67% of Australian marketers use in-house agencies: survey

The deployment of in-house agencies by Australian brands is booming and significantly bigger than predicted, according to IHAC and Kantar Research, as reported by Mi3 Australia.

Why it matters

The research suggests the Australian market is closing a five-year gap behind the US in terms of in-house agency penetration and shows Australia is a more mature market than many had anticipated.

Key insights 

• 67% of Australian marketers are working with an in-house agency and a further 14% are considering in-housing.
• Larger businesses with larger marketing budgets tend to have in-house agencies, with the size of in-house units varying from 5 to 50 people. 
• In-house agency services predominantly include creative, content, social and digital and strategic services, while media buying and SEO are managed externally. 
• 77% of marketers with in-house agencies also work with external agencies.

Quote

“There are a lot more people doing this behind the scenes than are talking about it. I had estimated it was somewhere in the range of 20%… and I thought I was being relatively generous” – Chris Maxwell, IHAC chair and Lution CEO.

Background

The survey by IHAC, the newly formed In-house Agency Council, and Kantar Research included 105 marketers – both with in-house agencies and without – along with agency executives. IHAC defines in-house agencies as “a department, group or person that has responsibilities that typically are performed by an external advertising, media or other marcom agency”.