Current technology trends in the advertising industry promise to provide more revenues for publishers, substantial cost savings to the big brands -- the advertisers, and greater data transparency -- but at a disruptive cost.
As much as 60% of advertising budgets are spent on various services and fees from the many third-parties involved in media buying. That's a lot of money that publishers aren't getting and for which the brands are potentially overpaying.
There's a lot of money to be made by squeezing the middle -- the agencies and the third-party services and ad networks that soak up the billions of dollars in the huge multibillion-dollar advertising industry. The incentives for publishers and brands to close this gap between them is enormous.
Access to data is a key issue. Programmatic media buying requires lots of data, but outside agencies that charge hefty fees usually run these systems. In-housing is a key trend that is saving brands millions of dollars by bringing programmatic media buying into the company.
Digiday reports that Bayer saved $10 million in the first six weeks of bringing programmatic media in-house. In-housing programmatic brings additional benefits -- direct access to customer data. And companies can build direct relationships with customers without having to go through agencies or other third parties.