Agencies and adtech: Less transaction, more partnership

The relationship between agencies and adtech partners was traditionally a transactional one. Agencies came to adtech for solutions, adtech provided them and brands typically stayed at arm’s length from the tech side of the process.

This — and many other things — have changed. We’re all aware of the tectonic rumblings around the entire advertising business, driven by AI and other factors. Some, including Sir Martin Sorrell, have predicted drastic consolidation for holding companies. Others identify adtech as a growth area for hungry holdcos eager to find a new sense of purpose.

All of us are building new roles for ourselves. Media planning and buying is now driven through technology and data — but still with a deep understanding of people and audiences.



But as the landscape evolves, with technology as the language we all speak, it feels like the relationship between agencies and adtech has shifted significantly into something that looks a lot more like a partnership.

Changing dynamics

From our perspective as an adtech provider, working closely with agencies makes good sense.

In some ways, agencies used to form a divide between platform and advertiser. But in this new world of partnerships, that is changing. More and more, we go to clients with agencies as a unified front, working in unison to drive better outcomes for them. It’s a win-win-win situation.

Adtech, meanwhile, is no longer the exclusive preserve of adtech vendors. Just the process of planning and buying media requires skillsets and platforms no-one even imagined a decade ago, so agencies are investing in technology of their own — as they should.

We are seeing a mix of built and partnered technology in play now. That feels like a positive step when it comes to driving better outcomes for advertisers. And when all self-respecting agencies have proprietary technology, an adtech partner needs to bring something particularly worthwhile if it is to add value.

The agency perspective

I can’t speak for both sides, so I talked to my colleague Jack Cantwell, global client lead and head of digital, data and technology at Carat, who told me what an agency needs to see from adtech partners in the current climate.

“There is a recognition from the agency side that the best adtech vendors provide things that we can’t simply replicate in-house,” Jack said. “We have very powerful data and technology capabilities as a globally scaled network, but there is immense value in leveraging partner technologies and data, because we cannot and should not build everything ourselves.”

We are in agreement that these are challenging days and that any help we can give each other to respond to shifts in the landscape — Carat calls our current phase “the algorithmic era” — is going to be valuable.

“From an agency perspective, we are constantly looking to get ahead of the curve for our clients, so the more adtech partners come to us with ideas or propositions, the better,” Jack adds. “We love taking something to a client that they aren’t thinking about yet and positioning ourselves and the partner as pioneers in all things digital, data and technology.”

The future of adtech

Partnership between adtech and agencies has a broader value for the entire ecosystem. As adtech is becoming ingrained in agencies, they’re increasingly asking vendors to surface technology, kick the tyres and show them what can be done.

Far too often in this industry, we’ve seen companies jumping on technology trends. But, in partnership, agencies and vendors can hold up a microscope to establish where value is being truly added and validate technology in a much more thorough way than ever before. In that way, best-in-class platforms and innovative partners rise to the top, and pretenders are weeded out.

In fragmented, adversarial times, there are always plenty of reasons to turn inwards or to pit sections of the industry against each other. Adtech vendors — and, I believe, most agencies — would prefer to evolve our partnerships, work more closely with each other and with clients, and redefine what we’re all capable of. 

Also published in: The Media Leader