ORLANDO – The growing number of brands choosing to undertake the traditional functions of their ad agencies under their own roof may seem to pose a threat.
After all, the number of US brands which have launched in-house agencies has reached 78% – up from 58% in 2013, according to the ANA’s In-House Agency Report.
But traditional ad agencies can stay in business by embracing the in-housing trend.
That is according to one agency boss whose company has just merged with a sibling in order to respond to a changing industry.
“In the last several years, it’s become clear that there will be and there needs to be an in-house solution,” says Jon Cook, VMLY&R global CEO, in this video interview with Beet.TV
“The smarter agencies aren’t too precious about that … (they) recognize that it creates efficiency, creates impact, and it can be a faster way and a better way for your work to get out if it’s done right. The smarter agencies have embraced a certain level of it.”
Cook’s VMLY&R may sound like a mouthful. It is the merger of WPP’s VML and Y&R, announced last year “to deliver a contemporary, fully integrated digital and creative offering to clients on a global scale”.
But the combined unit units the digitla focus of the former VML with the historic creative nous of Y&R (Young & Rubicam), founded in 1923.
In the 21st Century, Cook says the brand in-housing trend can even benefit agencies.
“It helps you as an agency be even more clear and more acute about what your value is,” he adds.