Introduction: The New Reality of Digital Marketing
The global digital marketing landscape is undergoing a fundamental transformation. Building internal marketing competencies-the so-called in-house marketing model-is no longer an experimental option for pioneers but a strategic imperative for companies seeking to maintain competitiveness. Rising technological complexity, tightening data privacy regulations, and a transparency crisis in media supply chains are forcing decision-makers to radically rethink their marketing department structures.
Moving key marketing functions-such as Digital Planning, Programmatic Media Buying, and first-party data management-into internal company structures is now recognized as a necessary condition for regaining budget control, maximizing investment efficiency, and transforming customer data into a unique competitive advantage.
This article presents a comprehensive analysis of the in-house trend, based on the latest market data, research reports, and case studies from global leaders who have already undergone this transformation.
The Scale of the Phenomenon: In-House as the Global Standard
The Dominant Operating Model
Research conducted by the World Federation of Advertisers (WFA) in collaboration with The Observatory International in 2023 leaves no doubt: 66% of global brands currently have some form of in-house agency (In-House Agency – IHA). This is not a marginal trend but the dominant operating model among international corporations.
Moreover, an additional 21% of companies are actively considering creating an in-house agency, meaning that in the coming years, the vast majority of the market will operate in a hybrid or fully in-house model [WFA/The Observatory International Survey, 2023].
The most significant indicator of the long-term nature of this transformation is that 70% of respondents who already possess internal strategic capabilities plan to transfer additional tasks from external agencies to internal structures within the next three years [WFA/The Observatory International Survey, 2023]. This is a clear signal that in-house is not a tactical crisis response but a new, normalized operational standard.
Global Agency Market Dynamics
Paradoxically, despite the growing dominance of the in-house model, the global marketing agency market continues to grow. According to Mordor Intelligence forecasts, the agency market value will reach $452.96 billion in 2025 and is expected to reach $571.53 billion by 2030, with a compound annual growth rate (CAGR) of 4.76%.
A key element of this dynamic is that digital marketing services account for 62.26% of the agency market share in 2024 [Global Marketing Agencies Market, Mordor Intelligence, 2024]. It is precisely these competencies-Digital Planning, Programmatic, data analytics-that are most frequently internalized by brands, putting margin pressure on agencies that cannot offer advanced capabilities in data and artificial intelligence.
Regional Picture of In-House Transformation
North America: Leader in Programmatic Optimization
North America accounts for 38% of total global advertising spend, with projected spending exceeding $360 billion in 2025 in the United States alone [Best Regional Marketing Performance Statistics, Amra & Elma, 2025]. This region is characterized by the highest degree of in-house maturity, particularly in Programmatic Buying and Retail Media Network (RMN) management.
The primary driver of transformation in this region is financial optimization and taking control of complex, multi-channel digital campaigns.
Asia-Pacific: Fastest Growth
The APAC region shows the most dynamic pace of change. The market is expected to achieve a CAGR of 14.87% between 2025-2030 [Global Marketing Agencies Market, Mordor Intelligence, 2025]. The regional digital advertising market is projected to reach $305 billion in 2025, with China alone representing a $180 billion market [Best Regional Marketing Performance Statistics, Amra & Elma, 2025].
In this region, in-house is driven by the need for rapid adaptation to unique platforms such as Douyin and WeChat, as well as strong growth in social commerce and mobile-first strategies.
Europe: Privacy as a Catalyst
Western Europe anticipates digital spending growth to $189 billion in 2025 [Best Regional Marketing Performance Statistics, Amra & Elma, 2025]. In this region, the key factor stimulating in-house is the rigorous regulatory environment, primarily GDPR.
Privacy protection requirements and obtaining direct consumer consent mean that first-party data ownership and governance control become absolute priorities. The in-house model minimizes legal risk and ensures that data is securely stored and processed internally.
The Transparency Crisis: Why Control Became an Imperative
Alarming ANA Study Results
The Programmatic Transparency Benchmark Study published by the Association of National Advertisers (ANA) in 2024 revealed fundamental weaknesses in programmatic spending efficiency that justify the urgent need to transition to an in-house model.
The key, alarming finding is that less than half of advertising spend actually reaches consumers [ANA Programmatic Transparency Benchmark Study, 2024]. This metric means that a significant portion of budgets is lost to inefficient buying paths, hidden intermediary fees, or Made-for-Advertising (MFA) sites.
While the study showed improvement in advertising spend efficiency of 7.9 percentage points, suggesting some steps toward supply chain optimization [ANA Programmatic Transparency Benchmark Study, 2024], in light of budget waste exceeding 50%, the decision to transition to an in-house model becomes a matter of fiduciary responsibility, not merely cost optimization.
The Post-Cookie Era and First-Party Data Revolution
The announced phase-out of third-party cookies and the tightening of regulations such as GDPR in Europe and CCPA in the USA have made first-party data the most valuable digital asset [Why First-Party Data is Important, Digital Marketing Institute, 2025].
Only full control over the collection, storage, and activation of first-party data allows brands to build unique competitive advantages in a cookieless world. This is one of the strongest arguments for internalizing analytical and technological competencies.
Business Benefits of the In-House Model: Hard Data
Immediate Financial Savings
Case Study: Bayer – $10 Million in 6 Weeks
The most spectacular example of measurable financial benefits from transitioning to an in-house model is the case of global pharmaceutical giant Bayer.
After moving Programmatic Buying to an internal team, Bayer achieved immediate, measurable savings of $10 to $11 million within just the first six weeks [Bayer saved at least $10 million after taking programmatic in-house, Digiday, 2024].
These savings resulted from:
- Taking control of media spending
- Eliminating agency management fees
- Improving transparency in Supply Path Optimization (SPO)
- Eliminating hidden AdTech technology fees
This case provides indisputable evidence of immediate return on investment in in-house structures, particularly in programmatic.
Savings in HR and Recruitment
Financial benefits extend beyond media buying. Multinational Unipart saved over £250,000 on recruitment agency costs after its internal team took over Paid Social and Employer Branding campaign management [Digital Marketing Case Studies, RedKnows, 2024].
Similarly, British Telecom (BT) achieved savings of £2 million annually by redirecting approximately 600,000 contacts annually through social media channels instead of traditional call centers [12 inspiring digital marketing case studies, BarnRaisers, 2018]. This demonstrates operational efficiency resulting from integrating digital activities with customer service.
Strategic Advantage: Revenue Growth up to 2.9x
The Power of First-Party Data
Research conducted by Boston Consulting Group (BCG) in collaboration with Google in 2024 provides an indisputable business argument for internalizing data management.
Brands that effectively use first-party data in key marketing functions achieve up to 2.9 times higher revenue uplift and 1.5 times higher cost savings [Sustainable first-party data strategy, Think with Google / BCG, 2024].
These results are only possible with full control over first-party data, which is the foundation of the in-house model. This data enables:
- Hyper-personalization of communications at scale
- More accurate segmentation and targeting
- Better prediction of customer behavior
- Real-time customer journey optimization
Case Study: MGM – Improved Own-Channel Efficiency
MGM Resorts International, after internalizing Programmatic Buying and data management, observed measurable improvements in business results.
Kate Wik, Senior Vice President of Brand Marketing at MGM, confirmed: “We compared revenue growth and spend to revenue to the same time periods in prior years, and we’re improving. Production from our website channels versus other channels is up, which is a very healthy mix” [Retail Media Case Study Infographic, The Trade Desk, 2024].
This is direct testimony that taking control of programmatic and data results in measurable improvement of key business indicators (KPIs) and increased efficiency of company-owned channels.
Operational Benefits: Speed and Flexibility
Real-Time Decision Making
Internal teams can respond to market changes, A/B test results, or new trends in real time, without having to go through lengthy agency approval processes. This is particularly critical in Programmatic Buying, where real-time bid optimization and budget allocation determine campaign effectiveness.
Reduction in Creative Production Costs
Independent analyses from 2025 indicate that hybrid or purely in-house models using AI for creative production can provide 12%-20% reduction in Cost-to-Produce and significantly shorten time from concept to deployment [Creative Advertising Agencies vs In-House, Single Grain, 2025].
An internal team can increase the number of creative variants tested, translating to a higher chance of finding an effective message-metaphorically speaking, more “shots on goal.”
Technology Benefits: MarTech Stack Ownership
Infrastructure Control
The in-house model enables companies to choose, own, and customize key AdTech and MarTech tools, such as analytics platforms, content management systems (CMS), and DSP platforms [MarTech Stack best practices, Siteimprove, 2024]. Instead of paying an agency for access to its tools, the company invests in its own technological architecture.
The Role of Customer Data Platform (CDP)
Customer Data Platform is a key element of in-house infrastructure. CDP serves to unify, standardize, and activate first-party data in real time, enabling personalization at scale in an omnichannel environment [Customer data platforms, Adobe, 2024].
The internal team ensures that CDP is integrated directly with business systems such as CRM and ERP, guaranteeing maximum efficiency in customer data utilization.
Organizational Benefits: Knowledge Retention
Know-How Accumulation
Unlike the agency model, where knowledge leaves with agency team rotation, the in-house model ensures retention of unique know-how [In-house marketing vs agency, F22 Labs, 2025]. All optimizations, test results, and best practices are accumulated internally, increasing the organization’s long-term value.
Building Data-Driven Culture
An in-house team with direct data access and responsibility for measuring ROI naturally becomes a promoter of data-driven culture [MarTech Stack best practices, Siteimprove, 2024]. This enables strategic decision-making based on verified facts rather than assumptions or guesses.
Scope of Competencies Being Moved In-House
Based on WFA 2023 research, key competencies being transferred to internal structures include:
Digital Planning and Strategy – creating long-term media plans and closely integrating them with business objectives
Programmatic Media Buying – direct management of Demand-Side Platform (DSP) platforms, Supply Path Optimization (SPO), and real-time auction management
Search Marketing (SEM/SEO) – control over paid and organic strategies
Social Media Buying – managing and optimizing paid campaigns on social platforms
Performance Analytics and Data Management – first-party data ownership, CDP platform implementation, and advanced attribution analytics
New Trends: Retail Media Networks as In-House Catalyst
The growing importance of Retail Media Networks (RMN), such as Amazon Ads or Walmart networks, is another catalyst for in-housing, particularly in FMCG and Retail sectors.
RMNs are based on highly valuable retailer first-party data-data from loyalty programs, purchase history [What is a Retail Media Network, Amazon Ads, 2024]. For FMCG brands, managing advertising in RMNs becomes a key element of Digital Planning and requires immediate connection of Programmatic Buying with internal product data and customer knowledge.
Global trends indicate that Retail Media Networks are set to outpace growth in almost all other forms of advertising spend worldwide [What is a Retail Media Network, Amazon Ads, 2024]. As a result, companies are forced to build internal analytical and operational competencies to effectively utilize this rapidly growing channel.
Challenges of In-House Transformation
Talent Acquisition and Retention
The biggest challenge in building in-house structures is acquiring and retaining highly qualified specialists in Programmatic, Data Science, and advanced analytics.
Claudia Beale, Digital Media Supervisor at SafeAuto, points to a new definition of talent required in internal Programmatic teams. Specialists are needed “who really want to wear a lot of hats, people who don’t necessarily want that cookie-cutter role” [Bayer saved at least $10 million, Digiday, 2024]. These are so-called “T-shaped” roles-combining broad strategic knowledge with deep technical expertise.
Risk of Knowledge Obsolescence
The Digital Marketing environment-tools, platforms, AI solutions-is changing at a dizzying pace. In-house teams may struggle with continuous upskilling and staying current, while agencies, due to working with multiple clients, have natural access to a broad experience base [Top 7 Challenges of an In-House Marketing Team, Logica Digital, 2024].
Managing Technological Complexity
Implementing and managing an integrated MarTech Stack is a costly, time-consuming, and technical process that represents the main risk of in-house transformation failure.
Integration and Data Chaos
Integrating tools such as CDP with DSP and CRM is complex. Common problems include data duplication, unclear data ownership, and time gaps in information flow between systems [The Integration Challenge, Staffing Hub, 2024]. For large enterprises, CDP implementation must account for scalability and corporate-level data management.
Tool Underutilization
High MarTech license acquisition costs don’t automatically translate to ROI if the team cannot fully utilize all tool features [Top 7 Challenges of an In-House Marketing Team, Logica Digital, 2024]. MarTech Stack audits are essential to ensure tools generate real business value.
Market Leader Perspectives: C-Suite Voices
Statements from C-level leaders at global corporations confirm that in-house transformation is a paradigm shift in digital marketing.
Marc Pritchard, Chief Brand Officer, Procter & Gamble:
“The era of digital marketing is over-it’s now just brand building” [Top 100 CMO Quotes, DigitalDefynd, 2025].
This statement emphasizes that the technical complexity of digital marketing cannot overshadow the overarching strategic goal. In-house enables integration of media, data, and creative to build cohesive, long-term brand value.
Raja Rajamannar, Chief Marketing & Communications Officer, Mastercard:
“Advertising as we know it is dead” [Top 100 CMO Quotes, DigitalDefynd, 2025].
This quote indicates the necessity for radical change in marketing communication approach. The internal model is the only structure capable of introducing innovation, personalization at scale, and full product integration, which is essential for competing in the new reality.
Practical Conclusions for Decision-Makers
When to Consider In-House Transformation?
Based on analysis of report data, organizations should consider in-house transformation when they:
- Spend significant budgets on digital media – the higher the spend, the greater the savings potential through eliminating agency margins
- Need full control over customer data – especially in light of GDPR requirements and third-party cookie phase-out
- Operate in sectors requiring rapid response – industries such as e-commerce, travel, or entertainment where decision speed is critical
- Plan investments in Retail Media Networks – FMCG companies must build internal competencies to manage this growing channel
- Want to build long-term competitive advantage – knowledge retention and know-how accumulation are only possible in an in-house model
Three Pillars of Successful Transformation
Report data indicates three key areas requiring particular attention when building in-house structures:
1. Governance and Financial Transparency
Conducting programmatic spending audits to immediately identify hidden costs and budget waste. The ANA study shows over 50% of spending doesn’t reach consumers-this is the first area for optimization.
2. Data Architecture and Technology
Selecting, designing, and integrating corporate MarTech Stack, with particular emphasis on implementing Customer Data Platform (CDP) to unify first-party data and enable personalization at scale.
3. Talent and Competency Management
Developing recruitment, upskilling, and retention strategies for Programmatic Trading specialists and building a data-driven culture capable of utilizing the full potential of new technological architecture.
Summary: In-House as the New Operational Standard
Analysis of market data and research from 2023-2025 unequivocally confirms that building in-house digital marketing competencies is a global and irreversible trend. This is no longer a luxury option for the largest brands but a structural necessity.
Key numbers confirming this trend:
- 66% of global brands already have an in-house agency [WFA, 2023]
- 70% of companies plan to transfer additional tasks internally within 3 years [WFA, 2023]
- $10-11 million savings in 6 weeks – Bayer case study [Digiday, 2024]
- 2.9x higher revenue growth for brands effectively using first-party data [BCG/Google, 2024]
- Less than 50% of spend reaches consumers in the traditional model [ANA, 2024]
The in-house model enables:
- Regaining control over marketing expenditures
- Maximizing transparency and eliminating hidden fees
- Capitalizing on the most valuable asset-first-party data
- Building long-term competitive advantage
At the same time, this transformation requires a strategic approach, particularly in talent acquisition and complex MarTech technology integration. Organizations that successfully execute this change-supported by experienced consultants-will gain measurable advantages over competitors operating in traditional agency models.
Are you ready?
Is your organization ready for in-house transformation? Contact our experts to conduct an audit of your current marketing structures and create an internal competency building strategy tailored to your business objectives.
References
- Association of National Advertisers (ANA). (2024). Programmatic Transparency Benchmark Study
- World Federation of Advertisers (WFA) & The Observatory International. (2023). In-housing set for rapid and continued growth at major multinationals
- Mordor Intelligence. (2024-2025). Global Marketing Agencies Market Size & Share Analysis
- Amra & Elma. (2025). Best Regional Marketing Performance Statistics
- Boston Consulting Group (BCG) & Google. (2024). Sustainable First-Party Data Strategy
- Digiday. (2024). Bayer saved at least $10 million after taking programmatic in-house
- RedKnows. (2024). Digital Marketing Case Studies | Proven ROI
- BarnRaisers LLC. (2018). 12 inspiring digital marketing case studies prove ROI
- Amazon Ads. (2024). What is a Retail Media Network and Why is it Important?
- The Trade Desk. (2024). Retail Media Case Study Infographic
- Digital Marketing Institute. (2025). Why First-Party Data is Important and How Marketers Can Collect and Use it
- F22 Labs. (2025). In-house marketing vs agency (The Best choice in 2025)
- Single Grain. (2025). Creative Advertising Agencies vs In-House: Enterprise Build vs. Buy Decision Framework for 2025
- Siteimprove. (2024). MarTech Stack best practices: how to build your Marketing Stack
- Adobe. (2024). Customer data platforms: How CDPs work and what makes Adobe different
- DigitalDefynd. (2025). Top 100 CMO Quotes
- Logica Digital. (2024). Top 7 Challenges of an In-House Marketing Team and How to Overcome Them
- Staffing Hub. (2024). The Integration Challenge: Making Your Tech Stack Work Together