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As a business owner, you’ve probably received countless solicitations from ad agencies promising huge stacks of qualified leads. But the real question is: How do you know if they actually know what they’re doing – or if it’s the right deal for your business?
Having worked on over $100 million in ad spend subcontracting for Facebook and helping more than 1,200 clients (including 500+ ad agencies) over the last five years, I’ll break it down for you.
In this article, I’ll compare the pros and cons of working with ad agencies versus managing ads in-house. After that, you’ll be able to decide if you want an agency (and how to choose a good one) or if you should bring your ads management in-house (and how to do it correctly).
To clarify upfront: This article focuses on Facebook ads specifically, which also covers Instagram ads and other Meta platform ads (all managed through Facebook Ads Manager).
When you hire an agency to run your ads, you typically gain access to a higher level of expertise than an in-house team member could provide. Many agencies have people who have managed millions of dollars in ad spend and spent enough time in Ads Manager to fine-tune campaigns for optimal performance.
Hiring an agency is often much cheaper than hiring a full-time employee. According to Glassdoor, the total annual salary for an in-house advertising digital marketing manager starts at around $72,000, depending on experience, location, and company size.
In contrast, based on my experience, agencies typically charge about $2,000 per month on average, though some premium agencies may charge as much as $10,000 per month. While an employee might take on other marketing tasks, finding someone who excels in multiple areas with the same level of expertise can be challenging.
Typically, agencies tend to spend 10-20 hours a week managing your account (excluding the agencies and their clients where the spend is more than $10,000 each month), while an in-house employee would likely need 2-3 times that amount of time, especially without the proper training. This makes agencies a time-efficient option for businesses without the capacity to handle ads internally.
One of the biggest issues with hiring an agency is the misalignment of incentives. Many agencies charge a percentage of your ad spend, which means their earnings increase the more you spend. This structure doesn’t always incentivize them to optimize for the most profitable outcomes for your business. In some cases, agencies may even encourage you to spend more than necessary to maximize their own revenue, rather than focusing on your bottom line.
Anyone can claim to be a Facebook ad expert, but expertise goes beyond simply knowing how to press “publish” on an ad. Many agencies, especially those with fewer than 10 clients, may not have the experience or expertise necessary to produce real results. The same goes for in-house teams who have only managed Facebook ads for one company—without exposure to a variety of ad accounts, it’s hard to differentiate between what drives a brand’s success in the market and how Facebook’s algorithms actually work. From my experience, about 15 out of the 500+ agencies I’ve worked with truly excel in running Facebook ads. This makes it difficult for business owners to gauge the agency’s actual skill level.
Agencies often operate with a set strategy, and in some cases, this means your business is shoehorned into their approach. While they must follow Facebook’s algorithms, some agencies take this too far, applying cookie-cutter methods that don’t align with your unique brand or objectives.
If you’re locked into a long-term contract with an underperforming agency, it can be difficult to break free. This can lead to wasted ad spend, management fees, and lost time while waiting for results that may never come. It’s important to avoid being stuck with an agency that isn’t delivering.
Here are a few absolute “NOs” when hiring an agency:
One of the most compelling reasons to bring ads in-house is the potential for cost savings. While the initial investment in learning and training may be higher, managing ads in-house is generally much more cost-effective over time compared to hiring an agency.
Managing ads in-house allows you to be more agile and responsive. With all the knowledge in-house, there’s no need for time-consuming meetings or obstacles caused by an external agency’s disagreements or delays in implementing changes. This speed can be a critical advantage when optimizing ad campaigns.
When ads are managed internally, you can iterate quickly and make adjustments based on the metrics. This is particularly important when you need to refine your campaigns for maximum profitability, as you can act faster than if you were relying on an agency’s timeline.
With the right guidance and training, your in-house team can create and manage better ads than most agencies. While it may take some time to get up to speed, the results will pay off in the long run.
The main challenge of bringing ads in-house is the learning curve. You need to be willing to invest time into learning the ropes or training someone on your team. Without this, you risk wasting time and resources.
To manage Facebook ads in-house effectively, you’ll need to allocate at least 4-6 hours per month for someone to focus on the work. This might be a part-time employee, a virtual assistant, or a dedicated team member, depending on your business size. If you don’t have someone available to dedicate this time, it may not be the right choice.
During the first few months, you may need to invest in the right training for your team or pay for coaching to get up to speed. There will also be costs associated with running ads as you test and refine your strategy. In my experience, running ads effectively requires a minimum budget of $600 per month, though allocating $1,000 or more is often more realistic to get real results.
To succeed with in-house ads, you need to have a proven offer and infrastructure. If your product or service hasn’t been validated in the market, managing ads in-house could lead to frustration and wasted resources.
Personally, I’d choose to bring Facebook/Instagram/Meta ad management in-house. I’d identify a team member or assistant with the capacity to learn and dedicate time to ads. Then, I’d invest in a coach who could break down the process and help develop a clear, effective strategy. With the right guidance and a validated offer, managing ads internally offers greater cost savings and control than outsourcing to an agency.
That said, I understand this approach isn’t ideal for every business. If you lack the time, resources, or confidence to train someone in-house, a well-vetted agency can still be a great choice. Just ensure you find one with proven results, transparent practices, and a strong alignment with your goals.
No matter which route you decide to take—whether in-house management or partnering with an agency—it’s essential to continuously assess how your Facebook ad performance compares to industry standards. With Databox’s Benchmark Group: Facebook Ads Benchmarks for All Companies, you can compare your performance against industry averages and dive into key metrics like CTR, CPC, ROAS, and more. It’s the perfect tool to understand where your ads shine—and where there’s room for improvement.
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Eric Saar is the owner of Slingshot Media Consulting, where he has managed over $100 million in ad spend across more than 1,200 clients, representing Facebook through a subcontractor, including 500 agencies. His extensive experience spans a diverse range of ad spend, giving him an in-depth understanding of the Facebook algorithm's intricacies. Since leaving Facebook in 2020, he has been helping companies optimize their ad strategies. Eric holds an MBA from Pepperdine University and a journalism degree from the Walter Cronkite School of Journalism and Mass Communication, which enable him to approach advertising from both a business and a writing perspective. Notably, he has successfully managed $500k in spend—generating $1 million in revenue—in a single account within one month, demonstrating his ability to scale high-budget accounts effectively.
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