MADTech Resource Planning and ExecutionTM

Industry Overview and MRPE Thesis
  • Media and marketing executives are contending with profound changes in customer attitudes, consumer and business buyer behavior, the speed of technological innovation, and extreme media and marketing product/service vendor proliferation and consolidation.
  • There may be no faster growing, more dynamic nor more labyrinthine set of product-markets than those that make up the new discipline known as MADTech Resource Planning and Execution (MRPE). Organizations invest in MRPE, also known as Media and Marketing Automation and Operations, to produce more revenue, profit and insight while reducing operating costs and headcount.
  • Chief among these product-markets is the confluence of Marketing Technology (MarTech), Advertising Technology (AdTech), and Data Technology (DataTech) collectively called “MADTech”.

MADTech Market Size

  • Industry analysts predict that by 2027 publishers, marketers, agencies, and those that enable them will invest $245B annually (up from $100B in 2020) in Media and Marketing Automation and Operations (MADTech).
  • Externally-provided technology-enabled solutions and services (including consulting, managed services and business process outsourcing) that support this market are expected to be 5% of annual budgets ($12.3B) in 2027.
  • Projected 13% CAGR in global MADTech spend through 2027, a tight global skilled labor market, industry automation gains, and continued market vendor consolidation are likely to keep global MADTech hiring growth positive. Global MADTech industry headcount is estimated at 250,000 currently and is expected to grow 20% by 2027 to 300,000.
  • MRPE’s impact is and will continue to be the biggest thing to hit Media and Marketing since the commercialization of the U.S. Defense Department’s ARPANET, what we now know as the internet.



The Seeds of MADTech Resource Planning and Execution (MRPE)
Seeds of MRPE

The Six Seeds defined:

MADTech Resource Planning and Execution(MRPE) is the systematic planning and orchestration of customer and business partner experiences and managed outcomes employing the automated integration of: data, technology, content, paid/owned/earned media, measurement/analytics, optimization, and reporting. MRPE derives from these Six Seeds:

  1. Known as “Mar Tech”, Marketing Technology is composed of the tools, products and platforms used by sales and marketing organizations to orchestrate and deliver commercial messages to target audiences to achieve intended outcomes.
  2. Known as “Ad Tech”, Advertising Technology is the different types of software-enabled business tools used in paid digital advertising, including extensive and complex systems used to plan, sell/purchase, deliver, measure, and optimize advertising to individuals, devices, households, and locations.
  3. Known as “Data Tech”, Data Technology includes small and big volume 1st, 2nd, and 3rd Party audience, contextual, behavioral, and other data, measurement, analytics, data engineering, data visualization, data science, and—often—cloud capabilities.
  4. Auction-based Electronic Media Trading is dynamic: the price of ad inventory for current or future delivery is determined real-time by competing algorithmically-generated electronic bids. Sellers are able to set price floors and buyers are able to bid from a floor price with a set price ceiling with the bid typically going to the highest bidder.
  5. Known as “ERP”, Enterprise Resource Planning is a system of business process management software that enables an organization or supply/demand chain to use a system of integrated applications, products and platforms to automate many, if not most, repetitive or logic-based functions.
  6. Programmatic Media and Marketing is the automated bidding and placement of paid advertising at scale. Programmatic is enabled by the advent of auction-based Electronic Media Trading, Machine Learning, and Artificial Intelligence.
Challenges of MADTech
  • Media and marketing buyers and sellers are frustrated by platform complexity, resource inflexibility, lack of vendor transparency, lack of control, growing expense, and insufficient trained, affordable staff
  • In effect, both the supply-side and demand-side of the media and marketing industry are engaged in a very expensive, protracted arms race in which until greater commoditization, innovation and information diffusion, and specific training can take place, each market participant will continue to need the help of external, domain-specific professionals and solutions providers
  • There are insufficient proven, relevant professionals and teams available to marketers, publishers, agencies and data/technology vendors to meet the end-to-end challenges of evaluating, planning, deploying, and optimizing modern MADTech Resource Planning tools
  • There is a clear opportunity to build organically and by acquisition the leading independent global end-to-end specialty technology-enabled solutions and services resource devoted to MADTech Resource Planning and Execution
  • As an innovative industry leader, iSOCRATES has developed end-to-end training, process maps and related evaluation and operations modules. These protocols define, capture and allow specialized professionals to manage day-to-day the business opportunity offered by this emerging multidisciplinary, multifunctional business category, one that mirrors the challenges and transformational opportunities industry has experienced in enterprise resources planning (“ERP”) and in electronic trading markets
Primary Benefits of MADTech

MADTech Resource Planning and Execution creates value for its stakeholders by making media- and marketing-related processes that would otherwise have been performed manually or by discrete software more efficient, effective, and makes new insight, products/services, and processes possible. When specified and deployed correctly and supported by the right resources organized optimally, these tools and processes offer partners (media companies, agencies, marketers, and their suppliers) greater efficiency and effectiveness, thus improving the likelihood of achieving their business goals and objectives.

Primary Benefits of Programmatic

The benefits of MADTech for media and marketing companies and those that serve them include:

  • Achieve greater efficiency
    • Using audience targeting data and continuous optimization, serve the right messages to the right audience in the right media channels with the most appropriate ad inventory to the greatest effect at the right price, increasing chances for impact and conversions while spending less on ineffective advertising. For media sellers, there is no more cost-effective way to monetize and maximize the value of engaged audiences and ad inventory than using automation tools and marketplaces to improve liquidity and yield. For both buyer and seller, MADTech offers greater value chain transparency that leads to less waste and improved ROI
  • Greater and smarter reach
    • The MADTech ecosystem dramatically improves audience and market ad inventory access for buyers and sellers in each media channel and across channels both on a forward and real-time basis. Nearly all publishers participate in the MADTech space, making it easy for advertisers to reach their audiences. Access more ad inventory and more and different kinds of media buyers. Most advertisers and/or their agencies now use automation tools to access local, national, and global MADTech inventory 24/7/365
  • Increased effectiveness
    • MADTech creates granularity from which speed-to-actionable insight is more attainable and at reasonable expense. This use of Big Data enables better impact measurement, attribution modeling and yield management to drive enhanced campaign performance. There is abundant proof that media and marketing integration and the use of automation improves the success of single and omnichannel campaigns when buying or selling
  • Improved user experience
    • Reaching the right audience with the right, relevant messages and experience at the right time and in the best way increases customer satisfaction and reduces customer and audience churn
  • Better media investment allocation
    • Combining the above best practices with advanced reporting and analytics and integrated optimization generates continuous improvements, campaign comparability, and omnichannel scale and yield opportunities

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