There are several advantages to take into consideration for South African businesses when they consider increasing their marketing efforts. For the majority of companies with a turn over of below 1,5 million per annum, hiring an agency will only make ROI sense if they only use the agency for selected services. There are, however, many advantages with getting a marketing company on a retainer when your company does more than 1,5 million per year.
Financial advantages for your business
When it comes to wages, infrastructure and service subscriptions, running a marketing department in-house can end up costing you more than you should for the return you get. As mentioned in the introduction, the great benefit of a marketing agency is that the agency has many clients that can cover their expenses. This allows you to gain access to premium resources at a reasonable price.
However, investing in the services of marketing agencies are still a significant investment to make. Their specialised experience and advice do not come cheap as they provide a premium consulting service. Marketing and sales are the heart of business growth, and management should expect that they will pay more for a heart surgeon than a hairstylist.
Even though you could look at a monthly retainer package that can be as much as 50k per month for a medium enterprise service, you are still saving a massive amount of cash since these services would cost over 172k per month if you were to deploy everything in-house. Cash flow is king, and specialised outsourcing makes sense.
Most agencies also offer smaller and once off services depending on your needs. You should never pay for a marketing service you do not need. Instead, negotiate with the agency to work on a custom pricing plan that is flexible and focusses on helping your business to achieve its goals.
Access to required resources.
Obtaining the necessary resources and infrastructure required to keep a company’s marketing efforts and digital footprint up to date, can come with significant overheads. Let’s face it, the less infrastructure and investments in additional resources your company needs to make, the better. This will also reduce liability exposures, insurance costs, and the likes and will help you focus your time on your company’s bottom line.
A full house marketing agency will have access to resources and equipment that can manage every aspect of your marketing needs. Need a video? Your local agency will be able to plan the video shoot with you, shoot the video with their cameras and equipment such as drones. They will also package the footage in post-production. This saves you time and money. No need for you to worry about buying all the equipment, software licenses and insurance cover – your local agency will have all of that covered and planned.
Credible marketing agencies will always help you develop digital strategies around storytelling, brand building and content redistribution. They will find innovative ways to reach and engage more existing and potential customers. Marketers understand how to tell stories about a brand and have access to the latest tools to maximise both content reach and impact.
Reduced employee liability for your business
Hiring employees opens you up to all kinds of liability issues and increased tax implications and commitments. You could also find yourself hiring a fulltime employee that you might only need for five months. With a marketing agency, you have fewer employee liabilities to worry about.
You don’t need to keep on paying an agency when the job is done, and you also don’t need to worry about the ongoing maintenance and insurance cost associated with expensive equipment such as video and photography gear.
Working with an agency requires consistent excellent communication throughout the entire campaign. Please don’t neglect to state clearly about what you expect and ensure the agency is aware of these expectations and have agreed to it before you sign any contract.
An External Perspective
We all know we get stuck in our ways of doing business once we have gained enough momentum but as the saying goes, what got you to this point, will not necessarily get you to the next goal. A marketing agency is filled with people who are creative and will have a portfolio of diverse clients that they get to work with.
This allows your company to implement tried and refined strategies that will increase your chances of achieving the goals you set out to accomplish with the partnership. An external approach combined with new input could be just what your business needs to expand and find new innovative ways of deploying business marketing strategies.
If you’re looking at expanding your brand and increasing sales, a local marketing agency could be what you need. An agency will have the creative minds and infrastructure in place to effectively service your company. No longer do you need to try and DIY all your marketing and be unsure what the of your marketing efforts. There are some clear benefits to hiring an agency if you can find the right one that supports your business model and current need. You can find out more about what Indirect Media does and contact us if you have any queries.
Echavarria, Martin. Enabling Collaboration: Achieving Success Through Strategic Alliances And Partnerships (p. 144). LID Publishing Inc. Kindle Edition.