Welcome to the August edition of TrinityP3’s e-news
In-housing agency services has been around for years. If you look back to last century, many major advertisers had in-house agency services. But today, the cost of entry to having an in-house agency is much lower. Technology has never been cheaper. And as agencies will tell you, it is the cost of people that is the biggest investment.
But no matter if you are still outsourcing your agency services, or you have bought some of all of it in-house, (or perhaps to use the parlance of the IT industry, you are extending your workbench by in-housing through an external vendor), the bottom line is ensuring you are getting the value for the budget you are spending.
While many will tell you in-housing agency services is cheaper than outsourcing, the fact is the value only comes from the work produced in quantity and quality. That is something we have been measuring for advertisers for more than two decades. The productivity and performance of their agencies. Whether that’s in-house, outsourced or across their extended workbench. Read how and why here in this week’s TrinityP3 newsletter.
Is your in-house agency performing better than market?
According to the ANA, the trend of building an in-house agency is well established, with almost 80% of their members having in-house agency services. But in our experience with several major marketers and their in-house agencies, one of the major flaws is these in-house operations are often not performance-managed effectively to ensure that the investment is justified.
But how should you measure the performance of your in-house agency? We have applied three standard commercial evaluations to in-house agencies as a way to provide a performance measure. These commercial evaluations are cost, productivity and effectiveness.
Listen to the how, what, where and why of in-house agencies
In this Managing Marketing podcast, you can hear and read from Chris Maxwell, the Founder and Managing Director of lution, Australia’s leading in-house agency specialist, with deep experience building and optimising in-house teams. Chris shares his experience building the in-house capabilities at Carlton United Breweries and how this experience inspired him to develop and offer this to other Australian marketing companies. He talks about the challenges and the benefits beyond simple cost reduction.
Solving complex in-house agency issues – Case studies
It is interesting for us that when a client/agency relationship goes wrong the marketers can call a pitch and put the agency to a market review. But when the agency relationship in question is an in-house agency, it is not as simple an option. In-house agencies are increasingly popular according to a survey by the ANA, but even in-house relationships go wrong, and it is big news when an advertiser decides to close their in-house agency.
In the past few years, we have been asked to assess and optimise these in-house relationships. These case studies provide insights into some of the issues which can arise with in-house agencies and approaches to addressing these challenges.