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Nanigans Keynote - DDM Alliance Summit Marketing on Facebook

Marketing Moneyball: Why in-house advertising changes everything

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Nanigans Keynote - DDM Alliance Summit Marketing on Facebook

  1. 1. What is “in-house” and is it right for me? Will Ashton Managing Director, EMEA 19 June 2014
  2. 2. Advertising Automation Software MARKETING MONEYBALL: Why In-House Advertising Changes Everything
  3. 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. 4. Advertising Automation Software Ad automation following marketing Databases CRM Marketing Automation Advertising Automation
  5. 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. 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. 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. 8. Advertising Automation Software Why are companies taking advertising in-house?
  9. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 19. Advertising Automation Software How do I build my team?
  20. 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. 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. 22. Advertising Automation Software Conclusion
  23. 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. 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. 25. Advertising Automation Software We believe in the in-house advertiser.