Hiring a Marketing Agency vs. In-House Team: Which is Best for Your Business?

Should I Outsource Marketing Services?

As a business owner, you know marketing is the lifeblood of growth. But when it comes to deciding whether to hire internally or outsource to a marketing agency, the choice can feel overwhelming. Both options have their merits, but the cost-effectiveness and expertise of hiring a marketing agency often outweigh building an in-house team. In this article, we’ll break down the financial and operational advantages of outsourcing your marketing efforts.

The True Cost of an In-House Marketing Team

Building an in-house marketing team means hiring skilled professionals across multiple disciplines, such as:

• Web design and development
• SEO specialists
• PPC and paid ad managers
• Content creators and copywriters
• Marketing strategists

Average annual salaries for these roles (U.S. data):

• Marketing Manager: $85,000
• SEO Specialist: $60,000
• Web Designer/Developer: $77,000
• PPC Specialist: $65,000
• Content Creator: $55,000

Together, even a lean in-house team can cost $300,000 or more annually. This figure doesn’t include the additional expenses of:

• Payroll taxes and benefits (healthcare, retirement, PTO)
• Tools and software for design, analytics, and campaign management
• Ongoing training to keep up with digital marketing trends

In contrast, outsourcing to a marketing agency can cost between $36,000 and $150,000 annually, depending on the scope of services, providing access to a full team of experts at a fraction of the cost.

Please note: The pricing used in this blog reflects industry averages and is not necessarily a reflection of Momentum Marketing's pricing. At Momentum, we strive to build a marketing strategy and plan around the budget you have to work with. No matter how small or large your budget may be, we’re here to help.

Why Marketing Agencies Are More Cost-Effective

1. Access to a Full Team of Experts
   When you hire an agency, you’re not paying for a single person—you’re gaining access to a team of specialists with expertise across all marketing channels. Agencies provide a broader skill set than one or two in-house hires can offer.
2. Lower Overhead Costs
   With an agency, there’s no need to invest in expensive marketing tools, office space, or employee benefits. Agencies bring their own resources and tools to the table.
3. Flexibility and Scalability
   Marketing needs often fluctuate. Agencies can scale services up or down depending on your needs, whereas in-house teams remain a fixed expense regardless of workload.
4. Ongoing Training and Innovation
   Digital marketing evolves rapidly. Agencies stay ahead of trends, ensuring your campaigns are cutting-edge without requiring you to pay for employee training.

The Expertise Factor: Agencies Deliver Results

Agencies work with a variety of clients and industries, providing them with insights into what works and what doesn’t. They bring proven strategies, tools, and data-driven approaches to achieve results.

With in-house hires, you may face the challenge of finding individuals skilled in multiple areas. A great web designer may lack SEO expertise, while a content writer might not understand paid ad management. Marketing agencies eliminate these skill gaps by assigning specialists to each aspect of your strategy.

Case Study: Cost Comparison

According to a report by the U.S. Bureau of Labor Statistics, the average employer spends an additional 30% on employee benefits beyond salaries. For a $300,000 in-house team, this adds $90,000 annually, making the total cost $390,000.

Meanwhile, the average cost of a full-service agency is $5,000–$12,000 per month, totaling $60,000–$144,000 annually. This represents a savings of $246,000 or more while still receiving comprehensive marketing services.

When to Consider an In-House Team

While marketing agencies offer cost savings and flexibility, there are cases where an in-house team might be the right choice:

• If your company has highly specific or niche marketing needs that require constant internal collaboration.
• If you have the resources to hire a full team and provide ongoing training.
• If you prefer more control over day-to-day marketing operations.

The Best of Both Worlds: Hybrid Solutions

Some businesses benefit from a hybrid approach—outsourcing high-level strategy and execution to an agency while maintaining an in-house coordinator to oversee campaigns. This balance allows you to maintain internal control while leveraging the expertise and cost-efficiency of an agency.

Closing Thoughts: Why an Agency Makes Sense

Hiring an in-house marketing team can be a significant financial burden for most small to mid-sized businesses. Outsourcing to a marketing agency provides a cost-effective, scalable, and results-driven alternative.

Additionally, tools like Local Service Ads (LSAs) can complement your overall strategy, helping you target local customers effectively. Marketing agencies have the expertise to integrate LSAs and other tools seamlessly into your campaigns.

No matter your budget, Momentum Marketing is here to craft a strategy tailored to your unique goals and needs. Reach out today for a free marketing consultation and see if we’re the right fit for your business.