What is in-house and is it right for me? Will Ashton Managing Director, EMEA 19 June 2014
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2 What is in-house and is it right for me? Will Ashton Managing Director, EMEA 19 June 2014
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5 MARKETING MONEYBALL: Why In-House Advertising Changes Everything
6 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 marketing to inbound content marketing in-house.
7 Ad automation following marketing Databases CRM Marketing Automation Advertising Automation
8 The normal pace at which businesses develop and plot out learning and assignments will not suffice. Speed, nimbleness, and imagination are crucial. Partha Iyengar Vice President Gartner
9 In-house: A growing trend 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 Branding 40.9% of marketers are assigning digital, social & mobile functions in-house Direct Response 59.1% Association of National Advertisers September 2013
10 Programmatic on the rise 2/3 Almost two-thirds of marketers plan to double their programmatic ad spend over the next 12 months 1/4 One-fourth of marketers plan to spend at least 80% of their budgets programmatically AdExchanger s State of Programmatic Media Report 2014
11 Why are companies taking advertising in-house?
12 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.
13 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 3 rd 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
14 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 Diaz Advertising Age September 2013
15 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 inhouse across multiple channels benefit from crosschannel learnings and performance gains.
16 Develop expertise in internal teams Make the most of your in-house knowledge. 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. 94% IBM Global C-Suite Study 2013
17 Make changes on the fly React quickly and autonomously. 71% of marketers cite faster turnaround time as an advantage of the in-house approach Association of National Advertisers September 2013
18 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
19 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 Hill President and CEO 4A s
20 Know where your money is being spent Keep your digital media budget in plain sight. 40% of advertisers believe that a tool that provides transparency is ideal for better managing digital media spend AudienceScience November 2013
21 In house isn t always the right solution A channel should be established before it is brought in house You need to be running enough volume to justify hiring Simpler, safer approaches may be better executed by an agency
22 How do I build my team?
23 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
24 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
25 Conclusion
26 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: Launching far more cost effective ad campaigns Unmatched in-house knowledge of customers, products, and market environment Ownership and transparency of data
27 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 Dowd Programmatic Buying Netflix
28 We believe in the in-house advertiser.
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