Marketing is one of many industries sorely impacted by the pandemic. But the president and chief executive of the American Association of Advertising Agencies, Marlo Kaplowitz, told The Drum in an interview this past summer, “The in-housing trend that was so prevalent pre-pandemic is slowly shifting the other way … It opened people’s eyes. They said, ‘Wow, we really do need that external perspective.’ This has been an excellent reminder of the value agencies bring.”
Navigating consumer expectations amidst the pandemic and increased racial tensions are uncharted territories for many businesses. The severity of missteps has caused irreversible repercussions. In this environment, marketing agencies — being on the front line with multiple industries — can provide unparalleled insight and direction.
In fact, we at LaneTerralever feel so strongly about this opportunity that we recently expanded our team to include an EVP of Business Development, Brad Gould.
Additionally, consumer behavior and media consumption is changing daily. “Ad Exchanger” recently reported, “Although overall media owner ad revenue in the United States decreased by 7.2% during the first half of the year, digital ad sales grew by 5.7%, according to an updated forecast released by Magna.” Agencies, with a direct line to consumer behavior studies, media buying options and digital consumption trends, are in a position to help businesses adapt and shift dollars quickly.
Writing for marketing blog “Business 2 Community” this past September, Angela Housman, Ph.D., observed, “Firms think hiring employees saves money over an agency, which can certainly be the case for larger businesses. For most SMEs (small and mid-sized enterprises), the cost of employees (with the right skills and experience), necessary software and other essentials far exceeds the cost of hiring an agency.” On top of this, businesses are now having to factor in potential furloughs and layoff packages that come with hiring in-house employees during unpredictable times.
With hiring in-house on hold for many businesses, outsourcing marketing support is enabling them to scale rapidly when an influx of work or specific project needs arise. Plus, it can be a money-saver.
Andy Parnell is president of LaneTerralever
