Is anyone surprised?
January 14, 2020 | Leave a comment
The share of a marketing budget allocated to traditional channels (TV, print, out-of-home) is decreasing while digital advertising increasing in 2020, as outlined in the Marketing Charts article. (3 Points About How Enterprise Marketers Are Allocating Their Budgets.)
I’m not surprised. Are you?
But one trend mentioned briefly in the linked-to article that I do find interesting is that organizations are taking their media and creative in-house, rather than relying on outside agencies. (In fact, the Association of National Advertisers reports that 78% of their members now have an in-house agency.)
On one hand, I get it. As the table below illustrates, “Cost efficiencies” are the leading reason why clients put agencies up for review. Agency fees can seem excessive to some clients – especially when agency fees exceed that 10 -15% of total media spend that most companies seem to use as a benchmark.
However, marketing these days requires deep knowledge in numerous areas that are in a media landscape that is in a constant state of change and expansion (SEO, martech, programmatic, optimization, lead nurturing, customer experience, to just name a few). So, while it may make sense to pull in some areas that are normally outsourced, finding small, niche agencies that have the expertise in marketing channels that are constantly changing and innovating and that act as more of an extension of your team is probably one of the best moves you can make.
Contact us today to find out more.