Hiring a Digital Marketing Agency vs. In-House Marketer: Which is Better for Your Business?

When weighing in-house marketing against agency marketing, there’s a lot to consider. Each approach has its advantages and drawbacks. 

So, how do you decide which is right for you?

In the ever-evolving landscape of digital marketing, businesses, especially SMEs (Small and Medium Enterprises), often face a crucial decision:

Should they hire a digital marketing agency or bring the expertise in-house? 

Cost is frequently cited as a significant factor, with many companies believing that an in-house team will be more economical. 

However, is this assumption really true?

The In-House Approach: Perceived Savings and Hidden Costs

 

At first glance, hiring an in-house digital marketer appears to be a cost-effective solution. 

Companies expect that a single hire can manage multiple campaigns, seemingly stretching their marketing budget further. 

 

However, several often-overlooked factors can complicate this strategy.

1. Performance Risks – Not Meeting KPIs: 

What happens when a campaign fails to deliver the desired results? Or faces budgeting challenges? The consequences can be more severe than anticipated. 

If a digital marketing campaign is running smoothly, everything seems fine. But what happens when the cost per acquisition (CPA) starts increasing and previously successful campaigns begin to underperform?

In an in-house team, limited resources can make it difficult to address these challenges, unless a senior specialist is on board. 

In contrast, an agency has a whole team of specialists and a team leader who can collaborate to navigate through these issues effectively. 

It’s not just about meeting KPIs; it’s about having the right expertise and guidance when challenges arise, ensuring your campaigns remain on track.

2. Employee Turnover – Issues with Hiring, Training and Retraining: 

Training an in-house marketer involves time and resources. If the employee leaves, the company faces the costly cycle of hiring and training a replacement. 

This disrupts ongoing campaigns and hinders overall marketing momentum.

Losing team members can significantly hinder your marketing efforts and place added pressure on the remaining staff, potentially leading to decreased performance and even higher turnover rates.

3. Unforeseen Absences – Under Company Salary but Absent: 

Unexpected leaves, such as medical emergencies or personal time off, can leave a gaping hole in your marketing operations.

This causes delays in your campaign and you could potentially miss critical deadlines.

4. Comprehensive Skill Set – Capable Jacks of All Trades are Rare: 

Effective digital marketing goes beyond just running campaigns. It requires the ability to analyse and interpret data, adjust strategies on the fly, and continuously optimise for better performance. 

If you focus on building your marketing department from local candidates, your area limits you. Depending on your location, this can substantially affect your recruitment efforts. 

A single in-house marketer might lack the diverse skill set needed to excel in all these areas. The abilities of your team, company, and marketing budget impact the end results. An agency can provide the team and tools to help your business.

5. Possible Stagnation – Inability to Scale Marketing Efforts:

While an in-house team has deep knowledge of your brand, they may lack the fresh perspectives that an external team can provide. 

Being entrenched in the same company culture and strategies can sometimes lead to stagnation, turning the in-house team into an echo chamber where new and innovative ideas are less likely to emerge.

Scaling quickly with an in-house team can be difficult, often requiring additional hires, investment in training, and managing more company data. These tasks can consume significant time and resources – these same tasks can be easily achieved with an established marketing agency.

6. Hidden Costs – Software & Tools: 

In addition to the costs associated with hiring and maintaining an in-house marketing team, you’ll also face expenses for marketing software. 

These can include tools like Ahrefs and SEMrush, website hosting platforms, and website maintenance costs.

 If you do not have a design team in-house, you’ll end up paying for freelance services like graphic design or web development.

When working with a digital marketing agency, you may still use similar tools, but the agency often provides its own toolset. This means you don’t have to bear the cost of these programs, as the agency covers them.

 

To truly harness the power of digital marketing, a business often needs a larger team, including an experienced digital marketing manager who can guide and mentor the team. 

When considering the cumulative costs of salaries, benefits (such as CPF contributions), and the potential downtime from leaves, the perceived cost savings of an in-house team may quickly diminish.

 

The Agency Advantage: Expertise and Efficiency

 

On the other hand, partnering with a digital marketing agency can provide a range of benefits that might outweigh the initial cost considerations.

1. Specialised Expertise – Masters & Experts: 

Agencies consist of teams with diverse skill sets, offering comprehensive knowledge and experience across various aspects of digital marketing. 

This means you get access to specialists in SEO, content marketing, social media, PPC, SEM and more. 

Access to experts enables your business to hire agencies with expertise in your specific market or a strong emphasis on your preferred strategy, such as TikTok or SEO.

While hiring an agency isn’t free, they’re often much more cost-effective than in-house marketing.

2. Scalability and Flexibility – Adapting to Your Marketing Needs & Goals: 

Agencies can easily scale their efforts to match your business needs, whether you’re launching a major campaign or needing to pivot strategies quickly. 

They are accustomed to the fast-paced nature of the digital marketing world and can adapt accordingly.

3. Consistent Performance – Contractual Promise & Delivery: 

With an agency, you don’t have to worry about absences or turnover.

They have the resources to ensure continuous performance, even if team members change or take sick leave. 

This consistency can be crucial for maintaining the momentum of your marketing efforts.

4. Cost Efficiency – Investing Wisely in Your Marketing Efforts: 

While agencies might seem more expensive upfront, they often prove to be more cost-effective in the long run. 

By leveraging their expertise, you can avoid costly mistakes, improve campaign performance, and achieve a better return on investment (ROI).

5. Client Management – Dedicated Service:

If you collaborate with a seasoned, client-focused agency, you shouldn’t feel overlooked. Your account manager should feel like an integral part of your business and team—this is a hallmark of a reputable digital marketing agency. 

If you feel sidelined by your agency, it doesn’t mean you need an in-house team; rather, it may be time to find a new marketing agency.

6. Frees Up Time – Focus on Actual Revenue Generating Activities:

When you hire an agency for your marketing campaigns, you gain more time for revenue-generating activities. 

Digital marketing is a long-term effort, and by delegating inbound marketing tasks, you can concentrate on the more critical and immediately impactful aspects of your business.

Making the Right Choice for Your Business

The decision between hiring a digital marketing agency and building an in-house team depends on various factors: 

• Business goals
• Company mindset and flexibility
• Budget
• Timeline
• Current team skills and capacity
• Complexity of your marketing needs
• Types of marketing needed

 

 

Agency

For many SMEs, the specialised expertise and flexibility offered by an agency can provide a significant advantage, ultimately leading to more efficient and effective marketing efforts. 

The initial campaign costs may seem larger at first but these pay off with consistent lead generation from the results of your campaigns. Which in turn leads to real dollars and cents in revenue generation.

In-House

If you decide to go the in-house route, ensure you invest in building a well-rounded team with the necessary skills and experience. 

This might mean higher initial time and financial costs but can pay off with a more tailored approach to your specific business needs.

What Should You Choose? 

Ultimately, the key is to evaluate your unique situation carefully and choose the option that aligns best with your long-term marketing strategy and business objectives.

Not sure where to start? 

Simply talk to us about your digital marketing needs and we’ll guide you through. 

Our team of expert consultants and strategists bring deep marketing knowledge across various industries to guide you in making smarter business decisions and achieving your marketing goals.

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