"But this thinking ignores a fundamental reality facing today's agencies: The market isn't just oversaturated with options; it's increasingly commoditized. Every agency has access to the same DSPs, the same optimization algorithms and the same measurement tools, which means that true competitive advantage becomes nearly impossible to achieve. For agencies willing to invest strategically in technology, building proprietary capabilities isn't a distraction from their core business; it's an evolution that can help them deliver better outcomes for clients."
"And yet the choice between building and buying technology can't be solely ideological; it must be strategic. Building tech requires significant investment, expertise and unwavering commitment. It also requires intensive work to integrate this new tech into every aspect of your business. Certainly, there are moments when outsourcing may seem the easier path. But agencies that dismiss in-house development entirely are limiting their potential for differentiation."
Market commoditization has left performance agencies facing diminishing differentiation as competitors share the same DSPs, optimization algorithms and measurement tools. Strategic investment in proprietary technology can create unique capabilities that improve client outcomes and compound competitive advantage over time. Building technology demands executive commitment, technical leadership, significant capital, expertise and sustained iteration, plus intensive integration across operations. Outsourcing can offer short-term simplicity but risks long-term homogeneity and limited differentiation. Agencies should evaluate whether they possess the vision, resources and execution capability to build enduring advantages and answer specific strategic questions before committing to in-house development.
Read at AdExchanger
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