29 Oct.

Trending: Brands are taking more work inhouse

The latest Econsultancy report on the Top 100 digital agencies in 2018 confirms the trend that brands are doing more themselves in-house than ever before, and they’re using agencies less.

Or at least they are using different agencies in different ways.

One of the biggest changes is in the media buying space. Through technology, brands can now easily buy and manage their media with no percentage of that media spend being eaten away through agencies commissions and fees.

Other trends that are mentioned in the report are the increased use of technology, artificial intelligence and the decrease in spending on things like social and SEO.

Brands set themselves up for strategic plays

If you are a brand, you may have or may be building an in-house team of experts to run your marketing, but you are likely finding it difficult to find the right skill, with the right level of experience and at an affordable rate.

With these new technology-focused skills in marketing, there is a growing skills gap. As much as there is a trend to bring things in-house, finding all-rounders is difficult and can be costly. This is where brands can take advantage of the gig economy. Just like an American football team places certain players onto the field when certain moves are needed, a brand can place certain skills in the marketplace as and when they are needed.

Agencies need to put a process into place for the gig economy

The unicorn that most agencies are aiming for is “the retainer”. The brand commits to your agency and along comes a steady flow of predictable income. You find people to do the work and you have a stable agency. Now stack on a couple of retainers and you have a good profitable business, provided you manage the scope of work coming in for those retainers really well.

Then we have projects, such as building new websites or producing a campaign. These are usually large in scope and are delivered over several months or at least weeks. But when it comes to shorter projects or gigs, most agencies aren’t setup to deal with these. From the scoping process, delivery process and even billing process.

As in-house brands turn to the gig economy to assemble teams for them to execute complex and niche maneuvers, agencies need to look at getting themselves setup to work with brands in these situations.

Author: Daryn Smith