Choosing the Right Marketing Support: Agency vs. In-House vs. Freelancer

A strong marketing strategy is essential for business growth, and the team you select to execute it plays a crucial role on the road to success. Whether you are managing existing campaigns or looking to scale up, one question always arises: “Should I build an in-house team, work with an agency, or hire a freelancer?” There’s no universal answer because each business has unique needs. Each option—agency, in-house team, or freelancer—has its advantages and drawbacks. In this article, we’ll help you weigh the pros and cons of each choice so you can make the best decision for your business.

Table of Contents:

1. Delivering More With Less
2. 4 Key Factors to Help You Make the Right Choice: Agency, In-house Team, or Freelancer
3. The 1st Key Factor: Cost
4. The 2nd Key Factor: Skills
5. The 3rd Key Factor: Project Management
6. The 4th Key Factor: Perks
7. How to Make the Right Choice Based on Your Business Size?
8. What Should I Know Before Starting Working With a Digital Marketing Agency?
9. Your Choice Has Fallen Upon the Agency? Get in Touch With VIDEN!

Delivering More With Less

Gartner’s annual CMO spend survey reveals that marketing budgets have dropped from an average of 9.1% of company revenue in 2023 to 7.7% in 2024. During the COVID-19 pandemic, the average marketing budget lost more than 40% in value in a single year. Although there was some recovery in 2022, budgets have not yet returned to pre-pandemic levels.  “How to deliver more with less?” is now a key challenge. You should know exactly which marketing support will be cost-effective and capable of driving business growth, especially since 62% of surveyed CMOs rank this as a top strategic priority. 

At the same time, recruiting top-tier marketing talent has become increasingly difficult. Robert Half reports that 86% of hiring managers are struggling to find qualified candidates. 

Given these ongoing shifts, no matter the industry or size of your business, understanding the pros and cons of each marketing support should be a top priority to make well-informed and impactful decisions. 

4 Key Factors to Help You Make the Right Choice: Agency, In-house Team, or Freelancer

Let’s dive deeper into the advantages and disadvantages by considering the following 4 key factors: 

The 1st Key Factor: Cost

One of the biggest questions you should be taking into account is, “What is the most cost-effective solution?”. Let’s explore the options you have. 

Agencies usually charge per project or service with an hourly rate that reflects the exact time spent on deliverables. So, what does it mean? Firstly, you pay only for what you need—no more, no less. Secondly, you eliminate the overhead costs—no taxes, no benefits, no paid leave, no unemployment fees. You pay just for the services.  

Building an in-house team can put a strain on your budget. Hiring in-house digital marketers means you need to find professionals for every role. Besides, you will account not only for salary but also for the overhead costs. 

According to Glassdoor, the average salary for a Digital Marketing Specialist is $61,104 per year (as of September 2024), and that doesn’t include any associated overheads. If you add payroll taxes (about $5,000), healthcare (about $6,000), onboarding costs (about $2,500), 401k (about $2,000), computer and equipment (about $1,500), etc, in total, you should pay at least $78,000 per year. Plus, if you are considering hiring a digital marketing manager, the costs will be much higher (an average salary is $88,915 per year based on Glassdoor). 

Also, don’t forget about the hidden cost many businesses overlook—employee turnover. The reality is your marketers can be poached at any time, and they can leave at any time. With employee termination, you will lose the knowledge and creativity of your marketing experts, which can influence all marketing efforts. The cost of turnover goes beyond just finding a replacement—it leads to costly project delays. The remaining staff can also feel the pressure, and in the end, you might have poor performance and even higher turnover rates. We know turnover happens in agencies too, that’s why it’s crucial to choose one with a solid reputation. And you will not need to worry about strategy coming to a halt. Just do your research and pick wisely. 

Freelancers are often the most budget-friendly choice—you only pay for the work that should be done without additional expenses and fees. Entry-level freelancers typically charge between $25 and $50 per hour, while mid-level freelancers with 3-5 years of experience charge between $50 and $120 per hour. But remember that ‘cheap’ doesn’t always mean ‘cost-effective.’ You might save by hiring a freelancer to handle just a piece of your marketing strategy, but soon, you will realize that one person can’t cover everything you need. In reality, you will likely hire a team of freelancers to get the full job done. 

The 2nd Key Factor: Skills

Leading digital marketers typically specialize in one area. That’s why it’s essential to consider the range of skills needed to execute your marketing strategy before deciding whether to build an in-house team or outsource the work to a third party.

Agency. When it comes to hiring talent, both agencies and in-house teams need to bring together a group of specialists. That’s where agencies offer a distinct advantage: you don’t have to build the team all by yourself.

For example, remember the last time you furnished your home or apartment. Of course, you had two options: you could take the ‘do-it-yourself’ approach or buy from a showroom and have the products delivered and fully assembled. 

This is exactly why agencies are valuable from a skills standpoint. They come with a diverse team of experts on board, prepared to meet all your business needs.

In-House Team. Having skilled marketers in-house comes with its own distinct advantages. Agencies typically won’t dedicate time to training you. With an in-house expert, you and your team can consistently learn new strategies. This knowledge becomes part of your company’s collective expertise, which can be used to train future employees and help scale your business. However, newcomers may lack the experience and knowledge to deliver high-quality work immediately. Training new hires takes time and thus could distract you from key marketing tasks. Partnering with an agency can bridge all these gaps.

Freelancer. Similar to agency and in-house talent, freelancers often specialize in a specific area of marketing. Building a team of freelancers is much like creating an in-house team but without the added benefit of gaining internal knowledge.

The 3rd Key Factor: Project Management

One of the biggest challenges businesses face is finding the time to get the work done. Whether you choose to outsource or build an in-house team your capacity for managing projects should be a key consideration.

Agency. While bringing in an agency with its end-to-end project management, you don’t have to approve every step—you’re backed by a team of experts handling the strategy for you. An agency is responsible for taking care of your complete marketing strategy: set goals, conduct research, establish deadlines, set up campaigns, and provide detailed reports. As a result, you save time and focus more on growing your business instead of worrying about marketing strategy. 

In-House Team. Some executives prefer to maintain full control over their marketing. With an in-house team, you have oversight of the entire marketing process. These days, many agencies provide the option for clients to be as involved as they want to and offer a more transparent process. But if a high level of control is crucial for you, an in-house team might be the right choice. 

Freelancer. When you hire a freelancer, you get a middle ground between the full-service management of an agency and the complete control of an in-house team. But keep in mind that freelancers thrive on assignments, not strategy. They rarely develop it; they just execute the plan you have crafted. Working with a freelancer requires more hands-on management from your side. They will need your guidance and direction. You will be involved in reviewing and approving their work. Also, freelancers often balance multiple clients, so you may not get their full attention on your project.

The 4th Key Factor: Perks

There are different perks to your chosen solution. 

Agencies serve as your consultant, like a doctor offering guidance. You know they have an appropriate expertise you can trust and rely on. You should consider an agency if:

• You are looking for a budget-friendly solution. Maintaining an in-house marketing team can not be as cost-effective as you think. To make the most of your marketing budget, partnering with an experienced agency can be a smart move.
• You don’t have the appropriate in-house skills. An agency often brings expertise and industry knowledge that in-house teams, particularly those in small to mid-sized businesses, may not have (for example, access to beta features in Google Ads, better account management from ad platforms, etc). 
• You want to scale faster. Whether you want to boost paid ads campaigns during peak seasons or enhance your social media presence, an agency can quickly adapt to meet your business needs. Hiring new team members takes more time. 
• You are seeking a fresh viewpoint, innovation, and perspective. Agencies can bring fresh perspectives to your ads strategy, provide innovative ideas to help you stand out, and identify opportunities you may have missed. An experienced agency in your industry will be more likely to understand what’s been done and what’s currently trending.

In-House Team. No one understands your business as well as your own teams. They have a deeper brand familiarity and know everything about your product/services. Your in-house team is a great part of your company culture. You will most likely get fast communication and easy access to your marketing team — just walking over to their desk or office. 

Freelancer. Flexibility is the biggest benefit of working with a freelancer. Freelancers can be hired for smaller projects, saving you the time, effort, and resources of evaluating an agency or bringing in internal talent.

How to Make the Right Choice Based on Your Business Size?

There’s no exact formula for marketing success. And which option you should choose is up to you! We suggest the following options based on the size of your business: 

If you are a startup and keeping costs low is essential for you, the most affordable choice will be hiring a freelancer. Freelancers can provide specialized skills and flexibility without the financial commitment of a full-time employee, making them a good choice for startups in the early stages of growth.

For small to mid-sized businesses, a mix of in-house and agency support works well, providing flexibility. This collaboration allows you to leverage in-house knowledge and communication while tapping into the agency’s robust expertise. You also save on costs since working with an agency will be more cost-effective than expanding your in-house team.

A combination of in-house staff and an agency is ideal if you represent an enterprise, as access to specialized expertise is critical.

What Should I Know Before Starting Working With a Digital Marketing Agency?

We know how challenging it is to find the right agency. For the businesses deciding to go with an agency, our team has prepared a checklist of the steps we recommend to follow before hiring one:

We understand the importance of choosing the right agency and how costly it can be for you to make the wrong decision. Our team of experts also prepared a list of 6 crucial aspects to look for when hiring a digital agency. Explore them in our article.

Your Choice Has Fallen Upon the Agency? Get in Touch With VIDEN!

VIDEN empowers eCommerce brands to scale through data-driven strategies and innovative creative solutions. As a Google Premier Partner (top 3%), Meta Business Partner, and Microsoft Partner, we use our expertise to deliver customized strategies that drive growth. Our specialists are GA4 and GTM certified. We are so proud of a low employee turnover rate, ensuring you enjoy uninterrupted services and have a feeling that we are a part of your team. VIDEN builds long-lasting partnerships through honesty and transparency. Unlock your full potential through seamless, omnichannel experiences and explore best-in-class expertise at the most competitive rates!