58 percent of companies create internal ad agencies

The U.S. Association of National Advertisers, or ANA, took a study showing a trend among big brands to establish their own internal ad agencies instead of hiring independent ones.Several independent agencies have decided to become part of manufacturing and service companies to be sure of staying in the market, unlike those that remain independent and end up out of business.ANA interviewed around 200 company departments that handle the firms’ marketing and advertising. The percentage of companies that chose to create their own shops shot up 58 percent in just five years, which sparked a special effort by independent agencies to win clients in a notably shrinking market. Thanks to the reduction in costs that internal marketing departments offer their product-producing firms, these companies are deciding to create their own advertising departments to do the work previously handled by specialized agencies. Despite the money saved on advertising overall, what must be taken into account is the professionalism, experience, specialization, and the marketing and advertising strategies of outside agencies.Visit the website of the Association of National Advertisers to see the research and graphs related to the In-House Agency Survey.