Is your eCommerce brand still stuck in the growth grind? As marketplace fees rise and competition swells, you can no longer afford the “growth at all costs” mentality of yesteryear.
In the mission for not just growth, but strategic and profitable growth, paid advertising is table stakes. The crucial question is: Should you hire an agency to manage your campaigns, or is it worth it to handle them in-house?
Read on for a clear breakdown of the pros and cons of each route, plus signs that it might be time to outsource your ad strategy.
Looking for practical tips to boost ad ROI? Watch The Amazon Profit Playbook: Cashing in on Content and Conversion Rates for proven tactics from agency expert Trevon Heath, Head of Growth at Sequence.
The eCommerce Shift From Growth to Profitability
Like mom jeans and flannel, eCommerce has changed since it took off in the ‘90s. In the past few years, we’ve seen a significant shift from chasing growth to achieving sustainable profitability.
In the past, founders could focus on fast growth, sell to an aggregator, and make a profitable exit. However, recent years have seen changes in aggregator investments, dropping from $6 billion in 2021 to just $68 million in 2024. This shift highlights the increased competition and higher costs for maintaining ad placements.
The Pros and Cons of Hiring an Agency vs. DIY
The shift to profitability over growth has some eCommerce sellers turning their attention to advertising efficiency and efficacy. Those who might have been throwing money behind campaigns without much scrutiny are now refining long-term ad strategies to support sustainable growth.
There’s a lot to consider when deciding whether to hire an agency for your eCommerce ads. Before we dive into the details, here’s a quick overview of the pros and cons of DIY vs. hiring an agency:
Pros | Cons | |
Hiring an agency |
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DIY ads |
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Pros of Hiring an Agency
- Access to expertise. Agencies bring specialized knowledge and experience to the table. You benefit from the expertise of multiple advertising professionals who can apply lessons learned with other clients to your campaigns.
- Time savings. Outsourcing ad operations frees up your team’s time to focus on other aspects of your business.
- Advanced tools and analytics. Agencies usually have premium tools that go beyond marketplace reporting to reveal deep insights for better decision-making.
Cons of Hiring an Agency
- Cost considerations. You’ll pay a price for the pros listed above. Agency costs vary based on factors like number of products and complexity of strategies.
- Potential misalignment. Anytime you hire someone outside your organization, there’s a risk that their approach might not align with your brand goals.
Pros of DIY
The pros and cons of DIY-ing your advertising are, as you might guess, more or less the inverse of the pros and cons of outsourcing.
- Full control over strategy. If you have the internal expertise, maintaining complete control of your ad campaigns can be a big benefit.
- Lower costs. Managing ads yourself saves you those hefty agency fees.
Cons of DIY
- Time-consuming. Of course, saving on agency fees means you’ll invest your own time and effort (or a team member’s).
- Limited expertise and resources. You won’t have access to the same level of tools and knowledge as an agency.
Is It Really Worth It to Hire an Ad Agency?
Yes, hiring an agency to run your ads can absolutely be worth it — particularly for lean teams who are focused on scaling. If you’re a founder who needs to spend more time on strategy and improving your core business KPIs and less time on daily campaign management, working with an agency could be your ticket to a more focused and profitable business.
Of course, hiring an agency isn’t the right move for every brand. Outsourcing your Amazon ad campaigns can run you anywhere from $5,000 – $20,000 (or more) per month depending on the following factors:
- Ad budget
- Number of products advertised
- Length of the partnership
- The complexity of your metadata optimizations
- Number of Amazon Stores and A+ modules that need to be constructed
However, it’s less about cost and more about ROI. Agency costs are a significant investment, but the potential for increased revenue through expertly managed advertising can shake out to a healthy return — especially when you consider the time savings.
Types of Agencies and When to Consider Hiring One
As your business reaches certain growth milestones or revenue thresholds, it may be time to explore the idea of partnering with an agency.
Growth Milestones and Revenue Levels
Such milestones might include:
- Consistently hitting monthly sales targets that exceed $100,000
- Experiencing a 20% increase in sales quarter-over-quarter
- Expanding product lines or entering new marketplaces
- Reaching a point where ad management demands more than 15% of your team’s time
- Planning to launch a major new product line or marketing campaign
Types of Agencies
If you’ve decided to take the plunge, what kind of agency should you hire? The right agency depends on your needs and the scope of your advertising strategy. There are two main types of ad agencies:
- Full service: These agencies are versatile, covering ads across multiple platforms like Amazon, Walmart, and Google. They manage everything from strategy development to execution and analysis, ensuring a holistic approach that suits businesses aiming for broad market penetration.
- DSP specific: These agencies have deep expertise in one DSP. For example, brands looking for specific support with Amazon DSP will find many agencies specializing in this area. They can tailor a strategy to your brand, helping you reach specific audience segments.
There are also niche agencies that focus on specific industries or advertising techniques. Take some time to think through your goals and explore all your options.
7 Signs It’s Time to Hire an Agency
If you’ve been taking names and hitting milestones, here are some markers that it’s time to bring in external expertise.
- You’re strong in the other three of the 4Ps of marketing — Product, Price, and Promotion — and ready to bolster the remaining P, Placement.
- You’ve optimized your best sellers and need fresh strategies.
- You don’t have enough data for effective ad scaling.
- All current ad formats have been maximized to their potential.
- No matter what you do, you still have an ACoS problem.
- You don’t have enough time to develop thoughtful new ad strategies.
- You’d rather get a root canal than log in to manage your campaigns again.
Noticing some of these signs means you might be ready to start looking into hiring specialized expertise for your advertising.
Checklist: The Dos and Don’ts of Hiring an Agency
Before moving forward, consider these best practices for hiring an ad agency.
✅ Do:
- Research the agency’s reputation, client testimonials, and case studies.
- Ask about the agency’s tools and reporting capabilities.
- Make sure their approach aligns with your goals.
- Discuss KPIs early to establish goals and benchmarks. 🎯
- Exhaust internal resources and DIY tools for ad optimization.
🚫 Don’t:
- Rush into a decision without thorough vetting.
- Set unrealistic expectations — results take time, even for experts.
Your Path Forward: Making the Best Decision for Your Brand
Choosing between DIY ads and hiring an agency depends on your business’s current stage and future goals. It’s a cost-benefit analysis that can change from one year (or month) to the next. That’s why it’s critical to evaluate the potential benefits of a partnership against the costs.
Before you consider partnering with an agency, we recommend making sure your current advertising strategy is fully optimized. Have you used all available resources and tools to refine your campaigns? This step gives you a clear baseline to assess how much value an agency might add.
Want to check in on your Amazon PPC strategy before broaching the agency conversation? Download our free Advanced Amazon PPC Strategy Guide.
Frequently asked questions
Deciding whether to hire an agency or manage your ad campaigns in-house depends on your resources and goals. If your team has the expertise and time to manage ads effectively, there’s no reason not to DIY your advertising and save some money. However, if you’re looking to scale and need specialized skills, an agency offers expertise and advanced tools to help you get the absolute best results from your a
In-house ad management gives you complete control and close alignment with your brand’s vision — often at a lower cost. On the other hand, agencies provide access to expertise and advanced analytics, saving you time and potentially boosting performance.
The cost of hiring an ad agency can vary widely, ranging from $5,000 to $20,000 or more per month. Pricing depends on factors like the agency’s expertise, scope of services, the complexity of your campaigns, and number of products.
Calculating ROI from agency-managed ads involves tracking key performance metrics such as sales growth, return on ad spend (ROAS), and conversion rate improvements. Regularly analyzing these metrics against your initial investment helps assess the agency’s impact on your business’s bottom line. Ensure the agency provides detailed reports, offering insights into how their strategies enhance your overall ad performance.
Before hiring an ad agency, consider asking:
- What specific experience do they have within your industry?
- Which tools and techniques will they use to optimize your ads?
- How do they measure success, and what reports will they provide?
- Can they provide case studies or references from other clients?
- How do they handle communication?
