6 Questions to Consider before Taking your Programmatic In-house

It seems like the option of taking the entire programmatic advertising process in-house is becoming increasingly popular

According to a study by the World Federation of Advertisers (WFA), when it comes to programmatic advertising, global brands are demanding a new kind of relationship that provides significantly improved control and transparency, with nearly 90% reviewing and resetting contracts and business models to deliver on these objectives.

Although martech / adtech has allowed brands to internalize several marketing efforts, specific to this area, internalizing could mean greater transparency over where ads are placed online, a deeper understanding of ad spends, among several other benefits. However, companies who are thinking of doing this should be ready for the challenges too!

There are a number of questions that a marketer or brand must consider before deciding to go in-house.

Some WOW facts

• Global brands like Procter & Gamble, L’Oreal have in-house teams for some aspects of their programmatic advertising

• Every brand will have a different way of in-housing

• For some brands, an in-house programmatic advertising process could mean setting up their own agency trading desk

• For others, it could mean dealing directly with DSPs.

• Unilever, for example, has a dedicated unit within its agency Mindshare called Ultra, which works solely on its programmatic interests.

Research from the World Federation of Advertisers (WFA) sometime in August 2017 revealed that in the 12 months prior, 65% of brands had enhanced their internal capabilities, 32% had added data ownership clauses to contracts, and 24% had increased contractual control of programmatic by adopting a hybrid model.

p.s: A hybrid model in this case would mean a combination of in-housing and outsourcing of programmatic advertising processes

Here are six considerations before a decision to take programmatic adtech in-house

1.       Budgets and key resources: do you have enough?

Even before the first step of assessing a business’ capabilities, the baseline is the budget and resources – the costs involved in hiring, training, investing in updated technology and so much more will have to be factored in.

And it doesn’t just stop at the choice of technology or shortlisting profiles to hire a fully capable in-house team!

2.       Future goals and objectives

Does the idea of an in-house programmatic team align with the overall short to long-term plans of the business? This is crucial because there is enough at stake when setting up a team, leave alone setting up a process from scratch.

3.       Identifying your in-housing goals

Besides long-term business objectives, identifying the end-goal of an in-house programmatic process are crucial too.

4.       Are you ready to play the Big Data game?

Preparation is key when setting up a new process, or team. But remember, you will now be responsible for your own data.

5.       Do you have an alliance in other teams?

If other teams are not on board, it can prove to be quite a challenge. No one wants someone from finance objecting to the initial cost of investing in the right technology, etc.

6.       Should you follow ‘test and try’ versus the traditional ‘trial and error’?

Different models will suit different brands, as you can see from the box above. Testing new tactics and programmatic strategies in-house for a short period of time may help your company adapt to the overall programmatic process before identifying a model that works best. This can then be pursued by in-housing the process.

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