ANA Report Highlights Rise Of In-House Programmatic Advertising

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Written by: Carolyn Berk, Content Marketing Associate

According to a recent survey from the Association of National Advertisers and Forrester, an increasing number of marketers are expanding their in-house ad-buying capabilities in order to maximize the advantages of programmatic advertising.

How many marketers have chosen the in-house programmatic path, and how has it helped them combat concerns about transparency and fraud? Take a look at the following breakdown of the ANA report:

Programmatic’s Growth By The Numbers

ANA represents many of the country’s largest advertisers such as Procter & Gamble, General Motors and AT&T. Programmatic advertising presents these businesses with the granular targeting and real-time optimization that they need to keep ahead of digital marketing trends. This crucial competitive advantage has driven more than 2X growth in programmatic advertising adoption over the past few years:

35%

2014: Respondents saying they have made programmatic buys in the past year

79%

2016: Respondents saying they have made programmatic buys in the past year

Programmatic Moves In-House

Programmatic ad buying isn’t the only trend cited in the ANA report. The survey shows that a growing number of marketers are choosing to take their programmatic advertising in-house instead of outsourcing the function to agencies.

31%

Respondents who have expanded their in-house capabilities to manage programmatic ad buying.

What’s prompting advertisers to make the switch? Those polled said that having in-house capabilities allows them to address transparency concerns. When agencies control programmatic ad buys through an automated system, marketers are left in the dark about how much of their ad budget actually goes toward ad buys, and where their ads are placed. 

Many expressed worry that media sellers have agreements in place with agencies, rewarding them for directing their clients’ budgets to specific vendors. Accordingto the ANA, this leads to a “dearth of information about whether an agency reaps financial gains from the media seller by using the client’s funds.”

Programmatic Is The Future

The ANA isn’t alone in touting the rise of programmatic. According to eMarketer, programmatic ad spending will continue its growth this year and beyond. In fact, next year’s forecast predicts that programmatic ad spending will exceed $27 billion.

On top of the granular targeting and real-time optimization that comes with programmatic advertising, companies who take the additional step of shifting to in-house campaign management gain benefits such as speed to market, data control, ease of cross-channel buying and cost savings. Digital marketers who haven’t yet considered in-house advertising should take a look at this seismic industry shift and consider making a change.

Is In-House Programmatic Right For You?

Should you be joining the growing club of businesses driving their advertising revenue through in-house programmatic? Ask yourself the following questions.

Is my business:

·         Engaged in both customer acquisition and remarketing?

·         Spending a significant percentage of budget on newer forms of marketing like social marketing and mobile?

·         Investing in online marketing as a key driver of success?

·         Led by a CEO, CMO or VP of Marketing who truly understands and embraces data-driven marketing?

·         Already advertising at scale on multiple channels?

·         Focused on direct response related goals (beyond branding or awareness)?

·         Prepared to invest in software and recruiting top in-house talent?

If you answered most of these questions with yes, then in-house programmatic is likely to be a great fit for your company.