In-House

Research shows how Covid fast-tracked In-House Agency growth

Power of Pivoting

Running into its 11th year, the 2020 report highlighted the ongoing relevance of the IHA model; with so many brands being forced to pivot during the pandemic, their adaptability has been invaluable.

The US-based staffing and consulting firm, Cella, published their In-House Creative Industry Report, highlighting the key trends, patterns and predictions for the In-House Agency (IHA) community. 

What is most striking about this year’s report is how Covid has acted as a catalyst for growth, and magnified IHA strength.

Nearly 400 leaders from US creative teams and in-house agencies responded to the survey in January 2021, and the annual report acts as a benchmark for the in-house creative community to define their upcoming strategies.

Running into its 11th year, the 2020 report highlighted the ongoing relevance of the IHA model; with so many brands being forced to pivot during the pandemic, their adaptability has been invaluable.

Growing teams

Despite the economic uncertainty caused by Covid-19, Cella’s report shows how IHA headcounts remain strong, with nearly 7 out of 10 IHAs either maintaining their size or growing. This is impressive in a year where many companies were cutting teams rather than building them. In fact, 27% of US IHAs are now made up of 30 people or more, compared to a previous 7% of IHAs back in 2016. 

Not only does this show the resilience of IHAs, but it also demonstrates how companies value the stability of in-house support in a time of immense uncertainty: seeing them as an area to invest in, rather than make redundant. Cella attributes these steady attrition rates to IHAs’ ability to adapt quickly to support marketing and strategy needs in an ever changing landscape.

Increase in workload

Coinciding with this reliance on IHAs is an appreciation of the types of work they can deliver. 

Whilst Tier 1 (ATL work) is the traditionally sought after work, Cella reports a new-found appreciation of Tier 2 and Tier 3 work within marketing teams. This has been essential in a world where landscapes were constantly shifting and content needed to be produced quickly and accurately for brands.

On top of this, the amount of work given to IHAs also increased. 69% of survey respondents experienced an increase in volume – undoubtedly linked to the increasing demands from the pandemic. It is therefore no surprise that 41% of leaders plan to increase their current FTE headcount in the future. 

Remote and digital world 

As with most industries, in-house shifted to remote working. As of 2021, it was reported that 80% of respondents still work remotely, with 29% noting that this had a positive effect on productivity, and 24% claiming it improved the quality of work they were producing. These figures are fairly low, and imply a desire for a partial return to the office, even if it is only a few days a week. However, 2021 survey will perhaps be a better indication of the impact on culture and professional relationships that working from home has actually had.

In terms of the work itself, the future is undoubtedly digital. 49% believed that digital design was an area that was expected to grow, as well as 35% of respondents seeing video (shooting and editing) as a key area. Again, this is no surprise in a year where all communication was via screens, and the digital world became the only accessible world for most of us.

Cella emphasises how the pandemic simply fast-tracked a tide that was already turning, and companies are in the process of implementing and exploring technology options, such as digital asset management systems and utilising project management software at a steady rate. This will support the rising areas of work.

Moving away from charge back

Interestingly, the report showed a shift away from charge back models. For example, in 2016, 33% of the agencies surveyed used charge back models, compared to 18% in 2020. This is a substantial drop, and, although Cella address the value-driven school of thought that may advocate a charge back model, they see this shift as one that represents a more integrated ‘family’ approach between marketing teams and their IHAs. Again, whether this is due to the pandemic or a more permanent fixture remains to be seen.

Looking forward

The past year has shown how capable IHAs really are. In Cella’s view, the next step will be building on these lessons and evaluating IHAs talent, skills and technology to have an even stronger 2021.

You can watch the 2021 In-House Creative Industry Report: Insights And Highlights Webinar here, hosted by Cella industry experts, Jackie Schaffer, Executive Vice President and Sophy Regelous, Vice President / Managing Director, Consulting.

Alternatively, you can download the full report here.