For many businesses, bringing programmatic
in-house presents many benefits. This has created a surge in brands trying to
do just that. In fact, in a recent Infectious Media Study, 84{fc3cc4819efde523aa5feee98ed9dadffff73f78a79cc7ef8c096cfc01c5f905} of surveyed
brands expressed a desire to have more control over their programmatic
advertising. In the digital advertising industry and is predicted up to 90{fc3cc4819efde523aa5feee98ed9dadffff73f78a79cc7ef8c096cfc01c5f905} of
digital display advertising will be traded programmatically in the UK by 2019.
In many cases, brands have a lack of
internal skills and knowledge, especially when it comes to understanding data
and optimising CPMs in real-time. That’s when they’d typically go to media partners
who can help. Though the idea may be appealing, bringing programmatic in-house
may not be a quick-fix solution. It requires resources, time, effort and
continuous investment.
Challenges
Faced By Brands
Aside from
the enormous initial investment required by brands to move an entire
programmatic stack in-house, agencies need to ensure they stay on top of
developments in technology. This means funds would need to be constantly
pumped into the brand. Agencies benefit from the ability to spread costs
between multiple clients, but brands will be the ones ultimately liable for
in-house programmatic funding. This has applied to business sectors ranging,
of course, from technology to law and immigration, given the fact that many immigration
lawyers have been focusing on their online development
Furthermore, recruiting talented,
accomplished workers is arguably one of the toughest challenges. Only a
limited number of people will have the expertise to undertake such a task, and
those who do tend to be working for app developer agencies in cities like
London or New York. Even if those with the relevant skills are willing to
relocate, they’re likely to demand a high salary for their specialist
knowledge. For some smaller organisations, this simply isn’t an option.
Making
Decisions
Brands should be reminded that it is
possible to have control over certain aspects of their business, while still
outsourcing others. For example, they may wish to bring a programmatic
specialist to work internally, liaising with agencies and assisting in the
planning and buying processes. Many brands have already done this, to give
them the reigns over some elements at just a fraction of the cost.
Though the appeal of bringing programmatic in-house is obvious, in
reality, it may not be as well executed as brands will have hoped. Many brands
struggle with the ongoing costs of funding in-house programmatic experts, and
the technology that comes with it. Agencies still play a critical role in the
process and should not easily be disregarded by brands who do not have
sufficient funding or experience.
It’s undeniable that agencies house
skilled employees, who are highly experienced in data analysis, trading,
campaign optimisation, technology platforms and more. That’s why many brands
should still consider working with agencies before dismissing them to bring
programmatic in-house. Brands have a decision to make, do they want it to be
brought in-house or would they rather hand it over to agencies? For larger
brands, the decision may be a ‘no brainer’, they’ve got the ability to scout
specialists and recruit them for themselves. But for other smaller businesses,
weighing up their options between hiring their own in-house programmatic
expert or outsourcing work to agencies is still something to be carefully
considered.
