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Wave of the future: Behind The Rise of Digital Marketing Agencies

Posted by Kevin Fouche on Dec 15, 2015
Kevin Fouche

Long-established small business owners and marketers have definitely noticed it: in the past few years, digital marketing agencies have sprung up from the ground like wheat before harvest.

And so they wonder: just what has propelled this rapid growth?

Well, as one of these agencies, allow us to take you behind the curtain. Wave of the future: Behind The Rise of Digital Marketing Agencies

Here are 4 reasons that explain the rapid rise of digital marketing agencies

1) The Digital Age

First, it's important to discuss the elephant in the room. Forget about trends that signify an impending move to digital - in 2015, we are right in the middle of the digital age. Australians now spend almost 4 hours per day on social media, and an astonishing 13 million citizens are online for more than 18 hours - per day

For businesses and their marketers, that means one thing: your target audience, regardless of age or location, will be reachable digitally. While audiences worldwide now tune out 'traditional' advertising channels like TV or radio, they remain relatively open to more creative digital alternatives like native or search ads. Agencies, having noted the completion of this 'move to digital' are doing the same thing to accommodate changing audience behaviour. 

2) The Need for specialisation

Of course, 'the internet' is not one giant community that happily welcomes global audiences into one giant melting pot. Instead, it consists of millions of individual communities, who naturally group together according to common interests and shared locations. That's why the internet is now home to 1 billion individual websites, and why audiences on Snapchat are entirely different from those on LinkedIn.

Unfortunately, this fragmentation represents a problem for many businesses. Put simply, especially small businesses simply don't have the time to devote their entire time to audience and channel research, determining the perfect strategy for the perfect medium to reach the perfect audience.

This agony of choice means that too often, especially small business marketers choose to shun digital marketing altogether, simply not knowing enough about the environment to make informed marketing decisions. A distinct need for expertise that is specialised on digital marketing has arisen, majorly impacting the rapid rise of digital agencies to fill the void and offer their specialised services.

3) The Global/Local Conundrum

The digital age also brought with it the tempting opportunity to break geographical boundaries; now, even small business can market to audiences at the other end of the country for little more than they would spend on the family next door. But of course, this opportunity quickly turned into a threat when local companies suddenly had to compete with national retailers who offered the same services but with many more marketing resources at their disposal.

Digital agencies offer a way out of this conundrum. Because of their digital expertise, they can help these smaller businesses establish and execute strategies that can compete with much larger competitors, all without breaking the bank. They not only help increase exposure locally, but on larger scales that allow small businesses to significantly increase their potential reach.

4) The Abundance of Data (and Metrics)

Data is another perfect example of an opportunity turning into a threat. Digital marketing generally comes ready with plenty of analytics that allow marketers to determine the specific success of their strategies using metrics like reach, clicks, engagement, and conversions. Thanks to tools like Google Analytics, marketers can even determine the exact return on investment for individual ads on networks like Facebook or Google.

But again, this opportunity for improved success metrics turns into a threat when a company does not have the resources or expertise to analyse it. Recognising this gap between the availability and usability of data, digital agencies can help small businesses understand and analyse the countless success metrics, improving every marketing effort as a result.

In the end, the rise of digital marketing agencies was caused by a simple supply and demand calculation. Because of the internet's increasing ubiquity, especially small businesses have an increased need for specialised experts who can help them compete and advance in their turf to attract customers and grow their business. If you find yourself in a situation where the digital environment seems overwhelming or a larger competitor is infringing on your customer base, contact us!

We'd love to talk more to you about the benefits of a digital agency.

More reading: 

What is Inbound Marketing and how does it work?  
Customer Acquisition: How much does it cost to acquire a new customer?

Want to find out how Inbound Marketing can help your business?

Why not give Pixel Fish a call today on 02 9114 9813


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Topics: Inbound Marketing