IN-HOUSE CREATIVE INDUSTRY REPORT

1 IN-HOUSE CREATIVE . INDUSTRY REPORT . Uncover CREATIVE Talent. Expand Your Team. Accessing top tier talent is easy when you work with The BOSS Group. As a leading staffing agency sourcing and recruiting CREATIVE , marketing and digital talent, we make growing your CREATIVE team painless. We offer flexible staffing solutions, including temporary, temp-to-hire and direct hire, while being dedicated to service excellence. Hire the only national CREATIVE staffing provider to win Inavero's Best of Staffing awards in both the client and talent categories every year since 2010. Contact us at 844-465-4040 or visit 2018 IN-HOUSE CREATIVE INDUSTRY REPORT TABLE OF CONTENTS. INTRODUCTION. About the 2. Executive HIGHLIGHTS FROM THE 2018 4. Perspective from the Field: Block Kryptonite, Enhance 6. SURVEY RESULTS. Department 9.

2 Department 14. Department 22. Service Perspective from the Field: Strengthen Your IN-HOUSE Team to Boost Your 29. 37. Global Perspective from the Field: Think Locally, Act 1. Perspective from the Field: Content Management and 47. Values & Challenges of IN-HOUSE 52. CREATIVE 55. APPENDIX. Survey Participant 59. Industries Our goal is to benchmark the operations of CREATIVE teams and IN-HOUSE agencies to gain insights into INDUSTRY standards and best practices that will support you in driving your business decisions and validate the direction of your department to upper management. We encourage you to share the findings among your colleagues and INDUSTRY peers. We ask that you cite the source as: The BOSS Group and Cella Consulting, LLC. 2018 IN-HOUSE CREATIVE INDUSTRY REPORT , May 2018. Lead Analyst and Author: Cindy Ponce, Practice Lead, Cella Art Direction and Design: Josh Cancel, Art Director, The BOSS Group Project Lead: Veronica Vannoy, Director of Marketing, The BOSS Group Copy Editor, Proofreader: Maria Elharaoui, The BOSS Group 2018 The BOSS Group and Cella Consulting, LLC.

3 All Rights Reserved. 1. About the REPORT The BOSS Group and Cella are thrilled to bring you the 2018 IN-HOUSE CREATIVE INDUSTRY REPORT , which benchmarks the IN-HOUSE CREATIVE community and reports on strategies that leaders can use to guide the path of their departments/agencies. Benchmarking will help identify gaps in an organization and generate potential paths and solutions, but personal, innovative thinking and institutional knowledge should not be eliminated from the process. We hope the data and insights included in this REPORT continue to provide a source of validation and direction, contributing to a more effective and efficient operating model. The REPORT is published annually, and we welcome your insights and ideas to help us continually improve the REPORT . The IN-HOUSE CREATIVE INDUSTRY REPORT was first published in 2010 following a collaboration between InSource and Cella based on the shared goals of providing IN-HOUSE CREATIVE leaders with a resource to support and inform their decision making, as well as tracking and reporting INDUSTRY trends.

4 Survey Respondents More than 425 leaders from CREATIVE teams and IN-HOUSE agencies responded to our survey conducted in January 2018. These leaders represent Fortune 1000 companies, as well as middle market and not-for-profit organizations and span multiple industries including, but not limited to, banking/financial services, consumer products, education, health care, manufacturing, technology and software. More information about the demographics of our survey respondents is available in the Appendix. Perspectives from the Field Included in this REPORT are four Perspectives from the Field articles written by IN-HOUSE CREATIVE leaders on shared challenges and goals across the INDUSTRY .* We asked these leaders to share their stories covering IN-HOUSE transformation, branding IN-HOUSE CREATIVE departments, global considerations for expanding an IN-HOUSE agency, and content management and automation principles.

5 Resource Links New Resource Links for 2018 Previous Resource Links 2018 The BOSS Group and Cella Consulting, LLC. All Rights Reserved. * The opinions expressed in these articles are those of the writers and do not necessarily reflect the views of The BOSS Group or Cella. 2 2018 IN-HOUSE CREATIVE INDUSTRY REPORT Executive Summary Survey Evolution Goals New and Noteable Benchmarks It's hard to believe we've been publishing the IN-HOUSE This year three new questions were included in the CREATIVE INDUSTRY REPORT for eight years. Loyal followers survey, and topics ranged from the IHA's level of strategic of the REPORT have likely noticed that each year our REPORT partnership, level of effort across Tiers 1-3, and the has grown sometimes in page length and always in background of IHA leaders. number of questions (this year 125 were included!)

6 We Responses that we found noteworthy include: recognize that this growth comes at the expense of the time of REPORT respondents, and we've been fortunate to 14% of IHAs indicate that on the scale of order experience strong participation year over year despite taker to strategic partner, they identify as an this. That said, we recognize it's time to retire some organizational strategic partner, in which they questions potentially bringing them back every other year are primarily a Tier 1 agency and are considered to confirm steady state. This will allow us to add new a key stakeholder in marketing and branding questions and go deeper on the latest trends and areas of initiatives (pg. 11). interest such as agile, account and project management The amount of time spent on Tier 1 projects was practices and emerging technologies without requesting not disproportionately higher than time spent even more time of survey respondents.

7 On projects of lower complexities (pg. 30). One potential factor is that while Tier 2 and Tier 3. Year-Over-Year Surprising Changes projects may not be creatively complex, that does not preclude them from requiring significant More IN-HOUSE agencies (IHAs) than ever (83%) indicated amounts of time. that they REPORT into marketing, communications or another department/division that is a strategic alignment Approximately 40% of teams consider themselves for IN-HOUSE agencies. Being aligned within these divisions to be more print-based, and almost as many typically creates greater opportunity to partner earlier in consider themselves equally split between print the project lifecycle and support Tier 1 projects. and digital projects. The remaining 23% identify their teams as primarily digitally-focused (pg.)

8 33). There was a 10% increase in more flexible schedules with 70% of teams able to either on a regular or ad hoc basis 35% of teams providing video services are work a non-standard schedule. Likewise, the ability to shooting in 4K (pg. 35). work remotely has continued to grow (pg. 13). The number of projects mega teams (50+ team members) Other Points of Interest complete each year had a clear majority response for the More teams (43%) are being asked to benchmark first time with 30% of teams responding they complete their costs against those of an external agency more than 8,000 projects in a year. The remaining 70% of (pg. 15); potentially related is that fewer IHAs are mega teams' responses came in across the full spectrum finding a benefit of a chargeback funding model of ranges (pg. 30). That said, the sample size of this to include value recognition (pg.

9 18). audience is small, (23) therefore this response tells us more about the varying levels of project complexities Again this year we see a surprising amount these teams likely work on than it identifies a norm. of confidence in the available talent in the marketplace (pg. 24). This may be due to the There was a significant increase in the percentage of low number of openings IN-HOUSE agencies have IN-HOUSE agencies providing banner ads and other artwork each year as attrition remains incredibly low for website use (from 2% to 85%), as well as in teams (5%) for most teams, and thus the endeavor of creating HTML emails (3% to 66%) (pg. 32). This increase finding candidates is infrequent and therefore not has us stumped; it seems more likely that teams considered painful. overlooked the specifics of the question choices in the previous year than an increase this substantial occurred, Only 14% of IHAs do not support social media in especially given the basic capability of providing any form (pg.

10 33). PhotoShop graphics for use on digital platforms. 7 out of 10 IHAs now provide video services . this is up from 5 out of 10 in 2015 (pg. 34). Approximately 40% of teams have at least four people providing video capabilities. 3. HIGHLIGHTS. FROM THE. 2018 REPORT 434 IN-HOUSE . CREATIVE TEAMS. ARE REPRESENTED. CREATIVE LEADERS. 25. OVER. 9 OUT OF. CAN UTILIZE. FREELANCERS. 10. INDUSTRIES. REPRESENTED. CREATIVE TEAM MEMBERS. <45 77% of IN-HOUSE teams partner with 97% 81%. external agencies 43%. HAVE HAD TO PROVIDE COST. OF TEAMS REGULARLY WORK. COMPARISONS BETWEEN. WILL GROW LESS THAN 45. EXTERNAL AGENCIES. OR STAY THE HOURS PER WEEK. SAME SIZE. 460+540=. 10%. 33+67+A. CREATIVE LEADERS ONLY SPENT MORE. ON PRINTING. HAVE TEAM MEMBERS IN YEAR OVER YEAR. 33% MORE THAN ONE LOCATION. 66%. 74+26+B. COMMISSION.