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The times, they are a-changin’ — and quickly. Amidst news from comScore that Americans spend more time per month on mobile apps than they do on desktop Internet, eMarketer reports that direct response has claimed the majority of US marketers’ budgets. These findings reflect the reality that hard numbers are here to stay, and that advertisers need to address the challenges of new technology head on.
2014 US Digital Ad Spending Share, by Objective
Source: eMarketer’s Ad Spending Report Series, May 2014
Marketers who have historically been focused on broadcast and generating brand awareness are now expected to report with hard data that they not only reached their specific target audience, but they were able to effectively encourage that audience to take action — a core competency that data-driven companies like ours are supporting through cutting edge ad automation tools. Digital ad budgets are beginning to reflect the impact of this data-driven software in the marketplace, according to AdExchanger’s recently released State of Programmatic Media Report. Based on a survey of more than 400 marketers, ad agencies and publishers:
Almost two-thirds of marketers plan to double their programmatic ad spend over the next 12 months
One-fourth of marketers plan to spend at least 80% of their budgets programmatically
A savvy new generation of marketers has developed data-driven skills alongside self-serve tools, possessing a killer combination of creative and analytical instincts. In the hands of in-house marketing professionals, automation software is the key to delivering the right message, at the right time, to the right people. Putting digital channels under one in-house umbrella allows companies to keep marketing campaigns coordinated, aligned with business objectives, and cost effectively generating revenue through the online marketing funnel. But — to paraphrase Levar Burton from Reading Rainbow — don’t just take our word for it.
Here’s what folks in ad tech are saying about the in-house advertising movement around the Web:
The rise of automated programmatic buying systems is allowing marketers to buy ads directly, skipping agency fees and third-party markups in the process. Data protection is also a key benefit. According to ad tech firm Casale Media, the percentage of companies using its buying systems has tripled in the past 18 months.
Director of Research Joanna O’Connell discusses the migration of senior talent away from agencies, spurred in part by the programmatic media buying revolution and the rise of in-house advertising.
As mobile continues to dominate the advertising landscape, who is entitled to consumer data? Brands looking to protect strategic insights and keep up with mobile technology are wary of agency control.
Taking programmatic operations in-house is not for everyone, but the companies who have made the switch are seeing transparency, speed and business intelligence benefits. Enterprise and IT services companies such as IBM and Cognizant are investing in digital marketing technologies and likely to keep a close watch on adoption of automation software.
An eCommerce company builds its marketing team around in-house core competencies and reaps considerable benefits. “We now have the ability to scale with a relatively tiny team,” Lee Engel, StubHub’s head of programmatic advertising explains.
Want to learn more about the benefits of pairing best-in-class ad automation software with an in-house advertising team? Read our free eBook, Marketing Moneyball: Why In-House Advertising Changes Everything.Download today