Tackling 5 Challenges Digital Marketing Agencies Face
Feb 23 2023
Every digital marketing agency has challenges to overcome. Whether trying to outwit and out-market the competition or trying to stick to a tight budget with a positive ROI, many aspects of this business can become challenging and frustrating.
Know that you’re not alone. All agencies have to get past these issues to make the most of their efforts. No matter your size, it’s still possible to compete by recognizing these challenges and taking steps to tackle them head on.
Peak Challenges for Digital Marketing Agencies
In 2022, there were five key challenges for most digital marketing agencies, including resource shortages; staying on trend; monitoring ROI; getting the quality leads you need, and deciding on what kind of marketing you want to do (multi or omnichannel) to reach your target audience.
Here’s a little more about each issue and what you can do to push past them for better success.
Perhaps one of the most significant issues digital marketing agencies have run into in 2022 is a resource shortage. As a small- or medium-sized business, you have a limit to your resources. You may not have unlimited ad spending or be able to hire additional marketing professionals to help with tricky, complex campaigns. In some cases, you may not be able to get further help even if you advertise for it.
How can you still stay on top of things? Know your budget and use your insights to find creative ways to maximize your dollars. Which keywords lead to the most conversions? Which social ads get the most engagement? Direct your budget to what currently serves your business best while noting new tactics to try when resources are easier to acquire.
Staying on trend
Creating the content people want is the key to success, but with how fast media moves today, what works one week could be out of style by the next.
Staying on trend requires you to constantly learn about what’s happening in the industry. For example, Google is still planning on phasing out third-party cookies by 2024.
Gauging Return on Investment (ROI)
Figuring out if you’re getting the ROI you want on your ads and marketing is one of the most persistent issues you’ll run into as a digital marketer. To calculate your ROI, you can use a simple equation: ROI = (Net Profit/Total Cost)*100.
Problematically, this equation only works if you have goals and objectives to measure against. Make sure you understand your marketing goals and identify key performance indicators early. Return on ad spend (ROAS) indicates how much profit you’ve made on top of the cost of an ad, for example, while your unique monthly visitor KPI tells you if you’re getting adequate traffic to your website or product landing page.
Use a well-managed customer relationship management (CRM) tool to track your campaigns and stay up-to-date on the latest changes.
Generating quality leads
Generating quality leads can make or break your marketing campaigns. To generate the right leads consistently, start by defining what a quality lead is for your company. After figuring out that persona, tailor your ads to reach those individuals.
Consider putting together a social media marketing strategy to build a relationship with the people who follow you. Building relationships is a long-conversion plan, but good relationships with the right audience could help you reach additional quality leads later. In fact, Motista found that customers with emotional relationships with brands recommend them at rates of 71% instead of 45% for those without relationships with brands.
Deciding on multi- or omnichannel marketing
A final challenge for your business is deciding on how you want to market your products or services. With the multichannel method, you send out different messages to different audiences through various marketing channels. With omnichannel marketing, you use the same content, but you spread it among all your marketing channels.
Depending on your campaign, one may be more cost-effective than the other or help you reach different audiences more quickly and effectively. Decide on a route to take at the beginning of your campaign; your PPC budget will come into play as you decide what you can afford to spend per click.
Setting Your Digital Marketing Agency Up for Success in 2023
Things move fast in the digital marketing world, so it’s important to stay ahead for a successful 2023 or your brand will fall behind.
Focusing on marketing mix modeling (MMM) with the upcoming third-party cookie elimination, cookieless attribution and measurement can provide marketers with insights into the effectiveness of their campaigns, allowing them to identify what areas they should invest in and what strategies they should use. By using smart MMM, you can make significant improvements in your campaigns and increase ROI.
Put together a budget knowing what you can spend, and choose your channels accordingly. While you’re at it, consider putting together a solid social media campaign to nurture the quality leads you have from people who already support your brand. Make sure this data is gathered and structured correctly in your CRM, and focus on the KPIs that matter to you.
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