Home Agencies Survey: 42% of Advertisers Handle Data/Analytics Through An ‘In-House Agency’

Survey: 42% of Advertisers Handle Data/Analytics Through An ‘In-House Agency’

SHARE:

weve-already-got-oneMore advertisers are running in-house “agency” units in 2013 than did five years ago, according to a new survey from the Association of National Advertisers. The change is driven in part by the weak global economy, but also could be chalked up to digital acceleration – including data/analytics and social imperatives.

The survey of 203 client-side marketers was conducted in spring 2013. Within that sample, 118 said they have an in-house agency, representing 58% penetration. That’s up 16 percentage points from 2008, the last time the trade group conducted a similar survey.

Of those 188, a striking 42% said they handle “data/marketing and analytics” through an in-house unit, as opposed to working with an external agency partner.

This year is the first time the ANA posed a question about data, so no growth comparison is possible. The study also didn’t inquire about the reasons for bringing data and analytics in-house – for instance whether speed, agility or first-party data security is a larger motivator. Therefore it’s unclear what threat client-side “insourcing” of data poses to agencies that have built out their own analytics practices.

In 2008, “in-house data management just wasn’t on our radar screen or probably anybody else’s,” said ANA Group EVP Bill Duggan. “My guess is that five years ago that number was very small. Forty-two percent feels like a pretty solid number and I only think that’s growing.”

Even without context, the finding may give datacentric agencies pause, suggesting as it does that upwards of a third of ANA members see good reasons to squirrel their first-party data away. And for agency executives who are smart about data, the prevalence of in-house data management could mean future job opportunities on the client side.

Broader Findings

For the purposes of the survey, an in-house agency is defined as “a department, group or person that has responsibilities typically performed by an external advertising or other marcomm agency.”

Some additional findings:

  • Half of all in-house agencies handle some level of media planning and/or buying.
  • Display, search, social and other “newer media” rank high on the list of capabilities run by in-house resources.
  • Thirty-four percent of respondents listed “content marketing” as an area they run in-house.
  • For those with in-house agencies, 56% said these units absorbed marketing functions that used to be handled by an external agency partner.
  • Under the media-planning/-buying category, the top functions handled in-house are magazine ads (32%), display ads (28%) and social media (28%). Mobile and search also both ranked in the top seven.

Among the in-house agencies mentioned in the report are creative services groups run by Blue Shield of California and Marriott. Marriott Creative Agency employs more than 20 full-time social media experts, writers and designers, according to the ANA.

And sometimes the current is reversed, such as when in-house agencies are spun off into standalone business. This was the case with Seoul-based Cheil Worldwide, begun as the in-house agency at Samsung and later divested to pitch other business, though its No. 1 client still retains minority ownership.

Must Read

Single continuous line drawing robot riding pencil rocket flying in the sky. Tech education and creativity. Future technology development. Artificial intelligence. One line design vector illustration

Q3: Omnicom’s Media Business Is Growing, But Is It Agent-Proof?

If AI agents can plan and buy media, who needs a holding company? Good question. It came up during Omnicom’s Q3 earnings on Thursday.

Netflix Touts New Measurement Capabilities As It Struggles With “Modest” Engagement Growth

Netflix’s revenue grew 12% YOY to $12.9 billion in Q3, which it maintains is in line with its forecast. Its ads business, however, is lagging slightly compared with expectations, causing Netflix to tweak its forecast for the rest of the year.

Apple Publishes Its Plan To Wipe Out Web Tracking

Apple is coming for identity resolution. WebKit’s latest tracking crackdown targets the infrastructure behind post-cookie IDs – and switching to a first-party setup won’t necessarily spare vendors.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

AI Slop Sites Are On The Rise. Is Ad Tech Ready For Its New MFA Challenge?

Advertising supply chain intelligence company DecryptAds uncovered more than 2,100 AI-generated recipe sites that are monetized with programmatic ads and feature fabricated author profiles.

How Australian Home Lender Lendi Measures The Invisible Work Of AI

Most brands and businesses are trying to figure out how to improve their metrics when it comes to AI – and also what those metrics even are.

AI Startup Minerva Built An Agentic CDP, But Don’t Call It That

Minerva wants to turn fragmented customer data into something marketers can use, with AI agents doing the work behind the scenes.