Volume 20 No. 1: AI and reimagining the agency model
We’ve updated our newsletter to get you the important information as quickly as possible. Stay tuned for short, sweet, and data-focused issues each week. Today we’re talking about the future of the agency model.
82% of ANA members have an in-house agency.
That’s up from just 58% in 2013 and a mere 42% in 2008. Marketers are increasingly investing in project-based assignments with agencies, establishing fewer agency-of-record partnerships, and focusing on in-housing when possible.
Agencies need to evolve to survive.
Brands are building in-house. Internal pressure to provide tight turnarounds and reduce costs combined with the benefits of leveraging institutional knowledge has made in-housing appealing for many brand-side marketers. And now, generative AI holds the potential to put certain types of agencies out of business.
But there are reasons why brands work with agencies. They provide an unbiased, outside perspective. And some capabilities, such as market research teams, are expensive to build internally.
However, the way agencies work will have to change to remain competitive. An agile approach that focuses on proving their impact is crucial. As is working more collaboratively with clients’ other agencies, vendors, and tech stacks. Listen in on our discussion.
“The Continued Rise of the In-House Agency”
The ANA’s 2023 report reviews the growth of in-housing based on a survey of all ANA members. The research includes which areas of expertise are a focus for in-housing, the reasons behind the trend, and how this affects relationships with external agencies. Read the report.
Change is a must.
“Change is inevitable. Growth is optional.”
—John C. Maxwell, best-selling author