The Cost of Outsourced Marketing Services vs Hiring an In-House Marketing Team

Outsourced marketing services are designed to help businesses achieve their desired goals by providing expert knowledge, specialized skills, and support from experienced professionals. This helps reduce the time and cost associated with recruiting, training, and managing an in-house marketing team.

A recent study found that 66% of businesses in the United States outsourced at least one department, with 59% of businesses citing cost as the primary reason for outsourcing. 

The cost of outsourcing marketing services versus hiring an in-house marketing team is a major consideration for many businesses. While recruiting, training, and managing an in-house marketing team can be expensive, hiring a professional outsourced marketing service provider can often provide cost savings due to specialized knowledge, skills, and experience.

In this blog, we’ll compare the cost of outsourcing marketing services versus hiring an in-house marketing team and examine how it can affect businesses.

The Costs of Outsourcing Marketing Services

Hourly or Project-Based Fees for Services Rendered

The fees charged by an outsourced marketing service provider will vary based on the scope and complexity of the project. However, on average, outsourcing a single marketing project can cost anywhere from $2500 to $25,000 or more depending on the complexity and duration of the project.

Outsourced marketing agencies typically charge hourly or on a deliverable basis for services rendered. This means that businesses don’t have to commit to long-term contracts and can pay only for the services they require.

Potential for Bulk Discounts or Long-Term Contracts

Businesses can save money by committing to long-term contracts with their outsourced marketing service provider. This allows them to benefit from potential bulk discounts, as well as having access to a dedicated team of professionals for the duration of their contract.

No Additional Costs for Benefits, Training, or Equipment

When hiring an outsourced marketing service provider, businesses don’t have to worry about additional costs associated with benefits, training, or equipment. This can often provide a big cost reduction.

Apart from the cost reduction, it gives small businesses the space to focus on what they do best. This also helps businesses create and implement strategies faster than they would with an in-house team.

The Costs of an In-House Marketing Team

Salaries and Benefits for Team Members

The biggest cost associated with hiring an in-house marketing team are the salaries and benefits that need to be paid to each member of the team. Depending on the complexity of the job, salaries can range from $45,000 to $150,000 or more per year.

Even when hiring experts, businesses may need to account for additional costs such as training and benefits.

Training and Professional Development Costs

Businesses also have to factor in any costs associated with training and professional development for team members. This can include the cost of online courses, seminars, and conferences.

For example, if a business hires an in-house team of 10 marketing specialists, it will have to invest in training and professional development for each member. This could add up to thousands of dollars per team member annually.

Equipment and Technology Costs

Equipment includes computers, software, networking components, printers, and other peripherals. Businesses need to factor in these costs when hiring an in-house marketing team. Additionally, there are often ongoing costs associated with updates to software and hardware.

For instance, a business may need to invest in a Content Management System (CMS) for their website, as well as additional software such as email marketing platforms or analytics platforms. On the other hand, outsourcing to freelancers or marketing firms will eliminate these costs.

Overhead expenses for office space and supplies

Hiring more members means more office space is needed. This will involve additional costs for rental, furniture, and supplies. Business owners also need to factor in expenses associated with consumables such as paper, toners, and ink.

These might appear to be small costs, however, they can add up to a sizable amount over time.

Factors to Consider When Deciding between Outsourcing and an In-House Team

The goal of any marketing decision is to maximize the return on investment (ROI). Here are a few metrics to consider while deciding between an in-house team and outsourcing:

The Size and Scope of the Marketing Efforts

If your company’s marketing efforts are large and complex, outsourcing may be a better choice as it can provide access to experienced professionals who have the know-how in different areas of marketing.

For example, a business may need to hire a team of experts for search engine optimization (SEO), content marketing, or marketing operations. Outsourcing can provide access to these experts without having to hire them all in-house.

On the other hand, if your marketing efforts are small and straightforward, then hiring an in-house team might be a more suitable option. However, if you do choose to hire, then ensuring consistency in marketing activities and managing the team’s morale may be more of a challenge.

The Level of Specialization and Expertise Required

If  marketing tasks require a large degree of skill set and specialization, it may be better to outsource them. Outsourcing provides access to experts with specific knowledge and experience in the desired area. This may not be possible if you hire full-time employees as talent can be difficult to find.

Additionally, outsourcing allows you to quickly gain access to new technologies and trends without having to invest in learning or training.

For instance, if you wanted to start testing and optimizing your email marketing efforts with A/B testing, it would be more cost-effective to outsource the task. This way, you would quickly be able to access the expertise and the technology needed for successful testing.

The Availability of In-House Resources and Talent

It is important to consider the availability of in-house resources and talent before making a decision. If your business has existing personnel with the skills necessary to undertake the marketing tasks, then hiring an in-house team may be a more suitable option.

However, if your business is lacking in certain areas, then outsourcing may be the best choice as it will provide access to specialized professionals.

Take, for example, gaining traction with ads on a social media platform such as LinkedIn. If your business doesn’t have the necessary experience, knowledge, or bandwidth to learn how to optimize ad creative, outsourcing may be a better choice as it will give you access to professionals who specialize in this area.

The Budget and Financial Constraints of the Business

Outsourcing can be more cost-effective as it eliminates the burden of overhead expenses and one-time costs associated with hiring in-house teams. This makes outsourcing a great choice for businesses on a budget.

Moreover, outsourcing allows businesses to scale their marketing efforts up or down as needed. This gives businesses the flexibility to adjust their marketing budget accordingly.

For example, if a business has a spike in sales over the holiday season, then it can opt to increase its marketing budget by outsourcing more services. Afterward, they can scale back their marketing budget if necessary.

Interrupt Media Can Be Your Outsourced Marketing Team!

Interrupt Media has a deep bench of demand generation strategists, marketing automation specialists, and sales forward content marketers ready to help you build, launch, and optimize your marketing campaigns and go to market strategies

We also provide the flexibility to adjust your budget or move budget to different channels, as needed, without having to worry about overhead or one-time costs associated with hiring an in-house team.

By choosing Interrupt Media as your outsourced marketing team, you can rest assured knowing that your marketing efforts are in the hands of experienced professionals. 

Talk with a strategist today to discuss how we can support your marketing pipeline goals.