Agency or in house advertising Essay Example | Topics and Well Written Essays - 2000 words

Agency or in house advertising - Essay Example Before coming to the question whether ‘I’ll Run for You’ should pursue outside advertising agency or in-house advertising agency, some critical factors are needed to be considered. Based upon the analysis, it is advisable that ‘I’ll Run for You’ should pursue outside advertising agency. The prior mentioned major reasons reveal that it is not applicable for ‘I’ll Run for You’ to run its own advertising agency. Needs & Resources Since the decision of advertisement responsibility for ‘I’ll Run for You’ is suggested to be an outside advertising agency, therefore no substantial resources are required. If Darla would had been recommended to pursue in-house marketing and advertising campaign then required resources would be considered such as hiring and training of employees, Research and Development etc. However, Darla needs a significant amount of cost to bear in order to make payment to the outside advertisin g agency. Therefore, the only concern or ‘need’ for Darla is to ensure her company can bear the required amount of upfront cost for outsourcing its advertising. Pros & Cons of In-house Advertising Department.Pros:†¢ Timeliness; a strong in-house analytics team can provide refresh software models monthly. New business information related to a business or its competitors can quickly be adjusted into these models †¢ Transparency and Consistency; an in-house process of advertisement allows a business to develop, validate and supervise the marketing analytics. †¢ Data Assets; A centralized advertising system can evolve over the period to incorporate valuable and new data sources. †¢ Enterprise Knowledge; In-house advertising allows a business to advertise in a convenient manner.... Data Assets; A centralized advertising system can evolve over the period to incorporate valuable and new data sources. Enterprise Knowledge; In-house advertising allows a business to advertise in a convenient manner. The advertising department knows all of the information therefore advertisement is performed accordingly. Cons: Hiring and Recruitment; in order to meet the demand of top notch analytic talent, finding and hiring people with right skills can be very expensive as well as challenging. Upfront Costs; if resources are not available at that point of time, an upfront investment in data infrastructure and technology will be required. Time; establishing infrastructure, implementing software systems, hiring appropriate people can take years. It will take even more time to the business to reap the benefits of these investments. Pros & Cons of Hiring Outside Advertising Agency Pros: Better realization of revenues and increased returns on investments Labour cost gets lower and econo mies of scales are achieved Tapping into a knowledge of innovation Increases quality, delivery and speed of outsourced activities Cons: Chances of loss of control over the business processes of the company Shortcomings in performances Under realization of results and benefits Recommendation ‘I’ll Run for You’ is a start up business. If the company tries to keep every department under its control, then it might lead to an increased cost to the company. Therefore, primarily in order to avoid increased costs, the company must outsource its advertising department. It is recommended that ‘I’ll Run for You’ should relinquish its advertising department to an experienced advertising company, which can perform better professional services. Next Steps Agencies Available