I’d like to think brands work with agencies because of some spark of genius they would be unable to find among their own employees. Ideas that only they hold the key to that promise to transform a business and bring in mountains of new business. Alas, while the mentioned is definitely part of the reason brands (should) work with agencies, the real reasons are mostly related to buying power, process standardisation, specialisation and experience. I’ll explain each in turn and discuss what brands can do to emulate this in the marketing department or other areas of their business.

Buying power is a term mostly used to describe agencies that buy from the same publishers for several brands and so are able to leverage their large budgets to get better pricing. Companies looking to do advertising themselves or use this principle in other areas of their business should consider appointing a vendor manager who is in charge of negotiations and contract formalizations.

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