5 Reasons why Digital Marketing Agencies Are Booming
- December 3, 2015
- Posted by: IMMC Kolkata
- Category: Uncategorized
Given the number of different digital channels and tactics emerging, most companies don’t have resources to cover all these programs.
A digital marketing agency can look at specific objectives and help prioritize which channels to focus on. Since they generally have a methodology for evaluating many different client-types, prioritization of programs is an area where they are supporting more companies every week.
Marketing is becoming like medicine: few generalists, a lot of specialists. Digital Marketing agencies ensure positive ROI for all on-line branding of the companies.
Marketing prior to web 2.0 was (relatively) easy. Programs were a short list including direct mail, events, print ads, and if the budget was present, some “above-the-line” marketing campaigns like radio and television.
Today companies are looking at email, SEO, PPC, SEM, inbound marketing third party content, all social media channels, daily deals, webinars, infographics, slideshare, etc. No one person can be the expert of all those digital marketing channels as the industry becomes more granular and specialist-driven.
In this environment, agencies can provide expertise for specific channels or create a program that is a rifle shot at a target market rather than a spray-and-pray shotgun blast.
Competition today is coming in all shapes, sizes, and locations.
Before the Internet era, competition was often right across the street. Today, competition is no longer restricted to location.
A given company might be fighting a global competitor focusing on localized search in their home metro area or region, or want to get to their competitor’s home turf.
Agencies, because they work with multiple clients, have the ability to keep their knowledge current and competitive tactics razor sharp. These quick-witted skills are increasingly valued, because in today’s industry, a company is either the predator or the prey.
4. Long Tail
The abundance of low cost SaaS solutions and “cheap” infrastructure cost makes the barrier to entry fairly low for small new agencies. That generally means a local agency with a very low cost structure.
As an example, some agencies provide digital marketing managed services to a small chain of nail salons or a towing company. They do so within a cost envelope to compete with replacing yellow pages ads.
The term “digital marketing agency” no longer applies to just the big guys like WPP or Publicis. There are local agencies today which can meet the needs of small businesses within nearly any budget.
With larger marketing spend going to digital every year, more scrutiny from above will inherently come with it.
Agencies traditionally are held more accountable for specific results in comparison to internal marketing departments. As a result, they generally have more consistent metrics and reporting paradigms to measure programs and justify budget commitments. That’s mighty valuable to the VP of Marketing/CMO who wants a partner in those negotiations with the CFO.