Top 3 Reasons To Outsource Your Marketing in 2012

With the new year approaching, many companies are in the process of finalizing their 2012 budgets.  Marketing executives are working on their marketing budgets and allocating resources to accomplish their 2012 marketing goals.  The biggest question facing executives is whether to keep everything in-house or outsource to a marketing agency.  To outsource or not…that is the question of the day!

The main benefit of outsourcing is saving on staffing costs which includes employee salaries & taxes, health benefits, retirement contributions, and office space.  With rising healthcare costs, running a large marketing department is a costly endeavor.  Also, marketing salaries can range from $35K (for a low level employee) to $150K for an experienced marketing professional.  Employee taxes are another huge issue that takes away from a company’s bottom line.  Be sure to consider the following factors when making a final decision on outsourcing your marketing.

 

Top 3 Reasons to Outsource Your Marketing

Cost Savings

Companies can save money by reducing their marketing staff.  By saving on salaries, more money can be allocated to actual campaigns.   Ad agencies today have reduced their rates to accommodate their clients.  Also, there are many different types of agencies to choose from which include full service, boutique, public relations, direct marketing, social media, etc.    Typically, a full service ad agency is more expensive than a boutique style agency.   The marketing agency is your extended marketing team or virtual team.  They are just a phone call away and usually come in the office for weekly meetings.  Retainer agreements typically cost less than hiring an employee and include dedicated hours by an experienced account manager. 

Expertise

Instead of paying a marketing employee $150K a year for their marketing experience, you can outsource to a marketing professional for more than half the cost.  The main reason outside agencies are used is that they provide the client with the services of highly skilled individuals who are specialists in their chosen fields.  An advertising staff may include graphic designers, writers, media analysts, researchers and others with specific skills, knowledge, and experience.  There has been a huge increase in companies outsourcing their social media efforts.  Due to time constraints, it’s difficult for marketing staff to maintain daily updates and posts. Many agencies also specialize in specific industries and can better assist their clients. For example, my agency specializes in the security industry.  Security companies can benefit from industry knowledge and connections with the various security publications.

Objectivity

An outside agency can also provide an objective viewpoint of the market and business that is not subject to internal company policies, biases, or other limitations.  The agency can draw on the broad range of experience it has gained while working on a diverse set of marketing problems for various clients.   They can think “out of the box” and come up with some creative campaigns that will help companies stand out.  Some marketing employees can get stale from working at the same company for a long period of time. An agency can have a fresh perspective on your business and develop unique marketing campaigns.  They also have dedicated account manager that will track results and measure the success of campaigns.  Most companies complain that their in-house marketing team does not track the ROI on most campaigns.  This comes from not having a dedicated person on the team responsible for measurement. 

After reviewing the factors above, executives can make the right decision for their company.   Outsourcing has grown over the years due to the rising costs of keeping employees on staff.  Another great benefit of utilizing an agency is that it is considered a write-off and can be designated as a marketing expense…which can help save money on company taxes.  The first step is developing the marketing goals and budgets…..and then determining the best resources to carry out the plan. In most cases, outsourcing is the way to go!

 Sources:

Textbook: Advertising and Promotion – An Integrated Marketing Communications Perspective 9th Edition – George E. Belch, Michael A. Belch

Why Outsourcing Social Media Works

Why Outsource Your Marketing

Image: blog.affinityexpress.com

 

 

 

 

About Monique Merhige

Infusion Direct Marketing's founder Monique Merhige has over 15 years of marketing communications experience with technology companies ranging from small service firms and equipment manufacturers to a 1.5 Billion dollar division of Motorola. Monique is an Adjunct Professor of Marketing at Dowling College in Oakdale and Brookhaven. She holds a Bachelor Degree in Marketing and an MBA in General Management.

Comments

  1. Suarez, Conor says:

    I find this post very informative!
    I am into outsourcing because of the many benefits it could give to everyone, from large companies to small businesses. However, like other stuff, apart from its advantages, it also does have many disadvantages. One is, not knowing if the person you’ve hired will give you the best and fast result. You’ve got to have the best technique on hiring.
    I have read a blog that’s got a great method. They call it the “grape shot approach to hiring.”
    First, you grab as many people as possible and test them; second, interview those who passed the test; third, give them a longer test and figure out who did the best (they also consider the most attentive and who took initiative); fourth, figure out who you would hire and who you wouldn’t and fifth, hire the ones you would hire and keep the others on file if you need to scale later.
    It’s kind of a long process but I think it’s very effective if you want to have the best employees possible.

  2. Suarez, Conor says:

    I find this post very informative!
    I am into outsourcing because of the many benefits it could give to everyone, from large companies to small businesses. However, like other stuff, apart from its advantages, it also does have many disadvantages. One is, not knowing if the person you’ve hired will give you the best and fast result. You’ve got to have the best technique on hiring.
    I have read a blog that’s got a great method. They call it the “grape shot approach to hiring.”
    First, you grab as many people as possible and test them; second, interview those who passed the test; third, give them a longer test and figure out who did the best (they also consider the most attentive and who took initiative); fourth, figure out who you would hire and who you wouldn’t and fifth, hire the ones you would hire and keep the others on file if you need to scale later.
    It’s kind of a long process but I think it’s very effective if you want to have the best employees possible.

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