Google Ads Agency vs In-House for Medical Practices: The Real Math

The Cost Comparison

Agency Model (Retainer-Based):
• Monthly retainer: $2,000–$5,000
• Setup fees (if any): $1,000–$2,000 one-time
• Ad spend: separate (you choose)
• Total annual cost: $24,000–$60,000 + ad spend

In-House Specialist (Full-Time):
• Salary: $50,000–$80,000/year
• Benefits (health, payroll taxes, etc.): +25–30% = $12,500–$24,000
• Training/certifications: $1,000–$3,000/year
• Tools (Google Ads, analytics, etc.): $500–$1,000/year
• Total fully-loaded cost: $64,000–$108,000/year

The Crossover:
If you're spending less than $10,000/month on ads, an agency is usually cheaper. If you're spending $15,000+/month consistently, in-house becomes more cost-effective.

When to Use an Agency

You have $3,000–$10,000/month ad spend:
At this scale, paying an agency $2,500–$4,000/month is reasonable. Your total cost (agency + ad spend) is $5,500–$14,000/month. A full-time employee would cost $5,300/month fully-loaded, which is similar — but the employee would need support infrastructure, tools, and management.

You're testing if Google Ads works for your vertical:
You don't want to hire someone full-time if you don't know if Google Ads will work. An agency lets you test with lower commitment. Cancel in 3 months if it's not working.

You lack Google Ads expertise in-house:
If no one on your team understands Google Ads, hiring someone new is risky. An experienced agency brings immediate expertise. They've managed 50+ healthcare accounts. Your new hire would take 6–12 months to get that experience.

You can't afford to have someone dedicated part-time:
Google Ads needs 10–15 hours/week minimum. Part-time employees are harder to manage and they deprioritize your account for other tasks. An agency gives you full-time expert attention for a fraction of the cost.

When to Go In-House

You have $15,000+/month consistent ad spend:
At this scale, an in-house specialist is cheaper. $5,000/month agency retainer + $15,000 ad spend = $20,000/month total cost. A $70,000/year employee = $5,800/month fully-loaded. Difference: $14,200/month in favor of in-house.

You have multiple verticals or practice locations:
Multiple accounts = more work. One employee can manage 5–10 active Google Ads accounts. An agency charges per account or flat retainer per practice. This gets expensive with scale.

You have established Google Ads success:
You know Google Ads works for your practice. You've proven ROI. Now you need optimization and scaling. A full-time specialist is ideal.

You want full control and transparency:
Some practices want to own the account, run the strategy, and have someone execute. An employee gives you that control. An agency has some separation and strategic decisions.

The Hidden Costs of In-House

Hiring/Turnover Cost:
Google Ads specialists are in high demand. Average employee tenure in digital marketing: 2.5 years. That means you'll hire, train (6 months), run optimized (18 months), then rehire. Cost per cycle: $3,000–$5,000 in recruiting + lost productivity during transition.

Knowledge Loss:
When they leave, they take their knowledge. The new person has to start from scratch. An agency has institutional knowledge across 50+ accounts. It doesn't leave when one person does.

Tool & Resource Costs:
Google Ads, analytics, call tracking, landing page builders, SEO tools, chat support services. Adds up to $1,500–$3,000/month for a well-equipped team.

Management Time:
You have to supervise them, set KPIs, review work, handle conflicts. That's your time, and it costs money.

Hybrid Option: Fractional In-House

Some practices hire a fractional Google Ads specialist (part-time, 10–20 hours/week). Cost: $30,000–$50,000/year ($2,500–$4,200/month).

Pros: Cheaper than full-time, more control than agency, expertise in-house
Cons: Split focus (they have other clients), higher turnover, management overhead

This works if you have $10,000–$15,000/month spend and want more control but can't justify a full-time hire.

The Quality Factor (Often Ignored)

This is critical: an experienced agency will likely outperform a junior in-house hire on day one. A skilled Google Ads specialist costs $70,000–$100,000+. A cheaper hire ($50,000) is likely junior and will take 1–2 years to develop skill.

During those 1–2 years, a good agency would have improved your CPL by 25–35%, saving you $20,000–$40,000 in wasted spend. The junior employee is still figuring things out.

Cost comparison should factor in quality. A $3,500/month agency that reduces your CPL from $100 to $60 saves you $4,800/month in wasted spend. That's ROI-positive immediately. A $50,000/year junior employee that improves CPL from $100 to $85 (slow progress) costs you money.

Decision Tree

Annual Google Ads spend under $120,000 ($10,000/month)? → Use an agency
Annual Google Ads spend $120,000–$180,000? → Use an agency or fractional hire (depends on complexity)
Annual Google Ads spend over $180,000 ($15,000+/month)? → Consider in-house hire
Multiple locations or vertical practices? → In-house scales better
First time running Google Ads? → Agency is safer
Proven Google Ads success already? → In-house may be better