Ad Agencies in India Scramble Over In-House Trend

Advertising agencies in India are scrambling to compensate for losses being sustained by an increasing number of clients switching over to their own in-house agencies.

LG, Samsung, and Hyundai have setup in-house agencies with the initial idea of servicing the industry, but instead are only leveraging their parent companies in India.

The typical commission of 15% that agencies charge as a service fee is being avoided through these efforts. Additionally, creative power is given back to the companies, putting them in direct control over how their product is being presented. This trend mirrors what several big companies were doing in the 60’s and 70’s for the same motivations. These previous historical efforts, however, were unable to be sustained and were eventually shut down.