Creative-as-a-Service vs. Traditional Agencies: Key Differences

Creative-as-a-service has become a go-to solution for graphic design service needs among many ventures over the past years. After all, visual communication and brand consistency are no longer optional in a world where 5.56 billion individuals browse the internet for entertainment, information, and chores, including shopping.

According to data, one in three respondents said brand consistency has substantially contributed to their venture’s revenue growth. Another 35%, meanwhile, said it somewhat contributed to their business.  

In this article, let’s compare two options for design solutions: creative-as-a-service and traditional agencies. Let’s take a look at the key differences as well as the pros and cons of each so you can choose the right one that fits your needs.

What Is Creative-as-a-Service (CaaS)?

At its core, creative-as-a-service, specifically those that provide visual designs, are subscription-based design services.

Also called on-demand creative design service, CaaS providers like Penji offer ongoing access to creative design services at a flat monthly fee.

How does it work? 

• With a graphic design subscription service, you can request graphic designs through the platform.
• The system assigns your request to one of its designers, who works on your request.
• Within the turnaround period, the designer submits the design draft to you.
• If you’re not completely happy with the design, you can request revisions. Otherwise, you can approve the design and move on to your next design request.

The best creative as a service providers have a specialized app, which makes communication between the creative team and the clients a breeze. In fact, Penji’s app has a point-and-comment feature, allowing users to pinpoint the exact sections of the design that they want to be revised.

What Are Traditional Agencies?

On the other side of the coin, traditional agencies offer services that follow either a project-based arrangement or a retainer model.  

Typical full-service creative agencies offer creative services beyond design; many also provide strategists, account managers, production specialists, and more. That said, they usually focus on campaign execution and the client’s overall marketing strategy.

Many traditional agencies also outsource their design needs to creative-as-a-service providers. After all, many traditional agencies take pride in their marketing and campaign prowess, not necessarily design services. With that in mind, it doesn’t matter if they use in-house vs. outsourced graphic design, just as long as they’re able to implement the campaigns the best way possible.

Creative-as-a-Service vs. Traditional Agencies: Key Differences

Here are the main differences between creative-as-a-service providers and traditional agencies:

1. Pricing and Cost Predictability  

CaaS providers typically offer monthly subscriptions. That means you can get unlimited design requests at a flat monthly rate. That includes branding design, social media design, web design, and more.

Traditional creative agency services, meanwhile, can also provide a flat fee if they follow a retainer-based billing model. However, they can also bill additional charges related to the campaign, such as production expenses and creative fees. That said, their pricing rates can be unpredictable compared to CaaS.

2. Turnaround Time 

Traditional agencies often operate on a multi-level approval. That means the designs would need to be approved by various people first before they are delivered to the client. On the other side of the coin, the best creative service subscriptions offer faster turnaround times. At Penji, for instance, we offer a turnaround time of 24 to 48 hours.

3. Flexibility

Many traditional agencies don’t offer much flexibility in terms of contracts. For instance, some offer long-term commitments, which require the client to pay a retainer’s fee even if they don’t have active campaigns. Creative-as-a-service, meanwhile, is more flexible. After all, it’s a subscription that you can renew or pause every month. In addition, you can also upgrade to higher-tier plans if you need to scale up.

Creative-as-a-Service vs. Traditional Agencies: Pros and Cons

Here are some of the pros and cons of creative-as-a-service and traditional agencies to help you decide which is the better option for your needs:

Creative-as-a-Service

Pros

• Flat monthly fee – Perhaps one of the best benefits of CaaS is predictable pricing, which is a crucial factor for startups, small businesses, and just about any client who wants to save on design costs.
• Fast turnaround – With a quick turnaround time, clients can stay on top of their campaign schedules and post consistently on their online channels. You can also do away with design bottlenecks like multiple approvals before getting your design draft.
• Wide range of expertise – Because CaaS companies hire a pool of vetted designers with various expertise, you get access to the best designers in terms of illustrations, branding, pitch decks, and more.

Cons:

• Limited services – For brands that need more than just design, such as help with marketing strategies or implementation, a full-service agency can be a better fit.

Traditional Agencies: Pros and Cons

Pros:

• Strategic depth – Traditional agencies offer a range of services beyond graphic design. These can include research, branding, media planning, media relations, and more.
• Experience with big campaigns – If you need help with big campaigns in multiple channels, as well as long projects, a full-service agency can guide you every step of the way.
• Industry expertise – Established agencies have immense knowledge and expertise across various industries and markets.

Cons: 

• High rates – Unlike CaaS subscriptions, you’ll have to pay retainer fees for agency services, alongside project fees, and even hourly charges.
• Slower turnaround – Since campaigns and creative materials would need approval from various people, it can take longer to implement. 
• Long-term commitment – With agencies, you could be locked in a contract for a longer period, compared to monthly subscriptions.

The Bottom Line

The choice between CaaS and traditional agencies all boils down to your own needs. 

• If you need help with branding and marketing beyond graphic design, a traditional agency may work well for you. 
• But if you’ve already established your brand identity and you need visual assets that will reflect what your brand stands for and what you can do for your audiences, then CaaS is a practical solution.

Looking for a creative-as-a-service provider that has the design prowess of a creative agency? Reach out to Penji! View a short demo or check out  Penji’s portfolio to see how it can boost your brand to new heights.