The Value of In-House Agencies
What kind of savings and benefits does my company get by bringing work in-house?
There are many reasons for companies to bring work in-house, from creating consistency to saving time and money. Blum Consulting, for instance, found that "to staff the same internal resources at an external agency, a brand would pay on average, 60 percent more for the same team," illustrating how in-housing can be a cost-saving measure.
Further, according to a presentation given by marketing leaders at Boston Scientific describing results after going in-house, the company "enjoyed a cost avoidance of $975,000, realized a cost savings of $183,000, and had a projected savings of $526,000. The brand also improved its partner satisfaction, platform cost efficiencies, and its time-to-market delivery," as noted by the ANA event recap.
To quantify savings and value, in another ANA presentation, Boston Scientific also recommended establishing a ROAS-approach, which would include "developing new skills within the in-house team, establishing clear accountability for different aspects of the marketing funnel, and creating systems for data collection and analysis. The ROAS metric can be used to align various teams, including content creation, digital marketing, user experience, marketing automation, and customer care, around common goals and performance indicators."
Brittney Wacholz, senior digital marketing analyst at Boston Scientific, noted that switching to an in-house agency model can reveal gaps and outdated processes; the ANA event recap recommended that teams need to do a thorough audit and "invest in data cleanliness and accessibility to fully leverage the potential of their in-house resources. This may involve implementing new technologies, establishing data governance policies, and training team members on data-driven decision-making processes."
Below are helpful best practices and examples. Check out ASK's guide on In-House Agencies.
Best Practices
- Quantifying the Value of the In-House Agency. ANA/Blum, September 2023.
In general, in-house agencies are expected to deliver at least two, if not all three of the most common efficiency goals of the marketing organization — faster, better, cheaper. In this white paper, Blum Consulting quantifies how well in-house agencies (IHA) deliver on their expectations. Key insights include:
- On average, internal agencies take 25 percent less time to deliver the same assets.
- 25 to 44 percent savings when the IHA produces lower complexity assets or campaign deliverables.
- To provide the same internal resources at an external agency, a brand would pay on average 60 percent more for the same team.
- The Continued Rise of the In-House Agency. ANA, May 2023.
Every five years since 2008, the ANA has surveyed members on the topic of in-house agencies — 2008, 2013, 2018, and 2023. The research provides a unique and consistent benchmark on the evolution of in-house agencies and covers issues including usage of an in-house agency, specific services handled in-house, benefits and challenges, relationship with external agencies, staffing, KPIs, and more. Regarding an in-house agency’s top benefits:
- In-House Creative Report. ANA/Cella, September 2022.
This benchmarking report from Cella strives to gain insights into industry standards and best practices for in-house agencies, which will support marketers in driving business decisions and validating the direction of their efforts. The report explores best practices for keeping employees happy and trends for in-house agency digital marketing efforts. In discussing values, their survey found the following:See also page 60 of the report for a discussion about Quest Diagnostics and the value they found in their in-house agency.
- Global Trends in Creative In-Housing. WFA/Observatory International, September 2020.
A WFA survey found that the top benefit of having in-house creative services given by respondents was cost efficiencies, so it's understandable many of them would be realizing cost savings. For instance, 69 percent stated that by having an in-house agency they had achieved savings of 6 percent upwards in the last 12 months, with 48 percent seeing savings of over 20 percent. Brands calculate these figures by comparison against external agency fees and production costs, using industry body benchmarks and cost indexes:
Examples
- Lessons on Demonstrating In-House Agency Value. ANA, January 2025.
In-housing is more than just a trend; it's a strategic choice that can deliver significant benefits for marketing organizations. But how do you communicate the value of your in-house agency to those who may not understand or appreciate it? Gentry Edwards, director of digital and marketing evolution at Optum, shared his insights from working on both sides of the fence: as a leader of in-house creative teams at EY and Lockheed Martin, and as a marketing leader collaborating with Optum's in-house team. He revealed the common pitfalls and misconceptions of in-housing, methods for measuring and articulating value, and the essential competencies and mindsets that in-house agencies need to thrive. - Building the B2B Business Case for In-House Digital and Creative. ANA, December 2023.
Launched in 2020 during the COVID-19 pandemic, Corteva Agriscience developed an in-house digital and creative team to reduce costs. But as it evolved, the company knew that the benefits of in-housing had to shift from savings to process and results. Corteva Agriscience's Leah Beyer discussed the value and importance of an in-house digital and creative team. - Boston Scientific: How to Measure the Value of In-House Resources to Your Organization. ANA, March 2023.
Boston Scientific's Britt Wacholz, senior paid media strategist, and Becky Bulebosh, senior digital consumer experience manager, shared how their brand improved its partner satisfaction, platform cost efficiencies, and time-to-market by in-housing some of its marketing functions. Also see Boston Scientific: Maximizing In-House Resource Value Beyond Time-to-Market Metrics. - In-Housing at T-Mobile: A Story of Transformation and Value Creation. ANA, June 2022.
T-Mobile and in-housing consulting partner Media.Monks explained how they created an in-housing strategy and executed a smooth transition through collaboration based on openness, flexibility, and an unparalleled focus on people. This in-housing model has not only delivered on the two main objectives outlined above but importantly has also created a culture of transparency and trust that has gained attention throughout the T-Mobile organization.
The Marketing Knowledge Center actively connects ANA members to the resources they need to be successful. You can visit the ANA website to engage with the MKC in three ways.
- Explore content to access best practices, case studies, and marketing tools. Our proprietary content includes Event Recaps, which share actionable insights from conference and committee presentations.
- Connect with our Ask Research Service in real time for customized answers to your specific marketing challenges.
- Stay on top of trends with Pulse issues, which explore how new technologies and innovations will affect marketers and consumers alike.
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Source
"The Value of In-House Agencies." ANA, 2025.