Marketing Moneyball: Why in-house advertising changes everything

1. What is “in-house” and is it right for me?
Will Ashton
Managing Director,
EMEA
19 June 2014

2. Advertising Automation Software
MARKETING MONEYBALL:
Why In-House Advertising
Changes Everything

3. Advertising Automation Software
The rise of marketing automation
The Internet has fundamentally changed how businesses reach consumers.
Marketing automation platforms have enabled businesses to bring everything
from outbound email marketing to inbound content marketing in-house.

4. Advertising Automation Software
Ad automation following marketing
Databases CRM
Marketing
Automation
Advertising
Automation

5. The normal pace at which businesses develop
and plot out learning and assignments will not
suffice. Speed, nimbleness, and imagination
are crucial.
Partha Iyengar
Vice President
Gartner

6. Advertising Automation Software
In-house: A growing trend
40.9%
Branding
59.1%
Direct
Response
58% 56% 52%
of marketers currently
utilize in-house teams, a
16% increase from 2008
of marketers have moved
established business from
an agency to in-house
of marketers are assigning
digital, social & mobile
functions in-house
Association of National Advertisers
September 2013

7. Advertising Automation Software
Programmatic on the rise
AdExchanger’s State of Programmatic Media Report
2014
Almost two-thirds of marketers plan to double their
programmatic ad spend over the next 12 months
2/3
One-fourth of marketers plan to spend at least 80%
of their budgets programmatically
1/4

8. Advertising Automation Software
Why are companies taking
advertising in-house?

9. Advertising Automation Software
Benefits of in-house advertising
Taking advertising in-house means freedom.
Freedom to react quickly to market shifts, spend more time on
strategy, and focus on the metrics that matter most.

10. Advertising Automation Software
In-house can bring large cost savings
A company spending £1,000,000 annually on digital advertising
can save £200,000 by taking their advertising in-house.
Through a 3rd Party Using Software In-House
Annual digital advertising budget £1,000,000 £1,000,000
Average managed services premium of
third party (30% of spend) £300,000 £0
Cost of in house performance marketer £0 £50,000
Annual software subscription (5%) £0 £50,000
Annual budget for actual ad placements £700,000 £900,000

11. Apple is driven not by a desire for more
efficiency, but one to keep intellectual property
within its walls and retain more ownership
over its creative work.
Ann-Christine Diaz
Advertising Age
September 2013

12. Advertising Automation Software
In-house gives you greater control
In-house advertisers benefit from having total control over how
their products are marketed.
Ad Creation Ad Testing Campaign Optimization Campaign Reporting
Marketing teams that control digital advertising in-house across
multiple channels benefit from cross-channel learnings and
performance gains.

13. Advertising Automation Software
Develop expertise in internal teams
Make the most of your in-house knowledge.
94%
The vast majority of CMOs (94%) plan to
accelerate the introduction of advanced
(predictive) analytics and mobile apps into
their business in the next 3-5 years.
IBM Global C-Suite Study
2013

14. Advertising Automation Software
Make changes on the fly
React quickly and autonomously.
of marketers cite faster
turnaround time as an
advantage of the in-house
approach
Association of National Advertisers
September 2013
71%

15. Advertising Automation Software
Avoid unnecessary downtime
If a marketer runs a planned promotion over the weekend and
inventory runs out, campaign adjustments must happen fast.
STOP
Stop the Campaign Reroute to Another Sale
Danger of outsourcing

16. It’s been very clear for quite some time that
agencies need to be much more agile and
faster to respond, and that’s what real-time
marketing has pushed us all toward.
Nancy Hill
President and CEO
4A’s

17. Advertising Automation Software
Know where your money is being spent
Keep your digital media budget in plain sight.
of advertisers believe that a tool that provides
transparency is ideal for better managing digital
media spend
AudienceScience
November 2013
40%

18. Advertising Automation Software
In house isn’t always the right solution
A channel should be established before it is
brought in house
Simpler, safer approaches may be better
executed by an agency
You need to be running enough volume to
justify hiring

19. Advertising Automation Software
How do I build my team?

20. Advertising Automation Software
Get the right team. And keep them.
All strong teams need a strong leader
Specialism is preferable to generalism
Skills must be kept current
Buy/build the right tools
Empower your team

21. Advertising Automation Software
Anatomy of an in-house marketer
In-house teams can consist of one or more skilled operators
focused on user acquisition and retention.
In-house marketers should be:
Highly numerate
Analytical, technical ad comfortable
with large data sets
Creative problem solvers
Strong communicators able to interact
with other internal teams

22. Advertising Automation Software
Conclusion

23. Advertising Automation Software
Launching far more
cost effective ad
campaigns
Unmatched in-house
knowledge of customers,
products, and market
environment
Benefits of in-house advertising
Marketers who leverage in-house ad automation software to
purchase media directly from publishers as opposed to through
agencies or ad networks can benefit from:
Ownership and
transparency of data

24. If you bring that team in-house, you have an
opportunity to share cross-channel findings, be
agile, to do more with programmatic. That’s an
amazing opportunity to take advantage of.
Kathy O’Dowd
Programmatic Buying
Netflix

25. Advertising Automation Software
We believe
in the in-house advertiser.