A year after the Association of National Advertisers benchmarked programmatic media-buying among the nation’s largest advertisers, the percentage who say they have brought it in-house and are reducing the role of their agencies has more than doubled. That’s the top line finding of the 2017 edition of “The State of Programmatic Media Buying,” released this morning by the ANA.
The report, which is based on an extensive survey conducted by the ANA in June and July, found that 35% of marketing executives have brought programmatic media-buying in-house and have reduced their agencies’ role -- a number that's increased significantly from only 14% a year ago.
“Most respondents have one full-time staff member who devotes 100% of his/her time to programmatic initiatives, with a range of zero to 15 full-time employees,” the ANA report found, noting that the median response averaged one full-time employee.
“There are a larger number of internal staff who have at least some dealings with their company’s programmatic initiatives, however,” the report continues, noting, “A median of three employees devote part of their time to programmatic advertising as part of their regular job duties. There is a wide range within this demographic — some companies manage with none, and others have a staff of 100 who deal with some aspect of programmatic advertising.”
Based on the respondents' perceptions of its performance, the in-house trend could well continue.
Half the respondents (50%) said they were either satisfied or very satisfied with their programmatic media-buying performance, while more than a third (36%) were “neutral.”
Only 3% said they were not satisfied, while 10% said they weren’t sure.
To put that in a broader perspective, 85% of marketers say they now buy media programmatically, with only 3% saying they do not. (Ten percent were unsure.)
The top reason marketers say they are shifting to programmatic media-buying is “better audience targeting” (cited by 74%), followed by “real-time optimization” (52%) and extending their “audience reach” (48%).