When you make the decision to bring SEM in-house, you are essentially choosing a direction. The person, or people, you choose will essentially set the direction for your movement. Because SEM combines usually left-brained elements like complete data crisis with more right-brained endeavors like creative messaging strategies, you will be jump by the limitations of your chosen team.
Should preface this by saying I have seen successful in-house SEM operations. They typically occur in association with a strong marketing culture and a general power of the online space. These operations are usually large-scale and engage a team of people, that when joint, run the breadth of compulsory skill sets. Typically, these teams are managed by people who are in their own right experts in the field of Interactive Marketing. But even most of these companies end up using agencies for specific calculated strategy and execution.
It is not uncommon for Fortune 50 companies to have separate agencies for PPC, SEO, affiliate management, online display and other marketing elements. Each agency then answers to an internal ombudsman who has the skill to speak each of their languages and hold them answerable for the results the business desires.
For any company with a grave desire to tap the online marketplace, big dollars will flow that way. Destructive PPC marketing alone can account for six figure investments each month, and the outlook that these budgets are controlled by people with little stake in the product is scary. Sure, it may be easy to say I am biased because I'm on the agency side. But the reality is I've been on both sides. I've built out and managed in-house strategies, and in some cases, it is necessary. But my preferred approach was always to develop and mature a policy to a point where it made sense to influence agencies to implement various tactics. Who wouldn't want to benefit from a fully built out team - from visionary right during to tactician - all with no overhead, no turnover concerns and full accountability!
