Forget In-House vs. Agency – Focus on What Moves the Needle

Over the past 15 years, I’ve watched the creative world do a not-so-subtle shift from agency to in-house. One by one, my former agency colleagues traded late-night pitch decks for corporate life. These days, they’re leading in-house studios, creative teams, media squads, and data nerds for some massive brands.

And the few still living the agency life? They’re the true believers. The Draper disciples. Conceived during a pitch meeting, bottle-fed on Old Fashioneds, and raised on “we need this by EOD.”

The rest? They’ve gone client side. Lured by the promise of predictable(ish) hours, PTO that people actually take, and – most important of all – the chance to see their kids without an appointment on the family calendar.

But it’s not just about the lifestyle change. Moving in-house means getting closer to the brand, the brief (cough, we’ll get to this later), and seeing the actual business impact of the work you create. You get a seat at the big table, help shape long-term strategy, and witness your work do more than just win awards.

Still, I sometimes wonder… was this in-house revolution masterminded by visionary execs demanding speed, savings, and brand control? Or was it just a stealth takeover by ex-agency folks building their dream agency inside the walls of corporate America – while making leadership think it was their big idea?

Honestly, I should probably be worrying about more important things – like why there are 47 tabs open in my browser or how I still don’t understand TikTok.

But if I had to guess what sparked the in-house boom? It’s both.
Business leaders love thinking it was their idea.
And ex-agency creatives? They’re very good at helping them believe it.

Which brings me, conveniently, to the point of this article:

What’s the “right” approach – in-house or agency?

We see this debate everywhere. Blog posts, whitepapers, endless charts with too many arrows. But from where we sit? There’s no one-size-fits-all answer.

Sure, agencies have taken a few punches over the past 15 years. Between the rise of in-house teams and consulting firms muscling their way into the arena under the banner of “digital transformation,” it’s been… character building, to say the least. But the reality is, brands are chasing measurable results through product, tech, and data – not just slick campaigns and Cannes reels.

Let’s be clear: the agency model isn’t dead.
(Though it might be nursing a hangover with an Alka-Seltzer instead of a whiskey.)

It’s just evolving. And honestly? That’s not a bad thing.

We’re entering an era where brands are waking up to something agencies have known for a while: Internal teams can be siloed, creatively limited, and – let’s admit it – often slow.

Meanwhile, external agencies – when done right – can be just as cost-effective as building in-house. Salaries, benefits, tools, office space… it all adds up. Outsourcing gives you access to an entire creative department (strategists, designers, writers, PMs, therapists) at a predictable cost, without the overhead or drama.

And we’re seeing pivots like this play out in real time. Take Keurig Dr Pepper, for example. They recently dismantled their in-house creative agency, Liquid Sunshine – who, just last year, won In-House Agency of the Year. It was a full-service shop supporting over 125 brands and employing more than 80 people.

Why the change? KDP’s new leadership stated they want to “leverage the infrastructure and efficiencies of external agency partners to deliver personalized creative at scale.”

Honestly, it feels a lot like the old adage:

• When times are good, build in-house.
• When the economy tightens, outsource.

(But that’s just my 2¢.)

Anyway, I’m rambling.

Let’s go back to the dream of the in-house agency for a second. 

It sounds good.

Sleek. Nimble. Cost-effective. Brand-aligned.

A well-oiled creative machine where ideas flow and briefs (cough again) are magically approved on the first round.

And sure, that dream makes sense.
The latest stat says 82% of US marketers have built their own in-house teams. The top reasons?

• Cost savings
• Faster turnaround
• Tighter brand control
• Stronger data chops

All excellent in theory. But in practice? That’s where things get a little sticky.

A recent study from ISBA, Alchemists & CVE pulled back the curtain on in-house expectations vs. reality:

• Cost efficiency? Nearly everyone expected it. Only 60% achieved it.
  (Apparently, paying full-time salaries, benefits, tech platforms, and hosting the occasional team-building axe-throwing event isn’t as “efficient” as it sounds.)
• Agility? A massive 93% of brands thought things would speed up. In reality, only 40% felt that promise was delivered.
  (Because nothing says “agile” like three stakeholder reviews, two rewrites, and a 14-comment Slack thread about fonts.)
• Brand knowledge? Finally, some good news – it exceeded expectations.
  (Turns out when your team lives and breathes the brand every day, they get really good at it.)
• Data ownership? This one fared well too. Teams had the access and control they expected, meaning fewer middlemen and more dashboards before lunch.

So, to wildly oversimplify a nuanced study:

• Your in-house team might not be saving you as much as you hoped.
• You’re probably not moving as fast as you imagined.
• But your brand knowledge is exceptional, and you actually understand your data.

Not a bad trade-off if you’re viewing your in-house team as a long-term investment, not a quick fix.

So… In-House or Agency?

It’s not about one or the other.

 

Some of today’s most successful brands use a hybrid model – combining the best of in-house stability with the firepower, perspective, and scalability of external agency partners.

This way, you get internal control and consistency, plus the ability to bring in fresh ideas and extra hands when you need real strategic lift.

And to be fair, not every challenge needs an agency. If you’ve got a clear plan and just need reliable execution? Build in-house. Add flexible talent (we can help here). Try AI-driven solutions.

But if you’re facing ambiguity, complexity, or the need to innovate? An agency can zoom out, challenge your assumptions, and help you solve the thing you didn’t even know needed solving.

A great agency does more than hit KPIs. They help level up your team, build new strengths, and leave your organization better equipped for whatever comes next.

By working closely, your team picks up new ways of thinking, fresh tools, and smarter processes that keep delivering value long after the project wraps.

Also… let’s be real: agencies know how to write a good brief. You know it. I know it. Somewhere, a former agency strategist is quietly weeping into a poorly written internal brief.

Because let’s face it – briefs in-house often look more like “a few thoughts in an email thread” than the holy grail of clarity and direction they’re supposed to be.

And yes – the brief should be the most important document in any creative or strategic project. A good agency? They’ll help you build one that actually sets your team up for success (instead of spiraling into yet another round of revision purgatory).

So, what’s the takeaway?

Whether you build in-house, lean on an agency, or find that hybrid sweet spot in between, it all comes down to fit.

The team.
The goals.
The budget.
The culture.

And – let’s be honest – who gets to take credit when everything goes right.

At Sandy, we build flexible, world-class creative teams that plug into your in-house, hybrid, or agency team model –  helping you scale smarter and move faster.

Need support for a product launch?
Extra firepower during planning season?
A strategic partner who actually gets your brand?

We’ve got you.

Whether it’s flexible creative staffing, project-based solutions, or longer-term resource support, Sandy helps you build and manage a high-performing creative team –  so you can stay focused on what matters most.