Here is how to start an AI marketing agency:
- Learn the essential AI skills
- Understand the different marketing AI
- Choose a sector that needs AI marketing
- Research the target market’s needs
- Navigate the legal structure and compliance
- Create a detailed financial plan
- Develop a strong brand and marketing strategy
- Analyze competitors
- Build a competent team
- Create an AI toolkit
- Invest in your team
- Establish strategic partnerships
- Create a strong online presence
- Offer pilot programs and free consultations
- Deliver exceptional service
- Stay updated on AI marketing trends
To start an AI agency, you need to create a detailed business plan. It should include the type of AI marketing you offer, what sector you’ll be serving, your target market, financial plan, and marketing strategy. You should also learn all you can about AI, market needs, legal compliance, and competitors. This may sound very basic and generic. However, company economics research saw that a thorough business plan is 152% more likely to launch. Plus, it helps an agency grow 30% faster as you’ll know what to do to succeed.
Starting an AI marketing agency is a great idea in 2024. A MailChimp study found that 88% of marketers say AI is essential to stay competitive and meet customer expectations. Another study by Statista saw 26% of chatbot marketing increased leads by 10-20%. The bottom line is that AI is the future.
If AI is the future, then business owners can do their own marketing and won’t need an agency? According to IBM, 33% of business owners find it difficult to adopt AI into their marketing because of limited skills. Moreover, these owners are busy enough - they may not want to do their own AI marketing work. Here are what some users from Reddit have to say about this:
One AI marketing company that proves this business model is thriving is WEBITMD. Founded in 2008, this company started as a digital marketing agency. But recently, Mattan Danino, the owner, implemented AI-powered messaging, creative branding, web design, content marketing, etc… Back then, WEBITMD just served in San Diego and Los Angeles. Today, they have clients all over the world, from New York to London.
However, starting an AI marketing agency is not a walk in the park. For one, there’s a lot of planning, learning, and investing. There’s also a lot of competition out there as more and more marketing agencies are turning to AI. To succeed, you’ll have to find a unique angle and be the best at it. You need to be determined and persistent. Here’s what one Redditor has to say:
In this article, we’re going to walk you through the 16 steps on how to start an AI marketing agency. Whether you have a marketing agency and want to switch to AI or start from scratch, we’ll help you create the perfect business plan for success.
Step 1. Learn the Essential AI Skills
Learning the essential AI skills, such as programming and analysis, is crucial as it’s the foundation of your whole business. It will help you develop effective AI-driven marketing strategies and deliver high-quality services. Give yourself a few months to learn all you need to know, including:
- AI tools and how to implement them
- How to use AI with data science and analytics
- Machine learning and programming
- Marketing automation platforms
- Marketing fundamentals
To start AI marketing, take online courses, attend workshops, or get certificates. Coursera, Udemy, and edX are great platforms to find online courses. To get you started on your AI marketing mastery, you can check out these courses:
Step 2. Understand the Different Marketing AI
Understanding the different marketing AI can help you choose which services to offer. You’ll also be able to center your skill learning and business planning to specific areas. To use AI for digital marketing, you can implement:
You can offer different AI marketing agency services. However, for startups, it’s best to stick to one and focus on that. This is so you can develop specialized knowledge that can set you apart from competitors. It also allows you to create more consistent and high-quality work. Once you master that, you can branch out to other services.
Step 3. Choose a Sector That Needs AI Marketing
Choosing a sector that needs AI marketing is highly important for the success of your agency. If you pick an industry with little to no use for AI marketing, you won’t be able to find many clients. Plus, it's easier to convince clients to get your services if they can benefit greatly from it. According to Spiceworks, the top industries that can rely on AI include:
Healthcare
Customer service and experience
Banking, financial services, and insurance
Logistics
Retail, especially e-commerce
Cybersecurity
Marketing
Tech startups
Travel and hospitality
Media and entertainment
Besides that, you need to break down the market. Determine who you want to offer your AI marketing services to. It can be small businesses, large enterprises, specific departments, or freelancers. This targeted approach will help you during your research.
Step 4. Research the Target Market’s AI Needs
Researching the target market’s AI needs will help you tailor your services to meet specific demands. Adeel Ahmad, a freelance developer, saw success with this. He found that more and more businesses want chatbots to improve customer service. So he decided to study how to integrate AI chatbots. Now, Ahmad boasts more than 600 accomplished projects for his clients. Here is how you can do your research:
Step 5. Navigate the Legal Structure and Compliance of AI Marketing
Navigating the legal structure and compliance of AI marketing will ensure that your agency operates within the law. Understand the policies, rules, and processes that guide the development and use of AI. To make it simple for you, there are 3 things to keep in mind:
Ethical use. The use of AI should be fair and shouldn’t be used to discriminate
Transparency. Be clear about how AI systems work and make decisions
Accountability. There should be someone responsible if things go wrong with AI
However, there are many more compliances and ethical standards that each industry, city, or country has. This is why the best advice is to get a legal team or experts as early as possible. Let them help you navigate the legal side of starting a marketing agency with AI.
Step 6. Create a Detailed AI Marketing Agency Financial Plan
Creating a detailed AI marketing agency financial plan is crucial. This is because you need an accurate forecast of how much you’ll need to get started. This can also reduce financial risks and attract potential investors. Here is what to include in your financial plan:
AI is expensive to run. This is because you’ll have to spend on development, hardware, software, data acquisition, and maintenance. According to WebFX, AI development and rollout can cost between $6,000 to $300,000. If you’re hiring workers, the average salary of a data scientist is $123,198 a year. Meanwhile, machine learning engineers in the USA earn an average of $160,156. However, you can leverage cost-effective solutions. This includes cloud-based resources and pre-built AI tools. Pre-made chatbots cost $40,000 a year. Carefully planning for these expenses can maximize ROI.
Step 7. Develop a Strong AI Brand and Marketing Strategy
Developing a strong AI brand and marketing strategy is what can get you ahead of the competition. Remember, competition is going to be tough. You’ll want your agency to really stand out. To design an AI marketing strategy, you should:
GumGum, a contextual intelligence company, markets to clients by promising to place ads when it matters most. GumGum clients can deliver the right ad at the right moment - when people want it most. Check out how they advertise their services:
Step 8. Analyze AI Marketing Agency Competitors
Analyzing AI marketing agency competitors will help you identify the gaps in the market and refine your own strategy. The first thing to do is identify your competitors. These are the ones related to the AI solutions or services you offer. The popular AI marketing companies are:
Single Grain - uses AI to generate content, SEO, and more
Pecan AI - uses AI to predict analytics to help businesses make more informed decisions
Thrive Digital - uses AI and machine learning to grab lots of data and interpret it better and faster
Oolo AI - uses AI to provide excellent customer service for businesses
Brave Bison - uses AI to grow a business’ online presence
Appier - uses AI to optimize marketing campaigns, customer experiences, and overall operations
NoGood - uses AI to grow an online presence through SEO, PPC, content marketing, and email marketing
When you have your list of competitors, you’ll need to gather as much information as you can about them. This includes website analysis, content audit, social media presence, etc… You can also check what solutions or services they lack, so you can offer it to your potential clients. It’s a good idea to check out their marketing strategies and their performance, too.
Step 9. Build a Competent AI Marketing Team
Building a competent AI marketing team is what will keep your agency going. This is because they will provide the necessary skills and expertise. Hire a team that can utilize AI technologies, improve marketing, and adapt to market demands. Here are some of the initial team members that you’ll need to get started:
AI or machine learning engineer
Data scientist
Digital marketing specialist
AI product manager
Content strategist/writer
UX/UI designer
Sales and business development manager
IT support specialists
Of course, you can start solo if you know how to operate and manage your AI solution or service and business. However, it’s always best to have a team to lessen your burden. If you can’t afford a full team yet, start solo and gradually bring on team members in order of importance. So if you’re struggling with marketing, you can bring in a marketing strategist first. One great example of this is Julia A, founder of Jus Agency. As a solo digital marketer, she advertised her services on Fiverr. When she had enough clients, she then went on to hire a team and created Jus Agency.
Step 10. Create an AI Toolkit
Creating an AI toolkit can streamline your operations and enhance efficiency. With a toolkit, you can centralize resources, have a consistent workflow, simplify integration, and much more. Your kit can include tools that automatically develop, implement, and manage AI. For example, Python will interpret programming language to make it simple and readable. HubSpot Marketing Hub can be used for marketing automation. Here are other key tools you can include in your kit:
Google Analytics to analyze web analytics
Chatfuel and Grammarly to create and improve AI-driven content
AI Pitchdeck Building Software to create a compelling pitch to raise money for your agency
AI website builder to create your website
AI SEO tool to rank your website in Google search engine results page (SERP)
AI graphic design tools to create logos or flyers for your clients
AI social media marketing to write your social media posts
Step 11. Invest in Your AI Marketing Team
Investing in your AI marketing team can drive innovation and improve campaigns. Remember, your team is the center of your success. If you invest in them, your agency will gain a competitive edge and see more growth. Here are some ways to invest in your AI marketing team:
Step 12. Establish Strategic AI Marketing Partnerships
Establishing strategic AI marketing partnerships can expand your agency and its reach. You’ll have access to advanced technologies and expertise that may not be available to you. For example, an AI-driven analytics firm can provide deeper insights into consumer behavior. With this, you’ll be able to make more targeted and effective marketing campaigns for your client.
Besides that, you can tap into your partner’s networks and customer base. Plus, these partnerships often come with shared resources and collaborative opportunities. With both your strengths, you can offer a more comprehensive suite of AI marketing services. Some of the partnerships you can consider are:
AI analytic firms
AI-driven marketing platforms
CRM solutions providers
Content generation tools
Customer service AI
Predictive analytics companies
Ad tech firms
Innovative labs and startups
Once you identify your needs, you can seek out a potential partner to work with. Just make sure their technology is compatible with your existing systems. You can find this out by requesting demos and trials before coming to an agreement. It’s also very important to negotiate terms and agreements. This includes data sharing, roles, responsibilities, intellectual property rights, etc…
Step 13. Create a Strong Online Presence for Your AI Marketing Agency
Creating a strong online presence for your AI marketing agency can do two things for you. For one, it will help you reach more clients. A Salesforce survey saw 85% of people do online research before buying a product or hiring a service. A strong online presence also gives a clear statement about your marketing capabilities. If you can effectively market your agency, potential clients will have confidence that you can do the same for their businesses. Here is how to boost your online presence:
The Accion Opportunity Fund provides a graph to help you pick a social media platform to focus on:
Step 14. Offer AI Marketing Pilot Programs and Free Consultations
Offering AI marketing pilot programs or free consultations will give potential clients a taste of your agency. Remember, people won’t just trust your promises because you said so. They will want some proof that you’re good at what you do. So why not give them a sneak peek into your AI solutions or services before they commit? If satisfied, they will be willing to continue and pay for it.
Pilot programs are best if you’re testing out new technologies. You can select 10-20 people to try it out and give their feedback. This will help you see what’s good and what needs improvement. For free consultations, you can help business owners see where or why they need AI marketing. You can then convince them that your AI marketing agency is the perfect solution.
However, you should know that both of these require careful planning. You need to come up with a strategy on how to implement this without wasting your time, money, or other resources.
Step 15. Deliver Exceptional AI Marketing Services
Delivering exceptional AI marketing services is the key to success. Even if you only have a few clients, an AI marketing solution or service that works will have them come back. Plus, they will be more than willing to leave positive reviews and recommend your agency. In turn, that can attract more clients and more revenue. To make sure you deliver only the best AI marketing, here are some tips:
Step 16. Stay Updated on AI Marketing Trends
Staying updated on AI marketing trends is crucial to maintain a competitive edge. AI technology is advancing at an incredible pace. If you’re not keeping up with the latest developments and trends, you risk being left behind. For example, customer expectations are increasing as AI becomes more robust. If you’re not able to provide the most robust solution or service, you’ll struggle to retain or attract clients. Here are some ways to keep up:
Read industry blogs or newsletters
Attend relevant conferences or webinars
Follow AI thought leaders or influencers
Join online communities and forums
Read AI books and research papers
Take online courses and training programs
Monitor industry reports and predictions
Network with AI marketers and professionals
Experiment with AI tools and technologies
Stay up-to-date with industry news and press releases
The latest trends in AI marketing are centered around Personalization 2.0. This allows marketers to use AI to create highly personalized interactions with customers. It takes into account factors like customer behavior, emotion, preferences, contextual data, etc… Jay Prajapat, a digital marketer, says that this is the “era of hyper-personalization”.
What Is AI Marketing?
AI marketing is the use of artificial intelligence (AI) and machine learning (ML) to automate, optimize, and personalize marketing processes, strategies, and interactions. AI marketing agencies work by offering these advanced technologies for effective marketing campaigns. Here is what these agencies can offer:
Are There Any Courses About AI Marketing Agencies?
Deal.ai’s AI Marketing Agency Training
Deal.ai’s Marketing Agency Training by Alex Mehr teaches you the ins and outs of starting an AI marketing agency. You’ll learn how to create content with AI, find clients, and automate tasks. You’ll also learn about Deal.ai’s proprietary software. Besides that, you’ll get your own account with AI Marketing Academy and gain entry to a members’ community. The best part is that it just costs $97. Or, you can pay a $69 monthly subscription.
What Are the Challenges of Starting an AI Marketing Agency?
Conclusion: Is an AI Marketing Agency Worth It?
An AI marketing agency is worth it if you have the resources and put in the necessary efforts. The AI marketing business has some big numbers. In 2024, the market size reached $10.4B. If you know how to start and grow your agency, you can earn a revenue of $6M a year. This means you can easily get back your initial investment. Plus, many business owners are seeing the need for AI marketing. They will always need someone to do the tasks for them.
If AI marketing is too expensive or technical, consider local lead generation instead. This is a much simpler digital marketing business model. Local lead generation is creating, ranking, and renting service websites. The initial investment is small - it will cost you $25 to $100 to create a basic website. From there, you can use local SEO strategies to rank it. Once ranked, it will be easy to find local businesses willing to rent the website. With local lead generation, you can earn a streamlined revenue of $50,000 a month without much effort.
