Digital media buying is becoming an increasingly strategic operation for advertisers. Moreover, the complexity of media buying procedures results in marketers losing control. That’s why, with each passing day, more and more advertisers started to carry out their digital media purchasing operations in-house. However it has advantages and disadvantages. Let’s explore the benefits and drawbacks of purchasing digital material internally.
In-House Digital Media Buying
Cost Savings: One of the most significant benefits of handling media buying in-house is cost savings. Businesses can devote more funds to actual media spending by avoiding agency fees and commissions.
Direct Control: Companies have more direct control over their campaigns when they acquire media in-house. They can make quick strategic changes, improve ad placements and targeting, and react to changes immediately.
Flexibility: In-house media buying offers flexibility, especially for companies that spend a lot of money on digital advertising. They are not dependent on the approval of an agency to change the pace, budget, or frequency of their campaigns.
Restricted Resources: Smaller companies might not have the necessary personnel or software to perform media buying internally. This may result in ineffective campaign performance and money squandered.
Freedom of Choice: It is a costly operation to replace a media buying team that does not perform as expected. But replacing a media buying agency is much easier.
Low Industry Knowledge: Businesses may not have access to the same amount of expertise and information as agencies, even with in-house media buying. Campaigns may be less successful as a result, and chances may be lost.
Time-consuming: Internal media procurement can take a lot of time, especially for companies with small staffs. Other crucial responsibilities, like product development and customer service, may suffer as a result.
Agency Digital Media Buying
Expertise: Agencies offer specialized knowledge and experience in purchasing digital media, as well as awareness of current trends and recommended procedures. They can offer businesses insightful direction and important strategic support.
Resources: A wider variety of resources are available to agencies, including cutting-edge tools and software. They can make use of these resources to enhance campaigns and boost efficiency.
Saving time: By outsourcing media buying to a company, firms can devote more time to other important responsibilities. Businesses may concentrate on growth by using agencies to manage the full process, from strategy formulation to campaign optimization.
Cost: Outsourcing media buying to an agency has a significant financial expense. In general, agencies charge fees and commissions, which can quickly mount up, especially for companies with a tight budget.
Limited Control: Giving up some control over advertising strategy and execution when outsourcing media buys to an agency. Companies might not have as much control and flexibility as they would if they handled their own media buying.
Communication: While working with an agency, effective communication is crucial. Unfortunately, misunderstandings or improper communication might happen, which can result in less than ideal campaign performance.
In conclusion, performing digital media purchasing activities internally vs via an agency has both benefits and drawbacks. A strategic business choice should be made regarding the execution of these operations in light of the available resources and the organizational structure of the business.