The Evolving Role of External Partners
In 2013, just 58% of ANA brand marketers had in-house media agencies. By 2018 that number was 78%, and by 2023 82% of brand marketers reported they now have an in-house agency of some kind.
Since the ANA’s 2023 findings, the trend of in-house media agencies has continued to gain momentum, with predicted penetration peaking at 85-90%. Key factors contributing to this shift continue to be direct control and oversight, brand knowledge, and cultural alignment. Debated as a pro and con is cost efficiency—this can vary significantly depending on the brand’s internal structure and agency relationships.
Despite the advantages of growing in-house investment, external agencies still play a vital role. The ANA cites 92% of respondentscontinue to work with external agencies for specialized tasks and additional bandwidth.
Here are five effective methods for in-house media teams to leverage the expertise and resources of media agency partners without committing to an AOR relationship:
1. Amplification of Earned/Organic Media
We all know that earned and organic media, including UGC, are vital for brand visibility and reputation. Re-using this content through paid media maximizes the impact of your organic efforts. Working with a media agency to amplify this content also gives you access to the latest best practices on each platform, new audience targeting ideas, and potentially even beta features or test-and-learn opportunities granted to agencies thanks to their spend volume.
2. Channel-Specific Help
Your team may excel at some channels and struggle with others—and that’s okay! Agency specialists can provide a depth of expertise, insights, and strategies tailored to specific channels and provide perspectives on what is working (or not) for other brands. Agencies often have access to media relationships that provide opportunities otherwise unavailable to brand marketers, such as first-to-market executions. A few years ago, KSM teamed up with The Trade Desk and AMC Networks to pioneer programmatically-purchased linear addressable TV ads for a client. This capability, now widely accessible, was initially unavailable to brand marketers.
3. Projects
In-house teams often juggle multiple projects simultaneously, leading to resource constraints and potential burnout. Media agencies can step in to manage specific projects, allowing in-house teams to focus on their core responsibilities. Whether it’s a product launch, a rebranding initiative, or a seasonal campaign, project-based support alleviates pressure on in-house teams.
4. Activation
Activating campaigns requires meticulous planning and execution, and getting the details exactly right can be stressful. KSM has made significant investments in a dedicated Operations & Integration team to alleviate this burden. By delegating activation tasks to media agencies, in-house teams can concentrate on strategy and oversight, confident that execution is expertly managed.
5. Strategic and Analytics Consulting
Agency spend volume often means access to more robust research and measurement tools to provide new insights and unlock new growth opportunities. Whether you’re looking to upgrade your data management systems, get a more holistic look at your brand health, understand the exact impact of each channel on your bottom line, or you just need some fresh thinking to get you out of a rut, agency consulting can jump-start the next phase of your growth.
Collaborating with media agencies outside of an AOR relationship offers brand marketers a range of benefits, from strategic consulting to specialized support across channels. A hybrid approach—maintaining core functions in-house while outsourcing specialized tasks to external agencies—can leverage the strengths of both models, ensuring cost efficiency, expertise, and control, and ease some of the increasing demands on brand marketers.
This KSM Intel was originally produced in the KSM Intel email newsletter. Sign up to receive our email newsletter in your inbox every other week.