Digital marketing and advertising success can drive sales. As a small business owner your friends, family, peers, and employees are all giving you advice about how you should handle your small business digital marketing. For many businesses its a new frontier full of opportunity, but it can also be expensive and intimidating. Should you hire a digital marketing agency to help?
For many digital marketing and advertising become an overwhelming topic with no right answers but an almost infinite number of solutions. How can anyone make sense of all the different online marketing options?
The list of marketing opportunities is endless. Which ones are right for your business? How much does it cost to get started? Should you handle it yourself? Should you hire a digital marketing and advertising agency to help?
TLDR Summary: Benefits Of Hiring A Digital Marketing Agency
Digital marketing agencies help businesses find, develop, and implement the most cost-effective methods of getting new customers from all the online opportunities available. For most small businesses a good agency can save an enormous amount of time, effort, frustration, and money.
The best digital marketing firms already have the knowledge and experience necessary to help you get new customers at a reasonable cost. You don’t have to spend months learning and writing and experimenting. The agency has already done this for other clients and can leverage their expertise to do it for you.
The Detail: What a Digital Marketing Agency Can Do For Your Business
- Save money, time, effort, and frustration.
- How much do you currently spend on marketing and advertising? Most businesses list their actual advertising expenses in their accounting systems as a line item expense. Many do not include the cost of their own time or the time their staff spends. How much is your time worth? What would it cost to hire a full-time marketing and advertising person? To properly calculate the money you are currently spending on marketing and advertising you need to take all these into account. Add up the cost of the advertising & marketing spend and the time involved. You should also take into account the lost efficiency and opportunity cost from spending money on marketing efforts that don’t work. Your agency should save you money, time, effort, and frustration
- How much should you spend on marketing and advertising? This is a question that everyone has an answer to. The most common answers people give are a percentage of gross revenue someone read in a marketing textbook. Usually, this varies between 5-15% of gross revenue. The truth is a little more subjective. You should spend what you need to spend to achieve the business goals you set. A small business needs to develop a plan to achieve these goals and calculate the cost of success. There are many guidelines, but no one can set a flat percentage of revenue for advertising and marketing spend that applies to all businesses. Pro-active marketing and advertising agencies know what it costs to build new business and can help you plan to meet your marketing goals and objectives.
- How are you calculating your cost of new business? Most companies see a bottom-line number. We spend $X on new business development through advertising & marketing. Probably the best way to track your spend is to use a CPA or Cost Per Acquisition model. This defines what it costs you to acquire a new customer. It allows you to better allocate your marketing budget to meet goals and it helps you decide if spending additional money makes sense in the context of your cost per new customer. A digital marketing agency can help your business calculate your current cost per customer acquisition and help you develop metrics that will allow you to compare past present and future CPA’s.
- Are your digital marketing and advertising efforts cost-efficient? This number is often more confusing and difficult for small businesses to assess. Using the CPA model discussed above, how do you know when you are getting the best return on investment for your marketing and advertising expenditures? Once you have developed your plan and a portfolio of marketing initiatives you begin to test them against each other. You will eventually find that different tactics and strategies provide new customers at different CPA’s. Every business is different, but over time you will find a mix of opportunities that optimizes your digital marketing and advertising spend. This is one of the areas a digital marketing firm can really help you. You are less likely to waste money if you have the benefit of years of experience managing and optimizing marketing programs.
- How much do you currently spend on marketing and advertising? Most businesses list their actual advertising expenses in their accounting systems as a line item expense. Many do not include the cost of their own time or the time their staff spends. How much is your time worth? What would it cost to hire a full-time marketing and advertising person? To properly calculate the money you are currently spending on marketing and advertising you need to take all these into account. Add up the cost of the advertising & marketing spend and the time involved. You should also take into account the lost efficiency and opportunity cost from spending money on marketing efforts that don’t work. Your agency should save you money, time, effort, and frustration
Invest Wisely In Your Digital Marketing & Advertising
As a business owner, you must make many management decisions that affect the future of your business. Every day brings new challenges in many areas where you have a great deal of experience and confidence.
When you decide to invest money in building your business with digital marketing it can seem overwhelming. The most important benefit a digital marketing agency can offer you is the ability to confidently move forward with your marketing efforts knowing that you have chosen wisely. It is almost inevitable that businesses will make mistakes at the beginning when spending money on digital marketing. Hiring the right digital marketing agency can help you save money, act quickly and effectively, and plan for the future. Your agency should give you the confidence that you are taking the correct actions to ensure your business is doing everything possible to achieve the very best results from its marketing and advertising efforts.
Thanks For Sharing The Information About The Digital Marketing Agency
Ramesh,
Your welcome.
Joe
Love this! Thank you for sharing!