In-Housing Creatively

Created to answer the key questions of marketers building a modern marketing ecosystem, AAR and The Drum's in-depth research study The Marketing Ecosystem Blueprint revealed some extremely intriguing insights. Despite in-housing still being high on the agenda for CMOs, one of the most surprising findings was that, of all the CMOs who have moved capabilities in-house, 60% are considering moving some or all of these capabilities externally again. 

While the full picture behind this phenomenon is complex, another finding jumps out as a potential driving motivation. Nearly three quarters (73%) of CMOs feel creativity and innovation are missing from their internal marketing functions, and compellingly, creativity and innovation ranked first in the top attributes CMOs are looking for in an external partner. 

The desire to find creativity in external partners, and a sense that this is missing internally, suggests that somewhere in the in-housing process marketing leaders feel that they lose the creative edge. Of course, this isn’t universal (it may be channels or media that CMOs have moved in-house and are now looking to move externally, rather than the creative components), but why can in-housing sometimes lead to a real or perceived dip in creativity and innovation? And is there any way to retain it?

How marketing can lose creativity internally 

• The nature of the work. In-house teams are often set up in high volume, fast turn-around, digitally-led businesses, so they can act more like a production company. So CMOs may feel the creative can’t be a masterpiece, but it isn’t necessarily expected to be so or briefed to be so. In my experience, there is no limit to the creative ambition in house – either from the creatives or the business (as the CMO stat shows: they want creativity & innovation) – so this can be overcome by seeking out creative opportunities.
• Familiarity breeds contempt. By being ‘on tap’, the resource and the output can be taken for granted. It demystifies the creative process when you’re that much closer to the people and the process and you can see who is doing what. I also think there’s a slight sense that if you’re not paying for it as a line item on your P&L, it takes the edge off the relationship: it’s perceived to be lower value so must be lower quality. Having the right financial model in place can help to address this.
• The environment. Having a different name and/or space for the creative department or in-house agency is the easy bit. Is that underpinned by a risk-taking culture? Does the in-house agency feel that they can (or indeed should) challenge the status quo? If/when work is being developed so that it is bought, or because the CMO will like it rather than the customer, that means the creative edge has gone blunt, but this could be a symptom of the culture surrounding the in-house team. 

On innovation 

I would argue that innovations are more likely to occur in-house than from an external partner - they just might not get the fanfare or press coverage. I worked in a fast-moving global online business, and my team created a tool and process so the markets could quickly and easily produce their own ‘on brand’ assets. 

This could only happen because they understood the business and its needs, the problem for the user/market, and how to get to the technical solution. Actually making it happen is more valuable than having an amazing idea that can’t be executed.

If the edge has been lost, to make it sharp again I would prescribe:

• Setting it up properly at the start, and reviewing and optimising its performance and structure at regular intervals. AAR can help with this. 
• Making and keeping it business-like and commercial, as you would with an external partner, looking at processes, costs, timings and financial reviews We can help with this too!
• Creating the environment for creativity to thrive by setting KPI’s around creativity to the IHA, but also crucially setting the business a KPI of giving the IHA briefs with creative opportunity.
• Meeting the creative ambition with the briefs to unlock talent and potential. Taking a leap of faith will build trust in the IHA and show what they can do.
• Recruit talent in creative (which will be easier if you’re putting great briefs in, and great work is being produced).
• Make Strategy/Planning a central part of the in-house agency so that briefs have great insights.
• Engage in more creative training on subjects like Managing Agencies, Better Briefs and Judging Creative.

In summary, if the environment is there, and the creative opportunity is there, the talent will come and it will be self-fulfilling. That’s why there are some categories where in-housing is the norm, such as broadcast. In this industry, the likes of BBC, Channel 4, Sky, Netflix all have established in-house agencies - all good examples of where award-winning creative work can be produced when the environment, ambition and briefs are right.

If you can get there, I believe you can strike the perfect cheap/quick/good balance with an in-house agency model, and keep your creative edge. 

If you’re considering moving to an in-house agency model, or are looking to supercharge your current in-house agency, please get in touch with Alex at AAR. 

For more insights, download our latest reports:

The Marketing Ecosystem Blueprint: A landmark study of over 100 CMOs exploring the challenges of effective ecosystem design, and whether there is a blueprint to set brands up for success. 

The Creative Capital Manifesto: A new report designed to help CMOs and senior marketers understand and cultivate ‘Creative Capital’ in their organisations.