New numbers show some growth in ad jobs: However, even though jobs in some areas of the industry have begun to come back, a rebound with agencies will likely be uneven.

In-housing of marketing functions increased during uncertain economic circumstances. Reliance on agency partnerships was down in 2020, as budgets were squeezed. But the growing skillsets of internal marketing teams also made in-housing possible. Insider Intelligence and eMarketer research is based on the idea that multiple sources and a variety of perspectives lead to better analysis.

And nearly one-third of US healthcare providers and payers reported offering support services to address members’ and patients’ financial, transportation, housing, and employment in 2020, according to a Change Healthcare survey.

The Great Recession began in the US in December 2007, with signs of economic trouble visible for a while as the housing bubble burst and rising default rates threatened mortgage-backed securities. We’ve looked back at our coverage of ad spending during that time period for guidance on what to expect now that a pandemic has forced a significant economic slowdown, with financial markets panicking.

Some marketers are taking control of their campaigns by in-housing various advertising services such as ad creative, social and search.

That’s consistent with The Economist/YouGov polling in August 2020, where 30% of Hispanics acknowledged having trouble paying rent, mortgage, utilities, and other housing costs. Keeping up with rent has been tough for young Hispanic adults, and 31% of 18- to 36-year-olds in GenForward’s June 2020 polling said the pandemic “made it challenging” to pay that bill. Food costs have also been problematic.

As the relationship between brands and their partner agencies continues to evolve, more brands are looking to bring projects in-house, citing cost as a factor. For Cars.com, however, bringing digital media buying in-house was primarily motivated by the desire to have more control over data, though cost was another consideration.

Consumer scores will be used to dictate whether people get jobs, housing, medical care, admission to a university, whether you can return a product, how long you’re going to wait on hold for customer service, how you’re treated by companies, how you’re treated by landlords.”

An ANA survey indicates that cost savings are why most brands turn to in-housing. While other in-housing benefits are nice, the research shows that they are often ancillary.

Shrinking media budgets, aggressive growth goals and ever-complex marketing needs are causing a shift in the brand-agency relationship. In their bid for self-preservation, brands are streamlining spending and in-housing capabilities.

eMarketer principal analyst Jillian Ryan decodes the complicated and evolving relationship between brand marketers and their agency partners. She previews her upcoming report on this topic and covers areas including in-housing, audits and why agencies continue to be relevant.

Greater mindfulness about consumer data leads advertisers to consider in-housing

“I really think with racial equity being at the center of Biden's policymaking, that clearly any technologies that perpetuate discrimination in housing, employment, healthcare, and criminal justice will be evaluated quite closely,” Turner Lee of Brookings said.

Rapid urbanization has led to major housing shortages across Latin America as people continue to migrate from rural areas to densely populated urban centers. As local governments struggle to provide new residents with adequate housing, shanty towns have continued to grow in size on the periphery of many cities.

That’s consistent with The Economist/YouGov polling in August 2020, where 30% of Hispanics acknowledged having trouble paying rent, mortgage, utilities, and other housing costs. Keeping up with rent has been tough for young Hispanic adults, and 31% of 18- to 36-year-olds in GenForward’s June 2020 polling said the pandemic “made it challenging” to pay that bill. Food costs have also been problematic.

Nondiscretionary spending categories including necessities, such as groceries, gas, housing, utilities, and personal care products. Nonessential spending. Discretionary spending categories including furniture, electronics, and some apparel. All T&E spending is considered nonessential spending. Everyday spending. 

For example, the combination of housing and healthcare accounts for half of total spending by households in the lowest income quintile, while consuming little more than one-third of total expenditures by the top quintile.

Forces continue to push and pull in both directions—for example, as take rates continue to fall for commoditized services, some advertisers look to managed services (with higher fees) to support their in-housing efforts or pandemic-related planning.

Flexible Engagement Models: In-Housing, Outsourcing and Everything in Between. Once brands complete a gaps and overlaps assessment, they often start to consider in-housing select marketing capabilities. But it’s important to note that in-housing is not a binary, all-or-nothing act—it’s a term with much gray area that often exists across a spectrum of engagement models. Brands Take Work In-House.