Automation VS Outsourcing: Pros and Cons for PPC Agencies

Sep 19, 2023 | Blog, Knowledge Center

For PPC agencies, deciding whether to use automation or hire a third party to offload some of your work can really affect the success of your client’s campaigns. In this article, we’ll talk about the good (and bad) aspects of both options to help you make better choices on your growth journey.

Automation: Efficiency and Precision

When we talk about PPC advertising, using automation to work better and faster is like a shiny lure for agencies planning to scale up. However, not everything that glitters is gold. Let’s take a closer look at what’s good and not-so-good about this way of doing things:

Pros:

The way we work is changing quickly because of AI and automation. This helps businesses do things more smoothly, save money, find problems early, and make customers happier with more personalized experiences.

If you’re thinking about using AI automation for your PPC campaigns, you’re in good company. A study by Deloitte found that more than half of organizations are thinking about using AI and automation this year. Here are some of the main benefits of embracing automation for your PPC campaigns:

Time Savings

Automation tools are helping businesses champion efficiency, tackling repetitive tasks at lightning speed, and freeing up PPC agencies to focus on strategic decision-making.

Precision and Scale

We’re all familiar with the phrase “everyone makes mistakes” or “we’re only human.” However, what if we removed the human factor from the equation entirely? Automation guarantees unwavering consistency in campaign management, erasing the potential for human error. It also empowers the management of sprawling campaigns across diverse platforms with ease and little to no oversight. 

Real-time Optimization

Automation tools swiftly analyze live data, making instant campaign adjustments that optimize ad performance in line with the latest trends and user behavior.

Some people think that AI and automation are completely taking over the work of SEO. But actually, they’re helping with the most taxing parts. If you’re working on making your website better, for example, you can use AI tools to help with things like linking inside your website and organizing data.

AI can also make it easier to find the right keywords and content that works well for SEO. When it comes to PPC advertising, things change quickly, so using technology to do repetitive jobs and make work faster is in many instances the only way to stay ahead.

Cons:

While there are many perks of PPC automation, there are some trade-offs to consider:

Lack of Contextual Understanding

Automation tools, despite their prowess, can sometimes struggle to grasp the nuanced context of campaigns, potentially leading to decisions that don’t align with a brand’s unique voice or objectives.

Imagine for a moment a trendy coffee shop named Bean’s Delight that specializes in artisanal brews and cozy ambiance in Seatle. They decided to use PPC advertising to reach more customers and enlisted the help of an automated tool to manage their campaigns.

Now, this automation tool is excellent at analyzing data and finding keywords, but it doesn’t understand the cozy vibe and unique atmosphere that Bean’s Delight offers. Customers start seeing Bean’s Delight ads at the top of outdoor enthusiast-related searches, which are completely off-brand. 

The automated tool was doing its job, but it didn’t understand the nuance of Bean’s Delight’s brand and objectives. This leads to confusion, leaving the cafe scratching their heads about why their ads aren’t pulling in more customers.

Initial Learning Curve

Implementing automation tools isn’t plug-and-play; it demands time for learning and setup, which can delay you seeing immediate returns.

Reduced Personalization

Even though automation can make ads for certain segments, it might lack the personalization a human can supply.

Take for example a shop named Chic Haven, a quaint boutique in a charming neighborhood in the suburbs of Boston, known for its handcrafted clothing tailored to each customer’s unique style. They’re eager to expand their reach and decide to use PPC advertising to connect with potential shoppers. To streamline their efforts and stay within budget, they opt for an automated advertising tool.

Now, this tool is quite handy. It can create ads targeting various customer groups based on their preferences, but here’s the hitch: it doesn’t quite grasp the personalized experience that Chic Haven is famous for.

When customers come across these ads, they perceive them as just another generic major retailer promotion. They don’t sense the special connection that Chic Haven typically offers. The automated tool managed to cover different customer segments, but it couldn’t replicate the nuance that a more human touch can provide. Consequently, Chic Haven misses the chance to deeply engage with its audience, and their ad campaign doesn’t meet the high expectations they had set.

Outsourcing: Expertise and Flexibility

Outsourcing can be a great thing because it helps us get specialized knowledge, craft new ideas, and better scale. But it’s not without its shortfalls. Sometimes, there are problems with communication, and becoming third-party dependent, among other issues. Let’s take a closer look to understand outsourcing better for PPC agencies.

Pros:

Access to Expertise

Hiring talent can be expensive and time-consuming. That’s why outsourcing to professionals who specialize in PPC management ensures that your clients’ campaigns are always handled by individuals well-versed in the intricacies of digital advertising without the need to sift through a pile of resumes.

Strategic Insights

Diversity is the lifeblood of creativity. That’s why outsourced experts can provide fresh perspectives and insights that in-house teams might overlook due to their familiarity with the brand.

Scalability

Have you ever turned away an ambitious—yet lucrative—project due to a lack of resources? Outsourcing allows PPC agencies to scale their campaigns quickly without the need to fast-track hiring and training new team members.

Cons:

Communication Challenges

“Was that 4 pm your time, or my time?” Miscommunications can lead to delays between the PPC agency and the outsourcer, which in turn, could lead to rushing, mistakes, and poor results for the client.

Dependency on Third Parties

Sometimes, you can have too much of a good thing. Agencies might become over-reliant on outsourced talent, potentially limiting their own understanding of campaign management.

Cost Concerns

You pay a premium for this convenience. Depending on the nature of the partnership, outsourcing can be more costly than developing your in-house expertise over time. It’s important to regularly review your partnerships and run a cost-benefit analysis to determine if the relationship for a particular project is viable. 

How do I run a cost-benefit analysis?

A cost-benefit analysis is a lot like a math equation. You add up all the costs of a project or decision and then subtract that from all the expected benefits. Sometimes, people show this as a ratio.

If the benefits outweigh the costs, it suggests that the decision is a smart one. But if the costs end up being more than the benefits, a company might want to reconsider their choice or project.

Strike the Perfect Balance with MatchCraft

PPC agencies don’t necessarily have to choose between full automation and complete outsourcing. More often than not, a balanced approach can yield the best of both worlds. With MatchCraft’s platform, agencies can seamlessly integrate automation tools while retaining control over their campaigns.

Pros of the MatchCraft Approach:

Control and Flexibility

Agencies can use automation to optimize campaigns while maintaining the ability to fine-tune strategies and retain that personal touch that’s unique to you.

Data-Driven Decisions

MatchCraft provides detailed analytics that empowers PPC agencies to make informed decisions and pivot campaigns as needed.

Collaboration Simplified

MatchCraft’s platform enables better collaboration between in-house teams and outsourced professionals.

The decision between choosing automation or outsourcing isn’t black and white. PPC agencies can do better by striking the perfect balance between using automation and human expertise. MatchCraft helps agencies find this golden ratio, so you can craft campaigns efficiently and effectively. Try it yourself by scheduling your FREE assessment today.