Digital marketing strategies are becoming more and more important worldwide. Companies invest billions in these measures every year to increase their reach. According to Statista, global spending on digital marketing in 2022 will exceed $521 billion.
However, smaller companies in particular often struggle to keep pace with this development.
This article contains some ideas on how they can still market successfully by outsourcing digital marketing.
Visibility Has Many Components For Success
Digital marketing strategies involve more than just a simple website. Successful marketing is based on several pillars. In addition to optimizing the company website, starting a blog, creating videos and social media content also play a central role. Companies that deliver regular and relevant content can engage their target audience much better.
According to the Content Marketing Institute, 70% of the companies surveyed said that they were able to generate more leads by regularly posting blog content. But this requires time and expertise that is often not available in-house. This is where external SEO experts come in handy.
More Expertise
Many companies not only rely on their internal marketing experts, but also get external opinions. One reason for this is the expertise and specialization that external service providers bring to the table. While internal employees have to manage different tasks, external experts focus exclusively on SEO and digital marketing. This means they are always up-to-date on the latest trends, algorithm updates and tools.
Access to Modern Tools
External service providers offer direct access to advanced marketing tools that companies often do not own or that would be too expensive and time-consuming to use. These tools enable precise data analysis that provides instant insights into campaign performance. Agencies use these technologies to optimize content, place keywords more efficiently, and better target audiences.
Instead of incurring high costs for licenses or training, companies benefit immediately from the expertise of service providers who routinely use these tools. This allows marketing campaigns to be adapted more quickly and implemented more successfully without straining internal resources.
Focus on Core Competencies
Outsourcing digital marketing allows companies to focus more on their core competencies. Instead of devoting internal resources to complex marketing strategies, teams can focus on developing new products, improving services or customer care. Marketing is managed by external professionals who focus exclusively on optimizing campaigns, increasing reach and generating leads.
Scalability
Outsourcing digital marketing allows companies to use their resources more efficiently. Campaigns can be flexibly expanded as needed without overburdening internal capacities. This makes it possible to quickly respond when launching new products or during particularly active phases.
If a short-term marketing offensive is needed, additional specialists are immediately available without the team having to be enlarged. Larger campaigns can be implemented without the need for long-term investments in personnel or infrastructure.
Cost Efficiency Through External Employees
The efficient use of marketing budgets is important to the success of a company, especially in this competitive global market. One way to save costs while ensuring high quality and flexibility is to work with external employees, like freelancers or agencies. This approach not only offers advantages in terms of personnel costs, but also in terms of industry knowledge and a focus on specialized expertise.
A well-known example of a particularly expensive advertising campaign is PepsiCo’s Super Bowl campaign in 2020. The estimated total cost of this campaign was around $50 million, with a 30-second commercial in the Super Bowl costing $5.6 million alone. PepsiCo also invested in extensive marketing and production costs, as well as the involvement of celebrities such as Jennifer Lopez and Shakira, who performed in the halftime show.
External Employees: A Flexible Solution for Optimizing Costs
External marketing experts offer numerous advantages that can have a positive impact on a company’s cost structure and efficiency. For one thing, they enable more flexible cost control. Companies can hire freelancers and agencies on a project basis instead of investing in permanent teams that incur salaries, benefits, and other overhead costs throughout the year.
Let us assume that PepsiCo has a standing team of ten marketers responsible for planning the major campaign as the Super Bowl commercial. The total yearly cost of a full time marketing a manager is made up of different components. The salary of an experienced marketing manager in the US is roughly $120 000 per year. However, one also stand to benefit health insurance and retirement savings which typically costs approximately 30% of the salary, comes to $36,000 on average.
Furthermore, there are additional 20% of overlaps in overhead costs which come to approximately $24,000 annually for the office, equipment, and management. The total amount that a permanent employee in any country costs a business annually averages about $180,000. This means for the ten permanent marketers PepsiCo would have to spend approximately 1.8 million of US dollars per year.
In contrast, marketing experts such as freelancers or agencies, could be hired on a project basis. For a campaign like the Super Bowl commercial, PepsiCo could use experts for a period of six months. An experienced freelancer typically charges around $150 per hour. At a full-time rate of 40 hours per week for six months, the total cost per freelancer is around $154,800. For a team of ten freelancers, the total cost is around $1.55 million for this period. In addition to this, further services from creative agencies may be required, which could cost around $500,000.
What We Conclude
Outsourcing digital marketing tasks is a good idea to stay on top of the competition while focusing on your core tasks and strategies. Outsourced teams are professionally trained to work on assigned marketing tasks to deliver agreed outcomes without going out of budget. This is the reason, hiring third-party digital marketing services provider can help you grow greatly without breaking the bank.
