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The Pros and Cons of Inhouse or Outsourced Marketing efforts

John.H

Getting Refreshed
Nov 12, 2018
78
63
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First Name
John
Well there's definitely benefits to either one. I'll try and say this as unbiased as possible, transparently - I work on the Vendor side of the business.

Here's a short Pros & Cons list I've made, just to put things into perspective:

Pros of Hiring Marketer(s) In-House:

* You can control the sources in which you advertise on.

* You'll deploy advertisement campaigns in a more timely manner.

* Your chances of being in non-compliance lawfully are certainly lower. (things are most likely pre-approved before ran)

* The methods of advertising may be more lucrative. Fresh eyes bring innovation to the table.

* Quick resolution in the event a campaign were to go south. (less bottlenecks & moving parts on the dealer side)


Cons of Hiring Marketer(s) In-House:

* Most new hires are inexperienced.

* Benefits, paperwork, and standard procedure of a new hire.

* Might cost more than a Vendor.

* Likeliness to fail is much greater.

* Will need time to fail and learn from mistakes.


Pros of Hiring a Digital Vendor for Automotive Sales Marketing:

* Likeliness of running a successful campaign is much greater.

* Usually very hands-off and requires little intervention.

* Problems are usually resolved much faster. (comes from experience)

* Usually more cost effective than hiring somebody in-house.

* Understands the complexities of advertising in the automotive business.

Cons of Hiring a Digital Vendor for Automotive Sales Marketing:

* Non-innovative. Tends to stick to one thing that works, and is reluctant to try anything different.

* Campaign customization only exists in small Digital Vendors. Big Box Vendors don't typically customize things specific to tastes and objectives.

* Usually slow in support, and slow to correct problems.

* Can be clunky integrating the way they work into your operations.

* Pretty hard to attribute their services to Sales Metrics without taking a deep dive into things.
 

Ryan Thompson

Sr. Refresher
Apr 21, 2010
401
58
28
First Name
Ryan
We should do this exercise for other areas.. BDC, and Warranty are a couple that come to mind.

I'm outsourcing our warranty admin to a small super niche company that handles GM dealers. What a beautiful thing!!

For a lot of smaller dealers it's so hard to justify a full time wage for warranty admin and the service manager is typically slammed with a million other things.

A few of my thoughts on what I'm outsourcing vs doing in house

In-House

- inventory photos
- Videos (90% of them)
- Social Media
- Email Marketing

Outsource:

- Warranty Admin
- BDC (sales and service)
- 80% of Graphic Design
- PPC and Facebook/Insta Ads (I still have a lot of input in the campaigns just not messing around with creating copy, loading photos, building audiences)
- Used Car Detailing for recon (don't have the space)

Would love to hear what other dealers are doing. @Jeff Kershner - Maybe this should be it's own thread.