Part 1: Why Brands Are Moving from Agencies to Fractional Creator Teams

If you’re interested in learning more about Fractional Teams, click here for more information.

For years, agencies were the go-to when businesses required B2B services, especially for marketing or technical needs. However, in recent times, there has been a shift from agencies to creator teams.

The US alone experienced a 34% increase in the number of independent workers from 2020 to 2021. But that’s not all; digital companies recorded a jump from less than 30 companies using freelance workers in 2014 to more than 100 in recent years. The trend is similar on a global scale.

From these statistics, it is clear that not only are businesses shifting to gig work, but more brands are looking for an alternative to marketing agencies and turning to fractional creator teams. Brands are now leveraging creator-led marketing to transform their campaigns without the cost and bureaucracy of traditional agencies.

But why exactly are brands leaving agencies? And what does it mean for the future of marketing teams? Let’s take a deeper look.

Why Brands Are Leaving Agencies

Naturally, businesses do not embrace any strategy that doesn’t positively improve their bottom line. Therefore, we can deduce that if there is a shift from agencies to fractional creator teams, there must be good reason.

Below are five explanations why brands prefer freelancers over agencies:

High Costs

Agencies aren’t cheap because, to be fair, they also exist as a business and have to factor that into their fee. Brands have to shell out a lot on retainers, overhead, and account management fees. Sometimes, a huge chunk of the charge does not go towards things that directly impact performance.

However, freelance marketing teams help businesses cut unnecessary costs and invest more in the actual marketing of their brand. They don’t have to fork out hefty retainer and management fees but get to work with experts who understand their target audience and will deliver results. Given these benefits, it's no surprise that brands are quickly catching on.

Lack of Agility

The world moves fast, and so does marketing. For instance, a new trend that may impact your business can go viral in minutes. Algorithms can shift overnight, and consumer preferences are constantly evolving. These changes require marketers to move fast.

Unfortunately, traditional agencies often lack the agility to move quickly because they are afflicted by their rigid approval processes. By the time a campaign is allowed to go live, the moment to implement a new viral trend or change may have already passed.

Brands don’t have that problem with fractional marketing teams as they are usually built for speed. Freelance teams are often more flexible and can accommodate change as it comes because they don’t require bureaucratic processes.

One-Size-Fits-All Approach

The lack of flexibility that is common with most agencies is not limited to their process but their marketing approach as well. They may recycle strategies that have worked for them before.

Although there is an argument for not fixing what’s broken, it also means their clients can sometimes receive generic campaigns when uniqueness is required to gain a competitive edge in the market.

Today’s consumers crave real, relatable content, and fractional creator teams deliver exactly that. These teams usually consist of specialised experts from around the globe, which results in fresher and out-of-the-box approaches. With them, brands enjoy tailored and original content that resonates with their target audience.

High Turnover and Junior Talent

The people pitching the work at an agency aren’t always the ones working on your account; some agencies rely on junior talent to execute the campaigns. This can lead to inconsistency and a shallow understanding of the brand’s goals because the junior talent may not even have attended the pitching meeting.

Fractional marketing teams solve this problem by allowing brands to work directly with the content creators delivering the work. Plus, they get a dedicated team that truly understands their vision and goals with their projects.