Not One or the Other: Hybrid Is the Future of Creativity

Over the past two decades, I have seen creativity from every angle inside nimble agencies, embedded within large brands, and now navigating the brave new world where artificial intelligence is changing everything. I have worked across continents, cultures, and countless organisational models, but one question has consistently shaped my thinking: what is the future of creative agencies?

If you asked me ten years ago, I would probably have given you a binary answer. Agency or in-house? Pick a side. But today, after seeing the seismic shifts in how brands create, I am convinced that question is outdated. The answer is not “either or.” It is “both and.”

In Australia alone, nearly 80 percent of marketers now operate in-house creative teams. That number was closer to 60 per cent just a couple of years ago, and it is part of a global trend. Brands want more control, faster turnaround, and tighter integration with business strategy. In-house teams promise all that and more.

When I first helped set up an in-house agency for a major brand, the promise was seductive: deeper brand understanding, direct collaboration, and cost efficiency. And yes, those things happened. We built a team who knew the brand inside out, moved quickly on briefs, and felt like an extension of the business rather than a vendor.

But here is the catch. An in-house agency is not a silver bullet. Without the right talent, leadership buy-in, and clear metrics to show value, it risks becoming a costly black hole. I have seen teams struggle because they were not empowered to innovate or measured beyond headcount cost. If you cannot prove your impact, you are just overhead.

In a previous role, we showed key metrics on a real time dashboard, this highlighted clear value to the business which was a key differentiator in other IHAs that I have worked in. Without showing this type of value I have seen IHAs become an endless pit of creative amends, a lack of clarity, no boundaries which resulted in a lack of trust between IHA and other internal teams.

At the same time, I have watched indie agencies flourish. They bring fresh perspectives, specialised skills, and strategic clarity that often eludes internal teams bogged down in day-to-day operations. And offshore teams offer scale and efficiency that keep the work flowing.

Partnership is key when using a blended model of IHA and other agencies. Identify clear roles and responsibilities - IHAs should have input in the brief and a seat at the table to guide brand authenticity with the agencies.

In one campaign, we blended all three. We partnered with a nimble indie agency for brand strategy, concepting and storytelling. Our in-house team worked closely with the agency to align the ideas with our brand. Then we leveraged our offshore resources for execution and digital delivery at speed. The result was a campaign that felt both authentic and innovative, launched faster and more cost-effectively than a single team could have managed alone.

This collaboration is the real future. Creativity thrives in ecosystems where different talents and models coexist and amplify each other rather than compete.
Then there is AI. If you have not faced it yet, you will soon. I started using AI back in 2019. At first, it felt like a gimmick or a threat, something that might replace human creativity. But the reality is different.

AI can do the grunt work: research, mock-ups, data crunching, even initial content drafts and automation for multiple versions. That frees creatives to focus on what machines cannot do: intuition, empathy, and bold ideas. The key is not to fear AI but to harness it as a powerful accelerator.

The brands that succeed will be those that integrate AI thoughtfully, aligning it with their values and creative culture, how it ethically suits their brands/clients, and consider using it to complement rather than replace human talent.

Traditional agencies, with their siloed departments and rigid processes, face an existential challenge. The model that worked for decades, pitch, produce, repeat, is breaking down.

Brands want partners who can pivot quickly, who bring bespoke solutions, and who collaborate across boundaries. I have seen agencies that have embraced this new hybrid reality thrive, creating cross-functional teams that blur lines between strategy, tech, design, and production.

If agencies do not evolve, they risk becoming relics.

So what does this mean for brands and creatives today? It means the future is not about choosing sides. It is about curating the right mix, building a creative ecosystem tailored to your unique business and cultural needs.

This hybrid model blends the best of in-house teams, indie agencies, offshore support, and AI tools. It is flexible, scalable, and designed to keep pace with a fast-changing world.

I believe this approach is already winning. In fact, 93 per cent of marketers report that in-housing improves their bottom line, largely due to efficiency and tighter brand control. Yet nearly the same number rely on external partners to fill gaps and spark innovation. And 80 per cent are already tapping AI to stay ahead.

What excites me most is how this hybrid model unlocks new possibilities. It is a creative alchemy, combining strengths, perspectives, and technology to craft work that is smarter, quicker, and more human.

For leaders building creative teams, the challenge is no longer whether to build in-house or hire an agency. It is how to design a hybrid ecosystem that flexes with your brand’s needs, culture, and ambition.

In this new world, creativity has no borders. It is house-made, world-ready, and powered by partnership.

That is the future I am building toward, and I cannot wait to see where it takes us.

--

Cliona Manahan is a seasoned creative and brand leader with 20 years of experience at the intersection of creativity, strategy, and performance, across both agencies and in-house teams.