How Much Does a Digital Marketing Agency Charge?

The cost of hiring a digital marketing agency to manage your online presence can vary greatly depending on the size of your business and the services you require. The rate for our services is $150 + GST per hour.

Depending on the specific needs of your business, we may also charge a flat fee for certain packages or certain services. 

How much do digital marketing agencies charge per month?

The cost of employing digital marketers is contingent on factors such as their experience in digital, size, location, and project scope and your advertising budget.

We offer a hybrid rate for projects and ongoing monthly retainers for our digital marketing packages, as this allows us to provide more ongoing support to your business in terms of finding new potential customers. 

The following are general guidelines regarding costs associated with a digital agency:

• Hourly rate

Many agencies charge an hourly rate, which can range from $50 to $250 or more (we charge $150 + GST), depending on the agency's location and expertise.

• Project-based pricing

For specific projects, such as website design or video production, agencies may charge a flat fee. The cost can vary widely depending on the scope of the project, but small projects can start from $1,000 to $5,000, while more extensive projects can cost tens of thousands of dollars or more.

• Monthly retainer

Some digital marketing agencies charge an ongoing monthly retainer fee, which can range from a few thousand dollars to tens of thousands of dollars per month, depending on the digital marketing agency's expertise and the services included in the package. A typical monthly retainer may include services such as social media management, SEO, PPC advertising, email, and content creation. For more information read our article on on what type of digital marketing company you should look for.

Digital Marketing Agency Pricing packages

The average cost for our digital marketing packages range from $2,000 - $6,000 per month.

Chances are you want to have more than one strategy running so you can diversify your strategy. Packages come in all shapes and sizes and will include things like:

• Search Engine Optimization (SEO): The process of optimising a website's content and structure to improve the search rankings in search engine results pages as well as the creation of blog posts.
• Pay-per-click advertising (PPC): A form of digital advertising such as search ads on the Google ads platform, in which advertisers pay each time a user clicks on their ads.
• Social media marketing: The use of social media channels to promote a business's products or services, build brand awareness, and engage with customers.
• Content marketing: The creation and distribution of valuable and relevant content to attract and retain a target audience.
• Email marketing: The use of email to promote products or services, build brand awareness, and engage with customers.
• Video: The use of videos to promote products or services, build brand awareness, and engage with customers. Video is an effective way of reaching your target market with social media campaigns 
• Influencer: The use of influential people in a particular industry to promote products or services.
• Online reputation management: The process of monitoring and improving a business's online reputation by responding to reviews, managing social media profiles, and engaging with customers.
• Conversion rate optimization: The process of optimising a website or landing page to improve the percentage of visitors who convert into customers and reach business goals. 
• Analytics and reporting: The collection, analysis, and reporting of data related to a business's online efforts to help make informed decisions and measure ROI. The implementation of tools such as Google Analytics and Data Studio. 

We have three digital marketing packages we offer businesses. If you would like to find out pricing for them, click here and we will get in contact with you.

How much does a digital marketing strategy cost?

On average, our digital advertising strategies cost a one time investment of $3,800 + GST

The cost of a digital marketing strategy may be affected by the project's scope, level of expertise required and the size of the business.

When considering how much to invest in a digital marketing strategy and the digital marketing services of an agency, it's important to take into account the customer lifetime value (CLV).

This is because CLV gives an indication of the total amount of money that a target customer will spend with your business over their lifetime. The higher the CLV, the more you should be willing to invest in developing an effective strategy because you will get more revenue per customer

 Factors influencing the cost may include things like:

• Business size

Larger businesses with more extensive digital marketing campaigns will typically require a more comprehensive and customised investment in digital marketing strategy, which can be more expensive to develop. However, the B2B customers generally have a higher customer lifetime value.

• Complexity of the project

The more complex the digital marketing strategy to meet the business objectives, the more time and resources it will require to develop, which can increase the cost.

• Level of expertise required

Depending on your digital marketing goals, they may need to hire a specialist or agency with expertise in specific areas such as SEO, social media, or paid advertising, which can increase the cost.

• Research and analysis

Conducting research and analysis to identify target audiences, customer experience expetations, market trends, and competitor strategies can be time-consuming and costly.

• Tools and technology

Some digital tools and technologies, such as automation software or analytics platforms, can be costly but ultimately increase your customer experience

 We have three core packages we offer business. If you would like to find out pricing for them, click here and we will get in contact with you.

What is included in a digital marketing strategy?

• Business goals

The overarching goals that the digital marketing strategy will support, such as increasing sales, driving website traffic, or improving brand awareness.

• Target audience:

The group of people the business wants to reach and engage with through its digital marketing activities.

• Digital channels

The online platforms and channels the business will use to connect with its audience, such as social media, search engines, email, and mobile apps.

• Tactics

The specific actions the agency will take to execute its digital plan, such as creating content, launching paid advertising campaigns, or optimising website content for search engines.

• Budget

The financial resources allocated to support the digital marketing plan.

• Metrics and KPIs

The key performance indicators (KPIs) the business will use to measure the success of its digital efforts, such as website traffic, conversion rates, or social media engagement.

How Much Should Your Business Budget For Digital Marketing?

Digital marketing budgets depend on various factors including business size, industry, target audience, goals competition and types of digital campaigns chosen.

Here are some guidelines to assist in calculating a suitable budget allocation for digital marketing services:

• Percentage of Revenue

As a general rule of thumb, B2B companies should allocate around 7-12% of the company revenue on marketing. However, this can vary depending on the company's size and industry. B2C companies should allocate north of 20% of margin if they are in growth mode.

• Competitive Landscape

The more competitive the industry, the more companies will need to invest to stand out and reach their target audience. The average cost per lead is higher which directly increases digital marketing costs to compete. 

• Marketing Goals

The budget should be aligned with the company's marketing goals, such as increasing website traffic, generating leads, or improving conversion rates. There are various methods to reach prospective customers therefore these goals help business owners structure their budget. 

• Target Audience

The budget should also consider the target audience's online behaviour and preferences. For example, businesses targeting younger demographics may need to allocate more budget to social media.

• Digital Channels

The advertising budget should be allocated based on the online advertising channels the business plans to use, such as social media, paid advertising, or search engine optimization.

Maximising Your Digital Marketing Spend's Return on Investment 

Digital marketing has become an essential component of any business's overall digital strategy, and investing in digital can help businesses reach and engage with their target audience, increase brand awareness, and generate leads and sales.

The cost of digital can vary depending on several factors, including the size of the business, industry, target audience, digital goals, and competitive landscape.

However, businesses should expect to invest in digital marketing regularly and adjust their budget based on their performance data and evolving marketing needs.

Hiring an agency can be an effective way for businesses to leverage the expertise of experienced professionals and stay competitive in a rapidly evolving digital landscape.

Do Good Things can help get the most for your marketing dollar and maximise your return.

We are a full service digital marketing agency who help you get the best out of your budget and deliver you results your company can grow by.

Get in touch with us today.  

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