The controversial Pepsi ad, titled "Live for Now," was created by Pepsi's in-house team, the Creator's League Studio, and was pulled just 48 hours after its release due to public outcry. It was widely criticized for being "tone deaf" and for co-opting protest movements like Black Lives Matter. The scandal became a cautionary tale, with many blaming the fact that the ad was produced entirely in-house. A poll found that 61% of people believe an external perspective would've prevented the fiasco entirely.

Mishaps like this one can be avoided in the future through a better understanding of when work should be taken out of house, as dictated by the four S’s.

Size & Spend: A company's size and industry dictate its marketing budget. While small businesses might find their limited budget goes further with an agency, larger companies often utilize a mix of both internal and external teams. B2C companies, for instance, tend to spend more on marketing than B2B companies.

Speed: The demand for rapid content, especially on digital and social media, has pushed many companies to favour in-house teams for their quick turnaround. However, agency processes, which include time for creative development and multiple client approvals, can sometimes slow things down.

Strategy: This is where agencies really shine. Agencies employ strategists who conduct consumer and category research to provide a crucial external viewpoint that can translate a business problem into an effective creative idea. This strategic "arm's length" perspective is often lost within internal teams.