20 March 2008

Use a digital agency?

The rapid growth of online marketing makes outsourcing an obvious choice for many of Ireland’s marketing directors.

Most analysts agree that the accountability, transparency and measurability of digital marketing will continue to secure an ever increasing share of marketing budgets in the months and years ahead. With sales and marketing managers being expected to produce ever more tangible ROI from their investments we expect to see the erosion of TV & print advertising’s dominance to continue.

With the obvious shift in our media consumption patterns towards digital platforms combined with a significant lack of experienced e-marketing specialists, there is only one possible solution…. outsourcing. In the Irish market, we are now seeing a definite movement towards the appointment of full service online marketing agencies. In many cases this will actually result in an increased investment in online marketing but with a far greater percentage of the investment being available for media spend as clients staffing costs are significantly reduced.

Benefits of appointing a full service digital marketing agency

• Breath & Depth of Expertise - From initial online marketing strategy development through to post-campaign analytics, a full service digital marketing agency can manage all areas of your online marketing and web design needs. Unlike an agency that might specialise in design or search engine marketing in isolation, a full service digital agency delivers an integrated set of skills and solutions across the full spectrum of online marketing.
• Lower Costs (internal staffing costs versus external agency fees)
  
  -The efficiencies and expertise of an agency allow us to perform our duties in a much more cost-effective way and in most cases to a higher standard then a dedicated internal hire. The cost of building an in-house online marketing team for the vast majority of Irish companies is prohibitive and normally an unwise investment. To begin with it’s incredibly difficult to find candidates with the right skill set and a sufficiently deep understanding of the online medium. According to recent salary surveys the cost for employing an internal 3 person online marketing team averages over €150k per annum. Such a company would still have to allow a budget for PPC Google advertising, banner advertising, web design, creative design and any other media costs that they may incur. Our experience shows that these teams end up outsourcing many online marketing tasks anyway.
  
  -On the other hand, it would be most unusual for digital agency fees to exceed €100k per annum even for top Irish brands. In many cases an investment of approx €60k per annum in fees will deliver a full service online marketing solution for even the busiest of brands. Thus securing approx 60 hours a month of expert advice, idea generation, consultation, account management, media planning & buying etc.
• Partnership - The aim of digital marketing agencies such as Digino is to work in partnership with our clients and to make their job easier through our knowledge and experience. We see ourselves as an extension of your marketing team, supporting the Marketing Manager while guiding and implementing the agreed online strategy.
• Benefit from Best Practice - Virtually all examples of best practice in search engine marketing, banner advertising, email marketing and creative design originates from within digital marketing agencies. We make it our business to stay up-to-date with new trends in audience penetration, usage and profile patterns. We develop tailor made solutions based on the required execution. No one person or internal marketing team could be expected to maintain a full understanding of such a complex and diverse industry.

Tips on selecting a digital marketing agency

Having experienced this process from both sides of the fence we would recommend the following 5 steps when pursuing an agency outsourcing strategy:

• Don’t assume that your traditional media agency has an expertise in online marketing. In many cases they do not and may end up outsourcing your tasks to another agency. It’s often best to have a separate agency for traditional and digital. If your existing agency has a digital wing you should of course consider that as an option.
• Do your own research first. Ask fellow online marketing practitioners (whose strategy / campaigns you have admired) for advice. Get as much feedback from your peers as possible.
• Identify 2 to 5 agencies that you would like to meet. Be careful to differentiate between full service online marketing agencies and specialist single services agencies. Most web design agencies now offer some level of online marketing but not usually at a level that can deliver optimal results. Ideally, find an agency that can meet your entire requirement under one roof.
• Set very clear and defined parameters for both the pitch and decision making process. This will ensure that companies don’t waste your time focusing on areas of little or no concern. If cost is the main determinant say so from the start.
• When making your final decision consider the following: Find the agency that you feel best understands your brand and your marketing objectives, who shows a willingness to challenge misconceptions and will disagree with you if they feel strongly about something. Determine who displays the most comprehensive understanding of the digital marketing spectrum. Agencies come in many “flavours” so find the one that suits you best.

Setting expectations and goals

It’s vital that companies remain realistic with their initial expectations from online marketing but it’s equally important that ambitious and relevant KPI’s are agreed from the start.

What to expect from your full service digital agency:

• Strategy: Development and execution of a cohesive online strategy.
• Expertise: in search, email, display, design and analytics.
• Informed spend: Ability to make well informed, unbiased decisions regarding the allocation of your digital media budget. Enhance your marketing department's ability to budget for digital channels.
• Teamwork: Seamlessly fill skill or knowledge gaps that may exist in your marketing team.
• Toolbox: Provide access to a broad range of specialised online marketing tools and resources.
• Results: Regular, clear presentation of key results and progress towards agreed goals.

 

Summary

In short, the case for outsourcing is overwhelming! Although there is no shortage of options the number of full service digital agencies in Ireland is far from immense. Identifying and meeting with the best of those is not a daunting task and is well worth the effort and time invested by any Brand or Marketing Manager. Indeed 2008 could well see the tipping point where the majority of Irish brands trust their intuition and appoint specialist online agencies just like they would for TV or Outdoor campaigns.

For more information or to discuss your online marketing needs contact Adrian Feane at Digino.

E: enquiries@diginomarketing.com

T: 1890 927 800

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