As the media landscape continues to evolve, a lively debate unfolded at the Future of Media Forum in Sydney, highlighting the growing tension between in-house and agencies. Spearheaded by Ruth Haffenden, former CMO of Boody, the session zeroed in on the in-housing trend, featuring insights from experts like Sian Whitnall, Co-CEO of OMD Australia, Georgia Thomas, director of brand, media, and comms at THE ICONIC, Stephen Leeds, CEO of The Media Store, and Paayal Dharmani, head of digital marketing at The Sydney Opera House. This discussion revealed the shifting dynamics in media, showcasing the rise of in-housing alongside the importance of fostering agency partnerships for a healthy return on investment (ROI).
The rise of hybrid models
A striking 78% of Australian marketers have incorporated some form of in-house agency resources, yet Leeds explained that this number has intricate layers. Only half of these in-house resources actually encompass media components. The trend is particularly pronounced in digital fields like social media and search. Whitnall noted an observable shift towards hybrid models: “We’re seeing more programmatic efforts being brought in-house, especially as brands seek to leverage media as a revenue stream.” This strategy resonates with global trends, where businesses are increasingly opting for tighter control over costs and aiming for a seamless integration of campaigns into their broader strategy.
The role of technology in this transformation is pivotal. Advanced analytics and data management tools empower brands to tackle complex tasks in-house, allowing for real-time decision-making driven by first-party data. This level of control is vital as companies navigate the rapidly evolving landscape of consumer behaviour, a point reinforced by Dharmani, who emphasised the significance of data for agility in live entertainment.
Advantages and challenges of in-housing
While in-housing offers brands the advantage of direct access to their data for swift decision-making, it presents its own set of challenges. Thomas highlighted the mounting pressures on in-house teams: “Results are expected quickly; this flexibility is crucial, but it also comes with elevated expectations.” She highlighted the limited lifecycle of in-house teams, arguing for a balanced, hybrid approach to nurture innovation and effectively collaborate with external agencies.
Globally, brands like Procter & Gamble and Unilever have garnered attention for their in-housing strategies, showing that this trend extends far beyond Australia. P&G has opted to bring more media buying in-house to boost accountability and cut costs, while Unilever has developed internal creative teams that collaborate closely with agencies on larger campaigns. These cases show that even established brands are finding value in a hybrid model that capitalises on both internal and external strengths.
Agencies and partnerships
To stay relevant, agencies may need to reimagine their value propositions and compensation structures. “It all comes down to ROI, whether it’s for brand growth or market insights as KPIs,” Leeds said. Whitnall echoed this sentiment, stressing the importance of customised agency-client relationships. “No two models should be the same; every business partnership is unique.” In response to the rise of in-housing, agencies are evolving into strategic partners, providing a broader range of consultancy services rather than simply executing campaigns.
For agencies, this transformation is key. By diversifying their offerings and honing specialised skills that are often difficult to replicate in-house, they are able to maintain their value in areas such as creative ideation and the exploration of emerging media channels, including virtual and augmented reality.
The forum wrapped up with a shared understanding: the future of media is rooted in cooperative hybrid models, rather than a stark choice between in-house or agency-led strategies. Haffenden encapsulated this feeling perfectly, advocating for a back-to-basics approach that emphasises finding the right partners to complement each other in the fast-changing media landscape.
“In this shifting environment, collaboration isn’t just beneficial; it’s essential for our success,” she concluded.