contingent

Marketers Put More Work in the Hands of In-House Agencies

source: http://www.emarketer.com/Article/Marketers-Put-More-Work-Hands-of-In-House-Agencies/1010228

Cost-cutting drives changes

A growing contingent of client-side marketers are turning to in-house agencies to take more ownership of their advertising and marketing strategy.

According to an Association of National Advertisers (ANA) survey, 58% of US client-side marketers said their company used an in-house agency this year, compared to only 42% who five years earlier said the same. And 56% of respondents said in May 2013 that in the past three years, they had moved at least some established business previously handled by an external agency to their in-house agency.

Magazine advertising, social media, online display advertising and search engine marketing were the services most commonly handled by an in-house agency, according to the study. The proliferation of digital marketing channels may be convincing companies to move more marketing in-house, so they can be more responsive and create a full breadth of material at lower cost. Still, only small percentages of in-house agencies handled most of these services, indicating that much work still sits squarely with external agencies.

Traditional TV and radio advertising were the least likely formats to be handled in-house.

Marketers cited cost savings as the most significant advantage of bringing agency work in-house in 2008. This year, it remained the top advantage, however one cited by far fewer respondents.

Five years earlier, more than half of marketers saw cost efficiencies as an in-house agency’s primary advantage, whereas in! 2013, that figure had dropped to 35%. Other factors instead took on greater precedence: 19% of marketers cited brand expertise, as well as institutional knowledge and the added benefit of a team dedicated to the company or brand. This indicates that marketers have become more satisfied by the quality of work created by in-house agencies.

But the disadvantages also stacked up. Forty-five percent of the survey respondents said it would not be as easy to stay on top of key trends with an in-house agency. That was more than the percentage of marketers who saw this as a challenge in 2008, and suggests that digital channels amplify the importance of understanding the latest marketing opportunities. Creative innovation was also seen as more lacking when agencies moved in-house, along with limited skill sets among the staff.

The digital marketing age seems to be forcing marketers to navigate between two competing impulses—the need to produce more marketing than ever before across ever-proliferating channels is making in-house agencies particularly attractive. But the skills needed to effectively leverage and communicate via these channels are still often seen as best handled by agencies fully dedicated to the advertising and marketing space.

Tags: , , , , , , , , , , , , , , , , ,

Thursday, September 19th, 2013 news No Comments

Ugg Is Facing A Terrifying Reality Not Even Tom Brady Can Save

Source: http://www.businessinsider.com/ugg-sales-are-down-2012-10

tom brady uggs

Ugg boots, owned by Decker Outdoor Corp., reported earnings last week, and the results were bad. 

Profits were down 31 percent, mostly because women aren’t buying Ugg boots. The company said it was going to slash prices to draw more interest to the boots, but even that isn’t guaranteed to help. 

Until now, Ugg’s biggest obstacle was image. The boots were seen as sloppy and something women wore with sweatpants. 

So Ugg started advertising in fashion magazines to seem more chic. Famous Vogue creative director Andre Leon Talley even came out to endorse the boots, wearing them at New York Fashion Week. 

Ugg also hired Tom Brady as a spokesmodel to try and draw men into its stores. So far that move has been successful, and sales are up with the male contingent. 

But Ugg faces a terrifying reality: women’s boots might be going out of style. 

“The worst is yet to come,” Sam Poser, an analyst at Sterne Agee, told the Huffington Post, adding that “weaker Uggs sales might not just be due to weather, but may indicate that the boots have fallen out of fashion.” 

If that’s true, Ugg’s problems become a lot more daunting. While the company is making strides with men, women’s boots make up the vast majority of its business. 

Women are unlikely to shell out for Ugg flats or loafers because they are already loyal to other brands. Boots are the core product.&! nbsp;

If boots are actually out of style, Ugg will have just have to wait for the fashion cycle to turn around. 

DON’T MISS: It Was Pretty Clear During The Hurricane That Best Buy’s Training Initiative Isn’t Working >


Please follow Retail on Twitter and Facebook.

Join the conversation about this story »

Tags: , , , , , , , , , , , , , , , , , , ,

Wednesday, October 31st, 2012 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

Augustine Fou portrait
http://twitter.com/acfou
Send Tips: tips@go-digital.net
Digital Strategy Consulting
Dr. Augustine Fou LinkedIn Bio
Digital Marketing Slideshares
The Grand Unified Theory of Marketing