of its Google traffic.