Agency Vs In House: What Every Brand Needs To Know
Oct 11, 2024
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Dive into the debate of agency versus in-house marketing! Discover the pros and cons of each approach and how brands can evaluate their specific needs. Explore the importance of investing in exceptional talent for substantial returns and growth. Learn how selecting the right team can optimize effectiveness. Plus, get insights on expanding your advertising strategies beyond the traditional methods for even greater success!
The frequent hiring and firing of agencies leads to dissatisfaction, prompting brands to consider in-house advertising despite talent retention challenges.
Brands should only engage agencies when their ad spend exceeds $50,000 monthly, enabling sufficient budget for effective agency support and service.
Deep dives
Understanding the Agency Carousel
The frequent cycle of hiring and firing agencies, commonly referred to as the agency carousel, results in wasted time and money for many brands. This pattern leads to a growing perception that agencies may not be capable of effectively advancing brand goals. Issues include receiving poor service, being assigned junior staff, and feeling overcharged, all of which contribute to dissatisfaction. Consequently, many operators contemplate whether to handle advertising in-house, despite the challenges associated with finding and retaining top talent.
Evaluating When to Hire an Agency
Determining the right time to engage an agency is critical, and only makes sense when a brand's advertising spend exceeds a certain threshold. For example, brands should generally spend over $50,000 a month on platforms like Meta for it to be worthwhile to consider agency support. Spending less than this amount typically does not provide sufficient budget for both the agency to profit and for the brand to receive adequate attention and service. Additionally, brands often benefit more from developing in-house knowledge rather than relying on an agency when starting with a smaller budget.
The Importance of Knowledge for Effective Collaboration
Having a solid understanding of the advertising platform is essential for brand operators to manage their relationship with an agency effectively. Brands should prioritize learning key advertising principles and best practices to communicate intelligently with their agency, thereby minimizing the risk of costly mistakes. This knowledge enables operators to ask pertinent questions and evaluate the strategies proposed by their agency, leading to better outcomes. Ultimately, familiarity with the platform empowers operators to sit in the driver's seat rather than feeling lost during agency discussions.
Hiring Principles and Agency Advantages
When brands reach a stage where hiring an agency or in-house talent becomes viable, they should prioritize finding a proven playbook over merely looking for talent or affordability. Agencies usually have extensive industry experience and resources that allow them to develop effective playbooks and strategies tailored to various brands. This operational consistency often surpasses the capabilities of a single in-house hire, who may not have the same breadth of knowledge. Therefore, leveraging an agency's expertise can offer significant advantages, provided that brands carefully assess potential partners based on their history and operational approach.
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FOLLOW UP WITH ANDREW
Twitter: https://twitter.com/andrewjfaris
Email: podcast@ajfgrowth.com
Work with Andrew: https://ajfgrowth.com
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