What Is Digital Marketing Agency? Definition, Types & Services

June 19, 2023

What Is A Digital Marketing Agency?

A digital marketing agency is a person or group of people who handle a business's online presence. For example, a company will hire an agency to help them reach more potential clients or boost brand awareness. Most digital marketing agencies offer omnichannel branding that lets them be everywhere. But then, they can engage with the right people on multiple platforms.

Data suggests omnichannel customer purchase frequency is more than 250% higher than on a single channel. So, for example, an agency can employ content and video marketing tactics. Or they can use social media influencers and PPC advertising to grab people's attention. As a result, a business owner can get more sales and high-quality leads.

What Is Digital Marketing?

Digital marketing is the use of online strategies like social media, copywriting, search engines, digital advertisingand email marketing to advertise brands to consumers instead of traditional marketing approaches such as cold calling and billboards. The goal is to drive online traffic and get more sales.

TechJury reports that digital ads can increase brand awareness by 80%. In 2024, there are over 5.16 billion internet users. Marketing Charts reports that 55% of marketing is now digital. As a result, digital marketing is one of the best ways to get in front of a ton of eyeballs, stay relevant, and be a top-of-mind business. 

Digital Marketing Terms, Descriptions & FAQs

What Is Digital Marketing Agency Do? 

A digital marketing agency provides the online services a business needs to stay relevant and get in front of the right people. Digital marketing agencies offer Internet solutions like boosting brand awareness and driving traffic to a product or service. According to Shopify, 81% of consumers need to trust a brand to buy from them. 

What Services Do Digital Marketing Agencies Offer?

Services offered by digital marketing agencies are techniques that result in more online traffic and increased revenue for a business. In 2024, a few popular options are SEO and SEM, social media marketing, email outreach, and content creation for a copywriting niche.

How Does A Digital Marketing Agency Make Money?
A digital marketing agency makes money from the services they provide for the clients they retain. Digital marketing agencies are paid either on an hourly, per-project, or value-based pricing model. An agency will typically charge based on the scope and complexity of each job.

Why Do You Need A Digital Marketing Agency?

You need a digital agency to expand your reach and be active on the channels where your ideal customer hangs out online. A digital marketing agency can help you save money, boost brand awareness, and become a top-of-mind business. 

What Is Inbound Vs. Outbound Marketing?

Inbound marketing is a hyper-focused online business approach used to grab the attention and connect with the right people. The goal is to be customer-centric. Sprout Social says that 73% of customers are willing to spend more with a brand with complete online transparency. 

Outbound marketing is bulk distribution by a company. Here the goal is to push out its message to as many people in as many channels as possible, even if the audience isn't the ideal customer. Gitnux says that cold calling is an inefficient form of marketing. It costs 60% more per lead than other forms of marketing. But only 2% of calls result in a meeting.

What Are The Seven Main Categories Of Digital Marketing?

1. Search Engine Optimization (SEO)

SEO (search engine optimization) is used to get a website to the top of search engines without spending money on paid ads. Instead, SEO signals to the SERPs that a site is relevant. BrightEdge reports that SEO drives 1,000%+ more traffic than organic social media. SEO can be divided into three main types on-page, off-page, and technical SEO. On-page focuses on keywords, UGC, and an easy-to-navigate website.

Off-page SEO refers to backlinks, citations, online reviews, and social shares. Anything that sends a signal to the bots to show that your website has authority. Technical SEO relates to load speed, mobile responsiveness, and structured data. Backlinko suggests that there are over 200 factors Google's algorithm looks at when ranking a website. So it takes a combination of SEO and marketing efforts by an SEO agency for a site to reach the top of Google.

2. Search Engine (SEM)

SEM (search engine marketing) is also called PPC advertising. SEM is paid advertising. But if you have a budget, it's a fast way to get to the top of the SERPs. SEM uses strategies like Google Ads or a PPC ad campaign to get in front of people online. But SMA Marketing says that 75% of users do not click beyond the first page of search results. 

3. Content Marketing 

Content marketing is how you connect with your ideal target market. It can include website design, blogs, FAQs and newsletters, eBooks, or infographics. Any written copy that boosts engagement and drives online traffic to an offer can result from content marketing.

Demand Metric reports that content marketing generates over 3x as many leads as outbound marketing. But it costs 62% less. The key is to deliver the best answer to questions people are asking online. So first, lead with value. Next, excite people about your business and brand. Then you build trust. As a result, you attract new customers and can connect with your existing audience on a more personal level.

4. Video Marketing

Video marketing uses videos instead of text. But in 2024, it's one of the most popular ways people consume content online. According to Wyzowl, 73% of respondents prefer to learn about a product or service from a video. The secret is to post short videos. Highlight the benefits of a product or service. So share videos using the product, a tutorial-style snippet, and something that shocks or surprises your viewers. 

The idea is to get people to take action. What can a digital marketing consultant publish so they'll remember a business's brand? What unique angle can a digital marketer offer to stay a top-of-mind business? Include a clear call to action, post where your people spend their time online, and reach the right people. As a result, you'll get more engagement and boost sales.

5. Email Marketing

Email marketing is a marketing approach that uses email to promote brands to likely buyers. A study by McKinsey & Company suggests that email marketing acquired 40X more customers than Facebook and Twitter combined. But to be successful, an email campaign needs to deliver valuable and engaging content.

Create personalized and customized information. It's less about the hard sell. Instead, the focus should be on building a community and fostering relationships. The idea is to build trust with your audience. Consider using interactive content like quizzes, timed events, or challenges. Then you get people excited about what you offer and can meet your client's business goals.

6. Social Media Marketing

Social media marketing (SMM) is a digital strategy that promotes a brand on social media platforms like Facebook, TikTok, and Instagram. Consider that there are almost 4.89 billion global social media users. In addition, Sprout Social says that the time internet users spend on social media is now higher than ever.  

As a result, SMM is a chance to get in front of people who might not find you elsewhere. Be active on the right marketing channel. And be where your ideal customer spends their time. Then share engaging posts, use influencer marketing, or host live streams. 

7. Mobile Marketing

Mobile marketing, SMS (short message service), or text messages reach prospective clients via smartphones. According to Bank Mycell, 84% of the world's population owns a smartphone. There are three styles of SMS contact; promotional, transactional, and two-way. But each offers a chance to share deals, build brand awareness, and provide an alternate touch point for buyers. SMS is practical. It's also one of the fastest-growing ways to reach a broader audience and stay connected in 2024.

What's An Example Of Digital Marketing?

An example of digital marketing is when a social media marketing agency launches an organic social media marketing campaign. Here the focus is on capturing the attention of organic traffic. Research suggests that organic traffic accounts for 53% of website traffic and has some of the best ROIs in 2024. A digital marketer can use online marketing services like social media posts, live streams, influencers, or videos with virality potential. The goal is to engage with a vast online target audience. Then create a buzz around your product or service.

How Can A Digital Marketing Agency Help Grow Your Brand?

A digital marketing agency can help you grow your brand by learning as much about your business and your ideal customer as possible. Then they have the tools to create an actionable blueprint. As a result, this will help them reach the right people and be active on the right social media platforms.

For example, Exploding Topic reports that 77% of consumers prefer shopping with brands they follow on social media. The idea is to share content that best answers questions and builds trust with your target buyers. Research suggests that 81% of consumers need to trust a brand to consider buying. Digital marketing services can also help:

  • Build social connections on a variety of channels
  • Develop a positive online reputation management strategy
  • Connect with new and existing customers
  • Generate high-quality leads or get more sales for your company
  • Reach marketing goals and revenue quotas
  • Boost visibility and awareness
  • Differentiate your business from the competition
  • Share your value and mission statement
  • Increase the perceived value of your product or service

There are over 5.16 billion internet users around the world. So in 2024, a business needs a digital marketing strategy to stay competitive and get an edge.

What Should You Look For When Hiring A Digital Marketing Agency?

Features to look for when hiring the best digital marketing agency include their experience both in the field and in your industry. What strategies will they use to get attention? For example, do they employ a mix of paid and organic marketing tactics?

According to Small Biz Genius, 70%-80% of people ignore paid ads. In addition, a digital marketing company needs to show clients they're worth their salt. Are they at the top of Google? Do they know how to leverage SEO tactics to get in front of the right people? Do they have an active social media account? Other questions to consider include the following:

  • Can they deliver the results they promise?
  • Do they use the best marketing tools to track & monitor campaigns?
  • Do they use marketing automation?
  • What services do they offer?
  • How big is their agency?
  • Do they employ current trends?
  • How will they keep you up to date on every digital marketing campaign?

When hiring a digital marketing agency, a business wants to pick one that can get results. Customers don't care about the process. Instead, they want real results. Outcomes that get them a steady stream of quality leads and make them more sales.

How To Start A Digital Marketing Agency In 2024

To start a digital marketing agency, follow a few steps that include:

1. Decide on a niche and ideal customer

Start with market research using tools like Google Trends, Keywords Everywhere, and surveys on social media. Then find a niche that offers profitability but isn't too competitive. Next, decide on your client and learn as much as you can about their business.

For example, What are the common issues in this industry? Where do they search for solutions? Is there enough demand? Niching allows you to develop a tried and true system for your clients. You know what works and what type of campaign gets the best results.

2. Establish your services

Determine the services you plan to provide. For example, will you be a full-service, single-channel, or multi-channel service agency? The functions you intend to offer should mesh with your skills or your team's talents. Again, the idea is to get results. But after you scale then, consider adding more options.

3. Choose your pricing

An agency can charge an hourly, per-project, flat fee, commission, or retainer fee. But those that offer a flexible payment option tend to face less objections when it comes to pricing. The key is to make sure you charge enough to run paid ads. Then you can get a few quick wins for your client.

4. Market & advertise your business

Show clients you have the skills to get them more online traffic. Then share hyper-valuable content on multiple channels. Tell everyone you know about your agency. The key to success is relationships.

  • Get active on social media
  • Start a YouTube channel
  • Create a well-optimized website

Be the best commenter. Provide the best answers. Show people you're the expert. Build connections and offer incentives like referral discounts. Or de-risk methods like only getting paid after you deliver on decided KPIs.

Is Digital Marketing In Demand?

Yes, digital marketing is in demand. In 2024, there is enormous market demand. However, unlike other online business models, such as affiliate marketing or dropshipping with digital marketing, you control every aspect of your business. The secret is to become a super niche marketing agency.

Don't be a generalist or try to serve everyone. Instead, have one niche and one type of client. For example, only focus on collaborating with businesses that deal in high ticket sales. Then test and establish what works. As a result, you know what methods get the best results. HubSpot suggests that agencies who document their strategy are over 300% more likely to succeed than those who don't.

Is Digital Marketing A Good Side Hustle?

Digital marketing is a good side hustle if you learn a specific skill and become a master at getting results for clients. Data suggests that 63% of businesses increased their marketing budgets in 2022. The best way to stay relevant and reach a target audience is online. According to Statista, digital marketing, and advertising are expected to reach a market value of approximately $786.2 billion by 2026. 

That means there's a ton of opportunity. But there's also a ton of competition. To make money with this online business model, pick a digital marketing service that's in demand, like SEO services or SMM. Then pay attention to trends. Learn to stay one step ahead of the competition. Overdeliver for your potential customers, and you can earn a solid income with this side hustle in 2024

How Much Money Do You Need To Start Digital Marketing?

To start digital marketing, have a budget of $1800-$16,000+. How much it costs depends on a few factors, like,

  • Will you be a solopreneur?
  • Do you plan to hire a team?
  • Can you be an agency partner? Or do you want to be your own boss?
  • Will you be a full-service agency or only offer specialized services?

Then decide if you plan to rent out office space or work remotely. Of course, you'll need capital to cover the cost of computer and internet connection, third-party tools, and software like CRM and marketing attribution and automation. But you can start small. Then plan to scale when you retain more clients and build a reputation.

How Local Lead Generation Can Give You An Edge Over Other Digital Marketers 

The goal of digital marketing is to get attention. But with a global digital ad spend of $485 billion, there's a ton of competition. As a result, digital marketing agencies need an edge or a unique angle to drive online traffic to offers. The local lead generation model puts clients in front of people actively searching for products or services they offer. It's a proven concept. The focus is on building and ranking generic websites.

Each site targets one location and offers one service. But the market is local. So you can get to the top of Google in less than six months. Once that rank and rent website start producing leads, you sell them to your business owner for profits between 85%-90%. So not only does your agency have leverage and something better to offer clients than the competition. But with lead generation, you get more high-quality leads for your customers. And you can harness a passive income stream.

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Ippei Kanehara

$52K per month providing lead generation services to small businesses

Ippei.com is for digital hustlers, industry leaders and online business owners.

His #1 online business recommendation in 2024, is to build your own lead generation business.

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