Is It Too Late To Start a Digital Marketing Agency? | 6 Exciting Facts That Prove the Future Is Bright

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Is It Too Late To Start a Digital Marketing Agency? | 6 Exciting Facts That Prove the Future Is Bright

November 14, 2024

It's not too late to start your own digital marketing agency in 2024 because more businesses are going online. These agencies use various techniques like SEO and PPC to help clients get seen online. According to Internet Live Stats, 70,000 searches happen on Google every second. Businesses need digital marketing agencies to help them compete and dominate their niche.

Digital marketing has high potential and demand as businesses recognize its effectiveness. This leads to an increase in their online marketing spend. Tech Jury says digital ads increase brand awareness by 80%. Marketing Charts says 60% of all advertising will be digital and outpace offline advertising by Q4 of 2024. Businesses are seeing digital marketing's ability to connect with audiences, fueling service demand.

statista graph on growing digital marketing agencies

While demand for digital marketing is high, competition between agencies also grows. Statista's data shows the number of digital advertising agencies in the US doubling from 27.55K in 2019 to 54.22K in 2024. To stand out, this Reddit commenter suggests focusing on one digital marketing aspect. You must build expertise, workflows, and a team for each skill. Once set up, you can repeat this for other aspects like PPC or SMMA. This helps you slowly build your agency's offerings and reputation.

I've been making money online for over 10 years and run my own lead generation business. I understand the difficulties of gaining online traffic and bringing in business for clients. Today, I'm going to talk about digital marketing agencies and if it's too late to start them. I'll also discuss facts that prove digital marketing's profitable future, the best types to start, and other ways of making money online.

6 Exciting Facts That Prove It’s Not Too Late To Start a Digital Marketing Agency

Businesses prefer to invest in digital marketing: Businesses prefer to invest in digital marketing, as it's effective in improving their online presence. Web Strategies Inc. says businesses spend 72% of their marketing budget on digital marketing. WordStream says 27% of consumers immediately search for a business after seeing their ad. When done right, these agencies give businesses of all sizes a chance to reach audiences.
Paid ads are returning 2x what you spend: Despite high competition in digital marketing, paid ads return 2X of what you spend. According to Small Biz Genuis, strategies like PPC return $2 for every dollar spent. HubSpot says Facebook and Google ads have the highest ROIs. Doing this right lets you reach your client's audiences faster than traditional methods. To maximize your clients' return on ad spend (ROAS), consider these strategies:
1. Refine audience targeting
2. Optimize ad copy and creative
3. Implement effective landing pages
4. Continuously test and improve campaigns
New products and services enter the market constantly: Every day, new products and services enter the market, giving agencies more opportunities. Google says 15% of searches on its platform are brand new. However, Ahrefs says 96.55% of content on Google does not get seen. This drives demand for digital marketing agencies that can help businesses get seen online.
Digital marketers are in high demand: Digital marketers are in demand as online marketing gets more popular to reach audiences. Marketing Charts says by the end of 2024, 60% of ads will go digital as spending on offline ads declines. Forbes says digital marketing is the fastest growing and in-demand skill, with a growth of 6% rate up to 2032. This increasing demand shows a growing need for digital marketers and agencies. The skills you'll need to succeed in digital marketing include:
• Social media management
• Content creation
• SEO optimization
• Data analysis
• PPC advertising
Consumer trends change and open new marketing channels: As time goes on in digital marketing, so do trends and methods to connect with consumers evolve. This constant shift in consumer behavior forces digital marketers to innovate. This lets them find better ways to find, engage, and communicate with client audiences. You can capitalize on these changes by:
- Staying informed about platform updates
- Experimenting with new content formats
- Adapting strategies to match user preferences
Consumer trends vary by demographic. You must adjust your marketing strategy to engage your target audience. For example, a client hires your agency to target Gen Z audiences. Forbes says 46% of Gen Z use social media for searches and average 5 hours on Instagram weekly. A possible angle would be to leverage social media platforms to be where your audience is.
Digital marketing is growing: Growing demand and profitability make digital marketing rapidly grow. More businesses are going online and need experts to help establish their presence. PR Newswire predicts digital marketing will grow 9% yearly from 2020 to 2026. LocalIQ says 63% of businesses have increased their digital marketing budgets. This shows an upward trend that highlights the demand for digital marketing services.

At What Age Is It Too Late To Start Digital Marketing?

There is no age limit for starting a career in digital marketing. Use your age as an advantage by providing unique perspectives to your strategies. Many professionals have transitioned into this field later in life and found success. This To start your career in digital marketing:

Learn the basics through online courses
Build a portfolio by working on personal projects
Network with industry professionals
Stay updated on the latest trends and technologies

For example, Brian Dutter has worked for 40 years and started his digital marketing journey at 59. He was an operations manager for SERVPRO and a general manager for United Ground Express. Seeking work-life balance, he took courses that gave him SEO and PPC skills. Now, he works at a digital marketing agency, handling SEO and SEM for clients, and earns $50K yearly.

The saying, "Age is just a number," applies in digital marketing as well. Zippia says the average age of digital marketing specialists is 32. What matters most is being able to use your skills to push your client's marketing goals.

What Are the Best Types of Digital Marketing Agencies To Start Right Now?

Local lead generation agency: One of the best types of agencies to start now is a local lead generation agency. In local lead generation, you create niche websites that rank on search engines. You then sell vetted leads or rent out your sites to local businesses. Here are some benefits of local lead generation:
• Strong protection against AI disruption
• Targeted approach to reaching potential clients
• Ability to leverage local knowledge and connections
Local lead generation relies on local SEO, which targets smaller areas. Backlinko says 46% of all Google searches are for local services or products. LocalIQ says SMBs use 5%-10% of their revenue for digital marketing. Google's Search Generative Experience uses global data and does not affect local search. This means you'll encounter less competition and won't be hard-pressed to find leads for clients.
AI marketing agency: Another type of agency you can start is an AI marketing agency. These agencies can use AI tools to perform work and analyze data for clients faster than humans can. This lets them automate tasks and frees up time to improve marketing strategies. Some key AI applications in marketing include:
- Predictive analytics
- Chatbots for customer service
- Content generation
- Ad optimization
- Email marketing automation
By leveraging AI, your agency can make data-driven marketing decisions that engage audiences. Kibo Commerce says marketers who use AI increase their ROI by 70%. To emphasize AI's effectiveness, let's look at email marketing. LocalIQ says 41% of businesses use AI for their email campaigns. HubSpot says 95% of marketers claim generative AI is effective at making email copy. This shows AI's cost-efficiency and lets your agency provide value to clients faster.
TikTok marketing agency: Starting a TikTok marketing agency is a great way to leverage today's preference for short-form video content. Paid search channels like Google and Facebook ads are competitive and saturated. Its high ROI and effectiveness in reaching audiences. Many agencies use these platforms, and this will make it hard for newer agencies like you to compete.
TikTok offers fledgling agencies an alternative way to improve their clients' online presence. Despite TikTok being one of the world's most popular apps, it's an untapped marketing channel. Statista says users spend 23.3 hours monthly on TikTok. Social Sprout says only 26% of marketers advertise on TikTok. Your TikTok marketing agency could offer services like:
- TikTok Ads campaign management
- Influencer partnerships and collaborations
- Content creation and strategy
- TikTok Shop optimization
- Cross-platform marketing with Amazon
The recent introduction of TikTok Shop has further expanded opportunities for e-commerce brands. On August 9, 2024, Amazon, TikTok, and Pinterest partnered to streamline TikTok Shop. By linking their Amazon and TikTok accounts, users don't need to leave TikTok to make purchases. Statista says 71.2% of TikTok Shop users made purchases after seeing it on their feed. This further adds opportunities to new agencies and brands.

How To Start a Digital Marketing Agency With No Experience?

Creating a digital marketing agency with no experience is a high risk. Keep in mind that you are asking business owners to invest their money, time, and reputation in your agency. Digital marketing is a results-based industry. Without the skills and portfolio to show potential clients, it will be hard for you to get projects. Focus on learning services such as:

Search engine optimization (SEO)
Social media marketing
Content creation
Pay-per-click advertising
Email marketing

To start a digital marketing agency with no experience, you must first build up your skills through online courses and certifications. Doing so lets you gain the necessary skills, creativity, technical, and sales to operate in digital marketing.

Next, identify your target market and niche that you're knowledgeable about or passionate about. Doing so will help you find ways to connect with these audiences or problems to solve in the niche.

Then, you can start practicing your skills and gaining actual digital marketing experience. You can start as a freelancer or by offering your services to friends or local businesses. This lets you build a portfolio, get real-world experience, and get client testimonials that show your skills.

Next, invest in digital marketing tools that you'll use for your agency. This lets you streamline workflows and ensure quality outputs and efficiency.

Once those are ready, you can then start building your online presence and networking with potential clients. Doing so displays your skills and expertise online to potential clients.

Finally, you can start with smaller projects and expand your offerings as you get better in one area. This lets you slowly build your agency into a full-service digital marketing agency.

How to Package and Sell Digital Marketing Services for Beginners?

Beginners can package and sell digital marketing services by identifying core offerings. These may include:

Email marketing
Social media management
Content creation
Search engine optimization (SEO)
Pay-per-click (PPC) advertising

Then you set prices based on the market or create tiered packages to cater to different client needs and budgets. For example:

Basic: Social media management + email marketing
Standard: Basic + content creation
Premium: Standard + SEO + PPC

Pricing your packages competitively is crucial. Research market rates and factor in your time and expertise. Consider offering a streamlined sales process to help clients make quick, confident decisions. Here are some ways you can do to sell your services:

Build a professional website showcasing your skills and past work
Network at industry events and on social media platforms
Offer free consultations to potential clients
Use case studies to demonstrate your expertise and results

Remember, starting small is okay. You can begin with just a computer and an internet connection. As you gain experience and clients, you can expand your services and team.

Focus on delivering value to your clients. Always measure and report the results of your campaigns to build trust and keep customers.

Is It a Good Time To Start a Digital Marketing Agency?

Yes, it's a good time to start a digital marketing agency, as businesses and ads are going online. However, the internet is vast. Ahrefs says only 3.45% of content online gets organic traffic. Without a strategy, these businesses and ads will get lost in the void. This is where digital marketing agencies come in.

Remember that starting an agency requires more than just marketing knowledge. You'll need to develop business acumen, including:

Financial management
Client relationships
Project management
Sales and networking

These agencies use their skills to help clients reach their intended customers online. Local IQ says people who see relevant ads are 59% more likely to convert. Agencies use strategies like email campaigns, which boast a $36:$1 ROAS. This shows businesses that partner with the right agencies get better conversions and ROIs.

Conclusion: What Will Digital Marketing Look Like in 2030?

Digital marketing in 2030 will see an increase in other search methods and platforms. This will force marketers to other ways to achieve results for clients. For example, Google's Search Generative Experience will improve over time. This can reduce page traffic, as Google's AI can provide users with the answers they're looking for.

Statista says 60% of global web traffic comes from mobile devices. Backlinko says 30% of internet users between 16 and 64 use voice assistants weekly. To get ahead, marketers must shift their focus to mobile users and optimize for voice search.

Exciting tech developments are emerging for digital marketing. It may be harder for agencies to get the same results, engagement, and clients. If you're looking for a more stable way of making money online, try local lead generation.

Local lead generation is less competitive than digital marketing. This is because you'll target smaller locations and compete with businesses in that area for leads. Once your site ranks on Google and gets leads, you can sell those or rent your site out to local businesses. Each of these sites can earn up to $2,000 monthly. I have over 50 of these lead gen sites, and together, these earn over $52,000 a month in almost passive income.

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Ippei Kanehara

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$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.