Advertising techniques are not often shared, especially by the big brands.  Big businesses don’t want to share their tips for advertising success.  One of the best kept advertising secrets could be as simple as bringing advertising in house.  High-tech ad buying and programmatic advertising that are more commonly managed by ad agencies are being managed in house by major corporations including Netflix and Kellogg.  According to “Why Netflix and Kellogg Took Programmatic In-House,” posted by Alex Kantrowitz on AdAge.com, here are a number of reasons why they manage their own advertising efforts and a few reasons that may make you think about whether you have what it takes to follow suit.

  1. Keeping secrets private but not forgotten: Businesses may have proprietary data that is best kept under lock and key.  Kathy O’Dowd with Netflix suggests that managing their own programmatic advertising makes it easier to find, discuss, and take action using internal data that they don’t want to share with an advertising agency.  Similarly, Aaron Fetters with Kellogg Co. revealed that they have discovered the “value and power of first-party data” that they can quickly access from their own customer relationship management (CRM) solution and website.
  2. Have the right team in place: O’Dowd indicates that as tech entertainment company, Netflix has the culture and talent for a successful programmatic buying team in house.  They also have the benefit of cross-departmental communications between their programmatic, social, and paid-search teams.  Sharing data and discussing insights is easier when key people are under the same roof.  Not every business has this techie advantage.  Your best advertising team could be in house or it could be at an outsourced agency.
  3. Efficiency and effectiveness are also key variables: There are tasks worthy of outsourcing, such as those situations that require extra ‘hand-holding and work’ according to O’Dowd.  Fetters indicated that bringing advertising in house could improve the efficiency of their advertising.  There is a cost-benefit ratio between managing advertising internally or outsourcing certain tasks to an agency.

Whether you outsource or move advertising in house, you want to make sure productivity and profitability is improved, not drained.  Contact HSO for more information about using CRM to streamline your advertising efforts and insight.