Navigating the In-House vs. Outsourcing Dilemma in Digital Marketing
To in-house, or not to in-house, this is the age-old digital marketing question. You can partner with an external ad tech or try to train up your internal team to take on the task.
This dilemma isn’t new, in fact, many marketing teams wrestle with this decision year after year, and some even quarter to quarter.
And for many, taking digital marketing in-house seems like the logical choice. In-housing is perceived as having the potential to reduce costs, improve focus, and accelerate turnaround times.
However, the reality of staffing, sourcing, and sustaining an in-house media team isn’t nearly that simple.
There are significant challenges that can arise when brining media in house. If your team isn't prepared for the sizeable investment, learning curve, and growing pains that come with the transition, outsourcing might be the best solution.
Here are just a few of the things to consider when contemplating in-house media design and delivery.
1. Limited Expertise and Skill Diversity
In-house marketing teams are often comprised of a limited number of individuals with specific skill sets. This can lead to a lack of diversity in expertise, making it challenging to tackle a wide range of marketing strategies effectively. From budgeting, channel allocation, full funnel strategy and media management to copy writing and graphic design, modern digital marketing requires a multifaceted approach. In-house teams may struggle to keep up with the latest trends and best practices across all these areas.
2. High Training and Development Costs
Maintaining an in-house marketing team comes with the responsibility of continuous training and skill development. As marketing trends evolve and new technologies emerge, your team needs to stay up-to-date to remain effective. This requires investing time and resources in training programs, courses, and workshops. These costs can quickly add up, and there's no guarantee that your team will always be on — or have access to — the cutting edge.
3. Resource Limitations
In-house marketing often means working with limited resources, both in terms of personnel and technology. Scaling up marketing efforts can strain your team and lead to burnout. Moreover, investing internally in advanced marketing tools and software can be expensive, especially for small and medium-sized businesses. This can hinder your ability to implement complex campaigns and stay competitive in the market.
4. Difficulty in Keeping Pace with Change
The marketing landscape is dynamic, with trends, algorithms, and consumer behaviors shifting rapidly. In-house teams may find it challenging to adapt to these changes quickly. Whether it's changes in algorithms, or shifts in consumer preferences, staying ahead requires constant vigilance. Failure to adapt can lead to missed opportunities and a decline in brand visibility and in turn decreased performance.
5. Opportunity Cost
Taking on marketing efforts in-house diverts attention, resources, and budget from your core business activities. Business leaders and team members end up spending valuable time on marketing tasks that could be better utilized in areas where they have a competitive advantage. This opportunity cost can hinder growth and innovation.
6. Lack of Objectivity
In-house teams might become too close to the brand, leading to a biased perspective on optimal strategies. An outside perspective can often provide valuable insights and fresh ideas that an internal team might miss. Objectivity is crucial in crafting effective marketing campaigns that resonate with your target audience.
7. Recruitment and Turnover Challenges
Recruiting and retaining top marketing talent is a significant challenge. Marketing professionals with diverse skill sets and experience are in high demand, and the turnover rate for marketing departments tends to be higher compared to other departments. Constant turnover disrupts workflow, requires frequent retraining, and can lead to inconsistencies in your marketing efforts.
The Pros of Outsourcing Your Marketing:
Skilled Under Pressure: Ad tech agency marketers thrive under pressure, bringing agility and expertise across different industries. They build partnerships, attend conferences, and create a supportive community for marketers to excel.
Diverse Tactics: Ad tech teams handle various tactics, offering a wide array of experiences. With different expertise on the team, they tackle problems creatively and offer fresh perspectives.
Results Matter: Ad tech agency partners are paid for their performance and results. If you're not satisfied, you can switch always switch, which means the partner will work extra hard to ensure performance.
Staying Ahead: Ad techs stay on top of technology, processes, and tactics, always adopting the latest trends.
Focus on Core Business: Collaborating with an ad tech lets you focus on your core business, leaving marketing to the experts. This allows you to manage internal opportunities more effectively.
Benefits of Ad Tech Agency Infrastructure:
Simplified Setup: Ad tech agencies handle campaign complexities efficiently with their existing structures, from strategy to tracking.
Cost Efficiency: Running multiple campaigns in-house demands costly tools and expertise. Ad techs already have these resources, ensuring cost-effective campaigns.
Access to Experts: Internal teams can struggle with turnover, but ad techs offer dedicated teams with specialized expertise. You'll work with professionals who execute tactics flawlessly.
Why Outsource to an Ad Tech?
Outsourcing digital media to a performance-centric ad tech partner streamlines processes, provides specialized skills, and boosts results while minimizing costs and staffing issues.