Brands are insourcing more functions to have better control and lower cost. Certain functions like social media should be done in-house so that brand representatives can be the voice of the brand, rather than having outside agencies represent.

1. Augustine Fou- 1 -
Brands Insourcing
Advertising Functions
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
June 2014

2. Augustine Fou- 2 -
P&G Programmatic
Source: Adage June 2014 -- Procter &
Gamble Aims to Buy 70% of Digital Ads
Programmatically
P&G, which declined to comment, spent
$235 million of its $3.2 billion in
measured media last year on internet
display advertising, according to WPP's
Kantar Media.
With its own trading desk, P&G
essentially eliminates middle players,
though not ad networks.

3. Augustine Fou- 3 -
Apple Advertising
Source: Engadget June 2014 --
Apple turns up its advertising
push with plans for 1,000-person
internal agency

4. Augustine Fou- 4 -
Source: ANA via eMarketer, Sept 2013
Brands Use In-House “Agencies”
- 4 -
56% have
already
started
moving
work in-
house to
save costs

5. Augustine Fou- 5 -
Source: ANA via eMarketer, Sept 2013
What In-House “Agencies” Do
- 5 -
• Magazine ads
• Social media
• Online display ads
• Search engine marketing
• Newspaper ads
• Search engine optimization
• Mobile advertising
• Out of home advertising
• Radio advertising
• Tv advertising
• Social Media
• Display Ads
• Search Marketing
• Search Optimization
• Mobile Ads
Are being done in house
because they can buy direct
or use ad networks
themselves.

6. Augustine Fou- 6 -
Dr. Augustine Fou – Digital Consigliere
“I study trends and advise clients on
staying on trend or getting out in front of
them. As clients move specific tasks in-
house, agencies need to more quickly
reinvent themselves and their revenue
streams.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
@acfou
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: https://www.linkedin.com/today/author/84444-augustinefou

7. Augustine Fou- 7 -
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