4 Steps to Decide If & How to Bring Your Programmatic In-House

In-housing programmatic teams is all the rage right now. And it’s easy to see why.

In-housing allows for faster decision-making, greater control, improved performance, better targeting, and cost efficiency.

In fact, 78% of marketers now report having an in-house agency, 44% of which were built in the last 5 years.

So should you drop what you’re doing right now and go start building your in-house team?

Not necessarily.

Despite the narrative, in-housing is not the best choice for every advertiser. Some important considerations need to go into the decision.

And if you do decide to move in-house, it opens up the question of how to build that team while maintaining your relationship with your agency.

Kari Marshall from T-Mobile and Richard Salazar from Anheuser-Busch InBev sat down to address these issues. Both are growing their in-house teams and can speak first-hand to the challenges and opportunities of making the switch.

HOW TO: Decide whether to move your programmatic marketing in-house

1. Identify what specific problems in-housing can solve for you; don’t just get swept up in the hype

In-housing is a huge investment and shouldn’t be made as a knee-jerk reaction. Do you know exactly what you should in-house and why? Consider the long-term costs & benefits of the shift.

For example, what is the long-term cost of hiring and maintaining a top-performing team? Here’s the breakdown of in-house team size across the industry (Note: all graphics were found in the 2018 ANA report, “The Continued Rise of the In-House Agency”) →

2. Evaluate your capacity for in-housing across 3 categories: people, process & technology

Before bringing a discipline in-house ask yourself: do we have the people to make this work? Will this integrate with our current systems? Will our tech simplify or complicate access to our new insights?

If you’re lacking in a category, factor that investment in before deciding — it may be substantial. Not to mention the cost of an in-house team once it’s up and running →

Transition step-by-step; in-housing too soon and too quickly has backfired on a lot of brands. Plan a timeline of who will take responsibility for in-housing which disciplines in what order →

TeamGantt

3. Hire your in-house team based on mindset, not just expertise

Don’t limit yourself to the narrow field of expertise you need — broaden your search to find people with the right mindset who can grow into the role.

Are they good problem solvers? Do they align with your core values? In the long run this will be more important than prior experience. If you’re not sure what your core values are, this exercise can help parse them out →

Core Value Worksheet

4. Be honest with your agency about how their role can evolve to still provide value

Maintain your agency relationship during the transition through complete transparency. Why? First off, you don’t want to silo each discipline as you separate it from your agency. Second, with their outside view, agencies can remain powerful sources of accountability and simplification

The rise of in-house is not the death of external agencies. On average, external agencies still help with 42% of the workload →

Must Read

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

Google Had Its Day In Court. Now, It’s Amazon’s Turn

Google won’t have to break up its ads business after being declared an online monopolist. Meanwhile, Amazon faces a lawsuit from the FTC alleging that it charged advertisers more than necessary for ecommerce ads.

The FTC’s Amazon Lawsuit Is Ad Tech’s History Of Opacity Repeating Itself

Buy-side experts said it’s another example of a Big Tech platform taking advantage of the lack of transparency built into programmatic ad auctions. And they’re not optimistic change is coming.

How The Fin Tech Clearco Finances Ecommerce Startups (Without Losing Its Shirt)

This week, the Commerce Media Newsletter catches up with a startup from outside the world of data-driven advertising, but with an interesting position when it comes to ecommerce advertising. That’s Clearco, a Canadian fin tech company founded in 2015.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
LOS ANGELES, CALIFORNIA - APRIL 26: Halo Collar CMO Seth Solomons attends a Celebration to Shine a Light On Dog Safety With Halo Collar on April 26, 2022 in Los Angeles, California. (Photo by Stefanie Keenan/Getty Images for Halo Collar)

How Halo Collar Uses Data And Incrementality To Raise Both Awareness And Sales

Halo Collar, a dog collar brand with direct-to-consumer origins, is preparing for its retail expansion by honing its first-party data strategy and incrementality measurement.

tech family cartoon technology family

CartographAI Launched To Help Advertisers Pick The Right Tech Vendors. Now, It’s Helping Vendors Market Themselves, Too

The company is launching an accelerator program to help tech vendors pitch their solutions in a way that makes sense to advertisers.

Comic: Weather Bar

Neuroscience And AI Are Transforming The Weather Company’s Measurement Stack

TWC is building a monetization model that treats weather as both a contextual and an emotional signal, and it’s using AI sales agents to bring it to market.