Brands See Decline In Creativity From In-Housing, Study Finds

Think twice before bringing critical marketing functions in-house: It may not work. That’s the conclusion of new research by the UK Data & Marketing Association (DMA). 

Firms that have tried it report an average 15% drop in increased productivity and an 11% falloff in creativity, according to a report on the survey by Prolific London.

Yet  86% now conduct activities in-house and intend to continue, and 69% are investing in in-house technology, with 17% looking at collaboration and communication tools.  

Email marketing is done in-house by 62%, making it the most internalized project. Yet some sources see high interest in training on the subject.

There are two points to keep in mind: This report isn’t by vendors looking for you to outsource, but by a trade association --  and this is a UK report.

However, we expect that most of the findings also apply to the U.S.

Why keep marketing functions in-house? Of the brands polled, 41% cite limited budget and 35% cite the hassle of adopting new technology. 

But 87% are budgeting the same amounts on agencies that they did before. Of those polled, 37% feel they may need agency help in technical areas, and 41% cite CRM and experience management, according to Prolific London.

In addition, 46% believe creative and design input is best provided by an agency, and 39% say the same about content and copywriting. And 37% worry about ending up with a creative echo-chamber.



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