Digital transformation isn’t the only process that has accelerated in recent months: so has in-housing. Gradually becoming more popular over the past few years, the trend has suddenly become table stakes for some brands amidst production challenges.

“Whatever creative that you need to develop has come, in a great part, from in-house capabilities,” ANA CEO Bob Liodice told Campaign in an interview about marketing challenges during the pandemic. “So, I think it’s actually been a boom to be able to lean on that infrastructure that has, in many cases, developed quite significantly over the course of time.”

That’s great for brands that have built up in-house capabilities over the past few years—but for those that have relied heavily on external agency partners until now, how can they adapt to continue serving their audiences? “In-house teams will do more of the work that companies would have previously sent to agencies, but that doesn’t mean the internal agency is ready themselves,” says Warren Chase, COO of Firewood, which merged with MediaMonks last year.

The true measure of who will not only survive but thrive in the coming months are brands that are prepared to digitally transform, he says. Simply seeking short-term gains that don’t provide longstanding value won’t cut it. “You have to adapt to the mindset of how to become productive when you can’t have your creative team around you,” says Chase. “But people will adapt—they’ve been forced to catch up.”

Strategic Alignment is Key to Long-Term Success

As many brands embark on their in-housing journey for the first time—or seek to adapt new skillsets and ways of working within an existing in-house team—collaboration and alignment is critical to long-term success. “It’s not just about the marketing department,” says Marco Iannucci, Senior Director of Strategy at Firewood. “What is the CMO’s relationship with the CTO, CIO, CSO and the rest of the C-suite? More than ever, the CMO must be a true partner with the rest of them—and if not, everything fails.”

This heightened need to align marketing’s efforts throughout the organization reflects the nature of marketing today. “Intertwining of marketing and technology is inevitable,” writes Thomas Husson, Forrester VP and Principal Analyst, in a recent report. “As the designer and orchestrator of personalized customer experiences, the CMO must increasingly leverage big data, real-time analytics, and a host of technology platforms.”

This means strategic success relies on solving the CMO-CIO paradox, ensuring that tooling and workflows enable collaboration throughout the organization. Iannucci notes that dashboards and new tools have made it easier than ever for teams to take specific capabilities in house, but “everyone loves their specific tools, and whenever something isn’t working, they say, ‘If we only had these tools, I could do my thing.’ But then you end up with tools that aren’t syncing up or talking to one another, making it hard to see things big-picture.”

Prioritize, But Be Open to Shifting Gears

In establishing an in-housing strategy, brands must be committed for the long term. Chase balks at the idea that things will ever go back to normal as we knew it. “We have to create the next normal, and that requires feeling comfortable with being uncomfortable, and recognizing all the opportunities to do things differently right now.”

He notes that this idea of adapting to discomfort or inconvenience is something that external agencies are already used to managing, though in-housing brands can achieve stability by ensuring their priorities are clear and in order. Consider the primary motivators that drive the in-housing trend: cost savings, faster speed to market and consistency over the brand narrative. Brands must carefully prioritize which is most important to them and instill a sense of purpose in the existence of their in-house team.

While that might look different for everyone, Chase advises that enabling faster speed to market should be a top concern for most brands, as it puts a strategy in place to quickly come up with solutions to new, unprecedented challenges. As shifts in the digital and economic landscape continue to reverberate, brands must be ready to act. “When you have clarity on your priorities and need to put one in front of the other, right now it’s time to act quicker, adjust and pivot, and that’s where being in-house gives you an upper hand.”

Embrace the People Factor

Acquiring and energizing creative talent has historically been a challenge for in-house agencies—a challenge that may feel compounded when the need for new skillsets emerge and budgets tighten. This presents a new challenge to in-house teams: how do you keep teams inspired and build space for innovation?

“Bring in the people that know how to do this well, that have gone through this and can speak that language,” says Chase. “We all know we have to accelerate, but the big question is: how? Bring in the folks that are comfortable with that ambiguity.”

In discussing the embedded team model that Firewood is known for, Chase notes, “Across the board our culture is fundamental in making things work. We are zooming along again because our focus is on, ‘How can I help you do better for our client?’ And that attitude really spills over beyond our internal team and permeates into our client culture as well.” Despite the talk of upskilling tech, strategic alignment and agility, don’t overlook instilling a purpose-driven creative culture—a critical factor in long-term in-house success.

From new ways of working come new ways to engage.

Many brands worry about how to produce top-quality, scalable content at an ever-quickening pace. The challenge in achieving this is two-fold. First, brands require the ability to produce a staggering volume of content to tailor their messaging to specific segments of their audience. Second, producing this content often requires navigating through several parties and vendors across markets—each with their own particular requirements or nuanced understanding of their audience.

In my time at MediaMonks, we’ve helped clients plug into the resources and talent they need to remain relevant. But every so often a unique situation comes along that challenges all stakeholders involved, pushing us to go further in finding ways to achieve better creative, faster.

Identifying an Opportunity for Efficiency

Recently, we worked with a global automotive brand and their dedicated agency to develop and animate dynamic banner ads across three of their markets. The brief was simple enough on paper: animate banners with 15 variations, which would scale up with each successive phase of the campaign. We put our nose to the grind and sent the deliverables off for review.

But there was a snag: one market required a legal disclaimer on the banners, which hadn’t been mentioned beforehand. This is a common situation for global brands in particular, whose regional offices have their own guidelines and unique legal requirements. Still, they must meet global brand standards. This careful balancing act between local market relevance and global brand consistency often makes it difficult to gather everyone on the same page, just as it had with this project.

We successfully reworked the deliverables, but the miscommunication resulted in a longer time to delivery—not an ideal solution for the agency or their client. And this situation arose just from 15 variations! Seeing the potential of dynamic creative, the client decided to ramp up to… over 65,000 variations, across 8 markets and languages. It became obvious that we needed to make a change to accommodate such a massive jump.

This scenario may sound all too familiar to many brands, especially given the increasingly fractured partner landscape. In this case, the primary problem wasn’t our clients, but the communication and delivery methods through which each stakeholder collaborated. This inspired us to instead develop a dedicated CMS platform that would empower the client to create, review and approve banners by themselves, working more efficiently in the process.

Balancing Stakeholder Goals for Healthier Collaboration

Didn’t this move make our role in the project obsolete? Not really—even as vendors, the promise of partnership isn’t lip service that we tell clients in sales meetings; it’s a concept that helps us produce work better quality of work, faster. In implementing the CMS, we achieved this by effectively trading in our banner-builder hat for a platform-building one, giving control of production back to our clients.

In developing the new platform, our rich media team continued supporting the client’s ongoing requests, while the platforms team worked out the asset requirements and designing the best flow for their delivery. Throughout our involvement with their campaigns, we gained a clear understanding of how the client worked, and could apply those insights to build a frictionless user experience on the platform. The traditional production process involved close collaboration among all stakeholders: the banner creators, review from the client and the media agency. Our platform sought to streamline these steps into a series of low-complexity tasks that were not only faster, but cost-effective.

A New Partner Landscape Enables Better Production Methods

To meet the critical need for diverse and always-on content, the right partner must be able to adapt to production problems the moment they arise by implementing creative solutions. Without being able to draw upon extensive experience in designing and executing platforms, we likely wouldn’t have been as successful in making such a pivot.

It’s important that brands have the tools and resources they need to retain greater control over creative production—especially when so many brands seek to take their creative in-house as efficiently as possible. The old adage of “If you teach a man to fish…” certainly applies here, and this platform serves as one small step within a greater initiative for our client to build up their  capabilities in-house.

Grown organically from a specific client need, our platform is tailor-made to support the client’s unique workflow. For example, we’re working toward adding commenting and tagging features to augment the way we communicate to the team in banner creation. It goes to show how a nimble partner can provide brands with the tools they need to shift gears and get their network of vendors on the same page.  Stumbling upon an unexpected need that challenges habitual ways of working can become a daunting task—but with the right talent and tools, brands can activate new solutions with ease.

The growing trend in brands taking their content production in-house has prompted both agency partners and their clients to do some soul-searching. Growing at what feels like an exponential rate—78% of ANA member organizations have taken work in-house, according to an ANA webinar on agency partnerships—some have said that the trend is just a fad.

But is it? Not likely. Half of ANA member organizations work with an agency of record, according to the same webinar above, but only 14% are satisfied with the model. Experimenting with in-housing has the promise of releasing brands from frustrations they may feel with juggling several different partnerships and vendors, though their malleability—every brand’s IHA operates differently, after all—can make it tough to understand which setup works best.

With each organization taking a different approach to in-housing, what are the shared benefits to the trend, and where do traditional agencies fit within them? Tackling both these questions together will help brands ensure their IHA is equipped to support their unique needs.

Why Everyone is Going In-House

There are numerous factors that encourage brands to work in-house. A major one is the need to produce content faster; the proliferation of social channels and their always-on nature requires a constant stream of content for brands to retain relevance. The idea is that in-house agencies offer greater proximity to decision-makers in the organization and can therefore produce content at a greater speed than an external agency relying on briefs and back-and-forth feedback. Though whether an IHA achieves this is dependent on how well aligned and integrated it is with its organization’s business needs, and whether it has the talent or workflows in place to support rapid content production at scale—more on that below.

What IHAs do offer over the traditional agency model is extensive brand knowledge. Though this is a double-edged sword; wholly focused on the brand, in-house agencies often lack the broad experience that a traditional agency offers, which in turn can inhibit creativity. IHAs can enjoy the best of both worlds by tapping into new agency models that provide dedicated teams armed with broad, extensive creative experience.

And one can’t forget that in-house agencies can also save their organizations a significant amount of money. One of the key offerings of our sister company, MightyHive, is to help brands save by taking their media and programmatic in-house. The move not only saves them money, but offers transparency into a previously esoteric practice. As brands embark on taking on these new capabilities, partnerships will remain essential.

A Key Challenge for IHAs: Talent

Despite the benefits to in-housing outlined above, key challenges still remain for IHAs, especially those driven by a need for increased output of digital content. A shift to digital requires organizations to bolster their teams with new skillsets, and IHAs designed to support a growing need for digital content are likely to feel challenged in hiring and retaining this talent. Unilever CEO Alan Jope said as much in the Campaign article linked above: “It turns out that when you’re shifting directly and aggressively into digital, the constraint is not money in the [brand and marketing investment] line, it’s people to run the digital campaigns.”

This skillset gap is where in-house teams will continue to benefit from working with external partnerships, often organized into specific skill rosters. We have worked a lot alongside sportswear brand Adidas in platforms and digital activations, perhaps most notably with the brand’s Run for the Oceans initiative in collaboration with Parley.

The global run united nearly a million runners from around the world to raise money for educational programs benefiting those in coastal communities affected by plastic pollution. We lent our technical and creative expertise to build a web platform that pulled running data from partner apps like Joyrun and Runtastic, which we translated into a hypnotic WebGL visualization that grew and changed based on the number of participants and distance run over the course of the event.

The platform is unique for visualizing the initiative’s theme of unity—but not every experience requires a best-in-class WebGL experience, nor does every brand need to hire a WebGL developer. In this case, the technology fit the goal of the campaign very well—and by reaching out to a partner, Adidas was able to meet that one-off need with ease.

Brands Still Draw on Agency Knowledge & Experience

And while an IHA’s dedication to its brand is certainly a unique benefit, this often means sacrificing the breadth of experience provided by an agency or production partner, which can make it more difficult to support new technologies and formats. Unilever is no stranger to tapping partnerships to augment the creative capabilities of its in-house teams. For their Magnum sub-brand, we put together a Snapchat game that’s almost as addicting as the ice-cream bars themselves. We also produced a series of educational Facebook AR Camera Effects for Unilever’s Signal toothpaste brand, which teaches children healthy toothbrushing habits.

MediaMonks is a preferred partner for both Snap and Facebook platforms. The Signal Camera Effect was one of the first educational AR effects on Facebook Messenger, demonstrating the kind of innovations that IHAs can achieve by tapping into partners with a comprehensive understanding and experience in current and emerging digital platforms.

So, are Agencies Obsolete? Not with New Partner Models

As you might imagine from the shared challenges held by IHAs detailed above, agencies aren’t obsolete in the trend to go in-house. Rather, they must evolve their offerings into hybrid models that help “fill in the gaps” in their clients’ in-house capabilities. But there’s no simple answer to this; IHAs will each have different ways of integrating within their organizations, and might focus on different capabilities in the creative, production or media-buying processes. This is where partnerships can truly shine by offering more consultative services—like helping brands align their goals across the organization or achieve more agile workflows.

Partnerships can also solve the critical challenge of scalability. Resources are often tight within IHAs—but work is abundant. We saw this need in some of our clients, resulting in a partially in-house model that effectively allows clients to view us as extensions of their own teams, and dedicated content studios that make them achieve greater global and local relevance, like the one we made for Avon.

Given brands’ dissatisfaction with the traditional agency model, it’s clear that the shift in-house probably isn’t going away. In fact, it may just be the first step in an ongoing evolution in how agencies and clients can work with one another within a fast-changing digital environment.