What is an In-House Marketing Agency and Should You Have One in 2024?

What is an in-house marketing agency?

An In-House Agency (IHA) is a marketing team within a company that handles all aspects of marketing exclusively for that company, rather than outsourcing these tasks to external agencies. 

In-House Agencies (just like external agencies) cover a wide array of marketing functions across both media and creative, and each agency type can be tailored to specific business needs. 

Current Trends

Across the world, researchers are reporting a significant momentum around in-house agencies: 

• The World Federation of Advertisers reports 66% of multinationals now have in-house agencies, with 21% actively considering one (up 16% since 2020). 

• The USA’s ANA (largest marketing association in USA) reported that 82% companies surveyed had some type of in-house marketing agency, up from 78% in 2018 and nearly double the rate of 42% in 2008 when the survey began. 

• The Australian In-House Agency Landscape report reveals 78% of marketers now work with an in-house agency. 

Benefits of In-House Agencies

Brands all over the world are building up their in-house agency teams due to several significant benefits: 

• Cost Savings: In-housing marketing operations can reduce costs by eliminating media markups, fees, and waste. Some assessments reveal that 15%-25% of budgets are lost to inefficiencies.  

• Enhanced Control: Bringing marketing in-house can provide brands with greater transparency and control over their media buying processes. This may allow for quicker identification and implementation of optimisation opportunities, making marketing efforts more responsive and effective. 

• Deeper Insights: First-party data is now invaluable. In-house teams can seamlessly leverage this data for better personalisation and real-time insights. 

• Expertise and innovation: In-housing also helps build internal expertise and fosters innovation. It streamlines collaboration across departments, aligning marketing strategies with broader business objectives. 

Out-source, In-House or Hybrid? 

The rise of In-House Agencies does not spell the demise of external advertising agencies or consultants; rather, it marks a shift in the marketing landscape. While the statistics show significant momentum in the creation of In-House Agencies, most work in a hybrid model, blending the strengths of both in-house capabilities and the specialised expertise of external agencies. 

According to the IHA Benchmarking Survey (2023), IHAs are “certainly not self-sufficient: 96% use external agency partners.” 

A Hybrid Model allows businesses to maximise control and agility while still benefiting from the broad, innovative perspectives that external marketing agencies provide. This collaboration can lead to enhanced creativity and effectiveness in a company’s marketing efforts. 

Examples of Brands with In-House Marketing Agencies 

Here are some notable examples of brands with in-house marketing agencies: 

M&S Food

In 2021, M&S Food announced it was bringing the creative and production of all advertising assets, including TV ads, in-house.  

Unilever U-Studio

Since launching in 2016, Unilever’s In-House Creative Agency U-Studio has grown to over 20 locations across 18 countries. U-Studio works with hundreds of Unilever brands including Marmite, Dove, Cif and Pot Noodle, with “several thousand projects” running at any one time! 

U-Studio works with external partner OLIVER to run their In-House Agency.  

Unilever leverages a hybid model, funneling the work to both U-Studio and many other external advertising agency partners - wherever the best capabilities are.  

Specsavers Creative

Specsavers Creative has been around since 1984 and is now a team of over 100 and brings together producers, strategists, artworkers, conceptors, account handlers and designers. 

Specsavers continues to work with external creative agency partners. 

The Lego Agency

The Lego Agency is focused on brand identity, packaging design, promotions and communication, in-store materials, experiential marketing and social media. 

The Lego Agency employs over 400 people across five countries but still works alongside creative agencies when needed. 

Australian Institute of Management

The Australian Institute of Management has always managed their creative in-house. Recently AIM has been expanding their in-house capabilities to include some digital media execution.  

The AIM In-House Media agency works closely with Hopper Intelligence. 

Sanitarium 

Sanitarium’s In-House-Agency is called Co-Lab. They specialise in organic and paid social media, creative design and web development. 

Their In-House team works with a variety of creative and media specialists including Connected Media.  

Sainsbury’s ‘Zest’

Sainsbury’s In-House Agency is called ‘Zest’. They provide end-to-end creative and content production for Sainsbury’s portfolio of brands including Sainsbury’s, Tu, Argos, Nectar, and Smart Charge. 

Recently, Sainsbury’s has been expanding their In-House Agency – recruiting 30 new roles in 2024! 

Optus

Optus launched its In-House agency in 2017 – called ‘Yes Agency’. It initially focused on internal communications and in-store materials but has since expanded to include both creative and digital media. Yes Agency now has over 40 employees, a dedicated and separated office space (to create a physical and mental barrier).

Ikea 

Ikea has had an in-house marketing team since 1948! In 2022 they launched the ‘Content Factory’ which today employs over 60 people. 

Ikea’s in-house team works alongside agencies partners like Mother and Accenture. 

In-house marketing agencies are reshaping the landscape of marketing. With the potential for cost savings, enhanced control, deeper insights, and fostering internal expertise, it's no wonder why more companies are shifting towards in-housing. The flexibility of a hybrid model further allows brands to balance the benefits of internal and external capabilities, ensuring that they can remain agile and innovative. 

For businesses contemplating the shift, it’s essential to weigh the benefits against the specific needs and goals of your organisation. While the statistics and examples demonstrate a clear trend towards in-house capabilities, each company must tailor its approach to best fit its unique circumstances. The future of marketing will undoubtedly continue to evolve, and those who can adapt and innovate within this dynamic landscape will thrive. 

Thinking about establishing an In-House Agency marketing team or growing your existing one? We're here to help. Together we can create a thriving in-house agency model that fosters growth and innovation for your brand.