{"id":8454,"date":"2020-09-04T12:48:52","date_gmt":"2020-09-04T10:48:52","guid":{"rendered":"https:\/\/www.observatoryinternational.com\/our-insights\/creative-in-housing-hits-57-among-multinationals-wfa-report\/"},"modified":"2022-12-15T17:21:08","modified_gmt":"2022-12-15T16:21:08","slug":"creative-in-housing-hits-57-among-multinationals-wfa-report","status":"publish","type":"post","link":"https:\/\/www.observatoryinternational.com\/en-ea\/our-insights\/creative-in-housing-hits-57-among-multinationals-wfa-report\/","title":{"rendered":"Creative in-housing hits 57% among multinationals, WFA report"},"content":{"rendered":"

Seventy-four percent of in-house agencies have been established in the last five years as digital opportunities drive growth<\/em><\/p>\n

\"World<\/p>\n

Large global companies are rapidly expanding the scale of their in-house creative agencies, particularly for digital content, according to new research undertaken by the WFA and The Observatory International.<\/p>\n

Three out of four in-house units have been set up in the last five years and in-house teams are attracting more work, with 82% saying<\/p>\n

\u00a0workloads are increasing in the last year. Anecdotal reports also suggest that coronavirus has not led to cut-backs in these agencies, but in some cases quite the reverse.<\/p>\n

Respondents report that moving creative work in-house is delivering cost efficiencies (greater than 30% in some instances), better integration (64%) and increased brand and business knowledge (59%). Fifty-five percent also reported that in-house teams had quicker and more agile processes.<\/p>\n

Global Trends in Creative In-Housing<\/em><\/a> is based on responses from 53 advertisers with an approximate annual global spend of US$ 83 billion.<\/p>\n

The report found that out of the multinational companies that have an in-house agency, almost all, 94%, have in-house creative capabilities for digital content. This compares with around half who have in-house media planning and buying capabilities.<\/p>\n

The majority of creative resources are based around a centralised studio at HQ with 50% adopting this structure. Twenty-three percent reported a decentralised structure and 15% had regional teams.<\/p>\n

Almost all respondents (95%) continue to work with external agencies however, and among this group approximately 37% of creative output now comes from the in-house team.<\/p>\n

Despite the widespread assumption that advertisers could struggle to attract high quality talent, respondents reported an average staff turnover of just 9%. Most of these teams (74%) have been set up in the last five years, so it may be that their relative youth contributes to this solid performance.<\/p>\n

\u201cWhat this survey highlights is the need for clearly defined roles and responsibilities as well as a clarity over scope of work for each agency, in-house and external. Having an imbalance in working processes creates problems and challenges that could mean that neither resource is used to maximum capability,\u201d said Stephan Loerke, CEO at the WFA.<\/p>\n

Other key findings include:<\/p>\n