I am going to describe a common scenario, and I want you to tell me if you relate. You’ve spent years building your business from the ground up. Your company has a solid foundation, a loyal customer base, and a promising future. However, despite your best efforts, you’re not seeing the growth you expected. Your competitors seem to be pulling ahead, and you can’t figure out why.
Your peers suggest that a marketing agency could be the solution, but the cost is a looming question.
- How much does a marketing agency cost?
- How much should you spend on marketing?
- What are the real benefits?
- Are there hidden expenses you need to be aware of?
The unanswered questions alone are enough to make you want to hit snooze on the entire process.
Or maybe you’re already working with a marketing company, but the results have been underwhelming. You’re investing significant resources, but the return on investment isn’t materializing as promised. This scenario is equally frustrating and leaves you questioning the effectiveness of your current strategy.
Is it the agency, the strategy, or something else entirely?
This journey is familiar to many B2B owners and CEOs. The promise of growth and success through effective marketing is enticing, but the path to achieving it often seems unclear and fraught with uncertainty. But it doesn’t have to be so overwhelming.
When we work with potential clients, we strive to provide an honest answer to all of their questions. The question of marketing costs is a big one, and the answer can be needlessly complicated. In this post, we will shoot from the hip and break down the true cost of hiring a marketing agency, so you can make an informed decision that aligns with your business goals.
No surprises, no smoke and mirrors. Here is our best estimate of what a medium-sized B2B company should expect from marketing costs. Let’s get into it.
The Cost of Hiring a Marketing Agency: What to Expect
When considering hiring a marketing agency, it’s essential to understand the various costs involved. A comprehensive marketing strategy often includes services like SEO, content creation, social media management, and paid advertising. Each of these components has its own set of expenses.
- SEO Services: Search Engine Optimization (SEO) is a long-term investment. According to The HOTH, small businesses generally spend around $750 to $2,000 per month on SEO services, which often include keyword research, optimization, link building, and other essential tasks. This investment helps improve your website’s visibility on search engines, driving organic traffic and increasing your chances of attracting potential clients.
- Content Creation: Quality content is the cornerstone of any successful marketing strategy. Whether it’s blog posts, videos, or infographics, creating engaging content can be costly. A Content Marketing Institute report on B2B content marketing trends indicates that about 24% of marketers allocate one-fourth or more of their total marketing budget to content marketing. Another report mentions that many companies plan to increase their content marketing budgets in the upcoming years, reflecting its growing importance in overall B2B marketing strategies.
- Social Media Management: Social media platforms are powerful tools for engaging with your audience. Managing these platforms effectively requires time and expertise. Sprout Social reports that the average social media marketing cost can range anywhere between $500–$5,000 per month.
- Paid Advertising: Pay-per-click (PPC) campaigns and social media ads are direct methods to reach your target audience. WordStream suggests that small businesses spend an average of $9,000 to $10,000 per month on paid advertising cost. This figure can vary significantly based on industry, competition, and campaign goals. Our personal experience here is much lower as clients spend anywhere between $1,000 to $3,000 per month on ads.
As you can see, the cost of hiring a marketing agency can vary wildly. That’s why it’s imperative to have someone you trust who understands B2B marketing and can guide you through the details and determine what your business actually needs. By understanding these costs, you can better plan your marketing budget and ensure that each dollar spent contributes to achieving your business goals.
What About Marketing ROI?
Investing in a marketing agency is a significant decision, and understanding the potential return on investment (ROI) is crucial. B2B companies that prioritize marketing efforts see substantial improvements in their performance metrics. Check out this case study for a real-life look inside how this played out for one of our clients:
“Our Marketing Has Never Been Better”: Tech Company Wins With An Outsourced CMO
Moreover, specific metrics such as customer acquisition cost (CAC) and customer lifetime value (CLV) can provide deeper insights into the effectiveness of your marketing spend. A lower CAC and a higher CLV indicate that your marketing strategies are successfully attracting and retaining valuable customers. Tracking these metrics over time helps in fine-tuning marketing strategies and ensuring that each campaign is more effective than the last.
Additional case studies show that consistent marketing efforts can lead to exponential growth. For example, a company that steadily invests in content marketing may see compound growth in website traffic, resulting in a steady increase in leads and conversions. This is exactly what happened with one of our clients, who saw a 2,400% boost in organic search traffic through strategic and consistent content marketing efforts. By closely monitoring these ROI metrics, businesses can make informed decisions about where to allocate their marketing budgets for maximum impact.
Just to be clear, we are listing out all the options and considerations to paint a full picture. Do you need every single one of these line items to have effective marketing? No. But we want to be thorough so you have all the information you need to make an informed decision.
By taking these factors into account, you can better understand the true cost of hiring a marketing agency and the potential ROI, ensuring that your investment aligns with your business goals and delivers the desired results.
Marketing Costs: In-House vs. Agency vs. Freelancers vs. Marketing Coach
When it comes to B2B marketing, businesses have several options: hiring an in-house team, working with freelancers, partnering with a marketing agency, or hiring a marketing coach. Each option has its own set of pros and cons—and pricing.
- In-House Team: Building an in-house marketing team provides control and direct oversight. However, it also comes with high costs, including salaries, benefits, and training. The average salary for a marketing manager is around $65,000 per year, and adding specialists can quickly increase your costs to over $100,000 annually.
- Freelancers: Freelancers offer flexibility and often lower costs compared to agencies or in-house teams. Rates can vary widely, but on platforms like Upwork, you can expect to pay between $20 to $150 per hour, depending on the freelancer’s expertise. This can add up to $24,000 to $90,000 annually for part-time work.
- Marketing Agencies: Agencies bring a wealth of experience and resources to the table. They offer comprehensive services, strategic oversight, and the ability to scale efforts quickly. Agency fees can range from $3,000 to $15,000 per month, translating to an annual cost of $36,000 to $180,000. While the cost might be higher upfront, the return on investment can be substantial, thanks to their expertise and efficiency.
- Niche Agencies: Some businesses prefer to work with niche agencies that specialize in specific areas like PPC, branding, or social media. For instance, a PPC agency might charge between $1,500 to $10,000 per month (not including your ad spend), while a branding agency could cost anywhere from $10,000 to $50,000 for a comprehensive rebranding project. Choosing a niche agency can offer deep expertise in a particular field, but it may require coordinating efforts between multiple agencies to cover all your marketing needs.
- Marketing Coach: A marketing coach can guide your existing team or help you develop a strategic plan. Coaching fees vary, but you can expect to pay between $100 to $400 per hour. Depending on the level and frequency of coaching you engage, your investment can range from this can cost around $10,000 to $50,000 per year.
As you can see, there are no one-size-fits-all solutions. The best option depends on your specific business, budget, and long-term marketing goals. And even still, your marketing needs will change as your business changes. So keep in mind that marketing costs are fluid and will change based on a myriad of different factors and concerns.
Read More: How Much We Charge For Marketing Services
Contract Terms: Understanding Agency Agreements
When working to determine the cost of hiring a marketing agency, it’s essential to understand the typical contract terms. Most agencies require a minimum contract length of 6 to 12 months. This period allows them to implement strategies and demonstrate results. Contracts usually outline the scope of services, deliverables, and performance metrics. Be sure to review the terms carefully and understand any clauses related to termination or service adjustments.
Technology Costs: Additional Marketing Expenses
In addition to service fees, marketing agencies often use specialized tools and technologies to enhance their campaigns. These tools can include customer relationship management (CRM) software, email marketing platforms, analytics tools, and more. The costs for these technologies can range from $500 to $2,000 per month, depending on the tools’ complexity and the number of users. It’s important to factor these expenses into your overall marketing budget.
Marketing Team Costs: Who’s Working on Your Account?
Understanding the team structure within a marketing agency can help you know what you’re paying for. Typically, an agency team might include:
- Account Manager: Your primary point of contact who oversees your account and ensures your needs are met.
- Strategist: Develops the overall marketing plan and strategy tailored to your business goals.
- Content Creators: Writers, designers, and videographers who produce the content needed for your campaigns.
- SEO Specialists: Focus on optimizing your website and content to improve search engine rankings.
- Social Media Managers: Handle your social media presence and engagement.
- PPC Specialists: Manage and optimize your paid advertising campaigns.
Having a diverse team ensures that all aspects of your marketing strategy are handled by experts in their respective fields, leading to more effective and cohesive campaigns. However, depending on the expertise of your in-house team and your business’s needs, you may not need every single expert on the list. Again, there are considerations, but in this post, we are giving you the full scope.
The True Value: Why Investing in a Marketing Agency Pays Off
The true cost of hiring a marketing agency is not just about the financial investment. It’s about the value and growth potential that comes with partnering with experts who understand the intricacies of marketing in your specific industry.
Marketing agencies provide more than just services; they offer strategic insights, creative solutions, and the ability to navigate the ever-changing digital landscape. They keep up with industry trends, ensure your campaigns are optimized, and help you stay ahead of competitors.
Even if all costs were equal (they’re clearly not!), you must find the right fit for your unique business. If you own a B2B company, you want to hire a firm that gets B2B marketing. You need a partner and coach who will come alongside you and support your unique needs, not an order-taker or overachiever trying to upsell you at every turn. So ask all of your questions and make sure they’re answered before signing on any dotted lines.
Making the Decision: Is a Marketing Agency Right for You?
Deciding whether to hire a marketing agency requires careful consideration of your business goals, budget, and available resources. Here are some questions to guide your decision:
- What are your growth objectives? If your goal is to scale rapidly, an agency’s expertise can accelerate your progress.
- Do you have the internal resources to manage marketing effectively? If not, an agency can fill the gaps and provide a cohesive strategy.
- Are you prepared to invest in long-term success? Marketing is an ongoing effort. An agency partnership can ensure sustained growth and adaptability.
These are just a handful of questions to help you think through this process. It’s a lot to take in, and we are here to help you sort through it all. We’d love to chat with you about your marketing goals and frustrations and guide you to the right solution for you, even if it’s with another marketing agency.
Schedule a Discovery Call: Take the Next Step Towards Growth
Understanding the true cost of hiring a marketing agency is the first step toward making an informed decision. At Wayfind Marketing, we specialize in helping small to medium-sized B2B service-based companies navigate the complexities of marketing. Our team is dedicated to providing strategic, results-driven solutions tailored to your unique needs.
Ready to explore how a marketing agency can transform your business? Schedule a discovery call with us today. Let’s discuss your goals and challenges and how we can help you achieve the growth you envision.
About Steve Phipps:
Steve Phipps, president of Wayfind Marketing and a certified They Ask, You Answer Coach, brings over 25 years of marketing expertise. His practical, client-focused approach has helped numerous businesses grow. As a former CMO for multiple companies and a Chick-fil-A franchise owner, Steve understands the challenges small business owners face. He leads Wayfind Marketing with a mission to help business owners grow their companies without the usual headaches, emphasizing strategies that position companies as authorities in their field.
How Much Does Marketing Really Cost? FAQs
1. How much does it cost to hire an outsourced marketing team?
The cost of hiring an outsourced marketing team can vary widely based on the scope of services and the expertise required. For small to medium-sized B2B service-based companies, you can expect to pay anywhere from $3,000 to $15,000 per month for comprehensive marketing services. This cost typically includes strategy development, content creation, social media management, SEO, and paid advertising.
2. How much do marketing agencies charge?
Marketing agencies charge different rates depending on the services provided and the agency’s experience. On average, full-service marketing agencies charge between $3,000 and $15,000 per month. Niche agencies that specialize in areas like PPC or branding may have specific project-based pricing, ranging from $1,500 to $50,000 depending on the project complexity and duration.
3. How much do advertising companies charge?
Advertising companies typically charge based on the type and scope of advertising campaigns. For digital advertising, small to medium-sized businesses might spend between $9,000 and $10,000 per month on platforms like Google Ads. The cost can vary significantly based on industry, competition, and targeted keywords.
4. How much does digital marketing cost?
Digital marketing costs can vary based on the channels and strategies used. For a comprehensive digital marketing plan that includes SEO, content marketing, social media management, and paid advertising, small to medium-sized B2B service-based companies can expect to spend between $3,000 and $15,000 per month.
5. How much does content marketing cost?
Content marketing involves creating and distributing valuable content to attract and engage your target audience. The cost can range from $2,000 to $10,000 per month, depending on the volume and quality of content produced. This includes blog posts, videos, infographics, and other forms of content.
6. How much does SEO cost for a B2B service-based business?
SEO costs can vary based on the competitiveness of your industry and the level of optimization required. For small to medium-sized B2B service-based businesses, professional SEO services typically range from $500 to $2,000 per month. This investment helps improve your website’s visibility on search engines, driving organic traffic and increasing your chances of attracting potential clients.
7. How much does PPC cost for a B2B service-based business?
Pay-per-click (PPC) advertising costs depend on the competitiveness of your industry and the keywords you target. For B2B service-based businesses, PPC campaigns on platforms like Google Ads can cost anywhere from $1,500 to $10,000 per month. This cost includes bidding on keywords, ad creation, and ongoing campaign management to optimize performance.
