Local Agency vs. Offshore PPC Partners ~ How to make the right decision

You sit in your workspace, gazing lovingly at your company’s logo that took off like a bird eager to explore new skies not long ago. 

Now, you want to see it expand its wingspan in the digital space, winning hearts and the right pair of eyeballs! 

You are creating amazing content that people admire, but the leads, well, those numbers have a different story to tell. 

You would love to run paid campaigns, but that’s a non-core business activity, and you are not considering hiring an in-house PPC (Pay-per-click) specialist right now. 

That leaves you with one option! 

Yep, you must have considered outsourcing your PPC requirements, but the eternal rhetoric remains:

Should we outsource to a local agency or partner with an offshore one?!

That’s quite an important decision to make and an equally taxing one. Well, not anymore!

We at Mavlers have 12+ years of experience catering to the paid advertising needs of 7000+ global clients. With USD 43+ million in media spend managed by our 120+ professional PPC experts, we have tested the waters of paid advertising. 

In today’s blog, you will find honest and unbiased insights on the following pointers:

• Pros and cons of local PPC agencies
• When should you consider partnering with a local onshore PPC agency?
• Pros and cons of offshore PPC partners 
• When should you consider partnering with an offshore PPC agency?
• Cost comparison of local agencies vs. offshore PPC agencies
• Factors to consider when choosing between local and offshore PPC agencies

Toward the end of the article, you will have gained clarity on the benefits and drawbacks of both outsourcing options. You will be better positioned to make a fruitful outsourcing decision for your business. 

So, without any further ado, let’s get started! 

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Pros and cons of local PPC agencies

In this section, we will discuss the benefits and drawbacks of outsourcing your PPC requirements to a local or onshore vendor. 

Pros

1. Proximity and Accessibility:

Hiring a local PPC agency might be a good bet if you like to keep control of the work in progress and be close to those bringing in the leads and the conversions.  

This can also facilitate quicker communication, face-to-face meetings, fewer chances of miscommunication, and better response times. 

2. Cultural Understanding and Language Proficiency: 

If your PPC campaigns require an in-depth understanding of the local culture, common slang, and your brand ethos, then a local PPC agency with a good grasp of the pulse of the targeted demographics might fit the bill. 

3. Knowledge of Local Market Dynamics: 

Local or onshore vendors deeply understand the local market trends, customer behavior, and competition, enabling them to tailor PPC strategies that resonate with your target audience.

4. Regulatory Compliance: 

Local agencies are well-versed in local regulations and compliance standards, ensuring that your PPC campaigns adhere to legal requirements. This is particularly important in highly regulated industries (such as healthcare and pharmaceuticals, banks, investment firms, aerospace, defense, etc.).

Cons

1. Higher Costs: Local agencies may charge higher fees than offshore options due to higher operating expenses, such as office rent, employee salaries, and overhead costs.

2. Limited Talent Pool: Local agencies may have a smaller talent pool because of possible skillset gaps than offshore firms, limiting your options for finding specialists with specific/niche skills or expertise.

3. Lack of Global Perspective: Local PPC agencies may lack a broader global perspective, which could benefit businesses targeting international markets or seeking innovative approaches beyond local norms.

When should you consider partnering with a local onshore PPC agency?

Our subject matter expert, Amardip Raijada, suggested the following insights when asked about the specific situations when you should consider partnering with a local onshore PPC agency;

“In my experience, when brands don’t have clarity over what outcomes they seek in their paid advertising endeavors and lack an in-house PPC strategist or marketing team, they should consider outsourcing their PPC needs to a local digital marketing agency. 

Such agencies will be better positioned to help brands cater to their local audience while retaining the brand flavor in a manner that will be welcomed by the target demographics.

Even though an offshore agency might have the requisite skill set to cater to such requirements, it might not be able to grasp the local nuances of the brand’s target audiences.
However, if you clearly understand the outcomes you seek, have a well-curated strategy, and just need someone to set up and execute the campaigns, then an offshore PPC agency can be the right fit for you.”

Pros and cons of offshore PPC partners 

Let’s now delve into the benefits and drawbacks of partnering with an offshore PPC agency. 

Pros

1. Cost-effectiveness

Offshore PPC agencies often offer lower costs than onshore counterparts due to lower labor costs in their respective countries, resulting in potential cost savings and greater profitability for businesses.

2. Access to Global Talent Pool

Offshore agencies have access to a diverse talent pool from around the world, allowing businesses to tap into specialized skills, expertise, and experiences not readily available locally. When you choose a dedicated offshore PPC resource, you get the benefits of an in-house hire without paying extra employee benefits. 

3. Round-the-Clock Operations

Offshore agencies operating in different time zones can provide 24/7 support and monitoring for PPC campaigns, ensuring continuous optimization and responsiveness to issues and changing market trends.

4. Scalability

Offshore agencies can quickly scale resources up or down based on project demands, allowing businesses to adapt to changing needs and scale their PPC campaigns as required.

5. Technological Advancements

Offshore agencies often invest in the latest technologies, tools, and platforms for PPC campaign management, providing access to advanced analytics, automation, and optimization capabilities.

Cons

1. Communication Barriers

Offshore agencies may face communication challenges due to language barriers, cultural differences, and distance, hindering effective collaboration and understanding project requirements. However, these communication challenges between your end client and the chosen PPC partner agency can be overcome by giving your partner agency an email ID with your domain to communicate directly with your end client. This is recommended only if you have legal, quality assurances in place, such as NDAs (Non-Disclosure Agreements) or NSAs (Non-Solicitation Agreements), and if you trust your offshore PPC partner agency well enough!

2. Time Zone Differences

Working with offshore agencies in different time zones can delay communication, project updates, and issue resolution, potentially impacting campaign performance and responsiveness unless the agency is ready to work in your time zone.

We suggest partnering with offshore agencies that are willing to work in your time zones.

3. Quality Control and Accountability

Ensuring quality control and accountability can be more challenging with offshore agencies, as businesses may have limited oversight and control over operations, leading to concerns about reliability and consistency.

To avoid this, search for offshore agencies that offer complete accountability/ownership of the deliverables and have a specific point of contact who oversees the project collaboration and execution.

4. Cultural Misalignment

Offshore agencies may not fully understand the cultural nuances and preferences of the target market, potentially leading to misalignment in messaging, branding, or campaign strategies.

While there are offshore agencies that are well-acquainted with the tastes and demands of your target audiences, it is best to vet them out with a sample assignment to see if they truly serve what you desire! 

5. Data Security and Privacy Concerns

Offshore agencies may operate in countries with different data protection laws and regulations, raising concerns about data security, privacy, and compliance with international standards.

This can be overcome by partnering with offshore agencies that have compliances in place and follow GDPR regulations to avoid data security breaches.

When should you consider partnering with an offshore PPC agency?

Amardip Raijada, our PPC expert at Mavlers, offered the following insights when asked about the particular instances in which brands/agencies should consider partnering with offshore PPC vendors;

“If you are a brand/agency owner with a basic understanding of how paid advertising and marketing work and have a clear roadmap in place for your PPC endeavors, then partnering with an offshore PPC agency can not only help you save costs and increase profits but also get you the best PPC experts worldwide working on your paid marketing strategies engineered in-house.”

Cost comparison of local agencies vs. offshore PPC agencies

One of the major factors that business owners consider when making any outsourcing decision is the costs involved! 

At Mavlers, we charge USD 25 per hour for PPC requirements. The annual cost of hiring a dedicated SEM/PPC resource from us is USD 38,400.

If you would like to know more about the pricing offered by freelancers, you can read our blog titled, “Can an offshore agency match the pricing offered by freelancers?”

To understand the cost breakdown and the factors affecting the prices involved in outsourcing PPC requirements to Mavlers, read our blog, “How Much Does A PPC Project Cost At Mavlers?”

Let’s now look at the hourly costs of outsourcing PPC to agencies in different locations.

We did some research online to gather data for you. Here’s the tea! 😉

1. Comrade Digital Marketing, a Chicago-based agency, charges an average cost of USD 2,500 to over 10,000 per month, depending on client requirements. 
2. Oxedent, an e-commerce PPC agency in the UK, expects clients to have a minimum monthly budget of £ 1,000 (USD 1262.75.)
3. Brafton, an Australian PPC agency, “prices PPC campaigns as a monthly package of 10 units, with each unit costing $135 or as a custom quote of 2 units per hour of work.”

Factors to consider when choosing between local and offshore PPC agencies

In addition to the costs, you must consider the following factors to make a good outsourcing PPC decision. 

1. Budget considerations: 

While local agencies can be a pricier option due to factors like the cost of living and labor standards in your location, they can help you develop strategies that work in that particular demographic. 

If profitability is a major consideration for you and you have the strategy in place, offshore agencies can be an affordable option, offering cost savings due to lower labor costs in their countries.

We suggest considering your budget constraints and how they align with the rates offered by both local and offshore agencies to make a plausible choice. 

2. Project complexity and scope:

Complex projects may benefit from the proximity and availability of local agencies for easier communication and collaboration.

Offshore agencies might be suitable for projects with well-defined scopes and requirements where physical proximity is less critical.

Evaluate the complexity and specific requirements of your project to determine which type of agency is better suited to handle it effectively.

3. Importance of cultural alignment and language proficiency

If your brand requires a certain level of cultural understanding that is unique to your location, then an onshore PPC agency might be best suited to create and run paid campaigns that convert. 

However, if you feel that an offshore PPC agency has a decent communication skill set, expertise, and basic understanding of what you expect from the brand campaigns, then you could try partnering with them as well!

4. Level of control and oversight desired by the business

Local agencies may offer easier access to in-person meetings, facilitating more direct oversight and control over the project.

To maintain oversight, offshore agencies may require more structured communication channels and project management frameworks.

Assess your business’s preference for control and oversight and choose the agency type that best suits your desired level of involvement.

The Road Ahead

Regardless of the path you choose, you should be aware of certain documented downfalls and account for them beforehand to ensure the success of your outsourcing venture. 

To create a bulletproof outsourcing strategy, read our blog, “Why does digital marketing offshoring fail?”