Why Use a Digital Marketing Agency?

Outsourcing your digital marketing to an agency is often a better choice then attempting digital marketing in-house. Regardless of your company’s size, outsourcing your marketing is often the fastest way to grow efficiently.

Here, we explore the 5 main reasons it makes sense and more importantly, the pitfalls that can prevent you from successfully outsourcing your marketing.

Digital Marketers are Rare

Marketers with digital skills are rare and expensive. If you need specialist skills such as inbound marketing, social marketing and marketing automation, then your recruitment pool shrinks to almost nothing.

Due to high demand, digital marketers are very hard to find and retain. Often, you’ll have to settle for junior marketers or marketers with out-dated skills, just to fill a role. This can seriously impact the ROI of your marketing.

Using a good digital agency means you get skilled staff at a lower TCO.

Pitfalls:

  • Some agencies will attempt to charge their junior (or offshore) staff at senior rates.
  • In-house teams can be resistive to outsourcing digital marketing.

Digital Marketing Software is Risky

Getting access to an integrated, technology-rich set of marketing applications can be an expensive exercise; not just in licences, but also in training, implementation and consulting costs.

The risk of choosing the wrong marketing automation software or the wrong social tool, and then having to switch can be extremely expensive, not to mention bad for your career.

Using a good digital agency means you can try the software though the agency and benefit from their expertise. This reduces risk significantly.

Pitfalls:

  • Agencies are rarely experts in more than one marketing platform or set of tools.
  • Some agencies will be bias in encouraging you to use their marketing software of choice.
  • Internal IT can be a roadblock when implementing marketing technology.

On-Demand Capacity

Getting to market quickly with a new product, offer, or distribution channel is very difficult if your existing team lack the skill or bandwidth. New roles need to be identified, hired, and trained before execution, which takes months.

Using a digital agency means you can ramp-up or ramp-down quickly. You also get the precise skill sets you need. Speed-to-marketing can be a significant advantage against competitors.

Pitfalls:

  • Some agencies may accept work without having enough staff or the required skill sets.
  • In large companies, policy may limit your choice of agency to only approved providers.

ROI Accountability

In-house marketing teams often struggle to measure their impact on the bottom line. This means when poor performance occurs, it’s hard to identify the source.

A good digital agency should be able to track true ROI, i.e. their direct impact on your bottom-line. This means you can justify marketing spend and hold the agency accountable for their performance.

Pitfalls:

  • Most agencies don’t have the technology to show their impact on your bottom line.
  • Digital agencies will need marketing automation software and access to your opportunity or purchase data to show real ROI.

Better ROI

With the rapid pace of change, investing in up-to-date marketing technology and training is very expensive. Fixed costs in people, systems, and facilities often account for the largest portion of a marketing budget.

While the costs of outsourcing might appear to be higher, there are hidden costs in maintaining in-house teams: lack of expertise, delays caused by low bandwidth, attrition, and ultimately, reduction of the sales pipeline.

Using a good digital agency results can result in a better marketing ROI as costs and results are clear. Also, costs can be managed as variable expenses, not fixed.

Pitfalls:

  • If you can’t clearly show marketing’s impact on the bottom line, then the biggest hidden cost of in-house marketing will remain hidden.
  • IT security may prevent an external agency from accessing opportunity and purchase data, thus preventing proper ROI reporting.

And there you go – 5 reasons why outsourcing to a digital agency is often a better choice then attempting digital marketing in-house and some pitfalls to avoid when engaging an agency.

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