Cuttin’ out the ad-man: Clients are moving their content creation in-house

Ad agencies are struggling as more and more marketers are moving their creative strategies in-house, leaving little to no use for ad agencies who have been nickel and diming them for decades.

October 17, 2018

Ad industry giants are getting bested at their own game as more and more clients move their media and creative strategies in-house, leaving little to no use for big, expensive ad agencies.

In fact, according to a new report from the Association of National Advertisers (ANA), 78% of the companies surveyed say they now have in-house agency functions (video production, editorial teams, social media-writing, etc.), compared to 42% in 2008.

In other words, David is actually defeating Goliath — and ad buyers are getting desperate.

‘Branded content’ has forever given ad execs a nasty eye-twitch

Now it’s a full-on aneurysm.

The trend has pushed advertisers into a financial corner over the years, leading to shady practices that favor their own agency’s production units. 

While these things may have helped in the short-term, it’s ultimately pushed even more marketers to go DIY — and invited the feds to start sniffing around.

The truth hurts

In this day and age, most 13-year-olds living in Ohio have an editing suite in their parents’ basement (and their pockets). Meaning there’s an endless pool of content-creating talent at the disposal of marketers like never before.

Now, we’re finally starting to see just how hard this is hitting agencies — whether they can recover is another story.

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