Search

Reasons to consider in-housing your programmatic data

The Drum 10 Jan 2019 12:30
Reasons to consider in-housing your programmatic data

As brands begin to take more ownership of their data and better understand consumer journeys, arguably, media agencies still have a better view of the overall media landscape. At The Drum Programmatic Punch last month, industry experts from Ctrl Shift, Infectious Media and Beamly debated the pros and cons of taking programmatic data in-house.

In-housing is nothing new. Smaller and local advertisers have been doing it for some time, explained Andy Cooker, chief operating officer and co-founder of international programmatic agency, Infectious Media. However, he explained, what’s changed over the past decade is the increase of new, bigger Fortune 500 companies who are starting to look at which parts of the advertising process they can take control off.

“It's such a fascinating subject area, it transcends programmatic itself,” he insisted. “There are these disruptive changes that are taking place across all industry sectors and it's not just what's happening within our own.

Anthony Rhind, chief operating officer of digital agency, Beamly was surprised there hasn’t been more in-housing. Due to the amount that companies have spent on costs that "have been media over the years", he was startled that they haven't built media in-house capabilities to manage that.

What is in-housing?

“There are infinite shades of grey in between. The shade that works for your business, if some form of in-housing is right for you, is going to be based on your unique circumstances that can be based on how you are organised internally. How do you allocate and set marketing budgets centrally or do you have local marketing teams, do you have digital marketing teams? Are you a digitally native business, are you a more traditional business that's going through a digital transformation and reorganising?

Are brands starting to understand value of programmatic?

Rhind further explained that brands are looking at brand safety because of the brand risk of appearing adjacent many to YouTube video content and not wasted money.

“That at an industrial level is why we are not relevant, because we don't have enough control. We make stupid mistakes and we don't talk commercial outcomes. We haven’t helped ourselves by the jargon loaded communications and the viable failures of governance.”

Brands are increasingly demanding for low commission/lower costs on their ad placements, said Dominic Powers, chief executive officer of Ctrl Shift. Yet the resources to deliver on this demand are scarce, quick to burn out and increasingly becoming more expensive. He asked: “Do brands understand what it costs to deliver what they want?”

“Transparency comes at a price. There is starting to be a distinction between different pricing models for different types of services.”

Most holding groups are heavily involved in media buying, suggested Rhind. In programmatic they've benefited from the alignment of technology contracts with media buying. “That's led to a very global approach of organisations to consolidate those biggest contracts to have leverage on buy side. Then to be able to price lowly on the selling of those services into the pitch side.”

Cooker, Rhind and Powers were all on the 'In-House Programmatic Pros & Cons' panel at The Drum Programmatic Punch 2018. Register your interest for 2019.

Continue reading original article...

Tags

Anthony RhindDominic PowersBeamlyAndy CookerYouTube
You may also like