Cost-Benefit Analysis: Hiring a Digital Marketing Consultant 

In an increasingly digital world, brick-and-mortar businesses have had to quickly adapt to survive and thrive. Traditional marketing techniques are no longer enough to reach audiences effectively, leaving digital marketing as an essential strategy for any modern business aiming for growth. This is where the services of a digital marketing consultant come into play.

A digital marketing consultant—could be an individual or an agency—brings expertise in online marketing strategies and techniques that can help businesses navigate the complex digital marketing space. They can help craft unique marketing plans, implement effective strategies, and track the results of digital marketing campaigns to optimize return on investment (ROI).

Today, having an effective digital marketing strategy isn’t a ‘nice-to-have.’ It’s a ‘must-have’ for businesses seeking to secure a competitive edge. Whether you’re a startup looking to make a mark or an established organization aiming to scale new heights, the power of digital marketing cannot be underestimated. Here’s why:

• Affordable yet impactful: The cost-effectiveness of digital marketing is one of its most appealing benefits. Practices such as Search Engine Optimization (SEO) and content marketing require significantly less investment than traditional methods like TV ads or billboards. Furthermore, many strategies can be executed free of charge, while paid methods often provide an excellent ROI. This affordability, coupled with high potential reach, gives businesses, particularly small ones, an opportunity to compete on a larger scale without draining their budget.
• Enhances mobility and global reach: The rise of the internet era has obliterated geographical boundaries. Digital marketing lets you conduct operations from anywhere, enabling you to reach a global customer base quickly and efficiently. The ability to engage with customers and prospective clients on a global level amplifies the potential for business growth and expansion.
• Flexibility and personalization: Unlike its traditional counterpart, digital marketing offers flexibility and customization. You can design various campaigns to cater to diverse customer segments and set unique goals for each. This granular targeting improves engagement and conversion rates, ultimately boosting your business’s bottom line.
• Fuels business expansion: In the digital landscape, growing your business becomes seamless. Digital marketing provides an avenue for easy, instantaneous communication with customers around the world and quickly spreads information about new products or services, helping you tap into new markets and customer bases.
• Leverages multimedia: From social media platforms like LinkedIn, Facebook, Twitter, and YouTube to blogs and podcasts, digital marketing harnesses the power of various multimedia channels. This diverse range of platforms not only enables businesses to reach more people but also caters to different customer preferences, increasing overall engagement.
• Encourages interactivity: Digital marketing offers an interactive platform, allowing customers to engage directly with your business. This two-way communication builds trust, fosters relationships, and enhances customer loyalty.
• Effective tracking and insights: With sophisticated tools like Google Analytics, you can effectively track the performance of your campaigns. This data-driven approach provides valuable insights into customer behavior, enabling you to make informed decisions, optimize your strategy, and, ultimately, drive better results.
• Engages influencers: In the era of social media, influencers wield a significant amount of power. Digital marketing allows you to reach out to these influential figures, who can amplify your brand message, boost your credibility, and spread positive word-of-mouth.
• Enhances traditional print advertisements: Lastly, insights derived from digital marketing can improve your traditional marketing efforts. By analyzing online engagement and behavior, you can create more targeted and effective print advertisements, reinforcing your overall marketing strategy.

Navigating the world of digital marketing can be daunting, and without the right knowledge and experience, it’s easy to waste resources on ineffective strategies and not yield its benefits. This is where the expertise of a digital marketing consultant becomes invaluable. But how much will it cost your business? We’ll discuss this in the next section. 

A Look at the Cost of Hiring a Marketing Consulting Agency

Before we dive into the cost of hiring a marketing consulting agency, it is worth understanding the different pricing models that you can expect from a digital marketing consultant agency: 

1. Monthly retainer model: Here, businesses pay a fixed monthly fee to retain the services of a digital marketing provider. This pricing structure is akin to having an extended team of marketing experts at your disposal and is ideal for businesses that require ongoing, consistent marketing efforts. Benefits of this model include budget predictability and the ability to plan long-term strategies.
2. Hourly pricing model: The hourly pricing model charges for services rendered on an hourly basis. This model might be beneficial for businesses with ad-hoc needs, such as a one-time website audit, keyword research, or a specific SEO task. This model provides flexibility and allows businesses to adjust their requirements as needed. It can also be an economical choice for small tasks or projects with a clear, limited scope. 
3. Project-based pricing model: With this pricing model, businesses pay a flat rate to complete a specific project. The cost is typically determined based on the estimated hours and resources needed to complete the project. This model is ideal for one-off projects, such as website redesigns, launching a new marketing campaign, or creating a content strategy. It provides cost certainty as businesses know exactly what they’ll pay upfront. However, any changes or additions to the project scope could result in extra charges, so it’s crucial to have a clear project outline from the outset.

So what costs can a business expect when looking to hire a digital marketing consultant? Costs vary depending on the particular services you’re interested in, and they can fluctuate significantly. According to WebFX, the costs of different services that a business can expect to pay are:

• Search Engine Optimization (SEO): $1,500 to $5,000 per month 
• Pay-Per-Click (PPC) advertising: $9,000 to $10,000 or 5-20% of total monthly ad spend
• Email marketing: $300 to $5,000 per month, or, alternatively, $0.1 to $0.5 per email
• Social media marketing: $900 to $20,000 per month, depending on the number of platforms targeted, the complexity of the campaigns, and the level of audience engagement required
• Content marketing: $2,000 to $10,000 per month, based on the volume and type of content (blogs, infographics, videos, etc.) produced
• Website copywriting: $25 to $25,000 per page, depending on the expertise of the copywriter, the complexity and length of the content, and the level of research required

Note that these values are merely approximations and not absolute values. A business should consult with its digital marketing consultant, as their rates can vary from location to location.

Contact us here if you would like to find the best fractional CMO for your business.

How a Director of Marketing Should Calculate the ROI of Consultancy Services

When a business’ director of marketing invests in hiring a digital marketing consultant, they should know how to evaluate the return on investment (ROI). This measurement allows you to compare the cost of a digital marketing agency’s services against the increase in business profits over a set period. 

But how exactly can a business owner evaluate their digital marketing ROI effectively? Here are some key points to consider:

1. Comparing Costs to Increased Profits

The simplest way to gauge the effectiveness of your digital marketing efforts is by comparing the cost of the marketing consulting agency‘s services to the increase in your business profits. If your profits have grown more than the cost of services, it’s a clear indication that your investment in digital marketing is paying off.

2. Evaluating the Impact of Different Packages

The choice of a digital marketing consulting package can significantly impact your ROI. Different packages may yield varying levels of immediate impact on ROI. Regardless of the package chosen, it should include detailed statistics and analysis to aid in measuring the ROI effectively.

3. Utilizing Detailed Statistics and Analytics

Statistics and analytics offer a comprehensive analysis of total ROI. They can track where new sales and revenue are originating, monitor traffic to your company website, and keep an eye on conversion rates. This invaluable data helps you understand the effectiveness of digital marketing consulting services and adjust your strategies as needed.

4. Considering Both Short-Term and Long-Term ROI

When calculating ROI, it’s essential to consider both short-term and long-term results. Short-term ROI sheds light on profitability in the immediate aftermath of hiring a digital marketing consultant. In contrast, long-term ROI ensures that the strategies implemented are resulting in sustained growth. Different services may impact short-term and long-term ROI differently, so be sure to take this into account when measuring your success.

5. Leveraging ROI Calculators

Some digital marketing consulting agencies provide ROI calculators, tools that can help you pinpoint the sources of new revenue and identify which digital marketing strategies have been most effective in increasing ROI. This can be a particularly useful resource when evaluating the impact of your digital marketing efforts.

6. Using a Combination of Approaches

A multi-faceted approach is often the most effective way to evaluate ROI. This could include comparing costs to increased profits, assessing the impact of different digital marketing consulting packages, conducting detailed statistical analysis, and considering both short-term and long-term ROI. By adopting multiple methods, you’ll be able to gain a comprehensive view of your digital marketing ROI.

How To Find the Best Digital Marketing Consultant for Your Business

When it comes to digital marketing, there is no one-size-fits-all solution. Each business has its own unique goals, audience, and brand voice. This is why finding the right digital marketing consultant is crucial to the success of your online strategy. 

Some key factors to consider when seeking the perfect fit for your business include:

• Consider your goals
• Set a budget
• Research the different options
• Analyze their work portfolio, reviews, and references
• Choose more than one prospect
• Ask as many questions as you can

Remember, choosing a digital marketing consultant is an important decision that can significantly impact your business. Take the time to do your research, ask the right questions, and ensure the consultant you choose aligns well with your business goals and needs. 

The right consultant will not just be a service provider but a partner who contributes to the growth and success of your business.

For more on recent trends in digital marketing, read our blog and talk to us if you are considering hiring a fractional CMO.