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To Outsource Your Marketing or Not to Outsource: What’s Better for your Business? To Outsource Your Marketing or Not to Outsource: What’s Better for your Business? To Outsource Your Marketing or Not to Outsource: What’s Better for your Business? Paradigm Marketing and Design
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Marketing Tips, Insights, and Trends

To Outsource Your Marketing or Not to Outsource: What’s Better for your Business?

Author: Alexa Rose Spear Category: B2B, B2C, E-commerce & Retail, Healthcare & Life Science, Industry, Marketing, Membership Marketing, Nonprofit, Technology & SAAS Date: August 30, 2023 Date Updated: March 27, 2024

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The last few years have been challenging for business leaders – inflation is high, a recession may be looming, and customer demands continue to evolve amid a constantly changing environment. In this climate, it is no wonder businesses are struggling to keep pace with the changing landscape and remain competitive. According to Forrester’s research of 154 marketing leaders, two-thirds are facing difficulties responding to competitive pressure in the current economic environment, and 62% say a lack of desired skills remains a core concern. (1)

Add in increasing uncertainty and staffing constraints, and businesses are feeling the squeeze from every angle. And while there’s not much you can do about the economy, ensuring your business has the needed resources and expertise to thrive is within your control. Like many businesses, you can turn to outsourced marketing service partners to fill some of the gaps.

What is an Outsourced Marketing Company and Why Do Businesses Hire Them?

Working with an outsourced marketing firm or outsourced marketing agency means hiring external partners to handle some or all aspects of your company’s marketing efforts. This can include tasks such as creating and executing marketing strategy, social media management, search engine optimization (SEO), campaign management, branding, website development, public relations, and content creation, among others.

It’s a popular choice for businesses looking for high-quality, cost-efficient marketing support. Research conducted on 100 small- and medium-sized businesses has shown that a significant proportion, nearly 60%, work with a third-party marketing agency to some extent – and 6% completely outsource their marketing function to such agencies. (2)

How Does Outsourcing Your Marketing Work?

One way to help your business thrive is to invest in a solid marketing infrastructure. According to Bain & Company and Google’s Measurement Maturity Survey, the top 100 businesses with the most mature marketing programs are four times more likely to exceed business goals, increase market share, and boost revenue than the 100 least mature marketers. (3) However, it is not always possible to host those capabilities in-house. With increasing uncertainty and staffing constraints, more businesses are turning to outsourced marketing services. According to Clutch research, digital marketing is the third most common job function that businesses outsource. (4)

To support business growth and stay competitive in your industry, you need a robust marketing infrastructure that operates with speed, innovation, and agility. Keeping up with the latest technologies, mediums, and platforms can be overwhelming, and the costs associated with maintaining an in-house marketing team have skyrocketed.

A well-defined marketing infrastructure like one created by an expert outsourced marketing agency ensures funding, time, and effort are each allocated in a way that optimizes ROI to support revenue growth.

When to Outsource Your Marketing

In today’s constantly changing environment, businesses are running up against a series of challenges. If you are feeling that pressure, you are in good company. Under the circumstances, you probably can’t afford to pass up opportunities to boost your revenue – opportunities like outsourcing your marketing.

When Not to Outsource Your Marketing

Despite the growing trend towards outsourcing, more than 40% of businesses do not outsource at all, for a variety of reasons, including concerns over the potential cost of outsourced marketing, loss of control, and perceived communication barriers. Some business owners have had negative past experiences with outsourcing, while others believe that an outside marketer may not have the level of focus required for their needs. (5)

While many of these thoughts may stem from incorrect assumptions, there are some good reasons to avoid it if you are considering outsourcing your marketing, including:

  • You lack resources to manage the outsourced partner. Outsourcing your marketing will remove a heavy burden on your team and place it on skilled professionals who can lighten your load. But no one can, or should, work in a vacuum. You will likely need to be available for regular check-ins, be able to provide needed information, and approve their efforts. The time commitment you need to manage your outsourced service providers depends on your relationship with them, but no agency can offer you a totally hands-off approach. And you should be skeptical of any firm that tells you they can.
  • You feel passionate about keeping it in-house. While some company leaders would rather focus on other facets of their business, others love being heavily involved in marketing. If you love doing it, and you have a system in place that works for your company, there’s no reason to interrupt that flow by outsourcing your marketing. This may be especially true if you are looking to outsource your marketing for your small business.
  • The partner isn’t a good culture fit. Marketing is both an art and a science, and the art part of it makes it highly subjective. Additionally, no outsourced digital or print marketing services partner is going to know your company as well as you do, especially when your relationship is new. As good as their reputation may be, if an agency is not the right fit, it’s not the right fit.

Six Benefits of Outsourcing Your Marketing

Here are six critical reasons why outsourcing your marketing could be the best option for your business:

  1. It saves costs.

Hiring an in-house team of marketing experts can be costly, and it can be difficult to find high-quality talent in different areas of marketing. A marketing agency will have a team of experts with varied specialties including digital marketing specialists, project managers, a web team, content writers, graphic designers, social media managers, a Chief Marketing Officer, and more. The average cost to hire a web developer alone could be as much as $100,000 a year. Hiring a team of in-house experts capable of providing your business with the top skills you need to be competitive can cost upwards of $600,000 a year.

Companies who outsource their marketing can save an average of 17 to 20% compared to the cost of maintaining an in-house marketing team.

  1. It helps save time and money on hiring.

Employee turnover affects businesses of all sizes in every industry, costing employers millions of dollars in onboarding costs and time allocated to training new employees. When an employee leaves a job, it costs their former employer one and a half times that employee’s salary. This is on top of the time management invested to recruit and onboard new employees and the added stress placed on remaining employees managing the extra workload.

According to Business Daily, “Hiring one employee costs approximately $4,000 and takes an average of 52 days.” Training that employee can take one to three months, or more! Working with an agency, you do not need to worry about employee turnover or unemployment insurance, and you can fire an agency at any time – no performance plans or documentation required.

In addition, hiring an agency to function as an outsourced team can cost less than the annual salary of an in-house team member and has many other benefits you might not think of.

  1. It gives you the ability to focus on your business.

It takes a team of experts who excel in a myriad of strategies and with comprehensive skills to ensure your marketing efforts are delivering an ROI. And if you (or your leadership) are spending time on marketing activities and managing a team, you will have less time to focus on other areas of your business.

  1. It gives you a team of experts.

When you hire in-house, those team members need guidance and may expect you to have the answers. When you outsource, you get an entire team of experts who can holistically manage your marketing needs and employ strategy for business growth. They come to you with the answers, ideas, and suggestions.

  1. It provides insight into trends and resources.

To stay competitive and engaged with your customers in marketing, you need to be on top of the trends and access insight relevant to your sector. Digital agencies have teams whose jobs revolve around staying on top of these.

  1. It offers outside perspective.

Internal team members may allow their connection to the business to negatively impact their ability to make the best decisions for the company. You may be unable to see things that are not working or have biases that are hurting your marketing efforts.

Outside agencies offer fresh perspective. They perform audits to find company weaknesses and will develop strategy and recommendations to help you meet your business goals. They are also aware of best practices across multiple organizations and know what works.

When You Outsource Your Marketing It Saves You Money and Increases Revenue

Outsourcing print and digital marketing services helps your bottom line in many ways, including:

  • Having flexibility to scale. By outsourcing your marketing, you get access to flexible marketing services and expertise that can be adjusted to meet the changing needs of your business, leaving your staff free to focus on their core competencies to power business growth. For some smaller businesses, a comprehensive in-house marketing team may not be a viable option, so they hire one person to do it all. That one person can’t be an expert in every aspect of marketing, and you may not need that level of marketing expertise all the time. But as you grow, your needs will shift and evolve. By outsourcing your marketing department, you can selectively utilize additional marketing resources and expertise as needed to support scalability without adding long-term in-house resources.
  • Getting a streamlined marketing infrastructure. Outsourced marketing services give you access to expertise in specialized marketing tools and emerging technologies that automate and streamline marketing processes and empower sales and marketing teams to propel their company to success. Developing the needed infrastructure and implementing these systems is a multifaceted endeavor that requires a strategic outlook, extensive industry knowledge, technical expertise, and relevant experience – competencies most companies don’t have in-house. According to Forrester, finding talent with skills and knowledge in martech, data analytics, and marketing operations remains a core challenge. (6)  An outsourced marketing company allows you to tap into this expertise for an infinitely more efficient and effective marketing program that leverages data and automation to power success. In fact, businesses that have embraced marketing automation as part of their marketing infrastructure have reported a 14.5% boost in sales productivity and a significant edge over their competitors, with as many as 63% outperforming their peers. (7)
  • Improving your marketing performance. Navigating the complex and ever-changing marketing landscape can be overwhelming and time-consuming for businesses. But failing to keep up can result in missed opportunities and lost sales. Marketing partners, especially those that specialize in outsourced digital marketing services, prioritize knowing what’s trending, what’s working, what’s not, and which strategies and tactics are resonating with audiences. They are also uniquely equipped to track progress on marketing initiatives and adjust as needed to ensure ROI. Outsourcing your marketing means you can rest assured that your marketing needs are being taken care of, your KPIs are met, and you are getting the results you desire.
  • Getting data-backed insights. While creativity is essential in developing engaging campaigns, data analytics are equally important in determining the campaign’s effectiveness and ROI. The two sides of the brain, creativity and data analysis, often require different sets of skills and expertise. Outsourcing your marketing brings the creative and data masterminds together to ensure that the marketing programs are not only innovative, but also based on solid metrics and insights.

Hire an Outsourced Marketing Company and Better Your Business Today

Outsourcing your marketing efforts to a third-party partner can help you address these challenges. By partnering with Paradigm, you gain access to a comprehensive and fully operational team right from the outset, ready to boost your marketing efforts cost-effectively and efficiently. As a full-service marketing, design, and workflow solutions agency, we combine creativity, technology, and strategy with data-backed insights and a fierce drive for flawless execution to help your business grow and maximize profit potential. Ready to elevate your marketing to new heights with the help of our marketing consulting strategy? Contact us to schedule a strategy session with one of our experts.

(1) https://www.marketingcharts.com/business-of-marketing-228378

(2) https://static.semrush.com/blog/uploads/files/eb/60/eb60952e892fa6bdbd09a4882aa875

(3) https://www.thinkwithgoogle.com/marketing-strategies/data-and-measurement/measurement-data-and-statistics/

(4) https://clutch.co/bpo/virtual-assistants/resources/small-business-outsourcing-statistics

(5) https://static.semrush.com/blog/uploads/files/eb/60/eb60952e892fa6bdbd09a4882aa875

(6) https://www.marketingcharts.com/customer-centric/analytics-automated-and-martech-119220

(7) https://findstack.com/resources/marketing-automation-statistics/

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