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we have been doing it in-house for around 4 years now. we did do a tester with outsourcing it with 2 of our sites to see what happened.
basically, after 4 years of using the ppc systems, you have built up a good knowledge of how they work, and YOU know your site best, not any agency. The agencies know the PPC systems and how to do some basic keyword research, but we found many unrelated terms in the first lot of keywords that the agency sent us for approval.
we cancelled our agency after 3mths and took it all back to do ourselves.
i think you may be best keeping it in house, but you could give it a try if you like.
Just wanted to find out if doing your PPC in-house is better than using an agency. We have been doing our serach marketing in house for 5 years. However my boss thinks wemight be missing the boat in terms of sofistication
Like everything else, it depends on how much effort you've put into learning the ropes, what tools you use, how much time you put into managing your campaign, how many keywords you have, how competitive your market area is, etc etc.
I frequently see companies that have been using broadmatch for years, because that seems easiest, and don't even use their targeted keywords in their ads.
What with three major engines now with their own ad systems, it may well be that a good company with lots of experience and computerized management could well increase your ROI considerably.