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Navigating the Programmatic Advertising Maze: Should Agencies Build or Outsource?

Agencies face a critical juncture: to build an in-house programmatic department or outsource this vital function to specialized partners. This dilemma is at the heart of a comprehensive white paper collaboration between Klever and Ad Age, providing an in-depth exploration into the nuances, challenges, and potential benefits of these two paths.

The Increasing Demand for Programmatic Expertise

The white paper starts by outlining the increasing demand for targeted ad campaigns and the critical decision-making process agencies must navigate. With 18% of brands moving programmatic efforts in-house for increased control and a significant portion reconsidering their strategies, the focus turns to agencies: should they follow suit or outsource this complex function?

Benefits of Embracing Programmatic Advertising

As explained in the white paper, programmatic advertising allows for the orchestration of dynamic campaigns across multiple channels, engaging diverse audiences. Not embracing programmatic opportunities might limit an agency's growth potential and revenue streams. Notably, it plays a pivotal role in establishing brand awareness and interest, laying the groundwork for downstream conversions.

Building In-House Capabilities vs. Outsourcing: The Dilemma

The dilemma between an in-house vs outsourced programmatic team is explored in depth in our white paper. On one hand, building in-house capabilities offers greater operational control and potentially higher profit margins, but it also presents challenges such as expertise gaps and staffing hurdles. Acquiring skilled personnel and staying abreast of the rapidly evolving landscape demand considerable investment and ongoing commitment.

Alternatively, outsourcing programmatic services provides access to expert proficiency, a broader spectrum of technological tools, and a more streamlined campaign outcome. It offers a strategic lifeline for agencies, enabling them to tap into a wider array of resources without the need for extensive internal changes.

The Complexities and Considerations

The white paper dives deep into the intricacies surrounding the staffing challenges, technological investments, and the relentless need for agility to stay ahead in the programmatic landscape. It stresses the importance of understanding and navigating the labyrinthine aspects of technology, talent acquisition, and the imperative for expeditious insights.

Navigating the Decision-Making Process

Ultimately, the white paper offers a valuable framework for agencies to assess their circumstances and strategic aspirations. It emphasizes the importance of considering the unique circumstances and aspirations of each agency, allowing them to make informed decisions that align with their business objectives.

Final Thoughts: A Guiding Compass for Agencies in the Digital Advertising Ecosystem

In synthesizing the pros and cons of each option, agencies can cultivate a compass that guides their trajectory in the dynamic landscape of digital advertising. The white paper encourages agencies to explore and weigh the considerations to make a judicious decision that aligns with their goals.

The white paper serves as a comprehensive resource, encapsulating a web of critical considerations beyond operational logistics, ultimately delineating the trajectory an agency takes within the digital advertising ecosystem.

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