{"id":11404,"date":"2026-04-17T01:30:33","date_gmt":"2026-04-17T05:30:33","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2026\/04\/17\/square-one-again-what-the-in-out-agency-cycle-means-for-brandings-future\/"},"modified":"2026-04-12T13:36:43","modified_gmt":"2026-04-12T17:36:43","slug":"square-one-again-what-the-in-out-agency-cycle-means-for-brandings-future","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/square-one-again-what-the-in-out-agency-cycle-means-for-brandings-future\/11404\/","title":{"rendered":"Square One, Again?! What the In\/Out Agency Cycle Means for Branding\u2019s Future"},"content":{"rendered":"\n

By Rick Barrack, Co-Founder, CBX<\/em><\/p>\n\n\n\n\n\n

Whether by accident or design, it\u2019s happening again. Call it Groundhog Day, but we\u2019re in that stage of the design cycle where major brand conglomerates like Keurig Dr Pepper<\/a> and General Mills<\/a> close down their in-house agencies. These internal teams are getting gutted either for cost, because the CMO changed, because it was doing too much, not enough, or whatever the reason of the week is. And the rest of us are left saying, \u201cOkay, well\u2026 now what?\u201d<\/p>\n\n\n\n\n\n\n\n

We’ve spent decades reacting to this cycle, as any specialist external agency will attest. Big shop to small shop; one-stop-shop to specialist; in-house to out-of-house, and back again. Each time we pivot, we restructure, we re-message. But I don\u2019t know if we ever actually stop to say: What\u2019s our plan for this? What capabilities do we need in place\u2014not just to respond, but to anticipate the next turn of the wheel?<\/p>\n\n\n\n\n\n\n\n

And so, I\u2019d say that now<\/em> is the time for independent agencies to speak up as peers. If we don\u2019t prepare ahead, then we\u2019re just dancing monkeys waiting for the next client whiplash. Every repetition of this cycle causes us to lose important relationships and understandings, and we\u2019re then forced to build back those connections all over again. And at a certain point, that\u2019s not a model\u2014it\u2019s just chaos.<\/p>\n\n\n\n\n\n\n\n

We deserve better. And honestly, brands need to grasp that we can do better\u2014achieve better\u2014when we\u2019re kept in the loop.<\/p>\n\n\n\n\n

Striking the right balance.<\/strong><\/h2>\n

After all, a great brand steward is equal parts pragmatic and progressive. And if you\u2019re contained by four walls (aka your own brand), it\u2019s hard to find the window, let alone look through it. Complacency can happen. That\u2019s where external agencies come in\u2014We\u2019re surrounded by open windows. Our work with other clients broadens our horizons and our points of reference. It\u2019s a good thing, believe me. And our clients benefit from that sort of broader thinking.<\/p>\n\n\n\n\n\n

So yes, while inside agencies offer a sense of control and cost savings (not always real), an external agency has more objectivity and more flexibility, 100% of the time.<\/p>\n\n\n\n\n\n\n\n

But then the onus to show up, show off even, and demonstrate a high-touch, heightened level of commitment sits squarely on our shoulders. In short, you must show you\u2019re as committed as in-house would be, and ever-present, to boot.<\/p>\n\n\n\n\n

It’s not as simple as either\/or. When in-house teams get downsized, we lose more than just talent. <\/strong><\/h2>\n

While it might feel strange for an outside agency to defend these cuts, the reality is that in-house design teams are an essential pillar of a client relationship. They\u2019re liaisons, brand ambassadors, and culture-builders who embed design thinking in the business and help spotlight the value of creative problem-solving. When these departments are reduced (or even dismissed entirely), the brand\u2019s design thinking has to start over, slamming the brakes on any creative momentum in branding strategies and campaign proposals.<\/p>\n\n\n\n\n\n

Let\u2019s be clear: These downsizes aren\u2019t based on AI \u201ccoming for creative jobs.\u201d They\u2019re largely a straightforward financial exercise. Businesses looking to reduce budgets see in-house departments as easy to eliminate because they also employ outside agencies. But the cuts are misguided because these teams are rarely redundant. They\u2019re flagbearers of strategic creative thinking, and their loss is a travesty for the design industry. Not least because it takes external agencies\u2019 progress with the client back to square one.<\/p>\n\n\n\n\n

The deeper problem: Design’s seat at the table (or lack thereof).<\/strong><\/h2>\n

While brands that cut their design teams lose crucial legacy knowledge, agencies face the tough task of re-educating leaders on the importance of design. We lose that hard-won internal advocacy and can face an uphill battle to uphold design\u2019s value and impact on top and bottom lines.<\/p>\n\n\n\n\n\n

By now we should all be able to agree that design is not disposable\u2014so why are we allowing brands to treat it as such?<\/p>\n\n\n\n\n\n\n\n

Design is one of the few functions proven to drive both growth through brand relevance and efficiency through clarity and consistency. We<\/em> know that over a ten-year period, design-led companies outperform the S&P 500 by 219%<\/a>\u2014but do brands\u2019 exec boards grasp it?<\/p>\n\n\n\n\n\n\n\n

Because ultimately, the in-house\/out-of-house debate masks a bigger problem: Design\u2019s value is still not always respected in the C-suite. At agencies, CCO means Chief Creative Officer. At brands, it means Chief Communications or Client Officer\u2014an emblem of creativity\u2019s marginalization. It’s why design is one of the first departments to get cut, despite being critical to how consumers choose and connect with brands. The reality is that you need all three Cs in your suite; design must <\/em>have a seat at the table.<\/p>\n\n\n\n\n

Could this be the moment independent agencies take center stage?<\/strong><\/h2>\n

As painful as these cuts are, they open a door for us independents to step in and reinforce the value of good design. We can carry the torch of institutional knowledge that gets lost in the churn and uphold continuity so that momentum is sustained. We can fill the gaps leftover by in-house teams by providing extra services, cementing our position as real client partners rather than mere associates.<\/p>\n\n\n\n\n\n

It\u2019s also an opportunity to rethink how we operate our own businesses. The in\/out cycle can be incredibly disruptive when we build teams around those of our clients and then see entire departments wiped out. We need to stay ahead of their fluctuations by designing our agencies for greater flexibility, via modular teams and offerings that can scale and adapt.<\/p>\n\n\n\n\n\n\n\n

We also need to watch for leadership shifts and cost-cutting signals as early warnings. If brands begin laying off staff, we may need to cautiously accept that design may be undervalued there. Then, it\u2019s our role to provide continuity of brand story and strategy and advocate for creativity as business critical. Award-winning campaign ideas may need to wait when design\u2019s very existence is on the line.<\/p>\n\n\n\n\n

This too shall pass—but independent agencies must step up.<\/strong><\/h2>\n

Fortunately, whatever stage of the cycle we jump to next, design isn\u2019t going anywhere. Full stop.<\/p>\n\n\n\n\n\n

Consumers will always need ways to discover, identify and connect with brands, so whether it\u2019s outsourced or in-house, the strategic thinking behind that appeal remains crucial for both businesses and their customers. The sun will certainly rise tomorrow, but the industry must continue to fight for its existence, value and our rightful place at the table.<\/p>\n\n\n\n\n\n\n\n

Speaking from 22-plus years of navigating these swings with some of the world\u2019s most iconic brands, I know independent agencies can carry the torch. Design always returns because consumers demand it. And experience and continuity are what help us prove, time and again, why it matters.<\/p>\n","protected":false},"excerpt":{"rendered":"

By now we should all be able to agree that design is not disposable\u2014so why are we allowing brands to treat it as such?<\/p>\n","protected":false},"author":7,"featured_media":11405,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[3],"topics":[2],"class_list":["post-11404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-brands-marketers","topics-editorial"],"acf":[],"yoast_head":"\nSquare One, Again?! 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