The Hidden Costs of In-House Media Buying:Is It Really Saving You Money?

The DIY Media Buying Illusion

Many brands, especially fast-growing D2C companies, assume that taking media buying in-house will save them money. On paper, it makes sense—why pay an agency fee when you can hire an internal team to do the job? But the reality is far more complicated.

The hidden costs of in-house media buying often outweigh the savings. Between staffing, tools, training, and missed opportunities, brands can spend more and achieve less than they would with an efficient external partner.

Let’s break it down.

1. The True Cost of an In-House Team

Hiring and maintaining an in-house media buying team is expensive—and the costs go far beyond salaries.

Breakdown of Costs:

  • Salaries: A skilled media buyer with 5+ years of experience can demand $150K-$175K annually. A full team? Easily $750K+ annually.
  • Training & Development: Digital media is constantly evolving. Continuous education, certifications, and conferences add $25K+ per year.
  • Turnover & Hiring Costs: The media industry has high turnover rates, meaning recruitment costs and downtime between hires can add another $50K+ annually.

2. Technology & Data Expenses

Big agencies have negotiated access to premium media tools that would otherwise cost brands hundreds of thousands annually.

Hidden In-House Costs:

  • Planning & Research Tools: Nielsen, Comscore, and other analytics platforms can cost $250K+ annually.
  • Ad-Tech & Measurement Platforms: Premium DSPs, attribution modeling, and tracking tools can easily add $100K-$500K per year.
  • Media Buying Platforms: Some agencies provide free access to buying tools that would otherwise come at a high licensing fee for in-house teams.

3. Efficiency & Performance Gaps

A high-functioning media buying team requires experience and scale—something in-house teams often struggle to match.

The Performance Pitfalls:

  • Limited Expertise: Most in-house teams specialize in only a few channels, leading to inefficiencies in omnichannel strategies.
  • Slower Adaptation: Agencies have direct relationships with platforms like Meta, Google, and TikTok—giving them early access to new tools and insights.
  • Ineffective Budget Allocation: In-house teams may overspend on underperforming channels without an extensive benchmarking framework.

4. The Smart Alternative: Hybrid & Decentralized Models

For SMB agencies and D2C brands that need the best of both worlds—control and cost efficiency—a hybrid or decentralized approach is the way forward.

The Benefits of Working with a Low-Cost Partner Like SmartSpend:

  • No bloated fees: Operating at 3% or lower fees vs. 15-20% at traditional agencies.
  • Access to premium tools: Without paying six-figure licensing costs.
  • A team of experts: Without the overhead of full-time salaries.
  • On-demand flexibility: Scale media efforts up or down without the burden of in-house staffing.

The Verdict: Is In-House Really Worth It?

For some brands, in-house media buying makes sense. But for most SMB agencies and D2C brands, the numbers don’t lie—going in-house often costs more than it saves.

The key is finding a lean, efficient media buying model that eliminates waste without sacrificing performance.

Want to see how much you could be saving? Let’s talk.