Wondering if outsourcing is right for you? Here's how to know when it's the right time to examine this option and how you'll benefit in the long run.

Outsourcing within the online marketing industry is a trend that has been developing for the past several years. For many agencies, both large and small, outsourcing certain functions like ad operations makes more sense than keeping these tasks in-house. In this guide, the three essential questions of "when," "what," and "why" will be explored to help guide you to making the best decision for your company.

When should I outsource ad operations?

When account teams are overwhelmed with campaign execution
When account teams are constantly burdened by the execution phase of an online ad campaign, they are unable to focus on higher level tasks like strategy and creative. Campaign execution is a lower level responsibility that is typically handled by entry-level employees. However, because it is a time-intensive process, the task often falls to mid- and high-level staff.

When account teams are not meeting accountability demands
Analyzing a campaign is another time-intensive process, just like executing one. Analysis can be broken into two parts: reporting and analysis. 

Like campaign execution, reporting takes up a large percentage of entry-level employees' time. With the growing array of online marketing metrics that have been introduced to the industry, clients are now requesting more aspects of a campaign to be monitored.

Campaign analysis requires the attention of mid- to high-level staff who are proficient in online marketing metrics. In order to stay current with online marketing data trends, an agency needs to expend an adequate amount of resources to housing experts, the cost of which can be high. 

In terms of ad operations, what functions can I outsource?
 
Campaign setup, trafficking and optimization
The initial setup, targeting and QA in an ad server can be a key target for outsourcing, provided the outsourcing company has the domain expertise. It is therefore important to pick the right company because the wrong generic outsourcing conglomerate will actually force you to lose money while you teach them ad trafficking.

Data pulls and day-to-day campaign reporting
Throughout the campaign, data needs to be extrapolated and recorded. This process is necessary for your agency's records and your clients, if they request it. This low-level task takes up time and can often be the sole responsibility for a few team members on each account.

Flash and rich media
Flash and rich media are both tedious processes, making them prime candidates for outsourcing. The bulk of the work involves a trafficker troubleshooting the rich media creative by itself and also testing it within an ad server.

Site tagging and post-click tagging
Sometimes publishers and networks will change tags by campaign or during migration. Crafting tags based on the appropriate nomenclature is crucial, so targeting them to make sure each works as defined is also a key step.

What are some of the benefits of outsourcing ad operations?
 
Scalability
In order to scale efficiently, an agency must be able to not only attract new business, but also adequately meet the needs of the new clients. The ideal scenario is not to hire for every piece of new business, as this can drain a company. Outsourcing can act as a buffer that allows existing employees as well as new hires to tackle their increasing responsibilities. 

Revenue
When mid- to high-level account team members are spending their time with low-level tasks, an agency is not getting the return it should on these employees. When the weight of these responsibilities is relieved, team members are able to utilize their time more efficiently, and the agency will see revenues increase. 

Costs
Recruiting and employment expenses can accumulate quickly when every account team requires a group of entry-level professionals for campaign execution and reporting. An agency can significantly cut costs by outsourcing the bulk of these low-level functions.  

Expertise
The focus of most agencies is on campaign strategy and creative, which is a model that does not support in-house teams of online marketing data experts. Furthermore, true expertise in this emerging field is hard to come by. Partnering with an ad operations company that focuses entirely on online marketing data allows an agency to tap data experts with knowledge of the latest metrics and ad operation practices -- for a fraction of the cost. 

Jay Kulkarni is CEO and founder of Theorem Inc.