Tuesday, March 5, 2024

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    In-house agency boom: 78% of marketers work with internal talent

    More than three-quarters (78%) of Australian marketers work with an in-house agency, and 80% of marketers are considering or already using AI for content creation, according to a new report.

    The findings from the second ‘In-House Agency Landscape Report’, created by the In-House Agency Council (IHAC) and Kantar reveal a growing Australian in-housing sector, which is just behind the US and Europe in terms of in-house agency penetration.

    The average Australian in-house agency has between five to 25 people and covers seven different capabilities, predominantly creative, social media, content marketing, strategy, and video production.

    Three-quarters (74%) of in-house agencies anticipate increasing workloads in 2024 with 93% of marketers noting the positive impact of in-housing in terms of costs and the bottom line. 78% of marketers use a hybrid model of both in-house and external agencies. 

    The research aims to provide a snapshot of the in-house agency landscape and includes data from client-side marketers, in-house agency personnel and marketers that use internal and external agencies.

    IHAC executive chairman Chris Maxwell said the the report revealed the maturation in the local market. “Immediately we found growth of the in-housing model has accelerated in Australia with 78% of marketers now working with an in-house agency. On top of that, 17% of IHA’s have launched in the past two years, demonstrating that the shift is gaining momentum with adoption of the model growing at nearly double the rate seen in 2021.”

    Maxwell says: “With broader remits and continued economic pressures, IHA’s foresee their workloads increasing while reducing the amount of work they procure through external agencies. However, for marketers with an IHA, the list of benefits is long, and goes well beyond just cost efficiency and into better knowledge of brand, speed and agility, along with having dedicated staff.”
    Research on the utilisation of generative AI among in-house creatives and marketers has unveiled that four out of five marketers are currently exploring the incorporation of AI into their marketing creation processes. Australian marketers believe that AI can simplify content creation, with 51% expressing this sentiment. Yet, only a quarter think it will directly lead to more cost-effective campaigns.      
    Kantar Australia manager director Jacqui Brandt, said the research reveals the “important interplay and role that internal and external agencies play and how best to leverage the strengths of each – be that around the work produced, the way media is planned and bought, and the tools used to inform business outcomes.
    “The spotlight on AI is particularly fascinating and we’ve learned that 80% of marketers are considering or already using AI for content creation. While cost effectiveness is yet to be understood, AI is here to stay and embracing AI and seeing it as complementary to the agency toolkit is essential.”

    The post In-house agency boom: 78% of marketers work with internal talent appeared first on Mediaweek.

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