Of all the marketing measures, listing advertising is one that requires particularly specialized skills. Many companies are wondering whether it is best to outsource management to an agency with specialized skills, or to go in-house to reduce management fees.
This time, we will explain important points when considering moving listing advertisements in-house, as well as the advantages and disadvantages of operating through an agency and in-house.
Which is better for listing ads: in-house operation or through an agency?
There are two ways to outsource the operation of listing advertisements to an agency or to operate them in-house. Agencies have specialized knowledge and operational know-how in listing advertising operations, and it is faster to outsource to an agency in order to achieve efficient results. However, in addition to advertising costs, a certain fee is charged for the advertising costs used. The general commission rate is 20%, but in the case of small advertising costs, there are cases where a fixed management fee is set depending on the cost.
On the other hand, if you operate listing advertisements in-house, you will not be charged any commissions, and will only pay the advertising costs you use. When considering marketing costs and CPA acquisition efficiency, if you leave listing advertising to an agency, the first thing you will likely notice is the commission paid to the agency. It is clear that switching to in-house management will reduce fees, but there are more important points to consider when making decisions.
It is said that it takes one to three years to acquire the operational skills for listing advertisements. When operating listing advertisements in-house, specialized skills are required to operate listing advertisements, so much so that even if you have a certain budget, you have to hire a full-time person with operational skills.
Advantages and disadvantages of in-house operation and agency
The skills required to operate listing advertisements are as described above, but what are the advantages and disadvantages of conducting the operation in-house or outsourcing it to an agency? The advantages and disadvantages of each are summarized in the table below.
- When operating in-house
|
merit |
Disadvantages |
| There are no agency management fees and you can add it to your advertising budget. | Trial and error and time are required to accumulate know-how. |
| Accumulated as in-house know-how and data | Staffing is expensive |
| Have a deep understanding of your company’s services and targets | It is necessary to regularly obtain the latest information |
- When outsourcing to an agency
|
merit |
Disadvantages |
| Achieve results quickly and efficiently | Management fees apply |
| Leave all the complicated operational tasks to you so you can focus on other tasks. | Poor understanding of the company’s services and targets that cannot be accumulated as company know-how and data |
4 points to consider moving listing advertisements in-house
Based on the advantages and disadvantages of in-house operations and agency operations, we will explain four points to consider when considering in-house listing advertising.
① Operation of listing advertisements is the core of the business
The purpose is not to reduce the fees paid to agencies, but rather to invest more costs in in-house resources and achieve higher results than if an agency were to operate them.
② Long-term initiatives are possible
There is an environment in which operational staff can engage in long-term efforts through trial and error, taking sufficient time to produce results.
③ There are special business types/industries and special company rules.
If the product or service itself or the target market is special and difficult for people in other industries to understand, learning and time will be required to understand it, so it is not efficient to train agency personnel. is not good. Additionally, there are special in-house rules, such as creating reports in a designated foreign language, which an agency cannot accommodate.
④Mechanism for evaluating operation personnel Marketers who can operate listing advertisements are highly valued, and there is a risk of changing jobs to other companies with better conditions, so there is a mechanism in place to evaluate operation personnel.
⓪ Advertising budget is small
If your budget is small, an agency will often not be able to accommodate you, and in-house operation is your only option.
When it comes to moving listing ads in-house, it is important to consider these four points and decide why you want to move listing ads in-house based on the purpose. There are various questions such as whether it is good to eliminate management fees by going in-house, whether it is good if it is profitable by linking it to ROI, or whether it is good if analysis data can be easily viewed, but what should you outsource in the first place? After determining what needs to be brought in-house, you need to think about how to increase ROI.
In-house support for listing advertisements
You can also ask an agency to help you bring your listing advertisements in-house. Specifically, there are the following two methods.
- In-house operation support starting from 200,000 yen/month*changes depending on the company
For the first month, the agency will operate the system, and based on the results, from the second month onward, we will gradually provide operational know-how and skills to the company and provide support so that the company can operate it. Once the company actually starts using the service, there will be ongoing support such as monthly meetings and answering questions via email and chat tools.
- In-house operation advisory from 150,000 yen/month *changes depending on the company
Unlike operational support, an agency does not operate the service at all, and only provides support in the capacity of an advisor. Once operations start on the company side, there is ongoing support such as regular meetings and answering questions via email and chat tools, just like operational support.
summary
- Switching from an agency to in-house operation of listing advertisements has the advantage of reducing fees, but there are other points that should be considered carefully.
- Important points to consider in-house are: (1) Listing advertising operations are the core of the business, (2) Long-term initiatives are possible, (3) There are special business formats/industries and special company rules, and (4) Evaluate the person in charge of operations. There are four possible mechanisms.
- When considering moving in-house, it is important to consider the purpose of moving in-house and what should be outsourced and what should be moved in-house in order to increase ROI.