On The Verge Of Convergence

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

There is AdExchanger articles dating back to 2015 that talk about how we are one step away from creating a more unique customer journey – and yet, progress is slow.

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

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

There are three interrelated drivers accelerating convergence, she says.

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

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

When customers are bombarded with emails or have a product they’ve already purchased reordered, they don’t know—or usually care—why it’s happening. They have no understanding of the fact that there may have been a glitch in the platform, say, or that different technical tools are not communicating with each other. They just remember the less than stellar interaction.

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

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

“There’s really no excuse that we’re not talking more and that the platforms aren’t communicating as seamlessly as they should,” says Macaulay.

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