Going In-House vs. Applying Outsourced Advertising Sales: Managed Service, or Outstaffing?
Outsourced advertising sales models are gaining real traction among ad tech players who are planning to build their own programmatic businesses these days. Programmatic advertising platforms are still on the verge of glory. By the end of 2021 programmatic ad spending is poised to reach 79,75 billion dollars in the US.
In spite of this brands aim for more independence in decision-making and strive to unlock all benefits of programmatic buying unavailable in regular solutions.
Data ownership, unparalleled internal control over operations, increased ad sales, and the ability to deliver measurable results to brands - those are capacities that agencies look for embracing proprietary solutions. For advertisers, such drivers in 2019 are operational control (50%) and media-spend optimization (42%). This is what white-label means in business, and this is why in 2019, 38% of advertisers only in EU turn to in-house.
In-house, white-label, outstaffing, and managed service models can all refer to outsourced advertising sales models. They all have their benefits, no matter what they will be used for: product building or maintaining this product and customer service provision. How to apply them wisely and choose the one that works for you? HOw do companies outsource advertising sales? For starters, let’s connect the dots.
Bringing programmatic trading in-house
The time has come when entire technological platforms are bought and sold like electronic devices. Having enough money, every enterprise or SMB can buy a programmatic advertising platform, from ad exchange to the supply-side platform, demand-side platform, or data-management platform.
Bayer, one of the world's largest brands, for instance, is planning to transfer all media purchases in-house by 2020. This way Buyer is planning to audit all internal costs, quickly control operations, and manage particular channels. If the business also lacks employees for going in-house outstaffed and outsourced advertising sales models may appear very convenient. Why? because typically right after this move the company or agency will face the following demands:
In such circumstances, the company needs an additional pool of human resources to keep the platform working and to ensure that business forges forward, scales, and improves. Going requires a lot of effort, no matter if it is platform-building itself or the maintenance of the ready-made platform.
Supporting ad operations. After the platform is built, companies often hire ad ops, ad sales team, account managers to maintain the platform. The ad ops will make sure that the platform is stable and functions without disruptions. Their typical work includes but is not limited to a campaign setup, trafficking, optimization, troubleshooting, etc.
Marketing and sales process. Ad sales outsourcing will help the company to get professionals who will serve clientele and boost advertising sales. These people will typically work in sales and marketing department, they will promote your service, boost brand awareness, encourage lead generation, and attract new partners.
Building and maintaining ad platform. In-house programmatic today doesn’t necessarily require building a platform from scratch. The white-label programmatic solution makes it possible to enter the market with a new ad tech platform in less than a month. One of them is SmartHub - the White Label Ad Exchange that significantly extends possibilities of programmatic.
With SmartHub there’s no need to invest costs in platform designing, testing, and licensing because the product core is already finished and RTB-connected. The rest of the customization process: partner connection and branding is a fairly quick process. Apart from this, working with a white-label solution is a completely new format of media trading because:
- In case you have a lot of supply/demand partners you can integrate them in and create an exclusive marketplace with unique demand and inventory.
- When you integrate partners of your choice you can control the volumes and quality of traffic and thus, directly impact network profitability.
- You can obtain extended traffic optimization and increase advertising sales as a result.
- SmartHub is a fully hosted and maintained platform that ensures easy and effortless partner integration that uses endpoints. (necessary support and guidelines during partner integration provided).
- The qps plan can be scaled if the server workload increases. This guarantees a stable and reliable workflow and opportunity for your business to grow while boosting ad sales.
Outstaffing for service provision
Search and training of in-staff specialists is a task that sometimes may stay beyond the capabilities of small or medium-sized enterprises. Outstaffing can guarantee the smooth functioning of services, which reduces the possibility of financial losses associated with downtime or technical problems. That’s why in the advertising business outstaffing is most frequently applied for platform maintenance.
This way enterprises can hire personnel responsible for managing workflow for their clients on White Label SSP and White Label DSP platforms. As an outstaffer (contractor) SmartyAds attracts its own specialists with thorough programmatic knowledge, strong technical and problem-solving skills.
While training ad ops, account managers ad sales professionals, we use comprehensive training programs. This allows our professionals to effectively communicate with your clients, optimize their campaigns, and aptly react to the slightest changes that may impact campaign outcomes. Applying outstaffing from SmartyAds team enterprises can:
- Open ad businesses in different regions without opening branches and hiring staff locally.
- Make sure account specialists are always in touch with the rest of the tech and ad sales team.
- Save up labor-associated costs for platform managing.
- Quickly engage top-class programmatic account professionals unavailable at job websites.
Manage served model
In order to effectively organize advertising campaigns based on so many conditions, like e.g correct targeting, dayparting, supply optimization strategies, platform owners often opt for managed service.
A company that has experienced programmatic specialists in staff can run campaigns independently. For those companies that lack such experience, SmartyAds can offer managed service on White Label SSP and DSP, which means that ad campaigns will be tuned and optimized by dedicated professionals (account managers).
This way the company gets professional advertising sales team onboard. Still, these specialists belong to the ad tech provider’s company. This means that ‘managed service’ professionals will also serve clients of other white-label platform owners who ordered managed service, while outstaffed advertising sales professionals will be hired specifically for your solution.
Managed service gives business owners a lot of opportunities, among which are:
- Manage-served professionals are much better accustomed to the provider’s software than hired staff.
- Much cheaper labor expenses for platform managing.
- Ability to focus on business development instead of servicing part and sales process.
- Ability to establish higher service fees with a managed service platform.
- Quick and easy way to assemble ad ops, ad sales team, account managers, etc.
Outsourced ad ops
Outsourcing and outstaffing both minimize risks, financial, resource costs, and taxes of the company that plans to hire account specialists for servicing clients. The concept of outsourced ad ops can comprise two kinds of collaboration we’ve already reviewed above: outstaffing and managed serve option. But how exactly is outsourced advertising applied in digital advertising? Let’s discover more about outsourced ad sales and ad ops.
Similarly to outstaffing model outsourcing enables newly created programmatic businesses to utilize all benefits of contract-based collaboration:
- Saving labor costs
- Saving costs for purchasing databases, CRMs, and additional software (contractor has all equipment).
- Paying for the result (contractor is entirely responsible for KPI and results).
- Finding top-class programmatic account professionals, ad ops, and advertising sales employees for platform and client servicing.
In-house and outsourced advertising models
Outsourced ad ops
Benefits of models
Outsourced od ops
If you are struggling to find the resources, time, and personnel for a certain advertising task, know that today you can do it with White Label which can be applied for all outsourced advertising sales and in-house models.
If you want to move to an in-house model, you can launch solutions like white-label SmartHub in a month and release yourself from the burdens of difficult integrations, and transition to RTB. The software core of SmartHub is fully hosted, maintained, and adjusted by our service professionals so that you could focus on your business goals instead of the technical sides of the product operation. In case your company experiences a lack of employees there’s always the chance to engage outsourced sales professionals. In comparison to other options outsourced ad sales will be focused entirely on your platform.
All advertising operations and their KPIs measuring can be commissioned to SmartyAds via outsourced ad ops, outstaffed professionals. These employees will be supporting campaigns at your company on your own terms. Functioning as a single unit (software + people) such a solution equips your business with all necessary resources and available tools that help your business grow and expand.
Need a comprehensive white-label solution suited to your needs? Let us help you today!
Oleg Tymchyshyn, Head of SaaS Sales and Business of SmartyAds