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6 Things to Consider When Taking Programmatic In-House (Part 2)

Loretta Shen | 10.19.2017

Yesterday we discussed the first three factors to consider when taking programmatic in-house and the benefits are significant. By taking control of their programmatic buys, advertisers can stand to save on their budgets, gain greater insight into their media, and closely align their business and marketing strategies. At the end of the day, and most importantly, advertisers can secure data ownership and thus the power make decisions based on a holistic view of all their media across every single data source. Still, given the complex and dynamic nature of programmatic, there are three more factors that warrant reflection. Keep in mind:

4. There’s a lot to programmatic under the surface

Programmatic buying involves many different vendors and partners. Before establishing in-house operations, you need to know the digital supply chain well – and how ad servers, networks, DSPs, SSPs, DMPs all work together. Moreover, are you up to date on the latest trends in programmatic? Can you balance both open and private marketplaces? Do you know which publishers support header bidding? Programmatic is a broad term – are you familiar with all the different programmatic deal types? Are you adopting best practices in pre-bid evaluation for safe buys? Do you have the resources to build your own proprietary technology and negotiate deals across the supply-side? Or do you need to take a hybrid approach with agency guidance? Agency programmatic platforms such as Xaxis and Cadreon have been developing their tech stacks for years and have specialized teams and historical data to execute complex bidding strategies. In any case, a strong foundation in digital and ad tech is key to assessing your readiness to taking this big step.

5. Don’t underestimate the upfront investment that is required

The cost efficiencies of bringing programmatic in-house are predicated upon a significant up front investment. Building out an internal trading desk includes the technology, databases (DSP/DMP), and teams to effectively oversee it. In addition, you need to consider data storage and management. Programmatic generates a huge amount of data. Finally, not all of it is valuable, so you’ll need to hire the right people to sort through the noise. Securing the resources for your tech stack, data storage, and talent are crucial for your internal programmatic processes.

6. Bulletproof reporting has to come before optimization

Strong reporting always precedes optimization. Programmatic is by definition real-time and automated – it has allowed marketers to achieve campaign optimizations faster than ever before, at lower prices. But before you even get to the optimization phase, you need to think about how you are setting up your reporting processes to be able to glean the information you need to inform your optimization strategy. Each vendor engaged in the programmatic buying process will create their own new, potentially massive, silo of data. How will you connect and harmonize your data sources? Have you set up standardized nomenclature and trafficking rules so that your data outputs are easy to understand? A comprehensive reporting solution that can tie together all of your programmatic data sources is essential.

In conclusion, there’s no doubt that programmatic buying is here to stay – and perhaps will take over all of digital advertising in the years to come. The impetus is with brands and business leaders to understand what works best for their unique needs, and when to build experts in-house versus outsourcing the work.

The good news is smart technology greatly reduces the complexities and cost involved with building your in-house solution. This holds true whether you choose to build your own tech stack or choose to supplement your agencies with ownership of data and internal analytics. Datorama integrates data directly from all the platforms involved in the digital supply chain on a daily basis, and we’ve built our technology to understand the intricacies of each partner in the ecosystem. Our marketing intelligence platform centralizes your infrastructure investment, ingesting, unifying, and visualizing your entire programmatic ecosystem so that you have an end-to-end partner that helps you reduce time to value and financial investment. Finally, with Datorama, all your reporting is automated and bulletproof from day one, shifting time invested to optimization and away from data entry and spreadsheet wrangling.


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