About time: Nike moves social media in-house

The announcement this week that Nike has decided to move all social media activity in house has been met with surprise by many in the industry and has been trumpeted in the trade press.

The surprise is, in itself, surprising. Because it makes total sense. And I say that as someone that works in an agency where we advise on social media activity for a vast proportion of our clients.

I have always said - and will continue to say - that the best place for social media activity (particularly in terms of engagement) to be managed is in-house. Why would you outsource engagement with your customers and prospects to an agency? Both financially and logistically, it would seem to make no sense whatsoever.

All things being equal in terms of expertise and knowledge (and that is by no means a given), then I can see very few arguments against.

There are, of course, exceptions to the rule, especially in small to mid-sized companies. Many simply don't have the capacity to manage in-house. And I've also heard examples where budget for social and digital is easier to come by through agency hiring rather than through increasing headcount, particularly in these recession-challenged days.

But, for a brand the size of Nike, I can't see much of this applying.

The barriers are falling

I believe these barriers will continue to drop and we'll see more social media activity moving in-house, driven by two key areas.

Firstly, the time when brands went to agencies to help with social media because they lacked experience of this brave new world is over. In-house skills are reaching the point (and in many cases surpassing) that of agency practionners, so the argument for outsourcing becomes moot. The challenge for agencies is to try and stay one step ahead.

Secondly, there is a realisation that it is much easier to manage social media activity when there is someone internally - a community manager - that can have quick and easy access to internal knowledge that is so often needed when responding to enquiries and engagement on social channels, whether that is marketing, PR, technical support, customer services or product development.

Show me the value

Am I doing myself out of a job? Nope, I'm not. It's just the agency / client relationship - especially in the field of PR - is changing.

Over the last year I've been leading a workstream at the PRCA identifying what the future of the PR agency will look like.

One of the key discussion points to come out of this is that in the future, increasingly (and especially in the case of social media), an agency's ability to add value when it comes to implementation will decrease. Instead the value-add needs to come from higher strategic guidance, training and creative input.

Again, the value of an agency shouldn't be diminished, it will just exist in other areas. And it seems as though that is exactly what Nike has put forward here.

At this time of year, when everyone is throwing out their predictions for 2013 (which usually aren't predictions, they are trends from 2012 because, let's face it, none of us know what is going to happen), my money is on more big brands following Nike's lead and benefiting as a result.

Danny Whatmough is Associate digital and social media director at Ketchum. He can be found on TwitterGoogle+  and blogs at dannywhatmough.com.

Add your own

Reader comments (5)

  1. Gary J. Nix Gary J. Nix

    Marketing Specialist at Blue Fountain Media

    4:09PM on 4th January 2013

    As brand specific as NIKE, Inc. is, it is a bit surprising that they took this long to move all of their social media in-house. We mus also remember that their full adoption of social media was also slow (for whatever reason).

    Either way, I do believe it is a good move and will open many opportunities within their company.

  2. Avatar-blank-50x50 Andy Newman

    11:49PM on 6th January 2013

    IMHO the majority of social media ideally should belong in-house (for some if the reasons highlighted in the article.

    I've noticed that many of the smarter agencies have been facilitating this shift for a while (providing training etc) in the belief that by helping companies become adept in social both internally & externally said agency will benefit from increased opportunities in the long run.

  3. Nathan Levi Nathan Levi Enterprise

    Head of Media at VCCP

    10:20AM on 7th January 2013

    I think most companies already do most of their social media in house. The figure stands at 70% according to Econsultancy's UK Search Engine Marketing Benchmarking Report, May 2012. It makes complete sense for this to be the case. I've been stating the case for a while that brands will be bringing more of their digital media activity in house (see http://the-makegood.com/2012/06/21/will-more-brands-bring-digital-media-buying-in-house/). Clients want to pay agencies for services that 1. provide value 2. do the things they cannot do. Managing a brand's Facebook page or updating their Tweets does not fall under either of these categories. The stronger social media agencies are those that can build media campaigns which have a social element.

  4. Danny Whatmough Danny Whatmough

    Director of Digital Strategies at EML Wildfire

    9:28AM on 8th January 2013

    Gary, Andy, Nathan - thank you, we are in furious agreement.

  5. Avatar-blank-50x50 Amanda McKenna

    4:11PM on 10th January 2013

    While I agree that a dream scenario is for marketing departments to manage important functions like social media marketing in-house, doing it brilliantly is a complex business and I’m just not sure it’s practically achievable for everyone. I've written a full response to the news musing on in house vs. agency here: http://bit.ly/UCOMg6

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