Why Brands Are Making the Move
According to D&AD, 88% of brands now employ in-house creative and marketing teams - an increase of 10% over the last 5 years, and the appetite appears to be growing. In a world where speed, efficiency and authenticity are more important than ever, the move to in-house is about more than just reducing outgoings. It’s about creating smarter, more agile and sustainable operations that can align tightly with strategic operations.
This being said, external agencies still play an important role in supporting in-house operations. Rather than being fully replaced, agencies are increasingly seen as valuable partners - supporting and complementing teams where specialists scale and fresh perspectives are needed.
As more brands make the shift, the conversation is no longer about if in-house is the right move - but how to do it well. Understanding the benefits, challenges and critical successes factors is essential for any brand considering this path.
The in-house agency model isn’t just a trend - it’s a strategic evolution, and those who get it right stand to gain a significant competitive advantage.
The context behind the shift
The shift to in-house is more than a fad - it’s a deliberate, commercially driven evolution in how brands approach digital, creative and marketing.
According to the IHALC In-House Agency Benchmarking Survey, 83% of respondents report that expanding their in-house capabilities has proven more cost effective than relying solely on external partners. As marketing becomes more performance-focused, creative teams are being asked to deliver more than standout ideas — they’re expected to drive measurable business outcomes.
In-house teams offer a structural advantage in this environment, delivering greater ROI by enabling faster decision-making and tighter alignment with brand strategy. In fact, 79% of brands say their in-house teams deliver faster turnaround times, empowering them to respond to market shifts and business priorities with greater agility.
Importantly, this move doesn’t have to come at the expense of creative excellence. Take Sainsbury’s for example - the expansion of their in-house agency, Zest, aims to create a true “in-house creative centre of excellence”. When well-resourced and supported, in-house teams can rival the conceptual ambition and executional polish of traditional agencies. It’s no surprise that 72% of businesses believe their in-house agencies produce work on par with or even better than that of their external counterparts.
That said, this evolution is not about replacing agencies, but reimagining the relationship. External partners remain essential, particularly where specialist expertise, fresh thinking, or added capacity is needed. In fact, one of Loop’s top five in-house trends for 2025 highlights the rise of hybrid models that blend in-house speed and integration with agency craft and perspective.
In this new model, the most successful brands won’t just build in-house capabilities - they’ll curate a flexible, collaborative ecosystem where internal and external teams work together to deliver meaningful, effective, and efficient marketing.
So, what exactly makes in-house work?
The need for speed
In-house teams operate at the pace the business demands. While cost efficiency may continue to drive this move, it’s speed that’s sustaining the shift. Embedded within the organisation, in-house teams are better positioned to respond quickly and adapt to real-time business needs. As Charlotte Lock, Customer Director at John Lewis Partnership, noted in Campaign, establishing an in-house agency “will allow us to deliver better quality and quicker content using cutting-edge content creation, management, testing and orchestration capabilities.”
Brand built
Speed is just the start. In-house teams benefit from deep immersion in the brand’s day-to-day culture and operations. This proximity reduces the need for lengthy onboarding processes and repeated briefings. It fosters a brand-led mindset where creative decisions are more intuitive, and work is more likely to be right the first time, both strategically and creatively.
Smarter resource control
In-house teams allow for greater flexibility in how resources are allocated and scaled. Unlike fixed external retainers, internal teams can be shaped around shifting business priorities. As capabilities mature, these teams can expand strategically in line with long-term goals, supporting business evolution with the right talent at the right time. This agility becomes a critical asset in an era defined by rapid technological change and shifting market demands.
Shared purpose
Bringing creative talent closer to the core of the business fosters a stronger sense of shared purpose. According to our 2025 Census findings, inspired employees are believed to be up to 50% more productive. When individuals feel connected to a clear brand mission and are empowered to deliver on it - collaboration, engagement and retention naturally improve. Add to this the fact that brandside marketers and creatives often benefit from more competitive compensation and clearer career pathways, it’s easy to see why in-house teams are often more invested in long-term brand success.
The growing pains to consider
While the promised potential of in-house agencies is certainly alluring, there are some challenges to getting it right. According to the IHALC Survey, it’s evident that strategic capabilities remain a key gap: only 34% of in-house agencies are currently responsible for contributing brand strategy, and just 27% are involved in media planning.
To empower in-house teams to become more than mere production studios, business leaders have to invest in strategic talent to direct execution efforts. Investing in senior talent with the vision to shape direction, not just deliver outputs, is essential. With the right leadership in place, in-house teams can shift from reactive delivery to becoming trusted, long-term partners to the business - aligning daily activity with the bigger picture.
Creative energy is another area that requires care. Without fresh inputs, there’s a risk of creative stagnation. Unlike external agencies, in-house teams don’t benefit from the natural cross-pollination that comes from working across multiple brands. To stay sharp, internal teams need deliberate space for idea generation, collaboration, and learning. Prioritising professional development, industry engagement, and smart hiring practices can keep creativity vibrant and forward-thinking.
Building the right team, the right way
In-house agencies have the potential to transform how brands think, work, and grow, but success isn’t guaranteed. It starts with having the right people in the right roles: leaders who can guide with clarity, creatives who are culturally in tune, and teams built with both speed and strategy in mind.
That’s why, over the next few months, we’ll be exploring the evolving role of in-house teams, diving deeper into how they’re structured, how they collaborate, and how they can drive both creativity and commercial impact. We’ll share insights from industry leaders, spotlight emerging trends, and offer practical guidance for building and scaling high-performing in-house functions.
