In-House Agency Capabilities Brands Are Prioritizing, According to ANA Study
Rewritten Article:
In-house agencies ain't exactly the new kids on the block, as suggested by a fresh report from the Association of National Advertisers (ANA). Over 82% of ANA members admitted their companies run an in-house agency, according to the study, titled, "The Growing Phenomenon of In-House Agencies – 2023 Update."
The ANA carries out this survey, nicknamed as "The Continued Rise of the In-House Agency," every half decade. The latest results indicate a noticeable surge in in-housing over the past ten years. In 2018, around 58% of survey respondents stated they had in-house advertising capabilities – a rise of 20 points from 2013.
Looking back to 2008, when the ANA first dug into this topic, only 42% of the respondents had an in-house agency.
Here's a lowdown on what could be fueling this trend. Though the ANA study doesn’t deep-dive into these factors, industry experts point towards factors like cost savings, control, trust, digital transformation, talent retention, and agility as potential reasons for the growing popularity of in-house agencies.
- Cost Cuts: In-house agencies can slash costs typically tied to external agencies, like pitching expenses and regular agency fees.
- Control and Adaptability: Internal teams offer more control over creative processes and adaptability to cope with market changes.
- Transparency and Trust: Internal relationships and decision-making process transparency can boost trust amid stakeholders.
- Digital Evolution: Rapid digital evolution might be encouraging companies to develop in-house capabilities to tackle digital challenges more efficiently.
- Talent Hoarding: In-house agencies might act as a magnet for talent, particularly in competitive industries where external agencies may not align with a company's culture.
- Agility: In-house teams can respond swiftly to market changes, thanks to their direct ties with a company's operations and decision-making structures.
While these factors might explain the broad attraction of in-house marketing functions, the specifics from ANA's study would offer more defined insights into the driving forces behind this trend.
In the context of the growing popularity of in-house agencies, the increasing adoption of digital technology within businesses might be a significant factor. This could enable in-house agencies to tackle digital challenges more effectively compared to their external counterparts. Furthermore, the trend of in-house agencies could be influenced by the potential to reducing costs associated with external agencies, such as pitching expenses and regular agency fees.
