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Programmatic Marketing Simplified - The ABC’s of Programmatic In-Housing

Updated: Jul 2

The advertising industry is going through a radical change, and COVID continues to tighten purse strings. Now more than ever, value is needed to keep people employed! There’s a treasure beneath us but brands need someone to give them the map. The hidden fees created by agency and technology partners equate to massive value and it’s time to take control of your investment!

WHAT IS PROGRAMMATIC IN-HOUSING?

In-housing is the process by which a brand removes their advertising agency and staffs an internal digital planning and buying practice. In-housing creates the opportunity for incremental savings of 20-30% while boosting your return on your investment by 2X. Marketers evaluate and execute in-housing because they’re beginning to understand how budgets are being mismanaged.

As marketers get closer to an in-housing model, here’s what they can expect:

  1. Trust & Transparency: Expose poor business practices and boost ROI

  2. Cost & Resource Efficiency: Reduce headcount and minimize technology costs

  3. Data Ownership: Stop allowing others to understand more about your consumer than you do

  4. Creative: Allows for an unbiased creative testing framework

Digital and programmatic have changed the way marketers buy media in such a profound way that it reshapes the digital value chain. This includes the role of advertising agencies themselves.

WHY IS IT IMPORTANT?

The typical agency model is based on a client paying a fee for its services. The fee is based on the number of full-time employees working on that business as well as the scope. The scope is based on the number of campaigns as well as the number of assets and deliverables for those campaigns. An agency will figure out the hourly fee to charge a client based on the number of full-time employees needed to fulfill the assignment. That number will factor in the cost of the employee plus the profit margins which can vary depending on agency, channel or technology. This number doesn’t allow agencies to meet the demands of their stock price so other margin driving options are executed.

WHAT CAN WE DO ABOUT IT?

We must first leave our egos at the door; I can’t stress this enough! Egos are a weakness and blind us from what is right in front of our eyes. It’s time to get comfortable with what we don’t know. But how do I know what I don’t know, you may ask. The answer is simple, if you don’t understand something just ask. Digital can be a confusing landscape and while corporate America may stigmatize you into thinking you must have an answer for everything, remember that no one can be an expert in every subject!

IN HOUSING TOOLS:

  1. Check your ego at the door - Strive to collaborate with integrity and pride so everyone can walk out of a meeting better than when they entered

  2. Question the status quo - How to effectively challenge your agency and other third parties

  3. Accountability – Agency guardrails and expectations

SIX QUESTIONS TO ASK BEFORE IN-HOUSING

  1. Evaluation: Does it align with your long-term business objectives?

  2. Culture: How will you fit new ways of working within existing cultural norms?

  3. Finance: Where is the funding going to come from?

  4. Workflow: Do you have the tools and knowhow to seamlessly transition?

  5. Recruitment: How do you plan to source and retain talent?

  6. Data: What role does data play in your marketing efforts?


Tech Recipes is the only 100% transparent marketing firm with a focus on programmatic. We are also the only partner with brand, agency and publisher expertise allowing us to understand and remove hidden fees. We have led programmatic in-housing efforts for the likes of L’Oréal and have the tools needed for a quick and seamless transition. Please reach out to us today if you are considering programmatic in-housing for your brand!

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