A complete roadmap to in-house advertising operations! Thorough explanation of necessary preparations and issues

As the number of companies focusing on web advertising operations increases, there are probably many people in charge who are considering in-house. The more you focus on advertising , the higher the cost will be, and the commission will be higher if you are asking an agency.

Therefore, in this article, we will explain the roadmap to in-house advertising operations. It also summarizes the guidelines for considering in-house, preparations to be made in advance, and issues. If you want to work on in-house from now on, please refer to it.

Table of contents

  1. What is in-house advertising operation?
  2. 3 patterns of in-house
  3. Challenges in in-house advertising operations
  4. Preparing to move ad operations in-house
  5. Roadmap to in-house advertising operations
  6. Points to determine whether ad operations should be in-house
  7. Let’s succeed in in-house by running together with a reliable agency

In-house or outsourced advertising?

What is the ideal relationship between advertisers and agencies? We will show you in what cases in-house or outsourcing is appropriate.

What is in-house advertising operation?

In-house is also called in-house production, and refers to doing business in-house instead of outsourcing. In-house advertising operation means completing a series of processes related to advertising operation within the company .

If you outsource advertising operations, you will have to pay the advertising agency, but if you do it in-house, you can reduce various costs and expect to improve cost effectiveness .

Programmatic advertising mainly involves the following tasks:

  • Advertisement strategy planning
  • Advertising media settings
  • creative creation
  • Budgetary control reporting
  • analysis
  • improvement

In some cases, all of the above operations are done in-house, while in other cases, some of them are outsourced. Choose a style that suits you.

3 patterns of in-house

Heavy is a system in which all operations related to advertising operations are in-house. Although the training cost is high, the advantage is that it is easy to control in-house.

The middle is a system that receives support from external partners for strategy and policy planning , etc. while conducting advertising operations in-house . There is an advantage of being able to utilize professional knowledge and experience.

Light is a system in which advertising operations and policy planning are outsourced to external partners . This is the least time-consuming pattern for companies, but it tends to be difficult for companies to accumulate know-how.

It is important to understand the pros and cons of each and choose the system that best suits your company.

Challenges in in-house advertising operations

Securing human resources and developing a training system are issues for in-house advertising operations. Human resource development is essential for successful in-house development. Let’s take a closer look below.

Securing human resources

In order to bring in-house operations related to advertising operations, it is necessary to recruit and train personnel with specialized knowledge and skills . In recent years, there have been cases where the shortage of human resources has become a serious issue, and many companies have made securing human resources a major issue.

If it is difficult to operate with only the current members, it is necessary to hire new personnel. One advantage of moving in-house is the reduction of costs, but if personnel costs soar due to the hiring of new personnel, it is putting the cart before the horse. Consider moving to in-house based on your company’s resources.

Improvement of education system

In-house advertising operations cannot be successful simply by securing human resources. It is necessary to provide the necessary training to the secured human resources and have them acquire specialized knowledge and skills .

In addition to the need to develop an educational system, there are many cases where the cost of education is large, so care must be taken when moving to in-house. Instead of looking at the short term, let’s think with medium- to long-term cost-effectiveness in mind.

Introduction of tools

There are various tools related to advertising management, and the introduction of them can be expected to improve the efficiency of operations. Choose a tool that suits your advertising strategy and use it appropriately.

However, it takes a certain amount of time to select tools and build an operation system after introduction. There are many cases in which unnecessary costs are incurred due to inadequate use . It is important to consider the introduction of tools with these points in mind.

Preparing to move ad operations in-house

Various preparations are required to bring advertising operations in-house. Below are two preparations you should make in advance.

Transfer an ad account

The first is the transfer of advertising accounts . Organize basic information, such as the platforms and accounts you’re advertising on . If you are currently outsourcing, you should be able to find out immediately by contacting the outsourcing company.

In the case of accounts opened by a subcontractor company , the subcontractor often owns the account. In that case, you will have to transfer ownership . There is also a method to issue a new account , but in that case past data and achievements cannot be carried over.

Also , depending on the platform, the transfer itself may not be possible. Please note that there are some media that cannot be advertised without going through an advertising agency.

Check the payment method for advertising media costs

The second is to confirm the payment method for advertising media expenses. Advertising costs paid to platforms and media are generally borne by the account owner . Therefore, if you have outsourced, check the payment method together with the account transfer.

Credit card payment is the most common method of payment. Please note that there are many cases where the advertising operation fee is higher than the card’s usage limit .

Roadmap to in-house advertising operations

Bringing ad operations in-house takes many steps. Here, let’s take a look at the roadmap to in-house.

1. Clarify the purpose and goals of in-house

First, clarify the purpose and goals of in-house advertising operations. Once the team members share the problems and concerns about the current advertising operation , it will be easier to determine the purpose and goals of in-house.

Based on those objectives and goals, we will decide the in-house system from heavy, middle, and light. Each has advantages and disadvantages, so it is important to choose the one that best suits your purpose.

In-house or outsourced advertising?

What is the ideal relationship between advertisers and agencies? We will show you in what cases in-house or outsourcing is appropriate.

2. Consider the people and tools you need

Once you have clarified your objectives and goals and decided on a policy, consider securing resources and introducing tools based on the necessary human resources.

For example, if you want to perform analysis and improvement in-house, you will need analysis tools. The necessary tools and human resources to secure will change depending on how far you go in-house, so it is important to distinguish what you need according to the operation policy .

3. Develop an educational system

Once you have decided on the people and tools you need, the next step is to organize your education system. In-house development cannot be achieved simply by gathering the necessary number of human resources, and it is necessary to have the recruited and appointed human resources acquire the necessary knowledge and skills. Please also calculate the cost of education at that time .

In some cases, the cost of education is a big burden, so it is necessary to consider it together with the merits of in-house.

4. Build an operational structure

Once we have the necessary personnel and tools, we will build an operation system. Please prepare a system while grasping what kind of flow will be used to create and operate advertisements .

Secure personnel who can handle tasks such as planning advertising strategies, setting advertising media, creating advertising creatives, and managing budgets. Since each job requires specialized knowledge and skills , it is necessary to select the most suitable personnel .

5. Start operation

Once the operation system is established, let’s start the actual operation.

In addition, in order to operate advertising in-house, it is necessary to clarify the purpose and goals, and to have an operation system with human resources with the necessary knowledge and skills.

Let’s check again whether the preparations up to this point have been completed properly.

6. Measure the effect after the start of operation

Advertising is not the end once it starts operating, but regular effectiveness measurement is required. Take a long-term view, as you won’t get great results from the beginning .

It is important to gradually aim for effective operation while measuring the effect.

7. Proper improvement and PDCA cycle

After the start of operation, we will analyze the results and make appropriate improvements, turning the PDCA cycle. By turning the PDCA cycle, you will be able to perform more effective advertising operations.

Also, if you want to analyze and improve in-house, it is recommended to introduce an analysis tool . Let’s aim for effective advertising operations by using multiple tools well and coordinating them.

If you want to know more about how to turn the PDCA cycle in advertising operations , we also recommend the following articles.

Points to determine whether ad operations should be in-house

Bringing advertising operations in-house does not guarantee results. Therefore, it is important to decide whether to go in-house depending on the current advertising operation situation.

Below are two points to consider.

Estimated advertising costs and commissions

Let’s check the advertising expenses and commissions paid to the outsourcing company . In general, about 20 to 30% of the amount of advertising is a commission, so companies with high advertising costs are considering in-house.

As a guideline, if the advertising cost exceeds 1 million to 2 million yen, consider moving to in-house. Estimated advertising costs vary depending on the size of the company, so it is important to consider human resources and other factors.

Is it possible to secure human resources?

If we cannot secure human resources, it is difficult to move in- house .

If you don’t have human resources, consider which one is more cost-effective, considering the cost of securing and training human resources.

Let’s succeed in in-house by running together with a reliable agency

There are many issues with in-house advertising operations, and it is difficult to do all the work in-house from the beginning. Therefore, at the initial stage, it is recommended to go in-house while working with a reliable advertising agency.

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