In-house Teams are Moving Out: Why the Agency Model Still Works
Earlier this month, news broke that Keurig Dr Pepper had shut down its internal agency, Liquid Sunshine, laying off around 80 employees in the process (Ad Age, May 2025). It wasn’t just a surprising development—it was a sign of a deeper shift happening across the industry.
Over the past decade, in-house agencies have been heralded as the future. Brands large and small started pulling creative and media capabilities closer to home, citing cost efficiency, tighter alignment, and faster turnaround times.
Objectively, these reasons make sense, but in 2025, the downsides are becoming more stark. We’re entering an era where brands are realizing something agencies have long known: internal teams can be siloed, creatively limited, and can struggle to keep pace with the fast-changing industry.
The trick to it all? It isn’t going back to the bloated AOR model of the past. It’s finding lean, experienced, high-output agency partners who can act as true teammates.
You don’t need to sacrifice the camaraderie, alignment, or agility of an in-house team when you go external. You just need the right kind of agency. Do your due diligence, and find one that:
- Is structured to be nimble. Look for a flat “hierarchy” and senior-led team for less red tape and more getting-it-done.
- Has cross-client learnings. Leverage an agency’s broad exposure and their resulting diversity of thinking to ensure work stands out and is relevant.
- Is operationally-driven. Look for a team that embraces tight parameters and timelines to maximize efficiencies and minimize overages.
And here’s the kicker: external agencies can be more cost-effective than most in-house teams. Salaries, benefits, office space, tech platforms, retention efforts—it all adds up. When you outsource thoughtfully, you gain access to a full creative department (strategists, designers, writers, PMs) at a predictable cost without the overhead.
As one marketing leader put it: “It’s not about in-house vs. agency. It’s about having the right model to meet the moment.” The future of brand building remains people-first, and the best agencies will be the ones who feel like in-house teams—just without the baggage.
