As programmatic continues to dominate discussions in digital, the conversation is evolving from the basics of how it works to whether agencies and advertisers can maximize the advantages by taking the process in-house. Concerns around cost, expertise, and technology remain valid, although marketers understand that with the right solutions in place, these obstacles can be overcome and the benefits fully embraced.
The internet has changed our lives and programmatic allows brands to reach and engage with the always-on consumer in the right place, at the right time, across devices. Programmatic is expected to represent a quarter (25%) of total advertising spend by 2016 and ZenithOptimedia predicts that by 2019, nearly three quarters (70%) of all digital advertising will be traded in this way.
The move to omni-channel marketing is important to marketers because they understand that planning their media in silos is no longer effective. There should be no division between offline and online strategies because today’s consumers are constantly connected. Programmatic bridges all channels and puts the consumer at the centre of the strategy.
Neal Mohan, VP for display and video advertising products at Google, predicts that half of the top 100 advertisers in the world will have programmatic in-house by the end of 2015. So, what are the top four considerations for bringing programmatic in-house?
1. Cost savings
The advertiser can be sure of 100% media transparency and buying efficiencies. Also, a self-service option often costs a fraction of managed services.
2. Protecting data
Bringing programmatic in-house can protect marketers’ data. Some companies limit access to data, even to third-party service groups and the servers of SaaS companies.
Most partners guarantee turnaround times for delivering creative, optimizing, and reporting. However, some businesses may move faster than suppliers or partners can keep up with, so owning the resources could provide additional flexibility. Finding a partner that can reside in-house or work alongside the management and creative teams to ensure the right resources are in place for campaign optimization and detailed analytics can prove invaluable
4. In-house expertise
The financial return of taking programmatic in-house is potentially significant. It allows brands to continue to utilize their media agencies as true partners and allows them to focus on strategy and planning.
That is not to say there will not be challenges. There is a cost involved in investing or acquiring technology in addition to keeping up with the pace of such a rapidly growing medium and the new products available. Brands also need to ensure they have the ability to see the whole market and draw the right insights.
Building and training a team is a considerable investment and there may be a point where bringing programmatic talent in-house will not make sense from the marketer vantage point. Here lies an opportunity for tech vendors to step in with regards to technology, training, initial support, and strategy for this transition.
The industry has no shortage of suppliers and technology, but the challenge is selecting the right partners who can go to market with a brand’s specific needs in mind.
Programmatic is gaining momentum and now is the time for marketers to explore the most effective way to use it to enhance their overall marketing strategy.