Commentary

Taking Programmatic In-House Is A Hobson's Choice - At Least For Now

“Taking programmatic in-house” is a thing -- and it might be the thing one year from now, if we are to take marketers at their word.

In a new AOL study -- which comes from a survey of over 350 U.S. media and marketing professionals -- 13% of brands say they have brought programmatic video technology in-house. However, of the 87% that haven’t brought programmatic tech in-house, 88% say they plan to do so in the next year. This data was already shared in a Real-Time Daily story, but I wanted to call special attention to it here because of how profound such a shift would be.

If every marketer that says they are going to take programmatic (video) ad tech in-house in the next 12 months does so, and every marketer that currently has the tech in-house continues to do so, that means that at this time next year the headlines could read: “90% of programmatic video ad-buyers now execute campaigns in-house.” Ninety percent!

Again, the AOL study deals with programmatic video exclusively, but as every marketer wants a “one-stop shop” solution, odds are that if they are bringing programmatic video tech in-house, they are doing it for other channels as well.

Such a shift would have an impact on agencies, trading desks, tech vendors and everyone in between. We’ve already seen proof that the marketers taking programmatic in-house are drawing attention, with tech suppliers catering toward marketers that want to do so. If they are getting noticed at 13%, what is 90% going to look like?

Will it get that high? Color me doubtful; we’re still at 13%, and that’s a long way from 90%. AOL notes in the report that “all the brands that [already] had brought the technology in-house said they had little choice; they did so because their agencies lacked the expertise to do their programmatic buying for them.” I don’t expect agencies/agency trading desks to miss the opportunity there to stake their claim to staunch the (planned) desertion in favor of independence.

2 comments about "Taking Programmatic In-House Is A Hobson's Choice - At Least For Now".
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  1. Tom Cunniff from Tom Cunniff, September 15, 2014 at 12:38 p.m.

    I agree that there is a big difference between "we plan to do it" and "we did it". But, I predict it will be difficult for agencies to resist this trend for long. Clients are as capable as agencies of finding the right talent, and in some cases can offer more job security, better hours and richer financial incentives. Perhaps more important, I believe over time marketers will become more guarded about their in-house CRM data and will prefer to have fewer external partners. If I am correct about the internal CRM data issue, then it will be truly difficult for agencies to retain the business -- even if they are adding significant and unambiguous value in the process.

  2. jack Brown from BDAI, September 15, 2014 at 1:56 p.m.

    Clients taking programmatic in-house are discovering that to maximize performance and significantly lift ROI, Actionable Data has to be Transparent and Delivered in Real Time. They can't achieve this efficient, ultra fast level of monitoring, analytics and reporting with out BDAI. Actionable Data delivered every minute of the day. An average of 40 million impressions served daily peaking at 16 billion daily. The speed and accuracy of Actionable Data delivered by BDAI is now beyond mosts comprehension. Once marketers realize the significant lift in ROI that Real Time, Transparent Accurate Actionable Data Delivery provides, the speed at which they Successfully make this transition will be amazing.

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