It's always a good idea to get marketing advice from marketing agencies. They know what they are doing after all! But, the question remains: are marketing agencies profitable?
While most marketing agencies will say yes, in this ROI Online Golden Nugget entrepreneur Rob Te Braake is going to provide us with some information about the current profitability of marketing agencies and their potential future profitability.
Click the video to watch below!
A study by Marketing Magazine found that only 23% of marketing agencies were profitable in 2011, which is down from 43% in 2009.
The cost for new customer acquisition via digital marketing has increased significantly over recent years due to competition among companies who have turned towards digital means as well as an increase in spending on advertising campaigns online rather than offline.
With more people using marketing agencies and marketing themselves for free, marketing agencies are finding it more difficult than ever to justify their costs.
Marketers that invest heavily in digital marketing can have a high ROI or Return On Investment as they find it easier to measure the success of individual campaigns with metrics such as click-through rates, web traffic numbers, and conversion rates.
Digital marketing agencies are all about work, and they're good at it. But in order to achieve true success, you need time for the other tasks that can make your agency even more profitable than just working hard every day.
Digital Marketing Agencies have a lot of benefits when it comes to their services - I see them as being very successful because they do what is needed for businesses or companies who aren't using themselves online enough but there's one thing holding these potential successes back: overworking admins!
These people dedicate so much time towards making sure everything works properly on an everyday basis which means fewer opportunities for improving operations like customer service or mission development especially since this takes up most of the business' energy resources anyway by underpricing clients leave them disappointed.
Running a profitable digital marketing agency is an exciting opportunity that brings challenges and rewards. You will need to put in the time, energy, and effort it takes to learn all the skills necessary for running your own successful business but this investment of yourself as well as money can be worth it because you'll have consistent income coming in from clients who appreciate what you do.
If you’re not already on top of the digital marketing game, it's time to get in now. It can be hard for small businesses that are just starting off to jump into such a competitive industry and compete with larger companies that have had years more experience than them. But there are many things working in your favor if you decide this is what you want:
- Build an asset
- Create something long term
- The services industry is a profitable field.
- You create job opportunities
Some things you can do to better your agency are:
Focus on marketing
Establish a reputation in this industry
Stay up to date with trends (emails, social media, etc.)
Get the word out about your company and services.
Target specific industries or clients who might be interested in what you offer.
And always stay positive!
There are many things working in your favor if you decide this is what you want to do. One of the most important aspects that need to be addressed for marketing agencies is marketing themselves and their services. It's a competitive industry, but with time and effort, it can be profitable as well. If you're not already on top of the digital marketing game, now is the perfect time to get started!
