Amazon Advertising Agencies vs. In-House Management

Running ads on Amazon takes time, expertise, and constant management. Campaigns need regular testing, performance tracking, and strategic adjustments to stay profitable. For most brands, the real question isn’t whether to advertise — it’s who should manage it.

Should you keep it in-house, or bring in an Amazon advertising agency? The right answer depends on your resources, skill set, and how hands-on you want to be. This guide breaks down the pros and cons of each approach so you can make the right call for your business.

1. What Does Amazon Advertising Management Involve?

Before choosing how to manage your campaigns, you need to understand what the work includes. Running ads on Amazon is not just about launching Sponsored Products and watching results.

Good Amazon advertising management services typically include:

• Keyword and product targeting strategies
• Selection of Amazon ad types like Sponsored Products, Sponsored Brands, Sponsored Display, and video ads
• Bid and budget management
• Creative development and testing
• Performance tracking
• Adjustments based on seasonality, product launches, and stock levels

2. When to Keep Amazon Advertising In-House

In-house management gives you full control over your campaigns. You set the strategy, monitor performance in real time, and make changes without waiting on a third party. This setup works best when you have someone on the team with enough experience to build and manage a proper account structure — and the time to stay on top of it daily.

In-house can be a good fit if you:

• Have a team member with experience specific to Amazon PPC, not just general paid media background
• Want direct access to every campaign, down to the keyword and placement level
• Are using third-party tools like Pacvue, Perpetua, or bulk spreadsheets to manage complexity
• Have a relatively small catalog or focused SKU set that doesn’t require managing dozens of campaigns at once
• Need full control over budgets, timing, and test velocity without agency bottlenecks

Advantages:

• Immediate access to data and the ability to make same-day changes
• Better alignment with brand priorities, inventory changes, and margin constraints
• No added agency fees, which protects margins for lower-spend accounts

Drawbacks:

• In-house teams often miss strategic testing or fail to catch structural inefficiencies like oversegmentation or poor match type usage
• Learning curves can be steep, especially when scaling into Sponsored Brands, video ads, or Display
• Burnout is common; Amazon ad accounts require daily oversight, not just set-and-forget execution

In-house is viable when you have the talent, tools, and time to stay hands-on. But if your campaigns are reacting to problems instead of proactively testing and scaling, that may be a signal it’s time to bring in outside help.

3. When to Use an Amazon Advertising Agency

Agencies make the most sense when your advertising program is too complex or time-consuming to manage internally, or when you need structured expertise to grow. They bring defined processes, dedicated specialists, and campaign strategies built from managing dozens or hundreds of other accounts.

Agencies are most valuable when:

• Your monthly ad spend is approaching or exceeding $10,000. At this level, the complexity and daily oversight required can start to outweigh the efficiency of keeping it in-house.
• You are running more than just Sponsored Products, such as Sponsored Brands, video ads, or DSP, and need help structuring campaigns the right way
• Your team lacks bandwidth to manage, test, and report on campaigns consistently
• You want access to tools, benchmarks, or betas that aren’t available to individual sellers

Advantages of using an agency:

• Structured campaign architecture that avoids waste, overlaps, or underperformance across ad types
• Access to experienced account managers who have seen what works across categories and budgets
• Regular reporting with context, not just data, plus optimization plans based on your goals
• Support for scaling product launches, seasonal pushes, and budget reallocation across ad types
• Access to creative resources for Sponsored Brand video, custom graphics, and store assets

Drawbacks to consider:

• Monthly fees that usually include a percentage or a flat minimum
• Slower iteration cycles unless the agency is integrated into your weekly workflows
• Less visibility into the reasoning behind every decision, depending on how transparent the agency is

The right agency acts like an extension of your team, not just a service provider. But if you are not ready to invest time into onboarding, sharing goals, or reviewing performance regularly, outsourcing can become disconnected and less effective.

4. What to Look for in an Agency

Not every agency delivers the same level of service. The best Amazon advertising agencies should:

• Offer clear reports showing performance by campaign and keyword
• Help define goals based on ACOS, ROAS, or market share
• Manage all ad types and provide creative support when needed
• Know how to optimize for both branded and non-branded search terms
• Be transparent about fees, timelines, and campaign ownership

Avoid agencies that overpromise, hide performance data, or rely only on software with little human oversight.

Final Thoughts

Think of it this way:

• Use in-house management when your ad spend is smaller, your catalog is simple, and your team has time to test and learn
• Use an agency when your ad budget increases, you need advanced targeting, or your team is stretched too thin

Amazon advertising requires structure, testing, and ongoing attention. Whether you manage ads in-house or hire an Amazon advertising agency, the key is to stay focused on performance and align your ad strategy with your business goals. When done right, advertising pays for itself over time with consistent brand growth.