Why Brands Find Challenges Bringing Programmatic In-House

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% 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% 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.