From Production Powerhouses to Creative Innovators
The data from the 2024 In-House Barometer offers a comprehensive view of the current state and future ambitions of in-house agencies across different geographical regions, categorized into three distinct tiers of operational focus.
Across all regions, there is a clear trend towards elevating the strategic and creative capabilities within in-house agencies. The future ambitions highlight a collective shift away from predominantly production-focused roles towards greater strategic influence and creative content generation. This evolution suggests an increasing value placed on in-house agencies to not only execute but also to lead and innovate from within their organizations. The data indicates that in-house agencies are aspiring to climb up the value chain, with a marked increase in the roles that drive brand strategy and creative direction. This shift is indicative of an industry-wide acknowledgement of the importance of in-house teams in shaping the future narrative of brands. The integration of AI and technology, along with a growing confidence in their creative capabilities, are likely contributing factors to this transformation.
Nordic In-House Agencies Embrace the Changing Landscape with Caution
The conservative stance in the Nordics may reflect a cautious approach to adopting the newer, more strategic roles that in-house agencies can offer. It could be due to a variety of factors, such as a strong tradition of production excellence, a preference for established workflows, or a measured approach to organizational change. Despite this, the increase in Tier 2 ambitions does suggest that even in more conservative regions, there is a recognized value in nurturing in-house creative capabilities. The Nordic in-house agencies appear to be gradually embracing the evolving landscape, acknowledging the need to expand their creative prowess while still maintaining their strong production roots. While the Nordics show a strong foundation in production, the modest increase in creative and content roles highlights a deliberate, albeit more cautious, shift towards a balanced in-house model that incorporates creative execution alongside strategic ideation, albeit at a steadier pace than seen in other regions.
France and Germany master Scale and Complexity
The 2024 In-House Barometer data reflects that France and Germany host some of the most established and largest in-house agencies, a legacy entwined with their globally recognized brands such as Nestlé, L'Oréal, and Danone. These agencies are characterized by their scale, which is necessary to support the extensive brand portfolios and complex marketing needs of such substantial consumer brands. The scale manifests not only in the size of the teams but also in the breadth of their operations. The data likely shows that these agencies have a higher proportion of Tier 3: Production Studios, which correlates with the need to produce a high volume of content at scale. However, alongside this production capability, there is an expectation that such mature agencies would have developed sophisticated Tier 1: Strategic Creative Lead Agencies due to the necessity of navigating complex brand strategies across diverse markets and product lines. The extensive history and size of these in-house agencies enable them to leverage substantial resources towards maintaining a competitive edge in global brand stewardship.
UK In-House Agencies Set the Pace in Creative Strategy
The UK market presents a slightly different picture, where there appears to be a progressive trend in attracting top-tier creative talent within in-house agencies. This is evidenced by a higher incidence of roles such as Chief Creative Officers, Head of Creative, Creative Directors, and Chief Design Officers within these teams. Such roles are pivotal in ensuring that strategic creative thinking permeates all levels of marketing and brand management, aligning with the global push towards more narrative-driven and design-led brand experiences. The presence of these high-level creative roles within UK in-house agencies signifies a move towards not just executing creative work but also conceiving and leading it. This trend may suggest that UK in-house agencies are slightly ahead of the curve in internalizing top creative resources, which is pivotal for driving innovation and brand differentiation in a crowded marketplace. It points towards a maturing in-house landscape where the UK is keen to not only consolidate creative execution but also to shape and lead creative strategy from within.
US and Canadian Agencies lead in Tier 1 Ambitions
In the US and Canada, in-house agencies are markedly shifting towards strategic and creative leadership, with future Tier 1 ambitions increasing from 15% to 35%. This highlights the broader industry trend elevating in-house agencies from executors to strategic partners. The data from US and Canada indicates commitment to undertake more influential roles in the conception of brand and concept strategy development, positioning the agencies as drivers of brand narratives in competitive markets.
Shaping the Future of In-House Agencies
In-house agencies across the globe are poised for a strategic and creative renaissance, with ambitions to assume more influential roles that traditionally might have been outsourced to external agencies. The future of in-house marketing looks to be one where strategic thinking and creative innovation are just as important as execution and production.
The 2024 In-House Barometer is live
Get the inside scoop on the latest trends and challenges in in-house marketing.
Conducted annually, this study delves deep into the heart of how in-house agencies operate, evolve and contribute to the overall success of their parent organizations.
