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Inhousing on the rise as agencies find themselves under threat

A new report from the World Federation of Advertisers (WFA) and The Observatory International reveals creative inhousing has risen to 57% among multinational companies.

53 advertisers were questioned for the report which has found that inhousing in on the rise as a result of the coronavirus pandemic.

The report highlights that 74% of established inhouse agencies were formed within the last five years. As a clear trend that has been ticking along for a few years now, what makes inhousing so attractive?


The long-lasting effects of coronavirus

With the world plunged into uncertainty earlier this year, many companies had to adapt to a new way of working. As the report reveals, brands have found it difficult to work alongside external marketing agencies. This only further emphasised the need for inhouse resources.

While external marketing agencies are facing the difficult choice of making cutbacks, inhouse marketing departments are thriving. In fact, 82% of inhouse marketers have reported an increase in their workload over the year.


Why inhousing is becoming so popular

As time goes on, the fractured relationship between client and marketing agency continues to worsen. Agencies tend to deal with many clients which means your businesses will never be the priority.

Similarly, as a result, agencies will take longer to fully understand and immerse themselves in your brand. The point of marketing is to understand the brand message, tone of voice and imagery. Consistency is key and with an agency, this can prove to be a real struggle.

While it is true marketing agencies have years of experience with tools and resources on hand, it doesn’t necessarily mean that you’re getting your money’s worth.

As a result, more and more businesses are turning to inhouse marketing. The report found that 30% of respondents reported that cost efficiency was one of the main driving factors for going inhouse.

Similarly, 64% felt that inhousing resulted in better integration and 59% also felt that going inhouse resulted in better brand knowledge.


Are marketing agencies a thing of the past?

While the report certainly seems to suggest so, they aren’t quite a forgotten memory just yet.

Despite the report’s findings, nearly all participants (95%) continue to work with external agencies. Roughly 37% of creative output comes from in-house teams. Even those with inhouse teams are open to the idea of agencies. 40% will let agencies pitch to them.

So, although the report does identify a significant shift and trend in the marketing industry, it’s not the end for agencies – yet.

As coronavirus continues to shake up the digital world, it will be interesting to see how the inhousing trend develops going into 2021.


We’ve written a whitepaper exploring inhouse marketing and how big-name brands are making the move.

Modo25 supports businesses to help take their marketing inhouse. With specialist advice, training and guidance, we help you to grow an inhouse marketing them that can rival any agency.

If you’d like an informal chat or to find out more about working with us, drop us an email on .


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