Do I Still Need a Digital Advertising Agency in 2025?
The Core Conflict: Automation vs. Strategy
Let's be honest, people are thinking the digital marketing world has been turned upside down. The last 18 months have brought more change than the previous five years combined, and we all know what's driving it: AI. It's the keyword (pardon the pun) of all keywords for anyone with access to the internet.
If you're running marketing in house or you're a business owner trying to figure out where to invest next, you've probably asked yourself: "With Google and Meta automating everything, and with ChatGPT helping me write ad copy at 2am, why would I pay an agency?"
Fair question. Here's my take: You still need one, but only if it's the right kind of agency and fit for you.
In 2025, the real debate isn't "Agency vs. In House" anymore. It's "Automation vs. Expertise."
š¤ What Automation Actually Does Well
AI has definitely sped up some of my day to day tasks, the mundane time consuming data pulls ad copy creation are definitely made a lot easier thanks to chatGPT or Gemini, but its not all sunshine and rainbows.
Here's what platforms now handle brilliantly on their own:
Bidding & Optimization
Remember when agencies would brag about manually tweaking bids throughout the day? Yeah, that's gone. Google's Maximize Conversions and Meta's Advantage+ campaigns genuinely work better than humans poking around in the interface every hour. The algorithm has more data, processes it faster, and adjusts in real-time. We lost that battle, and that's okay.
Ad Copy Generation
Need 50 headline variations tested by next Tuesday? AI can pump those out before lunch. It's fast, it's cheap, and for basic performance testing, it gets the job done.
Basic Retargeting
Simple stuff like "show this ad to people who visited the pricing page" doesn't need a strategist anymore. The platform handles it.
So if that's all an agency is offering you in 2025, run. Because you're basically paying someone to press buttons that press themselves.
š§ What Humans Still Do Better (And Probably Always Will)
Here's where things get interestingāand where the real value lives now.
Understanding "Why," Not Just "What"
Any dashboard can tell you a campaign tanked. Only a human can tell you why. Was it the creative? The landing page experience? Your competitor launching a killer offer the same week? Or maybe your product positioning just doesn't resonate the way you think it does.
That diagnostic thinkingāconnecting the dots between ad performance, user behavior, product-market fit, and broader market conditionsāthat's irreplaceable. At least for now.
The Zero-Party Data Goldmine
Third-party cookies are dying (finally). So the new currency is zero-party dataāinformation people actively choose to give you through quizzes, surveys, preference centers, and interactive tools.
Building these systems and weaving them into your campaigns isn't something you just "set and forget." It requires psychology, UX thinking, and strategic integration. This is where agencies shine, assuming they're actually paying attention to privacy-first marketing.
E-E-A-T: Making Your Expertise Actually Matter
Google's been beating the E-E-A-T drum (Experience, Expertise, Authoritativeness, Trust) for a while now, but in 2025 it's everything. They want content and campaigns that demonstrate real-world authority.
AI can write. It can even write well. But it can't invent your CEO's 20 years of industry experience, or surface the unique insights your team has that nobody else does. A good agency helps you translate that lived expertise into content and messaging that actually builds trust and converts.
Three Questions to Help You Decide
Alright, let's get practical. If you're trying to figure out whether to hire an agency or bring someone in-house, here's a framework I use with clients.
1. How Many Channels Are You Juggling?
Go with an agency if:
You're running multiple channels, SEO, paid search, paid social, email, maybe some programmatic and they all need to work together strategically. Building an in house team with that range of expertise is expensive and hard to scale.
Hire in-house if:
You're focused on mastering one channel really well. If you're a DTC brand that lives and dies by TikTok ads, hiring one killer TikTok specialist in-house might make more sense than paying agency rates.
The brutal math: hiring a team with the same skill range as an agency (PPC specialist, SEO analyst, designer, strategist) individually would cost you 3x what you'd pay for an agency retainer.
2. Do You Need an Outside Perspective?
This one's tricky because nobody wants to admit they're too close to their own business. But here's the thing: you probably are.
When you live and breathe your product every day, it's really hard to see it the way a customer does. You know all the jargon, all the features, all the reasons why your thing is better. But that insider knowledge can actually blind you to what truly resonates.
A good agency acts as a strategic outsider. They've seen what works in other industries, they're not emotionally attached to your product, and they can challenge assumptions your internal team might not even realize they're making.
Plus, Google's algorithm increasingly rewards content and messaging with a genuine, unique perspective. Sometimes the best way to find that perspective is to bring in someone who isn't already swimming in your company Slack channels.
3. What's Your Actual Budget?
Let's talk numbers, because this matters.
Hiring a senior, experienced digital marketing director in 2025 isn't cheap. You're looking at salary, benefits, software subscriptions, training, and the reality that one personāno matter how goodāhas limits to what they can execute alone.
Here's the financial tipping point I usually share:
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Over $150k/year in ad spend? An agency can often give you access to more specialized talent and broader channel coverage for the same cost (or less) than one senior hire.
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Under $50k/year in ad spend? Be honest with yourself: a full service agency might be overkill. However, a smaller team, maybe one or two people from an agency can fit in nicely within this ad spend and genuinely help you.
Between $50k and $150k? That's where it gets interesting, and honestly, it depends on your specific goals and complexity. I would advise always speaking to an agency, even if you decide against one if you sit within this bracket.
The Bottom Line
The role of an agency in 2025 isn't about someone logging into your ad account and moving sliders around. It's about strategic oversight, competitive intelligence, and leveraging tools and insights your team doesn't have time to master.
So stop asking, "Do I need an agency?"
Start asking, "Who can help me combine AI's efficiency with human strategy to actually grow my business in this weird new landscape?"
Because if your team is struggling to keep pace with how fast things are changingāand let's be real, most teams areāthen having the right external partner might be more valuable now than it's ever been.
Want to talk through your specific situation? Feel free to reach out. No pressure, no hard sellājust happy to share what I'm seeing work (and what's not) in 2025.