nanigans keynote - ddm alliance summit marketing on facebook

What is “in-house” and is it right for me?

Will AshtonManaging

Director, EMEA19 June 2014

Advertising Automation Software

MARKETING MONEYBALL:

Why In-House Advertising Changes Everything


The rise of marketing automation

The Internet has fundamentally changed how businesses reach consumers.

Marketing automation platforms have enabled businesses to bring everything from outbound email marketing to inbound content marketing in-house.


Ad automation following marketing

Databases CRMMarketing

AutomationAdvertising Automation

The normal pace at which businesses develop and plot out learning and assignments will not suffice. Speed, nimbleness, and imagination are crucial.

Partha IyengarVice PresidentGartner


In-house: A growing trend

40.9%

Branding 59.1

%

Direct Response

58% 56% 52%

of marketers currently utilize in-

house teams, a 16% increase from

2008

of marketers have moved established business from an

agency to in-house

of marketers are assigning digital, social & mobile

functions in-house

Association of National AdvertisersSeptember 2013


Programmatic on the rise

AdExchanger’s State of Programmatic Media Report2014

Almost two-thirds of marketers plan to double their programmatic ad spend over the next 12 months

2/3

One-fourth of marketers plan to spend at least 80% of their budgets programmatically

1/4


Why are companies taking advertising in-house?


Benefits of in-house advertising

Taking advertising in-house means freedom.

Freedom to react quickly to market shifts, spend more time on strategy, and focus on the metrics that matter most.


In-house can bring large cost savings

A company spending £1,000,000 annually on digital advertising can save £200,000 by taking their advertising in-house.

Through a 3rd Party Using Software In-House

Annual digital advertising budget £1,000,000 £1,000,000

Average managed services premium of third party (30% of spend) £300,000 £0

Cost of in house performance marketer £0 £50,000

Annual software subscription (5%) £0 £50,000

Annual budget for actual ad placements £700,000 £900,000

Apple is driven not by a desire for more efficiency, but one to keep intellectual property within its walls and retain more ownership over its creative work.

Ann-Christine DiazAdvertising AgeSeptember 2013


In-house gives you greater control

In-house advertisers benefit from having total control over how their products are marketed.

Ad Creation Ad Testing Campaign Optimization

Campaign Reporting

Marketing teams that control digital advertising in-house across multiple channels benefit from cross-channel learnings and performance gains.


Develop expertise in internal teams

Make the most of your in-house knowledge.

94%

The vast majority of CMOs (94%) plan to accelerate the introduction of advanced (predictive) analytics and mobile apps into their business in the next 3-5 years.

IBM Global C-Suite Study2013


Make changes on the fly

React quickly and autonomously.

of marketers cite faster turnaround time as an advantage of the in-house approach

Association of National AdvertisersSeptember 2013

71%


Avoid unnecessary downtime

If a marketer runs a planned promotion over the weekend and inventory runs out, campaign adjustments must happen fast.

STOP

Stop the Campaign

Reroute to Another Sale

Danger of outsourcing

It’s been very clear for quite some time that agencies need to be much more agile and faster to respond, and that’s what real-time marketing has pushed us all toward.

Nancy HillPresident and CEO4A’s


Know where your money is being spent

Keep your digital media budget in plain sight.

of advertisers believe that a tool that provides transparency is ideal for better managing digital media spend

AudienceScienceNovember 2013

40%


In house isn’t always the right solution

A channel should be established before it is brought in house

Simpler, safer approaches may be better executed by an agency

You need to be running enough volume to justify hiring


How do I build my team?


Get the right team. And keep them.

All strong teams need a strong leader

Specialism is preferable to generalism

Skills must be kept current

Buy/build the right tools

Empower your team


Anatomy of an in-house marketer

In-house teams can consist of one or more skilled operators focused on user acquisition and retention.

In-house marketers should be:

Highly numerate

Analytical, technical ad comfortable with large data sets

Creative problem solvers

Strong communicators able to interact with other internal teams


Conclusion


Launching far more cost

effective ad campaigns

Unmatched in-house knowledge of

customers, products, and market environment

Benefits of in-house advertising

Marketers who leverage in-house ad automation software to purchase media directly from publishers as opposed to through agencies or ad networks can benefit from:

Ownership and transparency of

data

If you bring that team in-house, you have an opportunity to share cross-channel findings, be agile, to do more with programmatic. That’s an amazing opportunity to take advantage of.

Kathy O’DowdProgrammatic BuyingNetflix


We believe in the in-house advertiser.

nanigans keynote - ddm alliance summit marketing on facebook

Social Media