5 Brands Bringing Agency Responsibilities In-House

August 16, 2019

As the advertising industry evolves, brands are looking for more ownership of their data and measurement. In order to cut costs and provide more transparency into where dollars are being allocated, more and more national brands are bringing marketing management in-house. 

According to Digiday research, 38% of those surveyed said having increased control over their marketing functions was the greatest benefit of an in-house agency. 

In addition, 78% of marketers now handle at least some operations internally. Over the last three years, 26% of programmatic buying has gone in-house, such as these 7 major brands. 

We’ve collected five brands that have already made the jump, at least partially, in-house and insights and information on each brand’s decision to do so. Most in-house trends we’re seeing stem from a desire to work in a more nimble and responsive fashion in order to better serve customers and clients.

1. AB InBev Launches In-house Agency Amid Spend Decreases 

In an effort to better understand their consumers, AB InBev built a creative in-house agency, Draftline, in order to produce creative that is more local and personalized with more agility. There are currently 50 employees working at the agency handling TV production, packaging, outdoor, radio, email marketing, data collection and programmatic media buying for all 42 of AB InBev’s US brands.

Our in-house team of researchers reported the in-house shift will help Draftline create more personalized and local marketing and help connect consumer data to creative works. According to US CMO Marcel Marcondes, the in-house shift also allows AB InBev to “free up time” so it can focus on other agencies it works with. 

Draftline is likely intended to help AB InBev cut costs, and will focus on branding efforts to help save the legacy of AB InBev’s most popular brands. With more marketing on the horizon along with likely increases in spend, sellers and martech readers should begin engaging decision-makers as soon as possible. 

Request a Demo for Access to AB InBev Decision-Maker Contact Info 

2. GSK Consumer Healthcare Moving Media In-house Amid Spend Decreases 

GSK Consumer Healthcare (GSKCH), the entity that formed in January after GlaxoSmithKline and Pfizer merged their global consumer healthcare businesses, moved it’s media planning in-house, reported May. According to our team of in-house researchers, GSKCH is now considering moving digital buying functions including programmatic and search in-house. 

These in-housing efforts won’t completely eliminate GSKCH’s use of agencies, and they plan to continue to work with agencies that are willing to evolve and work in a transparent fashion.

This shift in-house will allow GSKCH to cut costs and reinvest and buy in-house according to VP of media Scott Grenz. These efforts will lead to improved customer experience and spend increases. Spend increases are also likely under GSKCH’S expanded licensing and collaboration agreement with Zymeworks, as well as it’s improved marketing team. GSKCH typically spends the most during Q1 and Q4. 

Request a Demo for Access to GSK Decision-Maker Contact Info 

3. Electrolux Moves Digital In-house Amid Spend Increases 

Electrolux, the home appliance maker known for brands such as Frigidaire and Eureka, partnered with agency MightyHive in order to move it’s digital media in-house according to February reports. It will begin the shift in North America and then expand to different regions across Europe and Latin America. 

After this shift is complete, VMLY&R will shift to TV media duties and VML will continue it’s responsibility as creative AOR. This shift will help Electrolux cut costs, anywhere between a third and half of the $1.5M it spends on its relationship with VMLY&R. 

Electrolux ran a programmatic test campaign last December and will take advantage of the benefit of programmatic buying in-house. Keep an eye on Electrolux’s top spending periods (Q2 and A4) and new products. Spend has been going up and will continue to do so throughout 2019, and marketing efforts should also increase since the company has an expanded team and greater control over its digital marketing. 

Request a Demo for Access to Electrolux Decision-Maker Contact Info 

4. P&G Shifts Some Media Work to Carat, In-House Amid TV Increases 

P&G continues to test its agency model, which saw Dentsu’s Carat and the in-house team receive a larger piece of media, reported January. The internal team is responsible for the oral care business duties. 

As part of the agency testing, P&G is also giving it’s brands the option to take operational work including planning, digital buying, search, and programmatic in-house. While our in-house team of researchers doesn’t have any reports on brands taking action on this freedom, it’s definitely a factor to keep on your radar. 

P&G’s in-house efforts began in an effort to improve efficiency and cut costs. For these reasons, it’s likely more work will be taken in-house. However, it seems unlikely P&G will ever completely cut out media agencies. Their media roster is changing and will likely continue to change. The brand sees spikes in spend throughout the year, particularly throughout H2. 

Request a Demo for Access to P&G Decision-Maker Contact Info 

5. Cars.com Takes More Digital Media Work In-House Amid Successful Campaign 

Last year, Cars.com made a move in-housem reported December 2018, in order to be more nimble and responsive to the industry and strengthen relationships with partners according to senior consumer marketing management and reporting Jenny Chan. 

Duties taken in-house include paid social, typical display work, and digital and programmatic buying, all of which were previously handled by OMD’s Chicago office. Cars.com’s top spending period is typically Q1, so some last-minute ad revenue may still be available. It tends to invest the most in TV, digital, print and social media channels. 

Request a Demo for Access to Cars.com Decision-Maker Contact Info 

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