In-House Agencies And The Rise Of The New AOR: "Angel Of Record"
Photo by Roan Lavery
The recent news of Liberty Mutual hiring Bandits & Friends, a small 15-person agency in New York City, as their lead creative partner marks a significant shift in the advertising industry. This move away from larger, established agencies like Liberty’s previous agency Goodby Silverstein & Partners signals a broader trend: the rise of robust in-house agencies on one hand and the evolving scope of the “Agency of Record.” Is that even the right name for these agency/client relationships anymore? More on that in a minute.
In-house agencies are becoming the lead agencies.
In-house agencies have been gaining strength for years. According to a 2023 report by the In-House Agency Forum, 80% of brands now have some form of in-house agency, up from 58% in 2013. These internal teams are increasingly capable of handling the bulk of advertising work, from strategy to execution, from big TV campaigns to SEO.
However, these same companies still value the fresh perspective and specialized expertise that external agencies can provide. The Liberty Mutual example demonstrates that they no longer need to rely on industry giants like BBDO or Wieden & Kennedy (or Goodby) as their “Agency of Record” (AOR). Instead, they're turning to nimble, boutique agencies that can offer targeted creativity and flexibility, typically at the brand level. The shift is that the in-house agency is now the lead agency.
I spoke to Bill Girouard, the Executive Creative Director of Liberty’s in-house agency, Copper Giants, and asked him about the new relationship with Bandits.
We hope more in-house agencies become lead agencies. It’s certainly the goal of Copper Giants to be a leader in that. If you’ve read any of our articles or positioning statements you’ve seen that we’re trying to change the way our industry works.
You certainly are, Bill.
the new AOR: Angel Of record.
This shift calls for a new term to replace the outdated "Agency of Record," or AOR, which implies agency-responsibility for the full scope of a brand’s communications. We propose "Angel of Record" (AŌR, note the halo) to better reflect the evolving (and reduced) role of these external agencies. What do angels do? They bring inspiration to the witness. They won’t do the mission for the witness, but they will inspire the person to do what’s right. An AŌR does the same thing, only it brings creative inspiration to the in-house teams, providing fresh perspectives through ideas, without the need for deep, mortal “below the line” work. And the inspiration the AŌR brings could be on an “as needed” basis. Agencies are the “wing man” these days (horrible pun, I know).
The concept of AŌR (not the name…yet) is gaining traction. In 2023, Spotify brought most of its advertising in-house, partnering with smaller agencies for specific projects. Similarly, Procter & Gamble has been steadily increasing its in-house capabilities while working with a mix of external partners as AŌRs.
I asked Bill Girouard about he anticipates the agency/client relationship to divvy up the work:
While creative will probably remain in separate lanes at least for a while, there are plenty of other instances where we can, and do, partner to make things run more smoothy and efficiently. Those meetings have already begun and will continue. The most important thing is that we are all rowing the boat in the same direction and that is to deliver the most effective work for Liberty Mutual. Given that, we are excited to work with Bandit and Friends.
This shift presents major challenges for larger agencies who depend on the fees that come from massive hours per month, obviously, but the shift presents opportunities that are just as sizable to smaller agencies.
Like, I dunno, Ideasicle X.
Ideasicle X: The Ideal angel of Record for Modern In-House Agencies
In this new landscape, Ideasicle X becomes even more relevant than ever. In-house agencies have always been our sweet spot (e.g. DraftKings, Purina, Constant Contact, and Staples to name a few we’ve worked with). We’re the ideal Angel of Record for in-house agencies seeking external creative firepower. Here's why:
Access to World-Class Talent: With a network of 40+ Ideasicle Experts boasting experience from top creative agencies, Ideasicle X offers unparalleled creative depth. Small agencies, while they may be wildly talented, will never have a creative department this big and diverse.
Rapid Deployment: The perfect teams of four can be recruited and begin ideating within 24 hours, delivering ideas to in-house agencies within a week or less.
Virtual Efficiency: As a fully virtual operation, Ideasicle X eliminates the overhead costs associated with traditional agencies, making it a cost-effective solution for clients. It’s like having a fractional creative department at your fingertips.
Seamless Collaboration: In-house creative directors can observe our online ideation sessions (via the “Idea Stream”) in real-time, fostering a transparent, collaborative, and “on strategy” process.
On-Demand Engagement: Unlike traditional agencies that require monthly retainers, Ideasicle X operates on a project basis. This means in-house agencies can "turn on" Ideasicle X when needed and "turn off" when the project is complete, ensuring cost-efficiency and flexibility.
As in-house agencies continue to grow in capability and influence, they need Angels of Record who can complement their strengths and fill specific creative gaps. Ideasicle X's model is perfectly positioned to meet this evolving need, offering a blend of top-tier talent, rapid ideation, and cost-effectiveness.
The Liberty Mutual-Bandits & Friends partnership is just the beginning. The future of advertising lies in the healthy link between strong in-house teams and their agencies. Angels everywhere, get ready.
Will Burns is a Fractional Brand Consultant and the Founder & CEO of the revolutionary virtual-idea-generating company, Ideasicle X. He’s an advertising veteran from such agencies as Wieden & Kennedy, Goodby Silverstein, Arnold Worldwide, and Mullen. He was a Forbes Contributor for nine years writing about creativity in modern branding. Sign up for the Ideasicle Newsletter and never miss a post like this.