3. Brands Are Giving Ad Agencies a Reason to Be Nervous
It looks like the trend of advertisers bringing their creative ad teams in-house is continuing, with Sprint being one of the latest large companies to do so, following in the footsteps of other large companies like Allstate, Unilever, Netflix. At the end of the day, an in-house ad department allows brands to better leverage their data, messaging, and spend – and gives them control over creative initiatives, search advertising, traditional media buying, as well as programmatic buying. As if to illustrate the problems brands are trying to avoid, Uber recently filed a lawsuit against its mobile advertising agency, Fetch, seeking a return of $40 million (out of the $85 million it paid) based on allegations of misrepresentation and false analytics. This lawsuit points to a significant problem the entire ad industry is now faced with, as more companies start to question their transparency and effectiveness. The agencies are going to need to make significant changes soon if they hope to stem the tide of brands jumping ship.