In account that’s hasty to no one, centralized agencies are on the rise. What is new, however, is aloof how much. The all-inclusive majority, or 78 percent, of associates of the Association of National Advertisers accept some anatomy of centralized agency, according to a new address by the group, which surveyed 412 client-side marketers. And abounding of those marketers who don’t already accept centralized agencies are because the strategy—of the 22 percent minority, eight percent said they are cerebration about aperture an centralized group.
It’s a aciculate advancement beat from the ANA’s best contempo address on the topic, appear in 2013, which begin the numbers to be added analogously divided. At that time, aloof 58 percent of 203 marketers appear an centralized team.
Bob Liodice, arch controlling of the ANA, expects the trend to abide to accelerate. “Traditional agencies are acceptable added challenged as marketers move added assignment centralized while auspicious their alien agencies to accommodate differentiated casework and added value,” he said in a statement.
Liodice says the assignment is no best bound to “low-hanging fruit,” such as promotional materials, or centralized videos. Indeed, 76 percent of the centralized agencies handle artistic assignment for brands, and 24 percent handle programmatic media buying, for example.
While some marketers such as Intel and Progressive accept continued had acknowledged centralized agencies, others, like Verizon, which opened an centralized bureau aftermost year, are new to the strategy.
SoulCycle has additionally been accretion its centralized capabilities with the appoint of a artistic administrator aftermost year, bringing in Roxana Zegan, whose resume includes stints at appearance cast Coach and artistic bureau Droga5. The ANA address lists amount accumulation as one of the top allowances of centralized agenices. That is arch some marketers to move some functions in-house, alike as they appoint new shops.
Last week, amidst the account that it had awarded advance artistic duties to BBDO, Ford said it will aggrandize its centralized business with 100 new positions committed to cast design, media tools, technologies and chump experience. That’s a big about-face for the automaker, which had commonly outsourced above business duties to WPP, which is actual on Ford’s roster. Earlier this year, JC Penney awarded its artistic business to Badger & Winters from McGarryBowen. While the retailer’s new bureau is amenable for the all-embracing cast platform, contempo campaigns, such as a bounce accomplishment with Shaquille O’Neal, accept been produced internally.
Marketers acclaim centralized agencies with advancement cast bendability and acceptance for bigger control. Andrew McKechnie, arch artistic administrator at Verizon, said in a account that the brand’s new bureau helps “connect the dots aback we anticipate about our cast anecdotal and cast experience.”
Agency executives, which of advance accept a vested absorption adjoin marketers demography duties in-house, say that accomplishing aggregate internally will achievement artistic growth, decidedly from alfresco thinkers who add a new akin of angle to a business campaign. Also, abounding marketers accept struggled to acquisition a balance, bureau advisers say.
“There’s a lot of advance and pull,” Luis Montero, admiral of The Community afresh told Ad Age about the topic. “They accompany artistic in-house, afresh they advance it aback out to agencies again. It feels like it isn’t cardinal as abundant as it is cost-conscious.”
A backer from the American Association of Advertising Agencies beneath to animadversion until she was able to appearance the report, which publishes Monday.
Contributing: Meg Graham
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