Self-service platforms promise control and cost savings, however the hidden costs and potential missed opportunities often outweigh these benefits. Read on to learn more.
Time Investment
Self Service Media Buying
Managing media buying requires a significant time investment. Brands must dedicate hours to setting up, monitoring, and optimizing campaigns.
According to a recent survey, marketers spend an average of 21 hours per week on ad management tasks, including adjusting bids, analyzing performance data, and A/B testing creative elements.
For in-house staff, it’s argued that this time would be better spent on core business activities.
Using an Agency Partner
Partnering with an agency can offer time savings and improved efficiency.
Agencies typically have teams of professionals who manage various aspects of media buying, from strategy development to execution. This arrangement enables brands to concentrate on their core competencies while leveraging the agency’s expertise.
By accessing an agency’s resources, brands may experience quicker campaign launches and proactive optimizations, potentially reducing their daily time investment.
Gain Expertise and Knowledge
Self-Service Media Buying
Effective media buying requires a deep understanding of various platforms, audience targeting, and optimization techniques.
While self-service platforms often provide solid support and training, gaining proficiency with these tools generally requires time and experience. Brands that are new to media buying may face challenges in achieving optimal results due to their developing expertise.
Using an Agency Partner
A perk of working with an agency is that they offer valuable experience and industry expertise.
They typically have media buyers who are knowledgeable about current trends, technologies, and best practices.
An agency’s experience can help ensure that campaigns are thoughtfully planned and executed, potentially enhancing reach, impact, and return on ad spend (ROAS).
Additionally, agencies often have access to advanced tools and data analytics, which can contribute to improved insights and targeting.
Maintain Flexibility, Control and Insight
Self-Service Media Buying
One of the main advantages of self-service platforms is the level of control they offer. Brands can directly manage their campaigns, adjust budgets, and make real-time changes as needed.
This flexibility is appealing to those who prefer hands-on involvement in their advertising efforts.
Using an Agency Partner
While agencies manage campaigns on behalf of brands, they also offer a high degree of flexibility and collaboration.
Brands can set clear objectives and guidelines, and agencies work within these parameters to achieve the desired outcomes. Agencies provide regular reports and updates, allowing brands to stay informed and involved without the need for day-to-day management.
Results and ROI
Self-Service Media Buying
Using self-service platforms can present challenges, particularly for brands with limited media buying experience.
In fact, a recent study by eMarketer indicated that only 18% of marketers were fully satisfied with the performance of their self-service ad campaigns.
The learning curve and potential for mistakes may result in less-than-optimal outcomes and inefficient ad spending.
Using an Agency Partner
Meanwhile, agencies typically have the expertise and resources to help improve results and return on investment. They often rely on data-driven strategies and proactive optimization techniques to enhance campaign performance. Brands that collaborate with agencies may experience improved conversion rates, more precise audience targeting, and a more effective allocation of ad budgets.
According to a study by the Association of National Advertisers (ANA), businesses that collaborate with agencies experience an average ROI increase of 22%.
Cost Considerations
Self-Service Media Buying
At first glance, self-service media buying appears to be a cost-effective option. Brands avoid agency fees and can allocate their entire budget to ad spend. However, the hidden costs—like time investment, potential errors, and missed opportunities—can accumulate. Without expert guidance, brands may end up spending more on ineffective campaigns.
Using an Agency Partner
While hiring an agency involves fees, the long-term benefits typically justify the investment. Agencies can negotiate better rates with media vendors, optimize budgets for maximum impact, and reduce wasted spend. A study by the Association of National Advertisers (ANA) found that brands using agencies achieved an average ROI of 30% higher than those managing campaigns in-house.
Final Considerations
So, while self-service media buying may entice you and seem most cost-effective at first, the potential hidden costs associated with inexperience can quickly outweigh any initial savings.
Brands that choose to invest in agency expertise not only benefit from strategic guidance and targeted campaigns but also increase their likelihood of achieving better overall performance and ROI.
