If you’re a small business owner, you are probably juggling a million tasks, and your to-do list keeps growing. Marketing? It’s somewhere on that list, maybe scribbled in the margins. Today effective marketing isn’t just important, it’s do-or-die.
According to the U.S. Bureau of Labor Statistics (BLS), the failure rate for new businesses is approximately 20% in the first two years, 45% in the first five years, and 65% in the first 10 years. This is where outsourced marketing services can be your secret weapon for slashing costs, boosting expertise, and skyrocketing your business growth. This article covers ten ways outsourced marketing agencies (like our team!) can propel your business forward.
What is Outsourced Marketing?
Before we jump into the benefits, let’s get our definitions straight. Outsourced marketing is the practice of hiring external agencies or freelancers to handle some (or all) of your marketing functions. This can include:
- Digital marketing strategy
- Content creation and management
- Social media marketing
- Search engine optimization (SEO)
- Pay-per-click (PPC) advertising
- Email marketing
- Analytics and reporting
Instead of trying to be a jack-of-all-trades (and master of none), you’re tapping into a pool of specialized professionals who love those functions and can bring their specific expertise to your business.
Now, let’s dive into the ten ways your business can benefit from outsourced marketing:
1. Cost-Effectiveness
Let’s talk money. One of the primary reasons businesses turn to outsourced marketing is that it’s like finding a golden ticket for your budget. Here’s the breakdown:
In-House Marketing Costs
- The average marketing salary is around $50,000 per year.
- Employee benefits cost companies the equivalent of $10.72 per hour per employee, accounting for 29.8% of employer costs.
- Don’t forget additional expenses like office space, equipment, and ongoing training.
- For an in-house marketing team, you’re looking at an investment of around $90,000 just to start building a single-employee team.
Outsourced Marketing Costs
- The average client price for outsourced marketing is about $5,000 per month, or $60,000 for the year.
- This typically provides access to a full team of marketing professionals, including content specialists, SEO experts, social media specialists, and designers.
The average spend on outsourced service providers for small businesses in 2022 was $198,550. While this might make your eyes water, it’s often more cost-effective than hiring and training an in-house team, especially when you consider the breadth of expertise you’re gaining access to.
2. Access to Expertise
I mentioned it before, but when you outsource your marketing, you’re not just hiring a service; you’re gaining access to a team of specialists. These professionals stay up-to-date with the latest marketing trends, technologies, and best practices, and (hopefully) genuinely enjoy performing those aspects of marketing. They bring a wealth of experience from working with various clients across different industries. They can bring their wisdom from what’s worked for others, and (more importantly) what didn’t. According to HubSpot, businesses outsourcing marketing report a 45% increase in marketing qualified leads.
3. Scalability
One of the key advantages of outsourced marketing is its scalability. But how exactly does this work?
- Flexible Resource Allocation: Marketing agencies can quickly scale their efforts up or down based on your needs. During peak seasons or product launches, they can allocate more resources to your campaigns without the need for you to hire additional staff.
- Diverse Skill Sets: As your marketing needs evolve, an agency can bring in specialists with the required skills. For example, if you decide to expand into video marketing, an agency can provide video production experts without you having to hire them full-time.
- Technology and Tools: Agencies have access to a wide range of marketing tools and technologies. As your marketing efforts grow, they can leverage more advanced tools without you having to invest in expensive software licenses.
- Budget Flexibility: You can adjust your marketing spend based on results and business goals. This allows for more efficient use of your marketing budget as you scale.
- Geographic Expansion: If you’re expanding into new markets, an agency can often provide localized marketing expertise without the need for you to establish a physical presence in that location.
This scalability allows businesses to remain agile and responsive to market changes and opportunities. It’s like having a marketing department that can shape-shift to meet your needs.
4. Focus on Core Business Functions
By outsourcing your marketing, you free up valuable time and resources that can be redirected towards your core business functions. This allows your leadership team to focus on strategic goals and overall business growth, rather than getting bogged down in the day-to-day details of marketing execution.
Think of it this way: you wouldn’t try to be your own lawyer or accountant (unless that’s your actual job). So why try to be your own marketing expert? Outsourcing lets you stick to what you do best while the marketing pros handle the rest.
5. Fresh Perspectives and Innovation
External marketing professionals bring fresh perspectives to your business. They’re not constrained by “the way things have always been done” and can offer innovative solutions to your marketing challenges. Moreover, working with multiple clients across various industries exposes them to a wide range of strategies and tactics, which they can adapt and apply to your business.
Have you heard of the Status Quo Bias? This bias refers to the tendency for people to prefer things to stay the same or to resist changes, even when change might be beneficial. This can manifest in various settings, including operational functions within organizations. Even if you and your organization champion innovation, if you do not have the time or resources to commit to doing the marketing analysis/research, this bias can subtly rear its head. Outsourced agencies can help combat that.
6. Measurable Results and Accountability
Professional marketing agencies are driven by results. They set clear Key Performance Indicators (KPIs) and provide regular reports on the performance of your marketing campaigns. This level of accountability ensures that your marketing efforts are continuously optimized for the best possible outcomes.
Here are some impressive stats that showcase the potential ROI of various marketing activities:
- 72% of marketers improve their engagement through content marketing.
- Companies generate an average of $2 in earnings for every $1 they spend on Google Ads.
- The average return on investment from email marketing stands at 4,200%.
- The average content marketing ROI is $2.77 for every $1 spent, which equates to 177% profit.
7. Access to Latest Tools and Technologies
Marketing agencies invest in the latest tools and technologies to stay competitive. When you outsource, you get the benefit of these tools without the hefty price tag. From advanced analytics platforms to cutting-edge design software, you’re getting access to a full suite of marketing tech.
8. Consistency and Reliability
With an outsourced team, your marketing efforts don’t stop when someone goes on vacation or calls in sick. Agencies have systems in place to ensure consistent output and reliable service. This means your marketing machine keeps running smoothly, regardless of individual absences or turnover.
9. Flexibility in Services
Outsourcing allows you to pick and choose the services you need. Need help with social media but have content creation covered? No problem. Want to focus on SEO for a quarter? You got it. This flexibility allows you to tailor your marketing efforts to your specific needs and budget.
10. Risk Mitigation
When you outsource, you’re spreading your risk. Instead of putting all your eggs in one basket (or one in-house marketer), you’re leveraging a team of experts. If one strategy doesn’t work out, you have the flexibility to pivot quickly without the need for hiring or firing. This may be why hiring external agencies is quickly becoming the standard practice for small businesses. In fact, according to the Content Marketing Institute’s 2020 B2B Content Marketing Report, 68% of B2B companies use outsourced marketing services, highlighting the growing trend towards this model.
Overcoming Potential Challenges
While outsourced marketing offers numerous benefits, it’s not without its challenges. Here are some common issues and how to address them:
- Communication Barriers: Establish clear communication channels and regular check-ins to ensure everyone is on the same page.
- Aligning with Company Culture: Take the time to thoroughly brief your marketing partners on your company’s values, voice, and culture.
- Maintaining Brand Consistency: Provide comprehensive brand guidelines and regularly review content to ensure it aligns with your brand identity.
- Data Security: Choose reputable agencies with strong data protection policies and clear contracts outlining data usage and ownership.
Is Outsourced Marketing Right for Your Business?
Outsourced marketing can be a game-changer, offering cost-effectiveness, expertise, scalability, and focus. But like any business decision, it’s important to weigh the pros and cons. Consider starting with a specific project to test the waters. The goal is to find a marketing solution that propels your business forward. With outsourced marketing, you might just find the rocket fuel your business needs to reach new heights.
We love marketing. If you are looking for a marketing partner that wants to help you and your business succeed, get in touch with us!
