Are ad agencies better off hiring an animation studio for all their ads, or are ad agencies considering building full fledged teams to do all the animation in-house? Especially due to the increasing demand for animation, more so after covid.

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It depends on the amount of animation work your agency has, the size of the agency and the type of animation you're looking to accomplish.

A small agency might not be able to afford a full time motion graphics designer, let alone a whole team. A larger agency would benefit from a motion graphics designer or two who have basic cg capabilities (can move 3D objects around in a 2D or 3D space). If you have a few toy/kids brands that do a lot of animation, it might make sense to bring on a small cg team inhouse. It will be hard for these animators to grow in an inhouse environment, so the creative offering will be limited.

Within animation studios (outsourced), the animators are constantly feeding off each other and trying innovative things, so their creativity grows at an exponential rate. Plus, there are animation specialities that some studios are great at and others are not, so you'll likely want to mostly use outsourced studios to make sure what the creatives want to happen in the spot, can actually happen.

I've worked both agency side and production side and have been in the business for years, so I've seen a variety of scenarios. Inhouse studios (whether to have them or not) undulates decade over decade. Undulates isn't the right word, maybe, but one decade it seems that most larger agencies have them, and the next decade they lay them all off in favour of outsourcing.

Maybe the trick is finding good animation partners who can work with smaller budgets and still provide good solid work and innovative work. Here comes a plug while I'm at it - let me know how I can help you if you're looking to outsource.

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I’m very satisfied with the vendors we use for animation, to include an in-house Team shared among multiple sister agencies. However, the demand is growing - but the economics remain murky and I hope the artists are well compensated.

I guarantee you the animators themselves are just as well compensated in-house than at studios. At least most freelance animators, maybe not fulltime.

Following! Interested to know the answer to this as well. I assume building full fledged teams would be more costly.

Yeah you’re right but then everything looks the same and that’s not good

In-house is growing and agencies are paying a little better and securing better talent. All post-production (and production, for that matter) is all trying to routed in-house these days

I hope to see in-house facilities getting more respect. I was an in-house person for most of my career and fought biases the whole time.

In-house is the way to go if you can. You'll always have a use for them with how things are, so why not?

We do a mix, we have a senior motion designer to do some stuff but bigger stuff we outsource. They really want to build up their portfolio though so are taking more work vs who we outsource to

Why not do both? Steadily grow your in house team corresponding to demand and billability while partnering with talented small studios for heavier lifts or overflow. I’m doing this right now. It’s going great.

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