Digital Marketing Agencies: Everything You Need to Know

What Is a Digital Marketing Agency?

A digital marketing agency is a collective of marketers that provides various digital marketing services to create an online presence and good PR for a business.

These agencies typically charge the client monthly or per-project basis for their services and can have some sort of specialization when it comes to their clients. A digital marketing agency specializing in areas such as custom website creation, SEO, and lead generation can significantly enhance a business's online presence and growth.

Digital marketing agencies often have a variety of experts with specialties in different areas of digital marketing.

The ultimate goal of a digital marketing agency is to help clients drive up sales and traffic.

What Does a Digital Marketing Agency Do?

A digital marketing agency does… a lot.

In general, a digital marketing agency uses strategy, industry expertise, and marketing skills to deploy a digital marketing campaign to drive up a business’s success. This often includes developing a comprehensive brand strategy to define and communicate a business's brand identity effectively.

Depending on the agency and its specialty, a digital marketing agency can offer everything from branding to social media to SMS.

Some digital marketing agencies only offer one or a few of these services, but there are also full-service marketing agencies that offer everything a client could need all in one place.

Anything that helps a business reach its goals falls within the scope of a digital marketing agency.

Types of Services Offered by Marketing Agency

Some digital marketing agencies focus their efforts on one or two of these aspects of digital marketing, but others offer most or all of them. These agencies often provide comprehensive search engine marketing services, which include both SEO and PPC strategies.

Let’s get granular.

Content Marketing

Content marketing consists of both the creation and sharing of written, video, audio, and image content.

This includes things like blog posts, articles, podcasts, videos, and the like. Social media management is also a crucial component, helping businesses grow and achieve measurable results.

A digital marketing agency that offers content marketing will often offer copywriting, video production and editing, and graphic design services.

SEO

SEO, aka search engine optimization, is essentially using the algorithm to your advantage.

SEO uses the deployment of strategic material. This includes using things like keywords, internal linking, and creating backlinks, all in an effort to help your business’s site rank higher in search. It is crucial to choose an agency with a proven track record to ensure they understand the specific needs of your industry and can effectively achieve business growth.

Most full-service marketing agencies offer SEO, and many digital marketing agencies specialize in SEO exclusively.

PPC

PPC, short for pay-per-click, is a paid advertising technique where a business pays a certain amount of money for each click their link gets.

The most obvious example of this is those ads listed at the top of every Google search.

Digital marketing agencies that offer PPC arrange and strategize a company’s pay-per-click advertising.

Video Marketing

Video marketing encompasses all of the aspects of recorded video content for a business.

This includes script writing, filming, animation, editing, and distribution of video services for marketing purposes.

Mobile Marketing

Mobile marketing includes every marketing method performed and formatted for mobile phones specifically.

This is different from digital advertising on the computer as it requires specific formatting considerations and functionality alterations.

Online Advertising

Online advertising is a broad, catch-all term for any marketing or advertising that takes place online. Effective online advertising often starts with exceptional web design, which ensures that websites are visually appealing, functional, and optimized for user experience and conversions.

This includes a wide variety of marketing techniques, including banner ads, social media ads, email marketing, search engine landing pages, and PPC advertising.

In today’s world, many companies can obtain users’ information and target their advertising to a specific audience based on their online habits.

Email Marketing

Email marketing is sending marketing materials to potential and current customers via email.

A digital marketing agency that offers email marketing services takes things like design, timing, and content into consideration when crafting email marketing campaigns.

Social Media Marketing

Social media marketing refers to marketing that takes place across any social media platform.

Digital marketing agencies that offer social media marketing will often take care of a company’s social media presence across multiple or all social media platforms.

Affiliate Marketing

Affiliate marketing requires networking and creating mutually beneficial relationships between your company and related ones.

Retailers will pay a commission to an external site for advertising their product or service on that site.

A digital marketing agency that offers affiliate marketing can create and nurture relationships with affiliates.

Marketing Analytics

Marketing analytics is studying and documenting the success of each digital marketing technique and campaign. Effective website development is crucial for creating platforms that can be thoroughly analyzed for performance.

This means that the digital marketing agency will crunch the numbers to let you know what’s working, what isn’t, and how good your overall digital presence looks.

Digital Marketing Strategy and Planning

A digital marketing strategy and plan are essential for any business looking to establish a strong online presence. A well-crafted strategy outlines the goals, objectives, and tactics to achieve success in the digital landscape. Here are some key elements to consider when developing a digital marketing strategy and plan:

1. Define Your Target Audience: Identify your ideal customer, their needs, preferences, and behaviors. This will help you create content and messaging that resonates with them. Understanding your audience is the foundation of any successful digital marketing strategy.
2. Set Clear Goals and Objectives: Determine what you want to achieve through your digital marketing efforts, such as increasing website traffic, generating leads, or driving sales. Clear goals provide direction and a way to measure success.
3. Conduct a Competitor Analysis: Research your competitors’ digital marketing strategies, strengths, and weaknesses. This will help you differentiate your brand and identify opportunities to outperform them. Knowing what your competitors are doing can provide valuable insights and help you stay ahead.
4. Choose the Right Digital Channels: Select the most effective digital channels for your business, such as social media, email marketing, search engine optimization (SEO), pay-per-click (PPC) advertising, or content marketing. Each channel has its strengths, and the right mix will depend on your specific goals and audience.
5. Develop a Content Strategy: Create a content plan that aligns with your goals and target audience. This includes the type of content, frequency, and distribution channels. Content marketing is a powerful tool for engaging your audience and driving traffic to your site.
6. Establish a Budget and Timeline: Determine how much you are willing to invest in your digital marketing efforts and set a realistic timeline for achieving your goals. A well-defined budget ensures that resources are allocated effectively, and a timeline keeps your efforts on track.
7. Measure and Track Performance: Set up analytics tools to track your website traffic, engagement, conversion rates, and other key performance indicators (KPIs). This will help you measure the success of your digital marketing efforts and make data-driven decisions. Regularly reviewing your performance allows you to adjust your strategy as needed.

By following these steps, you can create a comprehensive digital marketing strategy that drives results and helps your business grow.

Marketing Agency vs. Freelancer

An alternative to hiring a full service marketing agency is to outsource tasks to a singular freelancer, such as email marketing specialist, social media specialist, data analyst, etc.

This differs from a marketing agency in the fact that you will only be dealing with one person instead of a team, which is a positive or a negative, depending on how you look at it.

Many freelancers are talented in multiple aspects of digital marketing, while some specialize in just one or two methods.

When hiring a freelancer, you will often have to seek out and then vet them. You can find plenty of digital marketing freelancers on any of the popular freelance marketplace sites like Upwork or Fiverr. Freelancers are also hired as contractors, whereas you pay for a service with a digital marketing agency.

If you’re not set on a freelancer just yet, consider hiring a marketing intern or consultant.

What's a Marketing Broker?

Pros of Marketing Agency

There are some solid benefits to using a digital marketing agency instead of another method like a freelancer, including:

• Wide variety of services– marketing agencies can offer more services since they have more marketing experts.
• Pre-vetted marketers– with an agency, you don’t have to take a gamble like you do with a freelancer.
• Save time– instead of hiring multiple people to do multiple jobs (or trying to teach yourself how to do things,) you can have an entire team take over.
• Get more guidance– a marketing agency is often better at educating business owners about the “why” of digital marketing.

Cons of Marketing Agency

Here’s the downside of hiring marketing agencies.

• Cost– marketing agencies will typically cost more than hiring just a freelancer to do your digital marketing.
• Connection– sometimes it’s easier to form a more personal connection with a freelancer than with a bigger marketing agency.
• Knowledge– a digital marketing agency may not have as much expertise in your specific industry.

How Much Do Digital Marketing Agencies Charge?

There is a wide variety of different digital marketing agencies with different specialties, so there is a wide range that digital marketing agencies can charge.

That being said, digital marketing agencies charge anywhere from $80-$200 per hour. Depending on how much work you need your digital marketing agency to do, you could spend from $5,000-$50,000 per month for your digital marketing agency’s services.

Check out our post for a full breakdown of marketing agency costs.

When Should I Use an Agency or a Freelancer?

A digital marketing agency may be just what your company needs to scale, but it could also be way more than what you need.

You should probably hire an agency if:

• You have it in the budget
• You have multiple aspects of digital marketing that you need someone to take care of
• Your company is looking to scale
• Most or all of your business is conducted online
• You’re new to digital marketing and need guidance and/or someone to completely take over your digital marketing strategy

It’s a better idea to hire a freelancer if:

• You own a smaller business
• Your budget is tight
• You may want to end up hiring the digital marketing freelancer for full-time work
• You value a more personal relationship with your digital marketing provider
• You only need one or two digital marketing services i.e. SEO, social media, email, PPC, or others

How to Pick the Right Digital Marketing Agency

The right digital marketing agency for you may be entirely different from the right digital marketing agency for another business. It's crucial to consider the top digital marketing agencies that are known for their innovative strategies and proven track records.

There are some questions you need to ask yourself before taking the leap and investing in a digital marketing agency.

• Don’t hire the wrong agency! Look out for these red flags >>

Think about your budget. How much money can you afford to carve out for digital marketing?

Is it important to hire a local agency so that you can meet with them face-to-face as well as know that they have experience in your specific market?

Does the agency have experience in your industry?

What services do you need to be covered? Just SEO? PPC and email marketing? Or are you looking for a full-service agency?

Lastly, it’s always worth it to read reviews on the marketing agency you have your eye on. Getting the opinion of someone who has first-hand experience with a business is invaluable.

Measuring the Success of a Digital Marketing Agency

Measuring the success of a digital marketing agency is crucial to ensuring that your marketing efforts are effective and aligned with your business goals. Here are some key performance indicators (KPIs) and metrics to track:

Key Performance Indicators (KPIs) and Metrics

1. Website Traffic: Track the number of visitors to your website, including unique visitors, page views, and bounce rate. High website traffic indicates that your digital marketing efforts are attracting attention.
2. Engagement Metrics: Monitor engagement metrics, such as social media likes, shares, comments, and email open rates. These metrics show how well your audience is interacting with your content.
3. Conversion Rates: Track the number of conversions, such as leads, sales, or downloads. Conversion rates are a direct indicator of how effective your marketing efforts are at driving desired actions.
4. Return on Investment (ROI): Calculate the ROI of your digital marketing efforts, including the revenue generated and the cost of the campaign. A positive ROI indicates that your marketing efforts are paying off.
5. Customer Acquisition Cost (CAC): Track the cost of acquiring a new customer, including the cost of marketing and sales efforts. Lowering your CAC while maintaining or increasing your customer base is a sign of efficient marketing.
6. Customer Lifetime Value (CLV): Calculate the lifetime value of a customer, including the revenue generated and the cost of retaining the customer. A higher CLV suggests that your marketing efforts are not only attracting customers but also keeping them engaged over the long term.

How to Track and Measure Campaign Success

1. Use Analytics Tools: Set up analytics tools, such as Google Analytics, to track website traffic, engagement metrics, and conversion rates. These tools provide valuable insights into your digital marketing performance.
2. Track Social Media Metrics: Monitor social media metrics, such as likes, shares, comments, and engagement rates. Social media platforms often have built-in analytics tools that can help you track these metrics.
3. Use Email Marketing Metrics: Track email marketing metrics, such as open rates, click-through rates, and conversion rates. Email marketing platforms typically offer detailed analytics to help you measure the success of your campaigns.
4. Conduct Regular Reporting: Conduct regular reporting to track progress and make data-driven decisions. Regular reports help you stay on top of your marketing efforts and make necessary adjustments.
5. Adjust and Optimize: Adjust and optimize your digital marketing campaigns based on the data and insights gathered. Continuous optimization ensures that your marketing efforts remain effective and aligned with your goals.

Common Mistakes in Measuring Agency Success

1. Focusing on Vanity Metrics: Focusing on vanity metrics, such as likes and followers, rather than meaningful metrics, such as conversions and ROI. While vanity metrics can be encouraging, they don’t always translate to business success.
2. Not Setting Clear Goals: Not setting clear goals and objectives, making it difficult to measure success. Clear goals provide a benchmark for measuring the effectiveness of your marketing efforts.
3. Not Tracking Progress: Not tracking progress and making data-driven decisions. Regular tracking allows you to see what’s working and what’s not, so you can adjust your strategy accordingly.
4. Not Adjusting and Optimizing: Not adjusting and optimizing digital marketing campaigns based on the data and insights gathered. Continuous optimization is key to maintaining the effectiveness of your marketing efforts.
5. Not Considering the Customer Journey: Not considering the customer journey and the various touchpoints that influence their purchasing decisions. Understanding the customer journey helps you create more targeted and effective marketing campaigns.

By avoiding these common mistakes and focusing on meaningful metrics, you can ensure that your digital marketing agency is delivering the results you need to achieve your business goals.

Is a Digital Marketing Agency Worth It?

If you have it in the budget and want experts to handle your whole digital marketing strategy and take into account popular modern trends, it’s worth it to invest in a digital marketing agency.

Types of Digital Marketing Agencies

Frequently Asked Questions

What is inbound digital marketing?

Inbound digital marketing uses a more targeted approach to drive more qualified leads to a company’s site, rather than sending aimless marketing to the masses.

What is a full-service digital marketing agency?

A full-service digital marketing agency has the expertise and capabilities to offer clients every aspect of their digital marketing strategy, including web development, PPC, SEO, social media, and email marketing.

What do digital marketing agencies do?

Digital marketing agencies provide businesses with strategy and implementation of digital marketing solutions with the intent to encourage more traffic to the business’s site and, ultimately, increase profits.

Should I use a marketing agency or freelancer?

Businesses that can afford it and have more extensive digital marketing needs should use a marketing agency. Smaller businesses that have fewer needs and smaller budgets should use freelancers.

What skills do you need for digital marketing?

Digital marketing requires a variety of skills including SEO knowledge, experience with graphic design, email marketing abilities, strategic planning, social media, and even video production.