One of the questions heard most often from CEOs and entrepreneurs who have never had marketing agencies or leadership and always had marketing internalized is why hire a marketing agency? The fact of the matter is that, in general, there is a perception that by doing it themselves, companies save money on agency services and can negotiate and control their media budgets. While this may make sense on paper, there are significant inefficiencies and associated indirect costs of insourcing.
- Agencies Are Experienced
Marketing agencies such as Cultivate Advisors for example are marketing agencies, which means they are marketing experts like no other business. An agency has a team of specialists in the most diverse technical aspects, ranging from communication to technology.
The multiplicity of knowledge on various fronts of a marketing journey gives the agency a significantly higher experience than any CEO, entrepreneur, or generalist in-house marketing team. The speed and expertise an agency can bring to work on marketing strategy and operationalization can be unfair to compare.
- Time X Investment
CEOs, entrepreneurs, and marketing leaders with a lean team spend significantly more time building marketing strategies and generating returns on them. It is normal for them to be divided between different functions or mired in small activities of marketing efforts, ranging from an art to a good copy to perform with SEO.
You don’t need to spend; you should be working on your skills, doing what you know, and generating more money for your company. Overseeing a marketing agency and ensuring the plan aligns with the company’s goals may be one of the responsibilities you may need, but micromanaging every detail of the marketing plan is usually NOT the best use of your time. There are usually more productive things a CEO or entrepreneur can do. Not to mention the loss of productivity with marketing micromanagement; it is much more expensive than investing in an agency.
- An Agency Is More Objective In Marketing Strategies
The new working model of agencies, especially digital ones, is not linked to any specific media channel or marketing medium. Therefore, they gain more freedom to make the best choice for each company based on the challenge on the table and decide the best strategies their company needs.
- An Agency Negotiates Media With Expertise
If an agency buys media regularly or is part of programs such as Google Partners, be aware that representatives are under pressure to manage their portfolios (agencies) and achieve their goals on the side of these channels. Competition between digital and offline media outlets can mean lower or better-negotiated media rates.