What's Happening?
Georgia-Pacific has established its own programmatic media team to improve its digital marketing strategies and optimize ad spend efficiency. This move is part of the company's efforts to gain better control over its digital media investments, which have
been increasing significantly. Previously, Georgia-Pacific relied on a media agency for its digital media needs but faced challenges with transparency regarding fees. The company decided to bring media buying in-house to have more control and visibility over its digital spend. The initiative began with a test on one brand and channel, which eventually expanded into a full in-house media operation over four years. The team focuses on programmatic buying, search, social media, and marketing analytics, while their media agency, OMD, continues to handle holistic strategy and planning.
Why It's Important?
The establishment of an in-house programmatic media team by Georgia-Pacific highlights a growing trend among companies seeking greater control and transparency in their digital advertising efforts. By managing media buying internally, Georgia-Pacific aims to reduce costs and improve the effectiveness of its digital marketing campaigns. This move could influence other companies to consider similar strategies, potentially impacting the media agency industry. The shift also underscores the importance of data transparency and the need for companies to have direct access to performance metrics to make informed decisions about their advertising investments.
What's Next?
Georgia-Pacific plans to continue expanding its in-house media capabilities, with a focus on increasing the frequency of its marketing mix modeling and conducting more granular analyses. The company is also exploring different approaches to connected TV buying, although it still relies on its media agency for certain aspects. As Georgia-Pacific refines its in-house operations, it may further reduce its dependence on external agencies, potentially leading to a more hybrid model where both in-house teams and agencies play complementary roles.
