How to Choose the Right Digital Marketing Agency for Your Small or Medium Business.

What questions should I ask before hiring a digital marketing company?

The first step in choosing the right agency for you is identifying your specific marketing needs. It’s important to understand that different agencies may offer different services. Some focus on foundational tools such as websites, SEO and SEM, others may favor social media and content marketing while larger firms may offer full-stack services. Businesses should evaluate their marketing goals, review agencies that can deliver results in the areas that matter most and then choose a firm that will truly value your business rather than treat you like a number.

Dr. Michael Perusich, CEO of Kats Consultants remarked, “we often think about marketing as a mechanism to accomplish a task. But, just like the need to create great relationships with your customers, the same is true when choosing your digital marketing partner.  I advise my clients to avoid firms with ‘thousands of clients’. Yes, that can be reassuring to hear but, that also indicates a high-volume, cookie-cutter approach where you are just a number. Choosing a strategic partner that truly values your business will bear much more fruit for your business in the long run.”  

It’s difficult to be confident about what services are offered and needed, how pricing and terms are structured and most of all, what results should be expected. And with so many choices, how do you select the right professional marketing team?

In this blog post we will explore the critical questions you should ask and considerations you should evaluate before selecting a digital marketing agency for your small or medium-sized business, discuss what services marketing agencies do for you, review the elements that make up an effective digital marketing strategy and, reveal standard costs and compensation structures.
Understanding these points better ensures that you’re more likely to select the right partner and create a successful relationship that generates the consistent growth outcomes you’re looking for. Let's get started!

When looking to hire a digital marketing company there are several things to evaluate. Look for an agency with experience in your industry, ask for examples of past work, what tools they use to track success, how often they can meet with you, the size of the agency, how they are compensated, what specifically is included and what terms are required.  

1. What Services Do You Offer?  You want a company that provides comprehensive services. This is often referred to as ‘Full-Funnel’ services. That means they have a wide range of expertise and can handle various aspects of digital marketing, including SEO, social media, email marketing, content creation, and web design. If a digital marketing firm only specializes in one area, you may have to engage different firms to handle other aspects of your online marketing, which can be a hassle and time-consuming.
2. What Success Stories Can You Share?  Before deciding on a digital marketing firm, ask them to share some successful online marketing campaigns they have run for other clients. A credible and trustworthy firm will not hesitate to provide you with examples of their work. Case studies and testimonials from previous clients are a good gauge of what a digital marketing firm can deliver. If they can’t provide specific examples of what they have achieved for clients, you may want to keep looking.
3. What’s Your Industry Expertise?  Digital marketing practices vary by industry, so you want a firm that has experience in your business niche. This way, their team understands your target audience, industry trends, and engagement strategies. Ask for examples of past clients in your field and what specific marketing approaches they used to create consistent impact.
4. Who Will Be Managing My Account?  It’s essential to have a direct point of contact or account manager within the firm you hire. The account manager will ideally provide you with regular updates and reports on your campaigns' performance and help you strategize. Find out who this person is, and how open to communication they are, especially if you prefer to be hands-on with your campaigns.
5. What Are Your Compensation Structure and Terms?  It’s crucial to understand how the marketing agency will be compensated and what terms are required. Ask about their payment, terms and what’s included in their pricing. Be wary of firms that offer vague pricing terms or ask for large upfront payments and promise quick results.

What does a digital marketing agency do?

Digital marketing agencies typically provide a variety of services such as website design, search optimization, search engine marketing, social media marketing, email marketing, and SEO. Niche firms specialize in providing one or several services. Full-funnel digital marketing firms will typically offer all digital services plus graphic design, copywriting, video/audio production, branding, advertising, media planning/buying as well as public relations services.

1. Digital Marketing Agencies Conduct Market Research.  They’ll identify the target audience, understand the business's value proposition, and the competition's marketing activities. Through market research, digital marketing agencies can create strategies that resonate with the target audience's interests, generate leads, and convert them into paying customers.
2. Digital Marketing Agencies Create Strategies.  Look for them to develop an all-inclusive digital marketing strategy that includes various components such as search engine optimization, search marketing, social media marketing, email marketing and more. They also determine the budget required to implement each strategy and set specific goals in terms of leads generated, conversion rates, customer acquisition cost, and overall return on investment.
3. Digital Marketing Agencies Develop and Maintain Websites. Digital marketing agencies help businesses create and maintain websites that are fast, user-friendly, and optimized for search engines. The websites that digital marketing agencies create are easily navigable, mobile-friendly, and provide high-quality user experiences to the audience.
4. Digital Marketing Agencies Develop and Execute Paid Advertising Campaigns.  Search marketing targets specific audiences through various media platforms such as Google Ads, Bing Ads, Facebook Ads, LinkedIn Ads, etc. Programmatic ads serve paid advertising to users across any platform such as subscription video services referred to OTT (Over-The-Top) such as YouTube TV, Hulu, etc, or while people are shopping on Amazon or other ecommerce sites.
5. Digital Marketing Agencies Measure and Analyze Results.  Marketers use analytics tools to measure, analyze, and interpret the effectiveness of each digital marketing campaign. They generate data-driven reports to provide businesses with insights on their digital marketing campaigns, identifying areas of improvement, and generating recommendations.

What is an effective digital marketing strategy?

An effective digital marketing strategy requires careful planning, research, monitoring and goal-based adjustment. You need to define your target audience, establish your goals, choose the right channels, plan and implement your strategy, monitor and measure your results then adjust for improvement.
Effective digital marketing strategies are comprised of foundational elements no matter a business’s size, target audience or industry segment. By following these steps, you will be able to create a successful digital marketing strategy that delivers results for your small or medium business.
Ask agency candidates for example digital marketing plans and look for these elements:

1. Defined Audience and SMART Goals. The target audience demographics and what they are looking for, should be clearly identified. Goals should be focused on increasing website traffic, generating leads, improving brand awareness, or increasing sales. No matter the goals, they need to be specific, measurable, achievable, relevant, and time-bound (SMART).
2. Channel Selection.  Selecting a mix of digital marketing channels that align with the audience and goals is key. Each channel (SEO, content marketing, PPC, social media marketing, email marketing, programmatic, etc) has its strengths and weaknesses, and you need to choose the ones that work best for your business. If you’re looking to boost your website traffic and generate leads, you may want to invest in SEO and content marketing. Whatever channel you choose, make sure it aligns with your audience and goals.
3. Planning and Implementation. This involves creating a content calendar, developing a messaging strategy, creating high-quality content, and testing and tweaking the messaging and delivery. The content calendar should outline the topics and themes you’re going to cover, the channels you’ll use, and the frequency of your posts. Your messaging strategy should be consistent across all channels and align with your brand’s tone and personality. Your content should be SEO optimized, engaging, and provide value to your audience.
4. Monitor and Measure Results. Track progress, identify what’s working and what’s not, and adjust accordingly. Use an iterative process based on analytical data to optimize strategy and to achieve dependable growth.

What does it cost to hire a digital marketing agency?

Digital marketing agencies typically offer two types of compensation structures: project-based & retainer-based. Project-based compensation is charged by the hour for one-time projects such as website design, branding, or social media setup. Retainer-based compensation is charged monthly for services such as content creation, social media management, and email marketing.
When asked about why they chose a retainer through a full-funnel firm, Eric Johnson of CJ Real Estate said, “We struggled to realize how our website, SEO, email, events and social media - all our marketing -  works together and needs to be managed as a whole. We wasted so much time and money with one-off projects and short-term focus. I’m so glad we listened to Chris Lowers and let his team get us marketing strategically. Grey Partners is a remarkable digital marketing agency – they have us off the sales roller-coaster and enjoying steady business growth. And, we’re spending about half of what we did on project work. Go figure!”
Service costs are often substantially reduced by entering into a monthly retainer agreement because it offers the same benefit for both the client and agency – consistent success. Agencies know that your success is their success. One-time projects typically won’t be good for them or their clients over the long term because websites and SEO must be continuously nurtured to be consistently successful.
Check out these FAQ’s to learn more about digital marketing agency pricing:

1. What is the average hourly cost for digital marketing agency services?   Usually, digital marketing agencies charge between $90 and $200per hour for their campaign or project-based services. Hourly fees will vary depending on the scope and complexity of the project.
2. What is the typical cost of digital marketing agency retainer services?  Retainer services vary based on the scope of services provided. Most small business spend approximately $1,200 - $3,000 per month while larger brands may allocate $10,000-$30,000 or more per month for digital marketing services.
3. Are paid advertising costs included in digital agency service compensation? No, unless specifically called out in the contract, hard costs are not included.  Paid advertising costs, stock images, royalties, hosting and other hard costs are charged separate from digital marketing services.
4. What to look for in a Digital Marketing Agency Contract? Before signing a contract with a digital marketing agency, ensure that you're clear on important details such as deliverables, timelines, and payment terms. Check for clauses such as a non-compete or early-termination fees. Always ask if there is a 30-day out or if longer notice is required to terminate services.
5. Are Digital Marketing Agency terms flexible and negotiable?  Yes, reputable marketing firms are always ready to offer flexible terms customized to your needs. While many digital marketing agencies offer standardized contracts, you may want to negotiate a lower retainer if you commit to a longer-term engagement or ask for a clause that allows you to increase or decrease your retainer based on business needs.

The takeaway
Before hiring a digital marketing firm, it’s crucial to do your research and ask critical questions to ensure that you end up with a firm that complements your business needs. Ask about the firm’s services, previous success stories, industry expertise, who will be managing your account, and their pricing structure. Ensure significant experience, an understanding of your goals and objectives, a commitment to be ahead of the latest trends and technology, transparency, and the ability and desire to measure success. With a clear understanding of the digital marketing firm, you’ll be more comfortable working together toward the common goal of building your brand and achieving consistent growth outcomes.