What is a digital marketing consultancy and how consulting on marketing strategies can benefit you
In the dynamic world of digital marketing, staying ahead can often feel like an uphill battle. That’s why businesses engage digital marketing consultancies—so they can supercharge marketing efforts and take it to the next level.
But how does a digital marketing consultancy help you elevate your business? And what should you consider when you’re working with one? Read on to find out.
What does a digital marketing consultancy do?
Digital marketing consultancies are dedicated experts who advise businesses on effective digital marketing strategies. Their services encompass a wide spectrum, including expert guidance on online advertising, search engine optimisation (SEO), content marketing, and more.
What sets them apart from traditional creative or advertising agencies is their ability to marry internal data with external research, to provide recommendations that can effectively enhance a company's online presence and reach. Their offerings often comprise services such as comprehensive audits, strategic development, and ongoing optimisation efforts. As a whole, consultancies can help clients navigate the ever-evolving digital landscape, enabling them to make informed decisions.
Benefits of consulting on marketing strategies
Source: S.W.O.T analysis framework
Marketing strategy consulting can offer your business valuable insights. Consultants bring industry expertise and knowledge to the table and can help businesses identify their strengths, weaknesses, opportunities, and threats (similar to a SWOT analysis). They craft tailored strategies aligned with specific business goals and fine-tune existing approaches for better results. If your goal is to enhance your marketing effectiveness and competitiveness, marketing consultants are the ideal choice.
3 factors to consider when choosing a digital marketing consultant
Know your budget
Source: Marketing budgets by industry
Tech companies typically allocate around 21% of their total revenue to marketing. It's worth noting that the proportion of revenue directed towards marketing has been on the rise over the past 12 years, reaching an average of 8.7% of overall company revenue in 2022, indicating a growth of over 5% since 2011.
When we delve into specific sectors, B2B product industries (eg. CRM applications, POS systems) tend to allocate approximately 7.8% of their revenue to marketing, a figure closely followed by B2C services (eg. Movie or music streaming platforms) at 6.5% and B2B services at 5.9% (eg. Consultancies or advertising agencies). However, B2C product industries lead the pack, earmarking up to 15.1% of their total revenue for marketing.
It's not just larger enterprises; small businesses are also actively investing in marketing. In a recent survey involving 85 small business owners and marketers, a notable 52% indicated that they allocate monthly marketing budgets ranging from $5,000 to $15,000. These insights underscore the growing significance of marketing expenditure across businesses of all sizes in today's landscape.
Your budget serves as a crucial compass, directing your attention and resources toward specific facets of your digital marketing strategy. It will provide clarity and facilitate meaningful discussions with your digital marketing consultancy. Knowing your budget will allow your consultant to distil strategies that best suit your business. So, when it comes to your digital marketing strategy, your budget isn't just a number; it's a strategic tool that can shape the course of your success.
2. Consider your digital marketing consultant’s expertise
Digital consultants come with their own experience and expertise. It’s important to note their expertise and confirm that it’s in line with the nature of your business. The right consultant for you would be keenly attuned to the challenges your industry and business face. They will also be up to date with the latest digital marketing tools and trends. Ask for their portfolio of previous work and collaborations with different organisations. Digital marketing consultancies, compared to traditional creative agencies, are better at performing through internal data analysis, comparing data against how your competitors are doing, and translating these data points into strategies that align with the business objectives.
Before you book a call with your digital marketing consultant, familiarise yourself with the types of digital marketing distribution channels available and ensure that your chosen consultant is up to date with your preferred channels.
Social media marketing (Facebook, Instagram etc.)
Partnership marketing
Influencer marketing
Search Engine Marketing (SEM)
Search Engine Optimisation (SEO)
Blog
Sponsorships
3. Consider the quality of their proposed strategy
Source: The Eisenhower Matrix
Your digital marketing consultant should possess a keen understanding of your target audience, along with the most effective ways to engage with them based on their experience and market research. Their activation plan should be prioritised based on what is needle-moving for your business. Especially in a startup, everything may seem urgent but not everything is as important.
By considering frameworks like the Eisenhower matrix, your digital marketing consultant should be able to propose what you should be focusing on in the short term and what you can potentially explore in the mid to long term. They should provide clear and measurable return on investments (ROIs) to gauge the effectiveness of their strategies. This ensures that your marketing efforts are not only reaching the right audience but also delivering tangible results in line with your business objectives.
Key takeaways
Digital marketing marks a departure from traditional marketing strategies, offering a fresh and dynamic approach to reaching your audience. This relatively new approach provides smaller businesses with a unique opportunity to stand out in the competitive landscape. A proficient digital marketing consultant should be able to:
Comprehend your business needs
Understand which of your marketing strategies work, which don’t, and why
Research your competitors on what works for them, what doesn’t, and why
Collaborate with you to craft tailored marketing strategies that represent your brand effectively.
Their expertise can help you navigate the digital realm and ensure that your business leverages the power of digital marketing to its fullest potential.
OtterHalf specialises in helping tech companies, big and small, grow through our expertise in digital marketing, which includes Partnership Marketing, Influencer Marketing, Social Media Marketing, SEO, Performance Marketing, and more. Companies like REFASH and Zenith Learning Group have engaged us for our consultancy services. Want to take your business to the next level?