Cutting Agency Costs by 30% by bringing 80% creative work in-house. Find Out how Liberty Mutual Insurance did this.
Liberty Mutual is a top tier insurance company. Providing insurance to consumers all across the United States. They decided to make a huge change to the company that ultimately had them save quite a bit of money.
As companies grow and the market changes, expenses, and needs grow for companies. Industries change so quickly that if one is unable to keep up with these changes they will be left behind, unfortunately. One tactic that companies have adopted as they seek a cost-effective approach is bringing their marketing methods in-house. This consists of data analytics, media planning, and buying and ad creation.
Liberty Mutual has taken on this new emerging adaption for companies and it has been beneficial for them thus far. The companies chief marketing officer, Emily Fink says “Insurance is a very competitive category, and as it becomes increasingly commoditized, it’s important that we’re able to operate in a really cost-effective way,” This gave Liberty Mutual the opportunity to create their own digital media planning and buying, data analytic teams. Copper Giants, their own creative agency has been created through this.
The movement made by the company now has them producing 80% of their creative work in the house. This goes from TV campaigns and any digital assets you can think of. Increasing production and productivity and a quick turn around with all assignments they were able to cut their agency fees by 30%!
Fink explains, “It costs us about half as much, and they do it in about half the time that it took to do work with outside agencies, “It has been both efficient and effective.”
“It puts everyone across the company on the same page, because it’s not like we’re working with one outside vendor and they just work with one person in marketing,”
“Everybody in the company is operating off the same set of data and insights, and that enables faster decisions as a company and makes us more integrated across the groups,” Fink says.
Although they moved majority of their media planning in-house, Liberty Mutual still uses some agencies but does so very selectively.
Fink said “Our agency brings to the table a very deep understanding of the consumer, and a very deep understanding of the products,”
“When they bring such a strong value proposition to the table, and can effectively partner with an inside group and make the inside group more effective too, then they definitely have nothing to worry about.”
Creating their own in house experts they were able to maintain an innovative stance in the market. They are able to keep their teams engaged and up to speed with everyone in the department. They are not afraid to train and understand new practices for ad spend. Keeping everyone up to date is crucial, having their full attention is key to propelling the company forward in marketing.
“We know it’s important to keep everybody at the top of their game, especially if they’re not working on multiple brands the way they might be at an outside agency,” Fink exclaims.