bringing facebook ads in-house vs. hiring an agency: which costs more?
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BRINGING FACEBOOK ADS IN-HOUSE VS.HIRING AN AGENCY: WHICH COSTS MORE?
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It’s a common assumption that agencies are more expensive than hiring in-house talent to manage your Facebook marketing programs.
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It’s a common assumption that agencies are more expensive than hiring in-house talent to manage your Facebook marketing programs.
Let’s do some easy napkin math.
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One or two campaign manager salaries (say 75k each) + One
software license (100k)
<
Managed services fees (say 30%* of our $2m budget)
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One or two campaign manager salaries (say 75k each) + One
software license (100k)
<
Managed services fees (say 30%* of our $2m budget)
WE INTERRUPT THIS PRESENTATION TO CLARIFY THAT THE 30% MANAGED SERVICES FEE ON OUR NAPKIN MATH IS BASED ON AN INDUSTRY RUMOR.
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And in time benefits:
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We’d have:• Convenience of access to our
marketing team in the same room
• Quicker turnaround of changes to
ad campaigns• More control over our performance
• Insight into data
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Noticeably absent in this wildly incomplete analysis, are several benefits of working with an agency specializing in Facebook ad management:
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Noticeably absent in this wildly incomplete analysis, are several benefits of working with an agency specializing in Facebook ad management:
1. Diversity of client portfolio.
2. No learning curve for software.
3. A varied skill set, with ongoing training at Facebook.
4. Agility to quickly respond to the rapidly changing ad ecosystem.
5. Willingness to take intelligent risks.
6. Ability to score some quick wins early on in the partnership.
7. Agency turnover does not affect your campaigns.
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Working with an agency could be more affordable than bringing all of your operations in-house.
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In-H
ouse
• 1 person: campaign manager/analyst hybrid
Age
ncy • Multiple person
team of optimizers, specialists and analysts
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Day-to-Day Tasks for Your One-or-Two-Person Facebook ads Team
LET’S LOOK AT SOME OF THE
• ‘‘• Ad copy for hundreds of variations
• Ad design/image selection for hundreds of variations
• Audience research from curated Facebook data sets, 3rd party data, internal customer data
• Compilation of other audiences – custom lookalikes, website visitors, prospects, other constituencies
• Segmentation• Assign targeting for hundreds
of ad variations• Place pixels• App tracking• A/B testing• Optimize bids
• Monitor & adjust bids
• Analyze & interpret performance results
• Apply test outcomes to new cohorts
• Refresh ad creative• Refresh ad copy• Stay up-to-date on Facebook
ad platform changes and software updates
• Troubleshoot platform bugs• Maintain domain expertise in
Facebook advertising channel• Stay up-to-date on industry-
specific marketing best practices
• Meetings and/or calls with key stakeholders, analysts, marketing peers, sales teams, and others
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If you found one superstar who can kick ass at:
• all the managing
• all the smart bid optimization
• all the creative execution
• all the audience research
• all the performance analyzing
• all the adjustments and tweaking
• and all the monitoring
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If you found one superstar who can kick ass at:
• all the managing
• all the smart bid optimization
• all the creative execution
• all the audience research
• all the performance analyzing
• all the adjustments and tweaking
• and all the monitoring
that one person won’t come cheap.
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And he or she would somehow have way more than 24 hours in their day.
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And he or she would somehow have way more than 24 hours in their day.
SIDENOTE: if you do find that superstar, give them our number, ok?
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Time is a huge factor in the cost of running Facebook ads.
Ad automation software helps, but as you scale, the amount of work to maintain and learn from your campaigns multiplies as well.
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So. Want to talk costs?
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Let’s take a look at some hard numbers:
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Agency In-House
Annual Facebook ad budget $2,000,000 $2,000,000
Avg managed services fee (for us, that’s usually 15%)
$300,000 $0
Salary of Campaign Manager Built in $100,000
Salary of Designer Built in $100,000
Salary of Data Analyst Built in $120,000
Salary of Senior Strategist Built in $120,000
Annual Software Subscription Built in $100,000
Annual Media Buy Spend for Actual Ad Placement
$1,700,000 $1,460,000
Let’s take a look at some hard numbers:
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Even if you require a $100,000 salary for someone to manage the relationship with your agency, you’re still working with $140,000 more in your Facebook ad budget than if you took operations in-house.
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What’s more, your agency is innately focused on providing superior performance.
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Are your in-house employees focused on justifying their salaries directly in relation to the performance of their Facebook ad campaigns?
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Are your in-house employees focused on justifying their salaries directly in relation to the performance of their Facebook ad campaigns?
Didn’t think so.
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For agencies, killer results are the one true deliverable.
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The quantitative value of putting your Facebook advertising in the hands of a team of experts positions you for success that scales.
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And you can’t put a price tag on that.
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And you can’t put a price tag on that.
No, wait. You can.
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If you want specific facts and figures that help you weigh the costs of working with OrionCKB vs. building an in-house advertising operation, give us a call.
We’ll be happy to put the numbers to work for you.
