Why the traditional agency model continues to fail creatives and brands

“The traditional agency model is broken.”

Every marketer has heard some variation of this lament, but what's worse is that it’s a reality we’ve all been victims of. There are few winners in this traditional model. Sadly, the ones who bear the brunt of this flawed system are the talents who drive the churn of this unceasing machine that is marketing.

Which begs the question: Are we delivering what brands need today? 

Well, my take is this: Brands need a bespoke solution that’s made for and adapts to their changing needs, but the current system doesn’t always deliver. 

The big issue

For far too long, specialists have been sold as generalists. This is dangerous for the quality of client output on two parts: 

One, being shoehorned into generalist roles stifles creativity and hinders talents’ growth. As their focus is pulled in many directions and often not in their area of strength or expertise, we fail to maximise these talents' potential and create the best possible work for clients. Creatives want to own meaningful work and create something they’re proud to show their peers. It’s not to say this is completely lost now—many creatives are still flourishing in agencies, but plenty more are buried under multiple layers of feedback and left out of meaningful discussions. It’s only a matter of time they become disillusioned and leave, perpetuating a cycle of mediocrity and increasing dissatisfaction for both the agencies and brands.

Two, these ‘generalist’ teams are often stretched thin across four other clients as a ‘catch-all’ marketing solution. They lack the bandwidth to excel in traditional agency setups that are still widespread,  juggling multiple accounts with split attention results in more subpar work, and even more frustrated clients.

And if agencies aren’t delivering what brands need, who is? 

Enter the disruptive forces coming from outside the industry: Entities like consulting firms, armed with data, deep-diving into market trends and customer insights to develop marketing strategies that make it easier for brands to buy-in. Their data-driven approach extends beyond just brand execution, they can identify opportunities for growth beyond marketing, which resonate with CEOs and CFOs. But engaging consulting firms for marketing still comes with built-in costs of company overheads, and a consultancy model that is still frequently at odds with the creative companies they have acquired in recent years. 

So, what is the solution?

The truth is, there is a better way.

In recent years, we’ve seen the dramatic rise of in-housing, with agencies embedding or offshoring their teams into a client’s business. According to the Association of National Advertisers, 82% of brands use in-housing agencies globally, and APAC is now gaining momentum in moving to this model.

Brands that in-house are already reaping business value, and those who are slow to make a change are at risk of falling behind. Why? In-housing offers a compelling solution, allowing marketers access to specialised expertise, letting them take back control of their marketing efforts, and increasing time and cost efficiencies. With your team fully immersed in the brand and processes, you enjoy streamlined, smoother processes and faster outputs with brand consistency. 

Here's three ways brands can build a team for their needs, and not with the pieces left in the box:

1. Take stock of your KPIs and resources

Traditional agencies have their own growth goals, but being clear on what your marketing goal is and then building an in-house team that is measured on the same KPIs is one way to ensure your budgets are put to use with a single-minded purpose. Find out what specialisms you’re missing, and seek these expertise—either by embedding or offshoring a team.

2. Build a team already immersed in your brand

This comes up frequently as clients talk about having to onboard and hand-hold fractional teams continually. When your team is made up of fans of your brand—who share the same passion for your cause or are existing users of your service—we find there’s a faster, deeper brand understanding, and the work born out of that will be both more impactful and creative. 

3. Ensure quality control

This could be a locally embedded lead who oversees your offshore teams—because, while offshore teams deliver cost efficiency, a gatekeeper of quality is needed to measure up the work to the brand guidelines and campaign needs while maintaining direct communication with stakeholders and the creatives. 

In-housing for the sake of cost-cutting may result in a poor fit for the brand and fail to deliver on what was intended—but in-housing in the way that’s right for your brand and team enables you to stop spending the bulk of their budgets on inflated agency rate cards. And the real cherry on the cake is that marketers get more out of the same budget to expand their team with full time specialists. 

The merits of leveraging in-house and agency together

With more cost efficiencies, you’ll have more budget to flex for more creative and impactful marketing. While a lean, specialised headcount can deliver your day-to-day marketing, a need for external capabilities and inspiration remains. There will be a need for big brand creative ideas—which often comes from the hotbed of ideas in creative agencies with many creatives. 

Engage creative agencies for what they specialise in, when you need it. This allows you to leverage the strengths of both models to achieve your goals while maximising efficiency.

As brands look for ways to deliver more effective marketing results, the flexible solution is an in-housing model that allows talents to do what they’re good at while delivering their best work for the brands they work with.

If you’re looking to empower your teams—don’t overlook the animator in Jakarta whose style fits your FMCG launch, or the social strategist in India who knows what’s relevant to fashion fans across different platforms.

Try a fit-for-purpose solution that adapts to your brand’s needs, and you’ll never look back.

John Marsden is the APAC business development director for Maker Lab.