Agency vs. company: Which employer suits me better?

If you are looking to take the next step in your career in the marketing industry, you can choose from a wide range of job offers. When it comes to choosing the right employer, it really matters whether it is an agency or a company. In this article, you can find out why this is the case and what differences there are between an agency and a company.

What is an agency?

Agency comes from the word agere (Latin: to do, to act) and generally describes an association of people who act in the interests of their members or clients. In the context of the marketing industry, this means: Agencies are companies that provide marketing services for corporate clients.

Most agencies work for several different companies at the same time. Projects involving agencies are either put out to public bid and awarded after taking part in a competitive process (“pitch”), or directly or privately acquired.

Agencies differ in terms of their primary areas of expertise and their designation. Here is an ( non-exhaustive) list of some types of agencies:

• Advertising agency
• Online marketing agency
• SEO agency
• Full-service agency
• Media agency
• Design agency
• PR agency
• Trade fair agency

Agency vs. company: The differences

There is no such thing as a “typical job” in an agency or company. The individual differences are too great to allow blanket statements. An internship is a good way to familiarize yourself with the relevant work environment.

Variety

For an agency, every client and every project has its own requirements and requires an individual team structure. Particularly in online marketing, where work is dependent on algorithms from Google, YouTube and the like, there is a lot of variation. This calls for dynamic strategies and processes.

Agencies usually handle several clients and industries. This requires specialized know-how and the willingness to acquire new knowledge. The ability to multi-task is also often required along with good focus.

Companies can also offer a variety of different services. In large companies, however, many operational functions are delegated and allow for less insight and leeway when it comes to their actual implementation. You often also encounter a silo mentality or a degree of operational blindness that stands in the way of a diversified work routine.

On the other hand, if you are the sole employee responsible for marketing in a small company, you get a lot of insights into operations – but you will often find that your area of responsibility is cut to the bone or that all the “learning by doing” leaves no time for strategic planning and real professional development.

tl;dr: If you are looking for a versatile job and an environment conducive to professional development, you are more likely to find it in an agency. But here too, there may be exceptions depending on the job title or job description.

Creativity

Agencies are places where the most diverse talents come together: Business economists, communication designers, photographers, producers, IT and online marketing experts can all be found there under one roof. The dynamic atmosphere and communication culture in an agency also encourage and challenge creativity. In view of the large number of customer projects and tight deadlines, some people may wish for “creativity at the push of a button.”

Creativity is not always bright and colorful: You can also find it in the form of creative solutions and strategies. Think out of the box! Or even: Expand your box!

Granted: In many companies, creativity is not the top core competence. Instead, creative ideas are bought in from the outside. Unfortunately, we also observe in many places that marketing departments are more concerned with their own interests than with their actual target groups (potential customers, as opposed to colleagues and supervisors).

tl;dr: Creative minds naturally find their place in an agency for which creativity the daily bread and butter.

Work atmosphere and corporate culture

Working in an agency is distinguished by short communication channels and project cycles. Individual responsibility and good communication skills are a must. But be careful: In some places, a “buddy-buddy atmosphere” can mask stressful jobs and table soccer can be used as an excuse for overly long working days.

In a company, communication is inevitably more difficult due to rigid hierarchies and decision-making processes, and a lot of time can sometimes pass between the initial idea and its eventual implementation. On top of that, some managers are resistant to innovation. Many good ideas then fall by the wayside.

Owing to the size of many companies, individual top performers cannot be credited for their achievements. This encourages a certain amount of profiling – because in case of doubt, the person who can sell themselves best reaps the laurels. This can go so far as to make it impossible for companies to differentiate between top performers and non-performers.

tl;dr: If you like a dynamic work culture, you are generally better off in an agency. If you want to take it easy, you should apply to a company.

Responsibility

Working in an agency entails a lot of responsibility. In smaller agencies in particular, you are often project manager or online marketing manager, creative and quality assurance all rolled into one. It is vital to take an interdisciplinary approach and to review your own work for errors before submission or publication.

In companies, responsibility often takes a hierarchical form: While there is less responsibility at a junior level, at the management level you are responsible not only for yourself, but also for others. Incompetence is not as easily noticed here as in agencies or is simply not addressed.

tl:dr; In agencies, individual responsibility is greater due to the diverse requirements of the jobs. You have to decide for yourself whether this suits you.

Dynamics

In an agency, it not only takes less time from the initial idea to final implementation than in a company, but it also takes fewer meetings. You can see the results of your own work in a suitably timely manner.

Many agencies, especially in online marketing, practice the “lean startup methode”: Products and services are not expected to be perfect right from the start, but must work and be accepted by customers and the market. They can also be developed further after the launch.

tl;dr: The results are straightforward in agency work. It’s easier to get into a “flow” this way. On the other hand, a company often has more time to complete projects.

Team structure

Agencies are characterized by flat hierarchies involving small, often project-specific teams and a direct interaction with colleagues and superiors. You become a “senior” based on competence rather than your job title or years of employment.

“In the field of online marketing in particular, senior titles can be dangerous in the classic ‘old economy’ sense. Such titles promote a hierarchical mindset and sometimes draw attention where they shouldn’t. Rather, as online marketers, we need to recognize that we work in an industry that is dependent on changing and self-learning algorithms. We need to keep pace with the changes. Because age has nothing to do with it, we also have younger experts with state-of-the-art know-how. Anyone who finds this exciting should consider agencies like svaerm as a potential employer.“ – Steffen Mai, Managing Director of svaerm

Companies usually have dedicated departments with specific duties. This leads to a certain amount of bureaucracy and a dysfunctional flow of information. This can sometimes prevent you from thinking outside the box.

tl;dr: Teamwork in agencies is marked by flexibility, interdisciplinarity and short decision-making paths. In companies, on the other hand, you can concentrate on your core areas.

Workload and working hours

Due to the wide range of tasks, the individual workload is higher in agencies. There are fewer meetings than in companies, but the projects involve a greater workload and the working hours are often longer. This is not the case across the board, however, as the many exceptions show.

Working hours at junior level tend to be significantly shorter in companies than in agencies. Managers are expected to work overtime if necessary. 

tl;dr: With some exceptions, the workload in agencies is higher and the working hours longer than in companies even at the start of your career.

Wages

The starting wage in a company is usually higher than in an agency. Among the reasons for this are the influence of work councils and trade unions on pay scales, collective contracts and the public pay scale. This type of influences are missing in most agencies.

On the other hand, it is easier to advance your career in an agency if you perform well. In the mostly smaller agencies, you stand out easier as a top performer and don’t have to waste your time and energy on “tokenism.”

In some companies, it can be difficult to be promoted to a certain position (e.g. Head of Marketing) without the respective manager leaving the company first. As long as everything goes as planned, you have no influence over this – and that is not particularly encouraging. This kind of issue does not arise in an agency because the more flexible structure allows new job titles to be created as required.

Darauf hat man keinen Einfluss, sofern alles mit rechten Dingen zugeht – und das ist nicht besonders motivierend. In Agenturen gibt es dieses Problem nicht, weil in den flexibleren Strukturen bei Bedarf neue Jobtitel geschaffen werden können.

tl;dr: The starting salary is generally higher in companies, but in agencies it increases faster when you perform well.

Professional development, prospects & resume

An agency is not only a creative workshop, but also a learning workshop. Due to the very versatile activities, you learn more in an agency than in a company. The higher workload improves soft skills such as resilience, time management, concentration, initiative and the ability to prioritize. This makes professionals from agencies highly sought-after candidates on the job market.

In addition, there are the more professional working conditions: Since agencies work for several clients, they can subscribe to a larger portfolio of tools and software or develop their own.

There is no doubt that the complexity of the projects and requirements means that the learning curve, i.e. the gain in experience in relation to the time axis, can be much steeper in agencies than in companies.

tl;dr: Agencies are a springboard for your future career, regardless of whether you pursue it in an agency or in a company.

Blurred boundaries

Sometimes the question arises as to where the dividing line between “agency” and “company” lies. The boundaries are becoming increasingly blurred:

There are some network agencies that feel and act like large corporations. In-house agencies only advertise a company’s own products and services, making them only “marginally more creative” than in-house marketing departments.

At the same time, there are also fast-growing start-ups and tech companies that look like large agencies, even though they are not.

Conclusion

In a nutshell: If a higher starting salary and employee benefits are important to you and a less steep career path with fewer challenges is enough, a company may be the best choice for you.

However, if you are looking for a more varied and challenging job, you should consider an agency and use it as a catalyst and springboard for your own career in agencies or companies where the performance-oriented thinking you have gained is valued and also financially rewarded.

The best experience is the one you gain yourself. An internship is the ideal way to gain an insight into agency work. Past experience has shown that: An internship can easily turn into your dream job for the rest of your life.