Why produce ads yourself

 In Faith Thinking

With technology continuing to revolutionise business practices, the communications industry is bracing itself for further change. Algorithms, artificial intelligence and more cloud based software, are advancing at such a pace that they are changing the face of how marketing operates in modern business.

The demise of the traditional advertising model has seen more companies taking services performed by agencies in-house, with a focus on catalogue and print production, social media, buying media direct, and in many cases retaining their own creative consultants.

The advertising industry is struggling to re-invent and revitalise it’s offering, but potentially they do hold some trump cards. Core to the evolution of today’s advertising agency is being able to help clients deliver cost effective creative services.

With many client ‘in-house structures’ reflecting ‘old approaches’ few clients would necessarily be asking the question of ‘Is this model still right for the new world’? Agencies, if they are to survive have to be at the forefront of new technology. As a wholesaler of creative they should be able to cost effectively deliver to clients an improved result even allowing for the commercial realities of turning a profit. It is after all what they do.

How many clients measure the opportunity costs of running internal departments? (Labour costs, computer equipment, space and keeping up with technology). Why produce ads internally yourself when the right agency should be able to do it more cost effectively? is a difficult question to answer. Perhaps clients don’t have sufficient confidence in the strategic thinking of an agency? Perhaps they feel an in-house resource is faster? They certainly feel it’s cheaper. Whatever corner you come out of, agencies should by their very specialized nature be able to supply and manage creative services, correctly tailored, more cost effectively than a client. The fact that the perception is they can’t must be addressed.

The creative structure of an agency includes writers, art directors, producers, planners and strategists. These people are highly skilled and with the right encouragement can add significant value to a client’s marketing and profit outcomes. By their very nature most clients can’t structurally justify this talent in-house. It’s within an agency now.

At a time when more management functions are being outsourced, Agencies need to continue to champion the efficiency of what they do. Highlighting the advantages they can deliver, and bringing important balance and intellectual rigour to the ‘cost issue’ clients so often overlook.

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