Brand marketers are increasingly focusing on moving their programmatic purchases of adverts in-house. According to data by the Interactive Advertising Bureau (IAB), 65% of them have already moved their programmatic buying in-house or are in the process of doing so.
Of those who chose to in-house their programmatic, 47% had partially move their programmatic buying functions in house, whilst 18% had moved it fully. 22% also said they had no plans to bring programmatic in-house.
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Programmatic now accounts for 80% of all digital ad spend including mobile. eMarketer further predicts that programmatic ad spend will increase to $65.6 billion or 86.2% of total digital by 2020. Mobile display makes up 17% of programmatic, whilst mobile video presents 13%.
The survey of 119 US brand executives found that the key benefits associated with programmatic in-housing included: improved advert performance and ROI, cost efficiency and transparency, improved control and management of data and targeting, better real-time optimisation capabilities and full accountability of brand goals.
However, brand marketers have clear preferences for which functions they prefer to keep external rather than in-house. 44% of respondents would prefer ad operations and trafficking creative to remain external (44%) by working with a partner. Meanwhile, campaign strategy and direction is preferred to be kept in-house for 52% of marketers.
“If brands are going to bring programmatic in-house, they need to understand both the benefits and pitfalls,” said Orchid Richardson, VP and managing director of the IAB Data Centre of Excellence. “This research makes it clear that a significant percentage of brands have already moved in this direction—and we can expect that more will follow suit.”