26 Jun How To Know the Cost of Hiring a Digital Marketing Agency
If you run an Australian startup and you are trying to get the word out about your new company, marketing should be top of your list of priorities. With that said, it can be challenging to know where to start. If this sounds familiar, then this is the article for you.
When promoting a company or brand, one of the top concerns that business owners have is the price. If you, too, are wondering what a digital marketing agency in Sydney might cost you, it is important to know there is no simple answer. The truth is, there are multiple factors to consider.
Values That Can Impact Costs
When it comes to your company’s marketing costs, there are several values that can determine how much you end up paying. Ultimately, it depends on what you are trying to accomplish and who you decide to hire. With that said, there are values to look for when trying to find the right marketing service to fulfill your needs. As such, each value’s weight can impact the out-the-door price tag. Values to consider include:
If you want to hire the best digital marketing services agency out there, you need to hire someone with a lot of experience working on projects like yours. Accordingly, you can expect more experience to mean higher costs.
Another factor to consider is the tracking capability of the marketing company you are considering. If you go for the lowest cost services available, you may save some money up-front, but your ability to measure may also be limited.
How fast do you want the agency to deliver? Again, if you are looking for the top company, it is going to have a higher price tag. With that said, there are also more affordable agency options that can provide you with a quicker turnaround, but you may have to sacrifice in other ways.
Services That Can Impact Costs
Another factor that can impact the cost of a particular agency is the type of service it provides. In the world of marketing, there are many options. Take a look at what the agency offers. The most experienced marketing agencies often provide:
- SEO Services
- Google AdWords and Management Services
- Social Media Marketing
- Web Design and Development
- Content Creation
- Copywriting Services
If you are unsure which services you need, you can schedule a consultation to get a better understanding of the various offerings.
How To Determine Your Digital Marketing Budget
Just as the costs of hiring a digital marketing company in Sydney can vary, so can business budgets. To figure out what your marketing budget is going to look like, here are three things to consider.
In terms of advertising, do you know how much it costs you to acquire a new customer? This cost determines whether advertising is going to be expensive or relatively cheap for your company. As such, it can tell you whether you should expect to have a smaller or bigger budget.
Revenue Per Customer
How you prioritize your digital marketing budget depends on how much revenue you are generating per customer. For example, if you have low revenue per customer, you should prioritize low-cost ways to approach customer acquisition with your marketing funds. On the other hand, if your revenue per customer is high, you can probably spend more on acquiring customers.
Total Revenue Percentage
Lastly, you should consider what percentage your digital marketing budget is of your total revenue. In general, companies with higher growth tend to have marketing budgets that are around an average of 8.6% of total revenue. In contrast, lower-growth companies tend to underspend with their marketing budgets.
At the end of the day, there are numerous factors that can determine how much it will cost your business to hire a digital marketing agency. With that said, dollar amounts are only one consideration when trying to determine what the most cost-effective marketing service is. For this reason, there are several things you need to calculate before figuring out how much hiring a particular agency is going to cost your company.