A World Federation of Advertisers survey shows a growing trend in multinational companies establishing in-house agencies, with 66% already operating one, up 16% since 2020. These in-house units, mostly established within the last five years, are expanding their strategic capabilities, encompassing brand, creative, and media aspects.

The survey, covering 45 companies with a combined annual ad spend of $60 billion, indicates a shift towards internalising various advertising functions. This includes a significant move to in-house digital and offline production, data strategy, and media planning in the next three years. Social media buying and planning, alongside digital media tasks, are also expected to see notable growth in-house.

Despite the increase in in-house agencies, primarily driven by cost efficiency and agility, brands still collaborate with external agencies. In-house performance metrics focus on outputs like quality and speed, differing from the effectiveness measures used for external agencies. The shift poses challenges in integration and resource management, highlighting the need for balance between content production and effectiveness.