{"id":58482,"date":"2023-12-20T14:55:14","date_gmt":"2023-12-20T22:55:14","guid":{"rendered":"https:\/\/www.creativecircle.com\/?p=58482"},"modified":"2023-12-20T14:55:14","modified_gmt":"2023-12-20T22:55:14","slug":"in-house-agencies-are-gaining-steam-what-does-this-mean-for-marketing","status":"publish","type":"post","link":"https:\/\/www.creativecircle.com\/blog\/in-house-agencies-are-gaining-steam-what-does-this-mean-for-marketing\/","title":{"rendered":"In-House Agencies Are Gaining Steam \u2013 What Does This Mean for Marketing?"},"content":{"rendered":"

One of the hottest questions in marketing these days is: are you in<\/em>, or are you out<\/em>? Many brands are setting up in-house teams to do work traditionally done by external agencies, giving birth to a new advertising and marketing model<\/a> that may just have staying power.<\/p>\n

The Association of National Advertisers, or ANA, has been doing a study every five years called The Continued Rise of the In-House Agency<\/a>. The 2023 edition shows that 82% of marketers now have in-house agency teams \u2014 up from 78% in 2018, 58% in 2013, and just 42% in 2008.<\/p>\n

What is an \u201cin-house agency\u201d?<\/h2>\n

For the ANA study, \u201cin-house agency\u201d was defined as “a department, group, or person that has responsibilities that typically are performed by an external advertising or other MarCom agency.\u201d<\/p>\n

In-house agencies, sometimes called IHAs, center on an internal marketing team that handles advertising exclusively for the company. IHA employees leverage their in-depth knowledge of the brand and its needs to create marketing strategies and craft campaigns without the help of an external party.<\/p>\n

The ANA report \u201cdefinitively shows that in-house agencies have become a firmly entrenched part of the holistic marketing ecosystem and are now a mainstay among a majority of marketers,\u201d said ANA CEO Bob Liodice.\u202fBut he hedged, \u201cAgencies still play an important role for marketers, witnessed by the fact that 92% of respondents still use them.\u202fBut the growth of in-house capabilities has clearly changed the client\/agency relationship over the past 15 years.\u201d<\/p>\n

In-house versus External<\/h2>\n

Moving advertising and creative in-house is one of the most popular trends in marketing \u2014 but there is no one-size-fits-all solution. Some companies may find the initial time and investment to set up an in-house team outweigh the possible benefits. Two distinct IHA models have emerged: in-house<\/strong> and hybrid in-house<\/strong> agencies.<\/p>\n

The completely in-house agency<\/strong> builds out all the digital marketing functions within the company, which gives the business total control of its data, the ability to shift tactics quickly, and confidence that privacy regulations are being followed with data. Contrast that with agency marketing<\/strong> \u2014 the traditional model \u2014 where marketing and advertising work is outsourced to an external team that manages all a company\u2019s marketing and advertising work. Agencies theoretically have the strategy, connections, resources, and know-how to successfully promote a business. They often have teams dedicated to specific tasks like strategy, media buying, copywriting, design, project management, and account management who interface with the client.<\/p>\n

Somewhere in between, we have a hybrid in-house agency<\/strong> model, where critical data is owned and lives with the brand. The brand usually also owns the media accounts, adtech accounts, and data management and has a small team dedicated to managing external agency activity with clearly defined goals. Marketing campaign infrastructure and accounts live with the in-house company team, while an external agency runs campaigns and handles digital data. This model often works well for companies with small digital marketing teams that need more resources and know-how to manage data in-house. Brands will often outsource media buying, especially programmatic buying, which helps explain the growing popularity of the hybrid model.<\/p>\n

In-house marketing and external advertising agencies each have positive and negative aspects; the utility of each option varies depending on your business. Here are some pros and cons of each.<\/p>\n

First, the pros<\/span> of in-house agencies:<\/h3>\n