Procurement & In-House Agencies

By Bill Duggan

Marketing procurement should be aware (keenly aware) of the value and benefits of in-house agencies.  In-house agencies offer key benefits, per the recent ANA report “The Rise of the In-House Agency.”

• Cost efficiencies are the most often mentioned advantage of in-house agencies.
• Quicker turnaround time is also a major benefit.
• Factors such as institutional knowledge and having a dedicated team have grown in importance.

The current marketing environment, with its increasing emphasis on productivity, speed, and cost-effectiveness, lends itself well to in-house agencies.

Our research indicates that procurement currently has some influence in moving business from an established agency to an in-house agency. Among those companies that have a marketing procurement department, 45 percent say procurement is somewhat or more influential in deciding to move business in-house.  This influence is likely to grow.  Just as production decoupling and media auditing burst on the scene a few years ago and became strategic drivers of value for procurement, in-house agencies can also provide substantial value.  Marketing procurement should take notice!