In-House vs. Agency: When to Keep Marketing in the Company and When to Partner

One of the most persistent dilemmas in marketing and advertising is the question: “What should I keep in-house, and when should I use an agency?” This decision often resurfaces during different economic cycles and can have significant consequences for your business.

Over the years, working with various agencies and serving as a client and board member, I’ve encountered this issue from both sides. This experience has helped me develop a balanced perspective on when in-house makes sense and when partnering with an agency offers more value. In this article, we’ll explore four key areas to guide your decision: core functions, economics, resource scarcity, and leverage.

1. Is the Work Part of Your Company’s Core?

A foundational question to ask is whether the work in question is a core function of your business. Not all companies are structured to handle in-house media buying, creative work, or analytics. The decision comes down to how central the service is to your company’s mission and expertise.

Let’s look at an example. For several years, I worked with a team that handled digital media and analytics for a leading Cybersecurity MSSP. Toward the end of that period, the client decided to bring these functions in-house. Their rationale was simple but powerful: “We’re a data-driven company, and our customer acquisition data needs to be core to our business.”

However, they didn’t bring everything in-house. They continued to use agencies for PPC campaigns and creative work, as those functions were not as deeply ingrained in their internal team structure.

At Nighthawk Digital Marketing, we see similar situations frequently. While certain capabilities like customer acquisition data may be critical to internal operations, others such as urgent PowerPoint presentations, WordPress website updates, or PPC campaigns are often more effectively managed through an external partner. Nighthawk’s flexible approach, which allows businesses to engage us for one or 100 projects without long-term contracts, provides the best of both worlds. You can bring certain functions in-house while we support you in areas that aren’t core to your business.

2. The Economics of In-House vs. Agency

One common reason companies choose to bring work in-house is perceived cost savings. However, many cost analyses fail to account for the full scope of expenses and end up comparing apples to oranges.

For instance, while salary is a key factor, it’s crucial to account for the true cost of hiring, including benefits, healthcare, and overhead. A standard practice is to multiply the base salary by 1.5 to cover these additional costs, though in reality, the number is often much higher.

Another consideration is the potential for lost productivity during periods of attrition. If a key team member leaves, it can take months to hire a replacement, particularly in today’s competitive hiring market. This downtime often results in lost momentum and additional burden on remaining staff.

At Nighthawk, we’ve seen companies struggle with these hidden costs of in-housing. By partnering with an agency, businesses gain access to specialized talent—such as graphic designers for high-priority presentations, WordPress experts for quick fixes, or PPC experts for fast, effective ad campaigns—without the risk of downtime. Moreover, because we operate on a no-contract basis, you aren’t locked into a long-term commitment, allowing you to scale your projects as needed while still maintaining cost flexibility.

3. Resource Scarcity: Can You Find the Talent?

Building a highly specialized marketing team in-house can be challenging, especially when it comes to talent scarcity. Consider a scenario where you’re looking to hire top-tier graphic designers or WordPress developers. These professionals are often drawn to large tech companies, agencies that offer variety and innovation, or exciting startups. Recruiting the best in-house talent may prove difficult unless your company offers a highly attractive opportunity.

In contrast, agencies often have access to a broader pool of experts across different fields. At Nighthawk, we’ve built a network of top specialists—each with deep experience in digital marketing, creative services, PPC, and more. Our product marketing-as-a-service model gives clients access to expert resources on demand without the difficulty of hiring internally.

4. Leverage: When You Need to Scale Quickly

There are moments when the stakes are high, and you need to scale your marketing efforts quickly—whether it’s for a product launch, a rebranding effort, or a seasonal campaign. In these situations, an agency can offer the leverage you need to bring in more minds, creativity, and resources.

For example, when a company is preparing for a critical presentation or promotion, it might urgently need a graphic designer to create a polished PowerPoint deck, a WordPress expert to implement a quick microsite update, or PPC talent to ensure a timely and effective digital advertising campaign. Nighthawk specializes in providing these resources on demand, allowing businesses to meet urgent needs without scrambling to hire full-time talent.

At Nighthawk, we specialize in scaling efforts for our clients. Whether you need a full-service agency to take on multiple projects simultaneously or focused expertise for a single initiative, our model allows for flexibility and responsiveness, all without long-term contracts. This gives you the leverage to act quickly and efficiently during critical periods without compromising on quality.

Conclusion – Tailor the Agency Relationship to Your Needs…Period!

Ultimately, going in-house or working with an agency is not a binary choice. In many cases, a hybrid approach works best, where companies keep core functions in-house and outsource specialized or scalable work to agencies.

At Nighthawk Digital Marketing, we help businesses strike that balance. By offering flexible, no-contract services, we enable companies to focus on their core strengths while benefiting from expert support in areas like SEO, PPC, website development, and more.

The key is to assess your needs in terms of core functions, economics, talent availability, and leverage. With the right approach, you can create a dynamic partnership that delivers measurable results while keeping your business agile and competitive.

KEY POINTS

1. Core Functions: In-House vs. Agency

• Determine if the work is central to your company’s mission and strengths.
• Example: Capital One brought digital media and analytics in-house because data is core to their business but continued outsourcing creative and media buying.
• Nighthawk provides flexibility, allowing clients to outsource non-core functions like SEO, creative, and social media management.

2. Economics of In-House vs. Agency

• In-house cost comparisons often overlook full expenses like benefits, overhead, and lost productivity during hiring gaps.
• Agencies provide specialized talent without these hidden costs, offering greater flexibility without the burden of full-time hires.
• Nighthawk’s no-contract model offers cost efficiency and adaptability, ensuring businesses only pay for what they need.

3. Talent and Resource Scarcity

• Finding top-tier talent in specialized fields (e.g., data science, digital marketing) can be challenging for many businesses.
• Agencies have access to a broader talent pool, providing immediate expertise without the recruitment struggle.
• Nighthawk’s product marketing-as-a-service model gives clients access to expert resources on demand without the difficulty of hiring internally.

4. Leverage and Scaling for Key Projects

• When stakes are high (e.g., for product launches, rebrands), agencies can scale efforts quickly with diverse talent and industry connections.
• Agencies provide leverage for complex media buying, creative work, or time-sensitive campaigns.
• Nighthawk specializes in scaling up or down for clients, delivering high-quality results with no long-term contracts.

5. Hybrid Approach: It’s Not All or Nothing

• In-house vs. agency doesn’t have to be a binary choice; many companies benefit from a hybrid approach.
• Businesses can keep core functions in-house and outsource specialized or scalable work to agencies like Nighthawk.
• Nighthawk helps companies achieve this balance by offering flexible services that adapt to client needs, whether for one project or many.