76% of marketing managers believe that outsourcing creative work to an experienced agency increases marketing campaign ROI by up to 500%.* Of course, in-house creative and marketing teams…
76% of marketing managers believe that outsourcing creative work to an experienced agency increases marketing campaign ROI by up to 500%.* Of course, in-house creative and marketing teams will always play an important role in an organization's growth. But more and more, managers and leaders are using creative outsourcing to help these teams be more productive, efficient, and successful.
Here are 3 reasons why creative outsourcing is on the rise among marketers:
No one knows your brand better than you do. Any creative firm that proposes otherwise has an ego issue. Who else lives and breathes your products and services day in and day out? Who else is receiving Google Alerts when your competitors make an update? Who else can detail every marketing effort made, the unique variables of each, and the consequent results? Only you.
And while this is a necessary strength, it comes with the risk of not seeing “the forest for the trees.” Working with an outside partner allows you to:
– Obtain an objective view of your brand
– Benefit from insight gathered in relatable situations from a variety of industries
– Strategize and solve problems in ways you may not have otherwise considered
When it comes to any big decisions regarding your brand, you need to trust your gut. Before you do that, you need to gather as much information as possible from a variety of sources.
ACCESS TO INCREASED CAPABILITIES
Creative firms work with many different clients in a variety industries, each with unique marketing strategies and modes of implementation. This experience in different mediums and projects can provide a significant advantage when it comes to executing the work. Additionally, creative firms hire for diverse skill sets and round out their rosters to not only cater to your company’s needs but every company it works with. You may very well find a one-stop shop, capable of producing projects for all your marketing needs. The relationship developed here is what increases efficiency and helps your brand move forward.
It’s almost taken for granted that in-house creative costs less than using an outside creative firm, but the truth is that this is not always the case. The reason outside work appears high cost is because traditional accounting practices and internal budget transfers seldom reflect the true cost of internal labor.
Many times internal department cross-charges only accommodate actual payroll expenses, with a small multiplier to cover overhead costs. However, when you consider the true costs of an employee—salaries, benefits, office space, taxes, equipment, etc.—studies have shown that charges from outside creative firms actually average about five-percent less than the same work done internally.
Also important to consider is that except for the smallest of jobs, creative fees are always a small fraction of total job costs. Even when apparent (as opposed to actual) costs are the basis for calculation, the incremental increase in creative costs attributable to going outside is seldom more than five to 10 percent on a small ad or landing page, or less than one percent on larger projects like an annual report. The reality is that keeping creative work in-house for budget reasons seldom translates to money saved.
*Source: Contently/Adweek Marketing Industry Survey, 2015
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