Take control: Why CMOs are building internal agencies to drive growth

The digital age, coupled with the rise of artificial intelligence, has fundamentally shifted the creative and production landscape. It’s no secret that many brands have opted to build their internal advertising services, a trend that has come with its fair share of success stories and cautionary tales. In my experience working with brands like AB InBev, Heineken, Avon, Nestlé, and Alexander Forbes, I’ve seen firsthand what it takes to build a thriving internal creative and digital marketing offering.

The allure of an in-house agency

For brands, the proposition of an internal agency is compelling. The promise of faster turnaround times, cost efficiencies, and closer alignment with brand objectives is undeniable. However, the journey to creating a successful in-house agency is fraught with challenges, the most significant being the misconception that building an advertising agency is simply about hiring a few creatives and marketers.

An advertising agency is a beast in its own right. It thrives on a distinct culture, a blend of creative talent, and an agile approach to problem-solving. Luring top creative and marketing talent to work within the confines of a corporate environment is not as simple as posting a job advert. It requires a nuanced approach, which brings me to a critical piece of advice:

Build a brand within a brand

One of the most effective strategies I’ve seen is the creation of a distinct internal agency brand. This is not just a name but a cultural and operational identity that helps draw talent and establish a sense of purpose. For example, when Nestlé developed its internal agency, we branded it as ‘Revolve'. Avon’s internal agency became ‘Nova Arcade', while AB InBev’s is aptly named ‘Draftline', and Heineken’s ‘Ripple'.

A well-defined internal brand offers several advantages:

• Cultural cohesion: It provides an anchor for building an internal culture that mirrors the vibrant, dynamic environment of traditional agencies.

• Strategic focus: A bespoke playbook can be created around the internal agency’s objectives, offerings, and capabilities.

• Talent attraction and retention: A distinct identity helps creative talent feel part of a creative ecosystem while avoiding the pitch-heavy pressures of an external agency.

However, it’s important to avoid the temptation to make the internal agency a ‘Jack of all trades'. While large-scale internal agencies like 99c within the Shoprite Checkers Group have succeeded by offering a broad spectrum of services, this level of scope requires significant investment and infrastructure, which is not always feasible.

Choosing your niche

The key to a successful internal agency lies in focusing on specific areas where the business requires the most support. For an FMCG brand, creative output might be the priority. For an insurance company, performance marketing and lead generation might take precedence. A focused approach allows for excellence in execution and avoids overburdening the internal team with unrealistic demands.
Time and capacity management are vital. Without clear guidelines, internal teams can quickly become inundated with requests from brand managers, leading to burnout and inefficiency. Implementing structured briefing processes, communication tools, and project management systems can help maintain a steady and manageable workflow.

The role of technology and AI

The integration of technology is another critical factor. With the advent of AI-driven tools, the potential for enhancing creative output is immense. Tools like Adobe Firefly, Canva’s AI features, and generative AI platforms can help streamline content creation and ideation processes. However, selecting the right tools for your internal agency requires expertise. The digital landscape is crowded with options, and not all are fit for purpose.

It’s also beneficial to establish a governance model where an external partner or consultant sits on an agency board within the organisation. This external perspective ensures the internal agency remains dynamic, avoids insularity, and stays on the pulse of industry trends.

Leadership and expertise

A critical component of building a successful internal agency is leadership. A chief marketing officer (CMO) with experience in building internal teams is invaluable. If this expertise is not available in-house, investing in a consultancy that specialises in building internal capability is worth considering. This investment can provide strategic direction, help avoid common pitfalls, and ensure the internal agency’s longevity.

Final thoughts

Building an internal agency is not merely a cost-saving exercise. Done correctly, it can provide a brand with a competitive edge, foster innovation, and create a dynamic, creative environment within a corporate setting. However, it requires strategic planning, cultural alignment, and a clear vision of what success looks like.

As with any significant organisational shift, the key lies in a balanced approach—leveraging the best practices of traditional agencies while adapting them to fit an internal model. When done well, an internal agency can become a powerful asset, driving brand growth and nurturing creativity from within.

Reach out if you need more help on how to build internally!