In-house vs. Agency marketing for B2B success

The B2B space is competitive, which means the role of effective marketing cannot be overlooked. The decision of whether to build an in-house marketing team or outsource this crucial function is one that demands careful consideration.

What to consider before making a decision between in-house vs. agency marketing

Before you choose whether to hire an in-house marketing team, or outsource it completely to an agency, there are a few things you should consider to ensure you make the right decision for your business.

Business goals and objectives

The starting point for any decision regarding in-house vs. outsourcing should be a thorough understanding of your goals and objectives. Aligning marketing strategies with your business objectives ensures that every marketing effort contributes directly to your company's success.

Questions to ask yourself:

• How does marketing align with our long-term business objectives? To ensure your marketing efforts are strategic and that whichever route you choose will support your company’s overarching goals.
• What specific marketing expertise do we need to achieve these goals, and can this expertise be developed in-house or is it better sourced externally? To evaluate whether the skills required are so specialized that it makes more sense to access them through an agency or consultant.
• Can an outsourced partner adequately understand and represent our brand values and culture? To consider whether external agency teams can truly resonate with and communicate your brand’s core messages and identity.

Budget constraints

An honest evaluation of any budget constraints is crucial. While in-house teams offer control, they also come with the expenses of hiring, training, and maintaining a full-time staff. Outsourcing to an agency, on the other hand, provides cost-efficiency but may require a careful analysis of the total cost of ownership, including agency fees.

Questions to ask yourself:

• What is our marketing budget and does it justify the fixed costs associated with an in-house team? To assess if the budget can accommodate full-time salaries, benefits, tools, and ongoing training costs needed to maintain a skilled in-house team.
• What are the comparative costs over time, including both direct and indirect expenses of in-house vs. outsourced marketing? To look beyond immediate costs and consider long-term financial implications like agency fees versus employee overhead, including resource scalability.
• How will the ROI of in-house versus outsourced marketing efforts be measured? To plan how you will track and compare the return on investment with each option, which helps in making financially sound decisions.

Time sensitivity

The urgency of marketing initiatives plays a pivotal role in the decision-making process. Building an in-house team takes time, from hiring the right talent to training and achieving optimal collaboration. If time is of the essence, outsourcing might offer a quicker route to implementing effective marketing strategies.

Questions to ask yourself:

• How quickly do we need to ramp up our marketing efforts? To understand if there’s a need for rapid scaling to meet market demands or opportunities, assess which option allows you to mobilize faster.
• What is the learning curve associated with bringing in an in-house team vs. an outsourced agency? Consider the time it would take for an in-house team to reach full productivity compared to the time it might take to brief and onboard an external agency.
• Can an outsourced provider offer the agility and responsiveness we need? To evaluate whether an external team can meet the speed and flexibility demands of your projects, especially if you operate in a dynamic industry where market conditions change rapidly

The case for in-house marketing

A lot of businesses look to hire internally before outsourcing to an agency, and for good reason, as there can be several benefits to keeping your marketing in-house.

• Built-in control and alignment
• Deep and agile understanding of the business
• Unlimited flexibility
• Built-in team cohesion

The case for marketing agencies

Outsourced marketing to a marketing agency offer several benefits for B2B business owners, such as:

Cost-efficiency

For businesses mindful of budget constraints, outsourcing marketing functions can be an attractive option. Outsourcing your marketing eliminates the expenses associated with hiring and training an in-house team. Instead, you can tap into a diverse skill set offered by specialized agencies without the commitment of maintaining a full-time staff.

Specialized expertise

Marketing agencies bring a wealth of specialized expertise to the table. Keeping up with the latest industry trends and best practices is their bread and butter. This external perspective can inject fresh ideas into campaigns and ensure that your business reaches your growth goals.

Focus on core competencies

Outsourcing allows businesses to focus on their core competencies without getting bogged down by the intricacies of marketing. By entrusting non-core functions to external experts, you can streamline their operations, promoting overall efficiency and effectiveness.

Scalability

The scalability offered by outsourcing is a significant advantage, especially for businesses with fluctuating needs. Whether it's scaling up during a peak season or scaling down during a lull, outsourcing provides a level of flexibility that can be challenging to achieve with an in-house team. This adaptability is particularly beneficial in industries where demand varies throughout the year.

In-house vs. Agency marketing: What’s right for your business?

Choosing between in-house and outsourcing is not a one-size-fits-all decision.

Outsourced marketing and in-house marketing each have their strengths and best use cases, particularly in the B2B sector. Here’s a concise overview of when each option is generally favored.

When to favor marketing agencies

Business may favor outsourcing to marketing agencies for a few specific reasons:

• Expertise on demand: When specialized skills are needed that are not available internally, such as advanced digital marketing techniques or industry-specific knowledge.
• Cost efficiency: When the budget does not support full-time salaries, benefits, and other costs associated with in-house teams.
• Scalability: When there's a need to quickly scale up marketing efforts without the time or resources to expand an in-house team.
• Fresh perspective: When an external viewpoint can bring new ideas and innovations that revitalize marketing strategies.
• Project-specific needs: For temporary or specialized projects where hiring permanent staff is not practical.

When to favor in-house marketing

Businesses may favor in-house marketing for a different set of reasons:

• Control and communication: When close control and immediate communication are crucial, particularly in environments where strategies shift frequently.
• Brand alignment: When consistent, deep understanding of the brand and its culture is essential for effective messaging.
• Long-term investment: When the company prefers to build a long-term, strategic marketing capability internally.
• Industry-specific nuances: When the industry requires deep, nuanced understanding that might be difficult for an outsider to grasp quickly.
• Confidentiality and security: When projects involve sensitive information that requires tight security and confidentiality.

Companies often blend both approaches, keeping core strategic functions in-house while outsourcing more specialized or fluctuating tasks. This hybrid model can optimize resources while leveraging external expertise and perspectives.

Note: These lists aren’t to say that some agencies don’t get hired to do branding, and some in-house members get hired for expertise. These are just a few common reasons we see businesses choose one over the other.

Make sure you consider what’s right for your business.

Looking into agency marketing? Check out our list of the top 11 B2B marketing agencies in 2024.