The world of marketing is in constant flux. New technology and AI are gaining momentum, consumers are digesting information in new ways, and consumer trends are constantly shifting. Brands and companies are examining budgets and marketing spend and taking a second look at their ad agency retainers and consolidating down to fewer agencies.

It’s no surprise that 66% of brands now have in-house agencies and another 21% are considering one.

We understand the appeal and see it from both sides. We’re co-leaders of an account team supporting 31 brands at D3, the in-house creative agency at PepsiCo Foods US. But we didn’t start in-house; we bring a combined 20+ years of agency experience to our roles. 

From where we sit, the best approach isn’t either-or — it’s about the best of both worlds.

External agencies bring a fresh perspective that comes from working across industries and clients, spotting trends early, and operating with an agency energy (from our own experience, fueled by late nights and caffeine) that keeps the creative ideas flowing. 

The biggest advantage of an in-house team is being embedded in the brand. Working side by side with brand teams earns in-house agency members a creative seat at the table and a hand in the wonderfully messy process that is creative ideation. They’re seen as a partner because all success is shared success. Everyone hears the same leadership messages, attends the same town halls and is incentivized to achieve the same business goals, unlike external agencies.

While we service our brands in a capacity similar to an external agency, what we love about being in-house is that we feel like we’re in the club. We’re in the same building, we sit in the same meetings, we share the same email handle. It creates an inherent trust and camaraderie with our brand teams that we couldn’t get from the outside and that constant “peek behind the curtain” we always wanted when we were agency-side.

At the same time, nothing in-house can replicate the variety of brands and categories and exposure you may get in an external agency. In an agency, you might craft a campaign for baby food one day and quickly shift gears the next day to focus on air fryers. Plus, being in the same building can have its downsides. It’s easy for an internal client to run into a D3 team member in the hall and give us verbal feedback instead of going through traditional channels like email. That triggers a flurry of running around trying to keep deadlines straight, changes synched up and everyone on the same page. 

Having a seat at the table lets us have an impact from the start. For example, our close relationship with our Quaker Chewy brand team and our participation in consumer immersions helped us understand and contribute to redefining the brand for today’s parents, who want to give their kids the freedom to make good choices. This directly inspired the new Unleash the Imagination creative platform, which showcases the power of imagination by seamlessly blending the world of make-believe with reality, including the new ‘Heist’ commercial.

An in-house agency can also fast-track processes in ways external agencies simply can’t access. For our Women’s World Cup sponsorship, we presented a few rounds of creative that just didn’t quite land, but the project needed to keep moving. The brand team gave us the green light to engage a production partner and director to help us craft a TVC spot we had written but not tested. With the brand team’s trust in us, we moved quickly and made decisions on the spot. Direct access to decision-makers yielded quick approvals and sped up the launch of a timely, powerful campaign and TVC – ‘Taste of Greatness.’

The Best Model Blends Both Worlds

The strongest in-house agencies don’t merely cut costs; they bring in talent with agency experience and build a culture of creativity, speed, and collaboration. Here are a few ways to borrow best practices from the best ad agencies:

• Advocate for a seat at the table early, when the brand and insights teams meet.
• Pick the brains of your ex-agency employees about the process of how a great idea comes to life – they’ve gone through that boot camp. 
• Brilliant ideas can come from anywhere. Ignore the org charts and titles when you’re gathering the troops for a brainstorm. 
• Encourage thick skin. Agency life requires moving past ideas that are non-starters and quickly generating ten good ones.
• Stay inspired by investing in learning — Cannes case studies, trade media subscriptions, the best work of top agencies. You pick.
• Move at the speed of culture by constantly tracking trends and embracing new tech.
• Make it fun. Say no to rigid corporate culture and yes to things like “meeting theater.” That could look like your account team presenter showing up in a brand mascot costume. (We’re looking at you, Chippy).

Just remember, it’s not either-or. It’s the best of all worlds for this creative sprint we’re all living. We value our agency life experience and are grateful for the mentorship we continue to receive from agency people we’ve worked with. Now we get the perfect hybrid – an in-house agency drawing on talent from many top agencies that is designed to deliver brilliant ideas and award-winning work, quickly and cost-efficiently. Our close relationship with the PepsiCo Foods brands will help shape the future of creative for everything we support. It’s our secret sauce, but one we’re happy to share with any company or brand.