In-House Vs. Outsourced: Which Is Ideal For AdOps?

If you have come here, like other publishers, looking to know – “if you should build an in-house ad operations function or outsource it to an expert,” then you’ve come to the right place.

Well, the answer is simple.

If you have the expertise, time, and resources to manage the function internally, go ahead. There is nothing better you can do for your website. However, if the answer to any of these questions is ‘no,’ then outsourcing is your answer, as managing ad operations can be a daunting task. AdOps teams can help you in proper ad management by handling the behind-the-scenes, round-the-clock work to ensure that digital ads are served seamlessly.

The Middleman Magic: Need for AdOps

In the universe of digital advertising, publishers are like hosts who create captivating content, invite readers from all corners of the web, and serve them ads in exchange for free content. But, things can quickly spiral out of control without someone to manage the advertising operation function. Here’s when the publishers seek experts like the AdOps team.

According to a study by Nielsen, 83% of consumers say they find online ads annoying or intrusive. That's a big problem for publishers trying to keep their audience engaged. AdOps teams have mastered that expertise to strike the right balance between designing an inclusive ad layout, maximizing user experience, introducing new strategies, and experimenting with newer technologies to uplift publishers’ ad revenue.

But, the dilemma is – whether to build an in-house ad operations function or outsource.

In-House Vs. Outsourced - Which is Better?

To make a choice that resonates with your needs perfectly, it is important to understand the pros and cons of each approach to help make a better comparison between in-house and outsourced. Let's dive into it.

Pros of Outsourcing:

Premium and exclusive demand: This partnership can offer you access to global demand relationships and strategic partnerships, including top ad exchanges, DSPs, PMPs, and custom format ad networks, without requiring a lot of time to acquire them.

No need to source talent: You don't have to go through the hassle of finding and building a whole team from scratch, as you get real-time ad ops and dedicated white-glove support with an outsourced partner. Plus, the team will bring in their expertise and experience, which can result in an effective AdOps function.

High-quality ads: Brand safety and user experience will be the top priorities of an outsourced ad management vendor. They will give you access to high-quality multi-format ads that ensure great performance without messing up the UX or page speed.

Cost efficiency: Outsourcing eliminates the need for internal recruitment, training, and infrastructure investments, saving you a ton of money. Since outsourced teams are contract workers, you only pay for the services you need without the added expenses of full-time employment. With a flat fee model, Mile can help you boost your ROI while also improving your ad revenue profit and maximizing your cost efficiency.

Truly AI-backed tech solutions: Outsourced teams bring their own AI tech solutions to the table, saving you the trouble of developing them yourself. They can also hook you up with access to Google AdX, which can give your website a big boost for your ad campaigns.

Cons of Outsourcing:

Loss of control: When you hand over your ad operations to an external agency, you're giving up some control. You'll have to trust their decisions and strategies, which might not always align perfectly with your vision.

Communication challenges: There can be communication gaps between publishers and external agencies, leading to misunderstandings or delays.

Potential competitor conflicts: Outsourced agencies may work with multiple publishers, some of whom could be your competitors. This could raise concerns about confidentiality or conflicting interests.

Need for coordination: Even after outsourcing, you might still require an in-house AdOps expert to manage and coordinate tasks with the outsourced team. It adds an extra layer of complexity and budget restraint to the mix.

Pros of In-House:

Total control: You own all the core functionalities and decision-making, which offers you greater control over your ad tech stack. Simply, there is zero to no dependency on anyone. You can customize strategies to fit your needs and adapt quickly.

Scalability backed by real-time analytics: With in-housing, you can scale your advertising operations basis real-time analytics, insights, and data points from publishers around the world. This can enable you to identify and troubleshoot issues before it could impact your ad revenue.

Run multiple complex tests and experiments: With an in-house team at your disposal, you can run tests, manage experiments, and make changes based on real-time, incredibly granular analytics.

Access to AI and ML-powered technology: Having an in-house ad ops expert, along with a scalable partner like Mile, can improve your AdOps function. It enables you to scale your operations by giving you access to advanced features like an AI-powered dynamic flooring module, inventory curation, bid throttling, and revenue forecasting.

Transparency: In an in-house setup, you have access to all the core functions, expenses, results, reach, CPMs, etc. With enhanced transparency, you can better understand your return on investment and make decisions that directly impact your bottom line.

Cost-efficient processes: With more control, you can improve the efficiency and efficacy of your ad operations, saving you money in the long run while making extra ad revenue through the proper and on-time implementation of strategies. Moreover, you can leverage the flat fee model from an AdOps partner like Mile to meet your budget constraints while still having an expert by your side.

Dedicated support: While you are in the process of building an in-house AdOps team, Mile will be your in-house team, providing you exclusive white-glove support. This undivided attention helps you attain your business goals faster and more efficiently without wasting any time.

Programmatic advertising made easy: If you have a bunch of direct deals happening, then building an in-house team is worth it. They can handle these partnerships while helping you run your site efficiently. Moreover, they can maximize ad revenue from the rest of the ad inventory by diversifying your programmatic efforts.

Cons of In-house:

Limited expertise: In-house teams might not have the specialized knowledge and experience needed to run effective ad operations. They might lack the know-how, especially when it comes to new tech and trends. This could affect the success of ad campaigns. However, when you work with Mile – you have unlimited access to dedicated tech support, and you can work with them like you would with an in-house team.

Tough to scale: It's tough for in-house teams to adjust their operations quickly, especially during busy times, and evolve with digital trends. Adapting to sudden changes or big surges in demand can be a real headache for your in-house team.

Lack of tech solutions: In-house teams don't come with ready-made solutions like header bidding. Publishers have to develop these solutions themselves, which can be a hassle and expensive, especially for smaller publishers.

Commitment to expenses: Hiring full-time employees can be costly for publishers, especially small publishers, and can put a great dent in the budget. Moreover, publishers have to invest in hiring, training, and setting up the necessary infrastructure, which takes up a lot of time, money, and effort. Well, this wouldn’t be the case when you partner with an in-house AdOps expert, Mile, whose main focus is to maximize your ad revenue profit while helping you save time, resources and efforts.

In a nutshell: In-house

AdOps teams envision the future demands and know what you need before you actually need it. With more people accessing the internet from their smartphones than ever before, optimizing ads for mobile has never been more important. According to eMarketer, mobile ad spending is expected to surpass $400 billion by 2024. That's a huge market, and publishers need AdOps teams to help them navigate it successfully. They optimize ad placements, negotiate deals with advertisers, SSPs, and ad exchanges, and constantly monitor performance metrics to ensure that every impression counts. They also manage and update ad servers, troubleshooting any technical issues to ensure ads are distributed smoothly across the proper channels. They are in charge of scheduling when ads should appear, taking into account factors like the time of day and holidays. This way, these teams play a crucial role in maximizing publishers' revenue.

What’s your call?

In the words of Celia Wu (Managing Director, Global Press News Services),

“Ad operation professionals are the Publishers’ Unsung Heros.”

We believe if the resources are in your favor – you should definitely build an in-house AdOps team and onboard a partner who lends you the resources and expertise and helps you build an in-house ad stack that maximizes revenue. And with a partner like Mile, you’ll own all the core functionalities and decision making of your ad tech stack while also leveraging deeper market intelligence without spending years of development time. You’ll also have unlimited access to dedicated tech and implementation support for all your custom requirements.

However, if you don’t have the time, resources, or energy to invest in an in-house AdOps, outsourcing will be the safest bet. Mile will take over all the responsibilities and, in return, give you at least a 20% revenue uplift – while making you better in every programmatic aspect. Whether you opt for in-house or outsourcing AdOps, make a smart choice with Mile, who can be your partner and help you maximize your ad revenue profit at a flat fee model.

So, the decision of in-house vs. outsourced AdOps comes down to finding what’s your bandwidth and what tasks you are ready to own, such as ad management, ad revenue optimization, creating an ad layout, ad performance reporting, site management, and more. While in-house AdOps offers greater control, customization, and white-glove support, outsourcing provides access to specialized expertise, scalability, and cost-effectiveness. Be clear about your needs and plan for the future, as onboarding, in-house or outsourced, can be a long process, and asking the right questions can get you what you want.