Understanding Ad-Tech: What is the Hierarchy?


Digital advertising overtakes TV advertising to become the No.1 media category in the world. Over half of this revenue is transacted through programmatic advertising, which are rapidly displacing traditional ways of buying and selling media. Therefore Techrux team decided to write about the definition of Ad Tech as a series.


Then what is Ad Tech?

This includes all technology that support advertising activities both digital and traditional as well.


  1. Audience Targeting

This refers to the ability to target advertising using specific criteria to identify intended recipient.  This excludes non-digital channels that are not addressable such as traditional television, radio, and outdoor formats.  It also excludes paid search advertising, which targets keywords as a proxy for intent, and it excludes various run of network and sponsorship arrangement that rely mostly on the contents to deliver the right audience. The popular term refines this concept by suggesting that identity must be the decoupled from identifiers such as cookies and device IDs that are tied to a single browser or device and are typically used to target advertisements on webpages and mobile apps, and etc.


  1. Programmatic

This can be defined as the automation of buying and trafficking processes for audience targeted advertisements. It excludes direct publisher and at network contract specified by standard insertion orders, but it includes various hybrid models in which direct buys are supported by automated process, which go under the general are heading of the programmatic direct.


  1. Real-time Bidding

This can be refined as the subset of programmatic ads that are bought and sold in real time auction based exchanges.


Our next story will be How the ecosystem flows in the Ad-Tech environment.



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