The Pros and Cons of In-House Ad Agencies

For small and medium-sized businesses, an in-house marketing team is a huge investment. That's why the cost of maintaining these teams is one of the most important drawbacks of internal marketing: it's a massive engagement. If the advertising agency doesn't consider you a big client, you may not allocate your best resources to your project. If the agency picks up more important customers after you sign up, you may be pushed even further down the totem pole.

As a result, your project can be assigned to inexperienced staff members. For companies that are debating creating an internal agency or continuing with a traditional agency, Kerns insists that creative control should not be a consideration because any good agency will understand how to collaborate and provide service. While a marketing agency isn't free, it's often much more profitable than in-house marketing. You can find agencies all over the world, which becomes a disadvantage for companies that want to work with a local marketing company. If you conduct your marketing activities in-house, you need to ensure that learning and development is an ongoing consideration for your agency team. In addition to the cost of hiring and maintaining an in-house marketing team, you also have marketing software expenses.

Looking ahead, some of the strengths of internal agencies, such as agility, can be met by traditional agencies to stay competitive in the market, according to Kerns. Internal marketing and agency teams can develop and manage various types of online marketing strategies, although digital marketing agencies tend to be more capable of using these tactics. It can be difficult to know how much of your marketing and advertising needs to be done in-house and how much you should outsource to an agency. He added that an internal agency makes sense for a stable workflow with fast lead times, but if there are large projects with intermediate interruptions such as an IPO, a M&A situation, a rebranding effort or a broad consumer launch, even companies with internal agencies should seek outside help. Internal marketing revolves around creating an internal marketing team to develop, manage and maintain your digital marketing strategy. However, one question that many companies have about digital marketing is whether they should maintain their in-house marketing or partner with an online marketing agency.

Internal marketing depends on an in-house marketing team, which your company maintains, to promote your business. A digital marketing company often has skills that internal teams can't match, especially the internal marketing teams of small and medium-sized businesses. When discussing between an agency or an in-house marketing department, many companies want a cost comparison. The greatest disadvantage associated with in house ad agencies is loss of revenue. This is due to the fact that maintaining an in-house team is expensive and if the advertising agency doesn't consider you a big client, you may not allocate your best resources to your project. Additionally, staff relations can be difficult as inexperienced staff members may be assigned to projects if more important customers are picked up by the agency after signing up. In addition to the cost of hiring and maintaining an in-house marketing team, there are also marketing software expenses.

Furthermore, adherence to organizational mission can be difficult as it can be hard for internal teams to match the skills of digital marketing agencies. Lastly, reluctant recognition by mass media can be an issue as it can be difficult for companies to work with local marketing companies.

Jeanine Bottcher
Jeanine Bottcher

Freelance web fanatic. Award-winning social media guru. Hardcore social media nerd. Extreme twitter fan. Amateur music expert. Incurable travel evangelist.

Leave Message

All fileds with * are required