Every business needs to have a marketing and advertising department. Small businesses are faced with a choice. Owners can decide to give the job of advertising to an existing employee within the company. The alternative is to outsource advertising to a third-party marketing agency. Which decision is right really depends on the business and its management. You should consider a few benefits and drawbacks of having an employee in charge of advertising for your business.
Brand and Product Awareness
An advantage of having an employee in charge of advertising is immediate brand and product awareness. The employee will be intimately familiar with the overall brand of the business and the company culture. Employees will also have an in-depth understanding of the products or services you offer. This is beneficial because it will take an outside agency time to gain this same knowledge and create appropriate advertising.
A potential drawback is experience. The employee you place in charge of advertising might not have an extensive background in the field. This can make your advertising awkward or ineffective at first. An outside agency will have complete expertise with advertising. An agency can be relied on to create sophisticated and effective ads from the start.
Simple and Fast Communication
Placing an employee in charge of advertising allows to communicate quickly and simply about marketing. If you are developing an aerial advertising banner, then you can see how the design is progressing every step of the way directly in your business. You will have more limited contact and input when using a third-party advertising company.
A disadvantage of relying on an employee to do your advertising is that resources might be limited. You will have to purchase all the tools needed to create and manage advertising campaigns. This might not be practical if your business is small. Advertising agencies already have all the equipment, software and tools necessary to create professional advertisements.
Lower Initial Cost
Assigning an employee to handle advertising can have a lower initial cost than signing a contract with an outside marketing firm. The payment to your employee will be proportional to existing salaries within your business and area. Signing up with a large advertising agency can sometimes be much more expensive since the cost is based on larger market rates.
Return on Investment
Something to consider is that it might take some time for your employee in charge of advertising to learn everything necessary to be efficient and effective. This means your return on investment might be very low for months or years. If you decide to use an advertising firm, then you are likely to see a much better return on investment right away. This can keep your marketing budget low.
More Invested In Results
A final advantage of having an employee in charge of advertising is that person will be more invested in results than a third-party agency. Your employee will realize that the success of the business means personal success as well. This means the employee will work harder and bring more passion to every advertising project than an outside firm handling dozens of clients at once. This can benefit your business over time.