For Some Advertisers, Traditional Agencies Simply Offer No Longer Enough Benefits

In the United States more than 75 percent. by advertisers today an agency function in the company itself. Insourcing is on the rise – and it requires innovation from the traditional agencies.

There are many advantages to placing their marketing tasks at a desk, but there are also advantages to solving the tasks themselves.

In any case, it still means more American advertisers, according to a survey recently conducted by the American Advertising Association ANA (Association of National Advertisers).

Of a total of 412 respondents, 78 percent – well three out of four – in 2018 an office function in-house. Five years earlier, it was 58 percent. and in 2008 42 percent. And in-house agencies get over a wide comb more to do, it sounds.

Lower costs

Seven out of ten indicate in the past three years that they have moved existing business previously handled by external agencies into the company’s own office hours. This applies in particular to content marketing, social media and influencing marketing.

The main reason for dragging office and marketing services into the company is, in addition, an obviously better knowledge of the business economy. Lower costs, according to ANA’s investigation, thus weigh heavier than, for example, pace.

An ordinary office

In Denmark, a company like Lego already went all the way in 2001 and set up a full-service agency.

Vivi Schl√§gelberger, head of Lego Agency’s global campaign development, called in a recent interview in September the internal agency of “a very common advertising agency, wrapped up in something for a desk as uncommon as a corporate set-up”.

And while this may be a challenge for creative minds, the advantage of having the in-house office according to Vivi Schlägelberger (photo) is that you can do things faster and better.

Creativity is lifted

Lego Agency today counts around 400 employees at the headquarters in Billund, and it immediately makes us to Denmark’s second largest, based on the number of employees.

Like the vast majority of companies in the US survey, Lego occasionally uses external agencies, but Lego Agency is responsible for most of the Group’s campaigns, for all packaging W88 and all digital platforms.

Thus, in the US study, it is also emphasized that in-house agencies today take far more than just “low-fat fruits like PR material and internal videos”.

While external advertising agencies have historically been considered the site of creativity, the creative expertise of the internal agencies has been significantly increased in recent years, and ANA goes so far as calling development pioneering.

Cooperation and coexistence

Although external agencies remain an important enterprise sparring partner, the United States Advertiser Association says there is a reason to shout guard at the offices.

For some advertisers, claiming the association, traditional agencies simply offer no longer enough benefits, which is also the reason why agencies increasingly move in-house.

Against this background, ANA calls on the external agencies to become more transparent and, in particular, to find new ways to cooperate and seek out their internal pendants.

Just these thoughts make Jacob Rosendal, marketing director at the Royal Theater, in his lump about ‘inhousification’.