The ANA’s Word Of The Year . . . “In-housing”
For those of us in attendance at last week’s ANA’s Masters Conference in Orlando, there was one inescapable commonality to most of the stage presentations – brands taking back control of their marketing destinies by in-housing more ad work than ever before. ANA CEO Bob Liodice set the tone with his opening remarks, “The cost and speed to market are necessities for marketers struggling to drive growth, but too many third-party relationships often slow things down. . . . Our current situation is unproductive, unsustainable, undesirable and untenable.” And that was just for starters.
Over the next 48 hours CMO after CMO gave examples of how they were combating dysfunction in the digital media space by trimming down the number of agencies and AdTech partners they work with. According to Progressive CMO Jeff Charney, 68% of marketers are now in-housing at least some of their marketing function compared to 42% in 2008. The argument for in-housing is fairly simply. By going DIY you can reduce ad fraud and impression waste and be more nimble at the same time.
If this trend continues there may not be too many ad agencies left ten years from now.