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In today's dynamic business environment, companies face the critical decision of building an in-house marketing team or partnering with an external agency. While an in-house team offers certain advantages, the escalating costs - exacerbated by recent increases in employer National Insurance contributions—often make this option less viable. This article explores why engaging a marketing agency is a more cost-effective and flexible solution, supported by current data on average salaries and associated expenses.
Building a comprehensive in-house marketing team involves significant financial commitments beyond base salaries. These include employer National Insurance contributions, pension costs, recruitment fees, training, software licences and more. Let's break down these expenses using typical annual salaries for key marketing roles in the UK:
Total Annual Salaries: ~£392,000
* source: Intelligent People
According to The Sun, as of April 2025, the employer NIC rate is set to rise from 13.8% to 15%.
Example Calculation:
Additional Cost Due to NIC Increase: ~£4,595 annually
Total Annual Cost for an In-House Team: ~£500,395 (excluding other hidden expenses)
Partnering with a marketing agency like Mr Digital offers significant savings and flexibility. Our standard hourly rate is £75+vat, but for larger retainers (120+ hours per month with a 12-month term), we offer discounted rates as low as £50+vat per hour. Here's how this can be a smarter investment for your business:
For an hourly rate as low as £50+vat, you gain access to a diverse team of specialists, including:
Cost Comparison:
Annual Savings: Over £428,000 without compromising on expertise or output.
With an agency, you eliminate:
The increase in employer National Insurance to 15% adds to the growing list of expenses that make maintaining an in-house team less viable for many businesses. Combined with pension obligations, training, equipment and recruitment, these rising costs can strain budgets and reduce your ability to invest in other critical areas.
At Mr Digital, we understand that every business has unique requirements:
It's essential to acknowledge that for some companies, particularly those with very niche or industry-specific needs, an in-house team might be preferable. These businesses may benefit from having direct control and day-to-day presence. However, for the vast majority looking to maximise ROI, gain diverse expertise and avoid rising costs, an agency is a no-brainer.
As employment costs continue to rise, the decision to outsource marketing functions becomes more financially compelling. Choosing a marketing agency like Mr Digital not only offers a flexible and scalable solution but also saves significant money without sacrificing quality. With access to a comprehensive team of specialists for as little as £50+vat per hour, your business can invest more effectively in growth and strategic initiatives.
Discover the benefits of partnering with Mr Digital. Book a free consultation today to explore a tailored retainer plan that aligns with your budget and marketing goals.
Ross is the Managing Director of Mr Digital, bringing over 15 years of experience in digital marketing and business strategy to the company. He has a proven track record of driving growth and achieving exceptional ROI for clients. Ross's leadership and expertise in the digital landscape make him a valuable resource for businesses seeking to thrive online.
Joshua is a Senior Content Writer with a diverse background in journalism and storytelling. He has a passion for crafting engaging and informative content that resonates with target audiences. Joshua's experience in writing and his understanding of digital marketing ensure content is both captivating and effective in achieving marketing goals.
