Comparison of Costs: Marketing Agency vs. Hiring an Apprentice vs. Hiring an Experienced Digital Marketer

A report by the Conference News mentions that about 42% of business owners in the UK prefer outsourcing their marketing requirements to agencies.  Marketing is one of the most integral and important aspects of any business and when a little less than 50% of companies wish to outsource it, it brings numerous questions with it. Questions on choosing the best solution for your digital marketing strategy, weighing the pros and cons of partnering with a marketing agency, hiring an apprentice, or employing an experienced digital marketing professional. While the UK market spoils business owners for choice, the fairly elaborate range of choices might drive the decision-maker to a frenzy. However, understanding each aspect and each option’s components might be beneficial in making an informed decision.  

Cost Breakdown and Benefits of Each Option

1. Marketing Agency

Training: Included in retainer fees; no extra costs for upskilling.
Tools & Technology: Provided as part of the package. Agencies leverage advanced software tools for analytics, campaign management, content creation, and more.
Cost: Monthly retainers generally range from £1,500–£5,000, varying by the scope of services and expertise level.
Expertise: Access to a multi-specialist team proficient in digital strategies, SEO, content marketing, paid search advertising, conversion rate optimisation, social media management, and web design.
Scalability: Agencies can quickly adapt to increased demands, making them ideal for businesses requiring growth or marketing campaigns across multiple platforms.
Benefits: Predictable pricing without hidden fees and comprehensive services including lead generation, search engine optimisation, and online presence enhancement.

2. Hiring an Apprentice

Training: Typically costs £1,500–£3,000 annually for external workshops or accredited courses.
Tools & Technology: Basic tools may cost £500–£1,500 annually, while advanced tools used for analytics or social media management can add up to £5,000/year.
Cost: The Apprentice Rate has increased by £1.12 to £6.40 (National Minimum Wage), marking a 21.2% rise.
Calculating Cost Per Hire (CPH): Cost Per Hire (CPH) represents the total recruitment expenses divided by the number of employees hired during a specific timeframe. It includes all costs associated with bringing a new employee on board up to their first day, excluding training and onboarding expenses
Expertise: Apprentices often start with limited digital marketing skills and require mentorship to bridge skills gaps.
Scalability: Limited scalability due to the time investment needed for training.
Benefits: An economical route to building in-house talent over the long term, though significant initial mentoring is required.
Turnover Risk: Although the turnover rate of apprentices in the UK is relatively low, there are still chances of Marketing apprentices seeing their roles as a way to gain initial experience in the industry and then may look for other opportunities once their apprenticeship ends. To mitigate this, the company needs to have regular discussions about the team’s future and provide a clear progression plan to retain them.

3. Hiring an Experienced Digital Marketer

Training: Minimal additional training is required; occasional upskilling costs range from £500–£1,500 per year.
Tools & Technology: Premium software costs £2,000–£5,000 annually.
Cost:Digital Marketing professionals typically earn around £37,500, with salaries varying significantly based on specific roles and areas of expertise within the field.  

Role	Salary Range	Experience Required
Digital Marketing Officer/Executive	£22,000–£28,000	1–3 years
Digital Marketing Manager	Up to £48,000	5+ years
Digital Marketing Graduate	£36,329–£39,629	0–1 year
Digital Marketing Executive (London)	£35,000–£55,000 (2025)	3–5 years

Calculating Cost Per Hire (CPH): Cost Per Hire (CPH) represents the total recruitment expenses divided by the number of employees hired during a specific timeframe. It includes all costs associated with bringing a new employee on board up to their first day, excluding training and onboarding expenses.
Expertise: Experienced professionals excel in managing digital marketing campaigns, implementing advanced marketing strategies, and achieving measurable results.
Scalability: Moderate scalability; a single professional may face limits in managing high-volume campaigns.
Benefits: High-level autonomy, strategic decision-making, and immediate contributions to content creation, social media, and other crucial digital marketing strategies.

Key Comparisons

Factor	Marketing Agency	Hiring an Apprentice	Experienced Digital Marketer
Training	Included in fees	Employer-funded (£1.5k–£3k/year)	Minimal (£500–£1.5k/year)
Tools & Technology	Included	£500–£5,000/year	£2,000–£5,000/year
Salary/Retainer	£1,500–£5,000/month	£12,000–£18,000/year	£30,000–£45,000/year
Expertise Level	Multi-specialist team	Beginner	Expert with a proven track record
Scalability	High	Limited	Moderate
Time Investment	Minimal	High (mentorship required)	Moderate
Flexibility	High (project adaptability)	Limited	Medium

In-Depth Analysis

Expertise and Skills

• Marketing agencies excel with their access to a multi-specialist team. This is particularly beneficial for businesses needing diverse services, including content marketing, web design, and social media management.
• Hiring an apprentice offers an opportunity to train talent aligned with your company’s culture but requires extensive mentoring to build necessary digital marketing skills.
• Experienced digital marketers bring proven expertise to execute high-level marketing strategies, reducing the learning curve and delivering immediate results in areas like lead generation or search engine optimisation.

Scalability

For businesses seeking growth, a marketing agency is highly scalable due to its ability to handle varying demands, whether for short-term projects or multi-channel marketing campaigns. By contrast, hiring an apprentice limits scalability due to time-consuming mentoring. Experienced digital marketers, while capable of managing strategic growth, may struggle with resource-intensive projects without additional support.

Costs and ROI

Marketing agencies offer predictable costs through retainer fees while bundling essential services like analytics, content creation, and social media management. Hiring an apprentice is the most economical upfront option but requires consistent investment in training and tools. Experienced digital marketers involve higher salaries but deliver the potential for a quicker ROI through advanced digital marketing strategies and targeted campaigns. Additionally, most marketing professionals will also expect to work with a team of marketers to assist in building and implementing their proposed strategies, which can further increase costs.

Choosing the Right Option

Aligning with Your Business Goals

Your decision depends on factors including your budget, timeline, and marketing objectives.

• Choose a marketing agency for robust solutions spanning digital strategies like SEO, content creation, and social media management.
• Opt for hiring an apprentice if you’re committed to nurturing long-term talent while managing costs.
• Select an experienced digital marketer if  the focus is on building an in-house expert for tailored, high-level digital marketing campaigns.

Checklist for Choosing the Right Digital Marketing Option

When deciding between a marketing agency, hiring an apprentice, or employing an experienced digital marketer, consider the following checklist to align your choice with your business goals, SEO budget, and strategic needs:

1. Assess Your Business Needs

• Do you require a comprehensive range of digital strategies (e.g., SEO, content creation, social media management)?
• Is your primary goal short-term results, long-term growth, or both?
• How much time and effort can your team dedicate to managing or mentoring marketing personnel?
• Are you looking to improve specific areas for example – web design, lead generation, or online presence?

2. Determine Your Budget

• What is your monthly/annual marketing budget?
• Can you afford the higher upfront cost of an experienced digital marketer?
• Are you prepared for the predictable retainers of a marketing agency (£1,500–£5,000/month)?
• Do you have funds for training and tools if hiring an apprentice (£1,500–£5,000/year)?

3. Evaluate Your Timeline

• Do you need immediate results (favouring an agency or experienced marketer)?
• Can you invest time in training and mentoring (necessary for an apprentice)?
• Are you planning short-term campaigns or long-term marketing strategies?

4. Review Scalability and Flexibility

• Will your marketing needs grow or change over time?
• Do you require a flexible team that can adapt to new digital marketing campaigns (better handled by an agency)?
• Are you seeking a permanent in-house solution (apprentice or experienced marketer)?

5. Consider the Required Expertise

• Do you need access to a multi-specialist team with expertise in digital marketing skills (agency advantage)?
• Are you willing to train someone with minimal experience (hiring an apprentice)?
• Do you require a high level of expertise and autonomy (experienced digital marketer)?

Key Takeaways

Marketing Agencies

• Best for businesses requiring diverse services with minimal time investment.
• Advantages: Comprehensive services, rapid scalability, and consistent results.
• Limitations: Higher monthly costs compared to an in-house team.

Hiring an Apprentice

• Best for businesses focused on cost savings and long-term talent development.
• Advantages: Economical, fosters loyalty, and offers tax incentives in some cases.
• Limitations: Demands significant mentorship and time; slow to deliver results.

Experienced Digital Marketers

• Best for organisations prioritising high-level expertise and strategic growth.
• Advantages: Strategic autonomy, immediate results, and advanced skills for high-impact campaigns.
• Limitations: High salary requirements and limited scalability without team support.

All your marketing questions meet their answers at Loop Digital 

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