Should I employ a marketing team in-house or work with a marketing agency? This subject has been a source of consternation for business owners and CMOs since digital marketing has emerged as the most effective approach for growing a company. We understand these issues as an agency that helps in-house marketing teams and provides comprehensive digital marketing services.
So, what are your options?
Well, the best option is based on your long-term objectives and what is best for your company.
Without the right marketing team, organizations suffer several ROI, communication, and digital shifts/scaling. When deciding whether to hire an advertising agency or an in-house team, keep in mind that each has a unique approach to addressing problems and assisting you in achieving your objectives.
An agency allows you to outsource your marketing and advertising to a paid team to conduct your advertising. You may not have to worry about it as much, but marketing will be one step removed from your business.
On the other hand, companies with in-house advertising benefit from having a staff that can be accessible at any time, but they must be adequately hired and managed by your company.
What Is In-House Advertising?
In-house agencies assemble a marketing team to create, manage, and sustain a digital marketing plan tailored to their company’s needs.
The structure and size of an in-house marketing team might vary based on the company’s size. Likewise, the quantity of work you need to be done will determine whether you need to hire a person or a huge team.
There are a few key roles that must be formed for a completely effective in-house team:
- Social media
- Content creation
- Product marketing
- Web design
Working in-house vs. working with an agency offers several advantages, like having staff under your control, being knowledgeable with your brand, being available at all times, and being focused only on your brand. This is a good option for companies that want to mix business and advertising regularly and can afford to recruit many individuals to form a strong team.
What Is A Digital Marketing Agency?
A marketing agency offers a comprehensive variety of marketing services under one roof, allowing a company to outsource its marketing to a skilled outside team.
An agency’s structure can be complex. Agencies have whole departments covered by entire, cross-functional, specialist teams, such as:
- Customer support
Why do businesses use advertising firms? There are several advantages. When you outsource advertising to an agency, you get to select from the best companies with top-notch skill sets, software, and tools, as well as a broader range of capabilities than if you hired an in-house team.
When a company selects an external agency over an in-house agency, it’s typically because they want to outsource their marketing to a reputable source and don’t have the financial resources or skills to employ their internal staff.
Advertising Agency vs. In-House: Pros and Cons
When it comes to your company’s marketing and promotion, choose between a digital agency and in-house marketing is crucial. Your firm can develop, reach more prospective consumers, and boost income with the appropriate staff. Both external and internal marketing have their own set of advantages and disadvantages.
- What is your financial plan?
- What is your projected return on investment?
- What do you want to achieve with advertising?
These are just a few of the crucial issues to consider as you progress through the choosing process. Continue reading to learn more about the benefits and drawbacks of in-house advertising.
Pros and Cons of In-House Advertising
The advantages and disadvantages of in-house advertising are prolific.
On the one hand, having a full-fledged internal marketing staff means that all of their time and effort is focused solely on your company. But, on the other hand, you get to hand-pick a whole team whose skill set is precisely what you need, so it may be stacked in certain areas that will benefit your business the greatest if necessary.
Your internal staff will be able to gain crucial and in-depth insight into your competition, allowing you to retain your position as a formidable contender in your field. In addition, they will be physically present in the office, available at all times, and adaptive to schedule changes as in-house staff.
Pros of In-House Advertising
- Specific Skill Set
- Competitive Knowledge
- Availability and Adaptability
On the other hand, a hand-picked workforce takes a lot of time and effort to employ, which means there’s a higher chance of turnover – creating holes in your team until you can locate another high-quality professional. Depending on a small group of individuals for everything might overload your team and negatively impact your overall results.
Marketing needs inherently creative individuals who thrive in a changing environment. If you don’t establish a culture that challenges this from the start, an in-house firm focused only on your brand may become creatively stagnant.
Finally, employing a full-time staff entails a significant financial investment that you must be prepared to make. For example, the average annual pay in advertising is $67,970, and that’s for just one person. Therefore, it’s critical to conduct research to determine how many employees you’ll need and calculate your projected investment return.
Cons of In-House Advertising
Pros and Cons of Advertising Agencies
When comparing agency marketing to in-house marketing, there is a long list of advantages. This is unsurprising given that an increasing number of businesses are opting for external ad firms over in-house advertising.
Why is that?
For starters, the experience of agencies varies greatly. You may choose whether you want an agency that focuses on one element of marketing or one that can assist you in revamping your existing marketing strategy and build and manage something new. In addition, each agency marketer works on various accounts, keeping them up to date on industry trends and keeping their ideas fresh.
Because an agency has so many moving elements, it can grow to your firm as your advertising demands vary throughout the year. Finally, the cost is a significant consideration for many firms. The cost of employing an agency depends on your needs, but it will be far cheaper than hiring an entire marketing staff.
Pros of Outsourcing Advertising
- Varied Expertise
External marketing has its drawbacks as well. Although there are several agency alternatives available, they are not evenly distributed. It’s possible that the ideal agency isn’t even in the same time zone as you. Some are notorious for working with so many clients that you feel ignored.
Keep this in mind when looking for a client-focused firm. Outsourcing marketing might sometimes necessitate relinquishing control. Some business owners like losing control over marketing (and having one less thing to worry about), while others are hesitant to entrust their marketing to a third party. Trusting your agency will reduce the likelihood of work being backed up. In addition, because you aren’t their only client, they may find it more challenging to adjust and pivot on a strategy on short notice.
Cons of Outsourcing Advertising
- Multiple Clients
Which Is Better For You?
The benefits and drawbacks of outsourcing marketing are comparable to those of in-house marketing. The decision is based on how each matches your company.
If a major firm with a strong brand and a lot of money to spend in talent to develop a team of experienced in-house employees took that path, they would undoubtedly flourish.
On the other hand, any firm with a limited advertising budget will discover that working with an agency is the best option.
There are several factors to consider when deciding which option is best for your company. The return on investment (ROI) is one of the most critical metrics, yet it may be not easy to estimate. Use our budgeting calculator to see the expenses and expected ROI of employing an agency vs. an in-house staff.