In 2019, HubSpot reported that nearly two-thirds of business to business (B2B) companies outsource a portion of their marketing. It’s no surprise to those that are paying attention that outsourced marketing is becoming increasingly popular because it’s a cost-effective alternative to hiring or creating an in-house marketing team.
In this article, we will look at what outsourced marketing entails and why it’s quickly becoming the preferred option for many businesses around the world.
What does it mean to outsource? Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally. In a 2020 global outsourcing survey conducted by Deloitte, over 70% of organisations surveyed stated that outsourcing was a cost-cutting tool. The reason most small businesses outsource is to increase efficiency and free up employees for other, more urgent tasks.
Marketing today is drastically more technical than before due to the rapid advancement of technology. Consumer attention is increasingly leaving traditional channels and moving online. As a result, digital marketing has become essential to any forward-thinking organisations overall marketing plans. Digital marketing done correctly can have a profound impact on a business. Digital marketing requires a lot of technical skills and is constantly evolving.
This is why digital marketing functions are one of the most popular tasks to be outsourced. Organisations of all sizes are coming to realise that it may be beneficial for them to hire a professional marketing agency rather than hiring in-house marketing employees.
In this article, we will answer the most commonly asked questions about outsourced marketing.
What Is Outsourced Marketing?
Outsourced Marketing is the practice of contracting an organisations marketing functions to an outside firm. Some organisations may choose to outsource all of their marketing tasks to a third-party while other organisations may choose to only outsource some of their marketing tasks. An outsourced marketing team can be used in addition to an in-house team, or it could replace the need for in-house staff entirely.
There are numerous reasons businesses decide to outsource their marketing. For most businesses, it comes down to cost and time management. Using an outsourced team can cost less and deliver a better return on investment. Outsourcing also generally gives businesses access to a wider pool of expertise.
What Are The Benefits Of Outsourced Marketing?
Outsourced marketing is common in professional service firms of all sizes and across all industries. As mentioned above, it’s common for a business to business firm to outsource marketing. It’s becoming more popular for business to consumer firms to outsource marketing also. Even larger firms that may have a marketing department still often outsource some marketing functions to professional marketing agencies.
We will list the most common reasons firms decide to outsource marketing functions below;
- Time Management – A firm can only spend so much time on marketing tasks. Firms often choose to outsource marketing because it allows them to spend time and energy on more urgent tasks.
- Return On Investment – Marketing in the digital age is constantly evolving and becoming more technical. As the need for specialised marketers increases, many firms are realising that outsourcing marketing to a professional marketing agency is cheaper than building a marketing department.
- Professionals With Experience – Firms understand that outsourcing marketing functions to professionals with experience can be both cheaper, and return higher-quality results. Marketing agencies will often have teams who are capable of completing many different digital marketing tasks such as SEO, Web design etc.
- Accountability – Firms want to know if their marketing attempts are working. By contracting a marketing firm, a firm can expect to receive frequent reports. Modern analytics and marketing automation tools allow firms to see exactly what’s working and what’s not. Marketing agencies will naturally want to keep clients happy, as a result, they will make sure that the marketing efforts they are putting into your business will return results.
When Should A Organisation Outsource Marketing?
Many businesses today are unsure whether outsourcing marketing functions is right for them. If an organisation finds itself in any of the following situations, it should consider outsourcing its marketing activities to an external agency;
- Slow Revenue Growth – If an organisation is concerned about its previous and projected revenue growth, it should consider investing in professional marketing services. Marketing can result in increased brand awareness, increased leads and ultimately, increased sales.
- Marketing Team Is Overworked – If an organisations marketing team is struggling to stay on top of all its responsibilities, it may be time to outsource some marketing functions to a professional marketing agency.
- Lack of Expertise – The most effective digital marketing trends are constantly changing. In order to stay up to date with the latest and greatest marketing tactics and strategies, employees and teams require constant education and practice. Marketing agencies specialise in marketing and other IT skills. Outsourcing to specialists who are constantly putting their skills to use will allow your business to turn its attention to more urgent tasks.
- No Strategy/Vision – Owners, directors and managers in every organisation should carefully examine their marketing strategy. What are its goals and what is being done to achieve this goal? If an organisation has no clear goal or strategy, it should strongly consider outsourcing its marketing.
What Are The Disadvantages of Outsourced Marketing?
Although outsourcing marketing functions to a professional marketing agency can be beneficial for many organisations, it may not be the right decision for all organisations.
When an organisation outsources marketing functions to a marketing agency, they lose some control. Mainly, the organisation loses control to monitor how the tasks are completed and measured. This is why it’s extremely important that any organisation that chooses to outsource marketing should know and trust the marketing agency they are hiring.
We recommend that every business thoroughly research marketing agencies before entering any agreements. Make sure you look for detailed reports that prove their marketing has positively impacted their clients. Check for portfolios, previous work and reviews.
What Marketing Functions Can Be Outsourced?
If an organisation decides to outsource marketing to a professional marketing agency, it must carefully check that the marketing agency can provide those exact services. The services provided by one marketing agency could be different to the services offered by another.
At VIMAR Digital Marketing, we are a full-stack agency. We offer a wide variety of digital marketing services.
VIMAR offer custom packages depending on your businesses needs. If for example, you already have a website and brand and you’re more focused on increasing traffic to your website, then perhaps outsourcing SEO, content production and social media management may be better suited for your business.
Outsourced marketing is simply the process of hiring a third-party to complete marketing tasks. The digital marketing space is young. Early adopters of digital marketing have already made immense gains. The return on investment businesses get from digital marketing is often greater than traditional marketing. Did you know businesses in Ireland can get €2500 off Digital Marketing services from the Local Enterprise Office?
To learn more about digital marketing and if it’s right for your business, contact VIMAR by email [email protected] or call 057 850 9060 for a free consultation.