What is fractional marketing and how it can benefit you
Today’s business landscape is constantly evolving. Companies are faced with a range of challenges and are hard-pressed to stay competitive. Amidst increasingly complex marketing channels and consumer demands, some companies have turned to a new structural model: fractional marketing teams.
Forward-thinking brands are turning to fractional marketing, an outsourcing model that allows them to harness the expertise of specialised marketing professionals. They leverage their diverse strategies and effectively drive growth in the ever-changing marketplace. This is very similar to how our team is set up.
In this article, we’ll dissect fractional marketing and how your business can use this approach to gain a competitive edge in its marketing efforts.
What is fractional marketing?
Fractional marketing is a dynamic and flexible framework that enables brands to have part-time access to a range of experienced marketing professionals. These professionals can take on various roles and have deep knowledge in expertise ranging from content creation, social media management, data analysis and more.
This innovative approach is designed to complement your existing marketing team and is not meant to completely replace them. It allows you to tap into a diverse pool of experienced marketing professionals whenever you need to. If this fits with your company’s plans for growth, find out more about the other services the team at OtterHalf can offer!
Why should your business care?
Fractional marketing is one of the latest strategies companies are adopting to grow their business. And here’s why it’s relevant to yours.
In the rapidly evolving digital landscape, the most disruptive brands are those that readily adapt to market changes. With a constantly evolving digital space, brands need to work harder to stand out and grow their e-commerce presence.
Chart 1: Research and Markets
Chart 1 shows that the global market for Digital Advertising and Marketing is set to rise rapidly. In 2022, the market was valued at US$531 Billion and it’s set to reach a size of US$1.5 Trillion by 2030. That’s a growth rate of 13.9% over the analysis period of 8 years.
To ensure that your brand remains relevant, it is crucial to stay up-to-date with the latest industry developments. The adoption of fractional marketing can enable you to reach new customers and propel growth in this dynamic digital landscape.
Why are fractional marketing services gaining popularity?
Covid-19 made a strong impact on the job market. According to a Time article, Roger Lee, the creator of Layoffs.fyi, a platform that tracks tech startup layoffs and lists of employees laid off to give them exposure to hiring companies, mentioned that tech companies that once went on hiring sprees are now resorting to layoffs to rectify their previous overhiring practices.
“In 2020 and 2021, technology companies went on a hiring spree, fuelled by low interest rates and demand for tech products while people were staying at home during the pandemic.”
Layoffs.fyi updated as of 20 June 2023.
In a separate article, tech companies like Stripe, Shopify and Lyft have joined major tech MNCs and laid off thousands of employees due to over-optimistic growth projections. With slower-than-projected expansions, companies must downsize and cut costs to meet their growth objectives.
In-house marketing teams see a reduction in personnel. However, companies are still tasked with meeting ambitious growth goals. This makes it incredibly challenging for marketing teams as leaner resources could translate to a lack of expertise in executing marketing strategies.
Here’s where fractional marketing steps in. By periodically tapping into a pool of specialised marketing professionals, companies can meet their growth objectives without the need to expand their in-house teams. Businesses can access specific expertise tailored to the company's unique needs while keeping costs manageable. Additionally, by bringing in external professionals, companies can benefit from fresh perspectives that drive growth in a highly competitive landscape.
How do fractional marketing teams work?
To meet their day-to-day marketing needs, companies often maintain a small in-house team. However, when it comes to seasonal campaigns or new initiatives, there’s value in outsourcing to fractional teams.
It's important to note that fractional teams differ from traditional contract or freelance roles. Instead, they are an integral part of your marketing team and need to stay aligned with the long-term goals of your company, ensuring a cohesive and integrated approach to marketing efforts.
Fractional marketing professionals are essentially part-time specialists embedded within the team and work with your company in the long run. Sometimes, there may be specific tasks in the marketing process that are necessary but too small to create a full-time role. Fractional marketing execution can help businesses get access to niche marketing skills like SEO, social media marketing or motion graphics, while maintaining cost efficiency.
However, for fractional marketing teams to work, businesses need to create clear communication channels so that outsourced professionals are cognizant of your overarching goals.
“To avoid reenacting a contractor-style relationship, the new hire should be fully treated as a new employee. Their hiring should be announced to your team, they should have an invite and presence at company-wide meetings, and they should be engaged on Slack or any platforms you use to collaborate. In every way, they are a team member; they just work fewer hours.”
Benefits of fractional marketing services
Ability for companies to get started, faster.
Versus the time needed to hire and train a suitable marketing lead or marketing team — which can take months or even years — engaging a fractional marketing team with the relevant experiences expedites that process by 20X, or more.
Affordable
While large companies run year-round campaigns, smaller businesses may have budget limitations. The average monthly cost of hiring a full-time marketing lead or marketing team would be upwards of a 5-digit salary range, depending on the hires' experience.
With a fractional marketing team, you can achieve specific growth objectives based on varying budgets and constraints. This approach is particularly advantageous for smaller companies or those with independent business units, as it allows access to expertise without the commitment of full-time hires.
Moreover, fractional marketing teams are typically paid based on hours worked or deliverables produced, providing cost-effectiveness compared to fixed salaries. This allows companies to align their marketing expenditures with project requirements, making fractional marketing a financially sensible choice for businesses, especially SMEs.
Flexibility to scale up or down as needed
Businesses and startups have changing marketing objectives. That’s why having an adaptive marketing team is crucial. Utilising a fractional marketing framework can benefit businesses by increasing adaptability and flexibility. Businesses can leverage flexible talent to meet new demands and changing competition, allowing for agile strategy pivots.
Moreover, fractional marketing enables companies to easily adjust their staffing levels to meet changing business needs. This model ensures efficient resource allocation and helps businesses optimise their marketing efforts for maximum effectiveness.
Access to a team of experienced marketing professionals
A fractional marketing team offers businesses the advantage of tapping into the knowledge and expertise of external marketing experts. This access to a wider pool of talented professionals on a part-time basis provides a competitive edge. With a fractional team, businesses have experienced marketers available to handle various aspects of their marketing function, including strategy, branding, strategic partnerships, performance marketing, and even hiring. This flexible model allows companies to leverage industry experts and optimize their marketing efforts for success in a rapidly evolving market.
Experiment with new concepts with a fractional marketing team
Not sure if your business is ready to hire that SEO Strategist or Social Media Lead? Fractional marketing teams give you the chance to test ideas before committing to a full-time team. Unlike hiring freelancers from platforms, you’ll get to engage an experienced professional who has a proven track record and years of experience under their belt. Until you establish a solid product-market fit or when there’s enough for a full-time team to work on that is in line with your business strategy, you can consider converting fractional marketing team members to be part of your full-time marketing team.
Injection of fresh perspectives
Having fresh perspectives can do well for your business especially if you’re running a new campaign. Fractional marketing team members are not as deeply entrenched in the company’s operations and can identify areas for improvement. These new insights are invaluable. Leveraging their expertise can bring innovation and drive continuous improvement within the company.
How do you know if engaging a fractional marketing team is for you?
When searching for a fractional marketing team, it’s crucial to prioritise professionals with a track record of success. Look for individuals with skillsets that align with your specific business goals. You can also refer to Table 1 below to understand the difference between engaging a fractional marketing team versus hiring a full-time marketing team.
Every business has different challenges and you want your fractional marketing team to cover specific gaps in your growth strategy. Whether it’s a marketing strategy, campaign development and execution, partnership management or performance marketing, you should choose teams that can support you in achieving your business goals.
Table 1: Comparison between fractional team vs full-time team
Want to understand how engaging a fractional marketing team can add value to your business?
At OtterHalf, we believe in empowering companies to grow sustainably with creativity and kickass execution. Our fractional marketing team-for-hire service is designed to provide companies with flexibility so we can help you achieve your business growth objectives.
Here’s a peek at how our packages are structured:
Package 1: Fractional VP of Marketing for hire
Hire for a minimum of 3 months
Best for startups with junior marketers
Sample scope of work includes strategy, research, mentorship or budget planning
Package 2: Fractional Marketing team for hire
Hire for a minimum of 3 months
Best for startups with no marketing team
Sample scope of work includes everything in Package 1, plus execution including graphic design, copywriting, website management, digital ad monitoring and analytics, and more.
Whether you are seeking to optimise your digital marketing strategy, enhance your e-commerce capabilities, or drive innovation in the tech industry, OtterHalf is here to support you. For a limited time only, engage us on a fractional basis from SS$4,200/month. Offer ends 31 Dec 2023.