Saturday, June 7, 2014

House Arrested Advertising

About six months ago, a survey by the Association of National Advertisers found almost 60 percent of marketers in the United States were using some form of in-house advertising compared with about 40 percent five years earlier.

"In-house advertising," of course, is the practice of relying on a company's own staff for advertising expertise as opposed to employing an independent agency on a contract basis.

In the survey, advertisers reported a growing interest in "brand expertise" and "institutional knowledge" as possible benefits of relying on in-house advertising personnel. Possible risks were identified in the areas of "staying on top of key trends" and "creative innovation."

For computer and technology companies, the 64-bit question is whether the hoped for advantages of speed and control provided by in-house advertising will outdistance the originality and third-party objectivity of independent agencies.

During the past year, Apple is among the brands moving toward greater reliance on in-house advertising. Already for Apple, the in-house work has the look of industrial video, albeit expensively produced.

This is an industry development to watch. Indeed, the advertising quality of a firm is an important consideration on Wall Street. The strategic and creative quality of a brand's advertising is a strong signal of the the quality of leadership vision and strength of top management.

Worth remembering, in 2002 Gateway took it's advertising in-house. Let's just say, "The cow went out to pasture." Where is that brand today?

  Copyright © 2014 by John Eighmey. All Rights Reserved.

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