Why This Decision Matters for Marketing Leaders
In 2015, the average click-through rate (CTR) for Google search ads sat at a modest 1.35%. Fast forward to today, and that number has jumped to 6.66% across Google and Microsoft Ads—a nearly 5x increase in engagement. This rapid growth reflects not only increased advertiser sophistication but also rising stakes for brands: better ads mean more clicks, but also more competition, more cost, and more pressure to perform.
For marketing directors overseeing substantial ad budgets, the question isn’t “Should we invest in PPC?” — that’s a given. The real question is: “Should we scale with an in-house team or a specialized PPC agency?” This decision can impact everything from campaign agility to cost control to ROI predictability.
In this In-House PPC vs Agency guide, we’ll help you break down that decision with clarity. Whether you’re reassessing your current PPC structure or building one from the ground up, we’ll cover the strategic, financial, and operational factors that matter most—so you can choose a path that’s built for performance.
Cost Comparison: What’s the Real Financial Trade-Off?
In-house cost factors:
Full-time salaries (specialists, strategists, analysts)
Healthcare, taxes, overhead
Licensing for PPC tools (bid management, call tracking, etc.)
Ongoing training and certifications (Google Ads, Microsoft Ads, etc.)
Agency cost structure:
Percentage of ad spend (often 10–20%)
Flat monthly retainer (based on scope)
Setup or onboarding fees for initial campaigns
Contextual Insight:
Agencies seem pricier upfront—but internal teams often carry hidden costs like turnover, learning curve inefficiencies, and downtime. Agencies can also absorb cost fluctuations during scaling (e.g., holiday campaigns), which might require full-time headcount additions in-house.
Control and Transparency: Who’s Behind the Wheel?
In-house benefits:
Total access to campaign data, history, and decisions
Immediate responsiveness—no “wait for your account manager” delays
Easier alignment with company goals, branding, and stakeholders
Agency trade-offs:
Weekly or monthly reports; limited ad platform access in some cases
Potential misalignment if they serve multiple verticals
Risk of “black-box” performance attribution without custom reporting
Contextual Insight:
If you value hands-on control and granular reporting, in-house might feel more comfortable. However, many modern agencies now offer live dashboards, Slack communication, and embedded team models to bridge this gap.
Talent Depth and Specialization: Who Brings the Expertise?
In-house teams:
Know your product and customer journey intimately
May lack depth in specific channels like YouTube, programmatic, or TikTok
Training time may delay execution
Agencies:
Teams of 5–10 specialists across paid search, display, social, and analytics
Up-to-date on platform changes (e.g., Performance Max, GA4)
Often beta partners with platforms like Google or Meta
Contextual Insight:
For complex, multi-channel campaigns or rapid testing environments, agencies provide cross-disciplinary expertise you’d need several hires to replicate internally.
Tech Stack Access: Tools, Reporting, and Platforms
In-house tech setup:
You choose and pay for everything—Google Ads, Looker, Unbounce, etc.
May struggle to justify expensive tools if usage is low
Agency bundle:
May include enterprise-level access to platforms like:
SEMrush or Ahrefs (for competitive intel)
Optmyzr (bid automation)
Supermetrics or Google Data Studio dashboards
Shared licensing reduces your costs
Contextual Insight:
The agency advantage grows when tool access is bundled into their fee—meaning you avoid both the subscription cost and the learning curve.
Scalability and Flexibility: How Fast Can You Pivot?
In-house limitations:
Hiring timelines can slow scaling
Redundancy risks—what if your paid media manager leaves?
Budget shifts may mean underutilized staff
Agency flexibility:
Add channels or double ad spend in days, not weeks
Temporary push? Scale up. Slow season? Scale down.
Can quickly bring in specialists for niche campaigns
Contextual Insight:
Agencies operate like a modular plug-and-play team—ideal if you’re entering new markets or testing new verticals with uncertain ROI.
Communication Styles: Speed, Clarity, and Strategy Sync
In-house wins:
Daily Slack chats, same-time-zone meetings
Cultural familiarity reduces friction
Cross-department collaboration is seamless
Agency dynamics:
Weekly strategy calls, monthly performance reviews
Requires structured briefing for campaign success
May require extra onboarding time
Contextual Insight:
The gap here is narrowing. The best agencies now operate inside tools like Asana, Slack, and Notion to feel embedded in your team. Choose an agency that values proactive communication and isn’t “just reporting.”
Hybrid Model: Can You Get the Best of Both Worlds?
Yes. Top-performing brands often build a hybrid model:
In-house handles: brand voice, approvals, CRO, attribution modeling
Agency owns: execution, A/B testing, scaling, multichannel operations
This model gives you strategic alignment with tactical firepower, and can flex as your business grows.
Contextual Insight:
Hybrid works especially well when launching new geographies, verticals, or when you’re transitioning between models (e.g., training an internal team while still leveraging agency support).
How to Decide: In-House PPC vs Agency:
Questions to Ask Before You Choose:
Do we want speed or total control?
Are we testing, scaling, or stabilizing PPC right now?
What’s the complexity level of our campaigns?
Can we afford 3–4 hires for full in-house coverage?
Do we need real-time campaign pivots—or long-term strategic guidance?
Contextual Insight:
The answers here don’t point to one “right” answer—but they will clarify what fits your current growth stage and goals.
In-House PPC vs Agency Final Thoughts
Whether you manage PPC in-house, partner with an agency, or run a hybrid setup, your success boils down to alignment, expertise, and accountability.
There is no universal best—only the best for your company right now.
Want clarity on your current structure?
Request a free PPC performance audit. We’ll review your setup, offer custom insights, and help you determine if your model is built for ROI.
In-House PPC vs Agency: Frequently Asked Questions (FAQ)
Is it cheaper to manage PPC in-house or hire an agency?
It depends. In-house teams involve salary, benefits, and tool costs, while agencies charge a percentage of ad spend or a retainer. Over time, the cost difference often balances out. The better question is: Which model delivers more value for the budget you’re investing?
How do I know if my PPC agency is doing a good job?
Look for more than impressions and clicks. Key performance indicators should include cost-per-acquisition (CPA), return on ad spend (ROAS), quality score improvements, and testing velocity. A proactive agency will bring you strategic ideas, not just reports.
Can I use both an in-house team and a PPC agency at the same time?
Yes — this hybrid approach is common. Many companies have internal strategists or marketing ops teams that work with an agency for execution or channel expansion (e.g., paid social, YouTube, or international PPC).
What roles are essential if I’m building an in-house PPC team?
At minimum, you’ll need:
PPC strategist (overall direction, budgeting)
Campaign manager (execution and optimization)
Analyst (reporting and attribution)
Optional: CRO specialist and copywriter
These roles are often bundled in an agency partnership.
What questions should I ask a PPC agency before hiring them?
Do you specialize in B2B or enterprise PPC?
Will I have direct access to the team managing my account?
What’s included in your tech stack and reporting?
How often will we meet, and who will be on those calls?
Can you provide performance benchmarks from similar clients?
What are red flags that an agency might not be the right fit?
Lack of access to campaign data or ad platforms
Vague performance reporting
No clear testing or optimization roadmap
“Set it and forget it” approach
Limited understanding of your industry or goals
How long should I test an agency before deciding to commit long term?
Give it at least 90 days. This window allows for onboarding, data collection, creative testing, and optimization. Set expectations upfront, and schedule a formal performance review after 3 months.
Can agencies guarantee results?
No reputable agency will promise specific results—because ad platforms, auctions, and competitors constantly evolve. But they should guarantee transparency, strategic direction, and relentless optimization.