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Adtech causes media agency evolution

Adtech is helping the media agency world evolve with 86% saying they have changed their business model to reflect the influence of tech.

This is according to a new report ‘Welcome to the era of mad tech’, commissioned by digital advertising platform AdRoll and based on interviews with 200 UK agencies.

The report found that job roles are changing fast, too. Around 80% of agencies said that media buyers are evolving more into tech strategists and traders while 88% said media planners are evolving into data analysts. Plus 83% said both buyers and planners are evolving into account managers and creative consultants.

According to AdRoll’s research, rather than becoming strategic consultants, media agencies have been busy adopting analytics and data specialisations to diversify and strengthen their offerings. Around 69% described themselves as ‘tech savvy’ and 60% have expanded their mobile and social offerings in the past year, compared to just 39% who chose to adopt a more consultative approach.

And 90% of agency respondents said they have a close relationship with their adtech partners – 56% have benefited from productive collaborations, saying data-driven solutions have allowed more time to get creative and focus on strategy.

Meanwhile 46% agree adtech is allowing their agency to provide clients with effective technology-based solutions at more competitive rates. In fact 34% of agencies have even bought their own adtech company.

Yet while many in the industry are harnessing the positive effects of these partnerships, the transition to modernisation is not without its challenges. Forty per cent of agencies said they find it hard to develop profitable models around their adtech partnerships and 47% said adtech is simply not as monetisable as traditional media.

Managing director of AdRoll’s EMEA, Marius Smyth, said: “To move further forward we should unite as a triumvirate formed of the agency, the adtech platform and the client – it comes down to establishing an even greater means of communication between all parties.

“Adtech companies themselves have a responsibility to help agencies best use emerging technologies to deliver optimal results and best practice. After all, we often highlight the transparency offered by data – let’s back that up with a promise of transparency and openness to help agencies combat concerns such as monetisation so they can leverage ad tech to deliver results for clients that are profitable.

“The industry must come together to be open, transparent and comfortable with learning and improving as we go. That way, we will all prosper on the promise of ad tech.”

If you want to see more of AdRoll’s report, it can be downloaded here

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