In-House vs Agency: Where Should You Manage Google Ads?

The In-House vs Agency Decision

At some point, most businesses with significant ad spend ask: "Should we bring this in-house?"

It's a valid question. Here's how to think through it.

The True Cost of In-House

It's not just salary. Factor in:

Salary: £35-50k for mid-level PPC specialist (UK)

Employer costs: National Insurance, pension (add ~15%)

Training: Courses, conferences, Google certifications

Tools: SEMrush, Analytics tools, bid management (£500-2,000/month)

Management time: Someone needs to oversee them

Recruitment: Time and cost to find the right person

Replacement risk: What if they leave?

All-in cost: Often £50-70k+ annually for one person.

What In-House Gets You

• Full-time attention on your account
• Deep business knowledge over time
• Integration with other teams
• No agency margins
• Direct control

What You Miss Without Agency

• Multiple specialists (search, shopping, display, analytics)
• Cross-client learnings
• Established processes and tools
• Coverage during absence
• Fresh perspective

The Hybrid Model

Many successful businesses use hybrid:

Option 1: In-house + agency audit In-house manages daily, agency reviews quarterly

Option 2: In-house + specialist agency for specific channels In-house does Search, agency handles Shopping/PMax

Option 3: Agency + in-house oversight Agency manages, in-house coordinates and reviews

Decision Framework

Choose in-house if:

• £50k+ monthly spend
• Can attract top talent
• Need integration with product/sales teams
• Have management capacity
• Long-term vision

Choose agency if:

• Under £50k monthly spend
• Can't compete for talent
• Need immediate expertise
• Want variable cost structure
• Prefer to focus on core business

The Math

Example at £20k monthly spend:

In-house option:

• Salary + costs: £55,000/year
• Tools: £12,000/year
• Total: £67,000/year

Agency option:

• Management fee: £2,000/month = £24,000/year
• Total: £24,000/year

At this level, agency is clearly more cost-effective. Break-even usually comes at £50-100k monthly spend.

Making the Switch

If you're currently with an agency and considering in-house:

1. Ensure you own all accounts and data
2. Document current processes
3. Hire before transitioning
4. Consider a handover period
5. Keep agency relationship for audits/support

Get a Second Opinion

Before making big decisions, understand your current performance.

Get a free audit — we'll give you an honest assessment.