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Brands consider in house programmatic advertising

Is In-House Programmatic Right for You?

October 17th, 2016   ||    by Callie Wheeler

More brands are moving to in-house programmatic as programmatic advertising transitions from representing a new technology to becoming an expected piece of marketers’ and advertisers’ media spend. There are benefits to moving the process in-house, but there are many challenges, too. How do you decide if it’s the right move for your brand?

Like many media decisions, this one requires a realistic assessment of the benefits, requirements, and changes in-house programmatic brings. Each brand has to decide whether the pros outweigh the cons.

Reasons to Make the Move

The advantage of tackling programmatic comes down, in many ways, to control. Control over cost, creative and execution, data, and inventory are all advantages of an in-house programmatic strategy.

Control over data is one of the largest concerns a brand may have. As a recent Econsultancy piece pointed out, agencies may use aggregated insights—across clients—for each of their campaigns. Brands that want to be sure their data is only benefiting their own business may have less control over the use of those data insights in an agency setting.

Alternatively, brands may have customer privacy concerns regarding their data. By keeping everything in-house, they decrease the possibility of data compromise.

Bringing programmatic advertising in-house may also unify a fragmented process. Rather than sending creative, copy, data, budgetary information, and scheduling back and forth to an agency, the entire process is a continuous effort under one roof.

Reasons Not to Make the Move

Keep in mind that bringing programmatic internal is no easy task. The challenges alone prevent many brands from making the choice—not to mention the cost.

To start, brands must have enough data to run programmatic campaigns on their own. That immediately eliminates the option for many. Most brands that have made the move—Kellogg Co., Walmart, and Procter & Gamble are examples noted by AdAge—are large corporations with plenty of their own data to use.

Assuming they have data, brands then need to hire marketers and advertisers with unique, fairly new skill sets: demand-side platform (DSP) relationship management, audience measurement, data analysis, and technology platform management. Digiday points out that many of these marketers are based in New York City and the Bay Area, making it especially challenging for brands looking to hire outside those locations.

Making the Call

For brands with plenty of data, the right people, and the budget to restructure their marketing and advertising departments, in-house programmatic can provide the freedom to manage their own programmatic campaigns exactly how they want. But for many brands, the cost, effort, and data required for in-house programmatic make an agency relationship beneficial and often vital.

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