Should you stick or twist with your in-house agency?

A few years ago, in-housing felt like the answer to everything. Faster. Cheaper. Closer to the business. Marketers rushed to build internal teams - sometimes out of strategy, sometimes out of necessity, and increasingly, because everyone else seemed to be doing it.

Today, that momentum is hitting a reality check. More brands are asking: What role should our in-house agency actually play? And if we’ve already built one, is the way we’ve designed it still fit for purpose?

According to AAR’s report “Evolution of the Marketing Operating Model 2025”, 48% of brands cite building in-house performance media teams as a key reason for reviewing their agency model, while 47% prioritise in-house creative production. But 41% of CMOs are already planning to re-outsource the work - a reminder that just because you can build an IHA, doesn’t mean you should.

So, should you stick or twist?

Start with the right vision

The most successful IHAs are built on clarity of purpose. That starts with a simple question: What role will your in-house team play within your agency model? If the answer is vague - “to save money” or “to go faster” - you’re not ready.

In-house teams succeed when they’re aligned to a clear business goal and set up to deliver defined, repeatable outputs. That vision needs to sit comfortably within your wider agency model, and it must reflect the reality of your company culture. Creative and media teams can’t thrive in environments that don’t enable their way of working. In-house creative talent needs the freedom and feedback loops that fuel great ideas.

Media teams need timely data, clear KPIs, and fast decision-making to optimise spend and performance. Agile production teams can’t deliver at pace in businesses that don’t enable fast decision-making. If the broader organisation doesn’t support that, even the best talent will struggle to deliver impact. 

Define the boundaries - and stick to them

Scope creep is the silent killer of in-house agencies. What begins as a focused performance unit or content hub can quickly become a catch-all service for any urgent internal need. Without discipline, the IHA ends up doing too much - and none of it well.

To avoid this, treat your IHA like any other agency. Define their remit. Be clear on what they don’t do. Ensure they have a seat at the table alongside your external agencies - not underneath them. Successful IHAs collaborate; they don’t compete.

Build the model, not just the team

People are critical - but they’re not the whole answer. IHAs also need structure: ways of working, governance, performance metrics, tooling, and leadership with the experience to run a creative or media agency inside a corporate environment.

If the in-house team reports into someone with no experience of leading agency teams, it risks being managed like an internal service desk. That’s a fast track to demotivation and mediocrity.

Start small. Pilot. Prove the value. Build the business case. And only then scale with intent.

Be honest about what should be in-house

There’s no universal rule. The right in-housing approach depends on your brand’s maturity, ambition, and internal setup. Some teams focus on high-volume, repeatable tasks. Others are now leading creative, media, and strategic planning from within.

The key is to evaluate potential in-house capabilities based on more than just cost. Look at the complexity of the work, how frequently it's needed, the speed of decision-making required, and whether the organisation can truly support it. Ambition is important - but so is readiness.

Stick or Twist?

If your IHA is floundering, don’t give up too quickly. Sometimes, the model is right - it’s the execution that needs fixing. But if it’s draining resources, confusing your agency ecosystem, and delivering diminishing returns, it might be time to rethink.

Whether you’re looking to reframe, reset, or retire your in-house capability, work with a partner who sees these decisions play out every day. At AAR, we help clients define what belongs in-house, what stays out, and how to make it all work together. Because this isn’t just a resourcing question - it’s a strategic one.