
The marketing landscape is experiencing a seismic shift. Major brands are increasingly bringing their creative and media operations in-house, powered by the twin engines of data and artificial intelligence. This isn't just a trend – it's a fundamental transformation in how modern marketing operates.
The Numbers Tell the Story
The in-house movement has gained remarkable momentum. Unilever, one of the world's largest advertisers, has built over 40 internal studios worldwide, generating content 50% faster and delivering 30% cost savings compared to their traditional agency model. Similarly, P&G is bringing more and more of their digital media planning and buying in-house, achieving better targeting precision and reducing media waste by hundreds of millions.
But perhaps the most compelling case comes from Netflix, which transformed its marketing approach by building a fully integrated in-house creative agency and AdTech platform. The streaming giant now produces thousands of assets monthly, perfectly tailored for different markets and viewing preferences, all driven by their robust data infrastructure.
Major shift in the brands' engagement with advertising agencies
A significant shift is underway also in how global brands compensate their agencies, with three-quarters planning to move away from traditional 'time and materials' models within the next three years, according to a WFA and MediaSense survey. The same survey concludes that advertisers are after output or outcome-based commercial models.
The transition to outcome-based agency pricing hinges on overcoming measurement and data sharing hurdles. Nevertheless, with rising agency fees, the pressure to find effective performance measurement solutions and embrace new remuneration models is intensifying.
Why Now? The Perfect Storm
A few factors make this the ideal moment for large brands to consolidate their marketing operations:
Data Maturity: Enterprise brands now sit on decades of customer data, campaign performance metrics, and market insights – a competitive advantage that's hard to replicate externally.
AI Accessibility: Advanced AI tools have democratised capabilities that were once the domain of specialised agencies. From content generation to media optimisation, these technologies work best when deeply integrated with proprietary data and systems.
Speed to Market: The digital age demands real-time marketing. Internal teams, armed with data and AI, can move from insight to execution in hours rather than days or weeks.
Agency world: Dysfunctional, non-transparent, non-value-add relationships with traditional ad agencies and their dated operating models.
Talent: The best creative talent seeks new challenges and opportunities to express their creativity outside of the ad agency world, and working directly with impactful and purpose-driven brands.
The Paradigm Shift and New Operating Model
Success in this new paradigm isn't just about bringing operations in-house – it's about building the right operational framework. Leading brands are establishing an inter-connected marketing ecosystem:
Centralised data repositories that combine operational, media performance, creative with audience and sales data
AI-powered content engines that learn from every campaign
Integrated and seamless workflows between creative, analytics, and media teams
Automated personalisation and targeting at scale
Real-time performance optimisation through agile feedback loops
The Path Forward
The question isn't whether to bring operations in-house, but how to do it effectively.
Start today by:
Auditing your current data and technology infrastructure
Identifying key talent needs and gaps
Building cross-functional teams that blend creative and analytical skills
Implementing the right AI tools and platforms, after you have developed a future-proof strategy
Creating clear governance models for data usage and creative development
Establishing continuous feedback loops into your operations
What's your experience with in-house marketing operations? Are you seeing similar transformations in your organisation? Let's discuss how data and AI are reshaping marketing operations in your company.
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