How Do Digital Marketing Agencies Charge?
So many questions..
Let us begin with what is the price of digital marketing in Singapore?
In the age of social media and search engine, every business must embrace digital marketing so as not to be left behind. Digital marketing has proved to be essential with the rise of e-commerce and many new startups growing faster than a family-owned business that has been running for over 20 years. So, how much exactly does it cost to do digital marketing? What is the actual price and perhaps charges on digital marketing services in Singapore?
Well, below are the 2 common ways how agencies charge for their services. They are also a guide as to how agencies come up with their digital marketing prices. This is just a generic guide. Between different digital marketing agencies, there may be other components involved as well.
The breakdown are typically as follows:
1.A percentage of your total media buying budget.
Example: You have a digital marketing budget of $2000/month. The agency fees are somewhere between 20% – 25% of that amount. These will be the agency management fees. The rest 75% – 80% will be used to pay the platforms e.g. Facebook, Instagram, Google, etc..
This is the most basic form. As a business, what do you get by paying an agency this 20% – 25%?
The agency, being an experienced media buyer in Facebook Platform, they will be able to do a quicker split testing for your business and targeting for your Ads. They will ensure that they maximise your marketing objective and monitor your ads very closely. If there’s any issue for your Ad, like no being approved, or not responding or not performing, they will do something about it. At the end of the month, you will get a detailed report about what happened during the month.
Although there’s a guide of 20% – 25%, what if your marketing budget is only like $200? Well, it might still be possible but a good agency will tell you upfront if it is realistic to get a reasonable amount of results from that budget. Good agencies usually run a \n A/B Testing first as every business is unique and no 2 business is exactly the same.
2. A Fixed Fee.
To get the right Ad, a few components come into play. The media buying, targeting, copywriting and artwork (image or video). Generating really good copywriting and artwork is time-consuming and may require the agency and the business to go back and forth a few times to come to an agreement. This to and for involves man-hours. For this, an agency usually charges a separate fixed fee so that they can continue tweaking the artwork if the Ad is not performing up to expectations.
So, if you’d like the agency to take full responsibility for the Ad campaign, best to fully engage them. But if you’d like to save cost, simply connect with someone on Fiverr to do the artwork for you and pass it to the agency to run the Ad.
3. Social Media Account Management
Ads are one thing. But the social media accounts still need to be updated and managed. New followers want to see an active account, not a dead account but with Ads running around. So you will need to ensure at least a few posts a week to engage your audience and maintain relevance. This is usually a separate fee under content management.
To summarise the price of digital marketing in Singapore, generally fall into 3 main components.
1. To get a skilled person to just buy and run the ads for you via a certain platform and receive the monthly report,
2. To an expert to do point 1 and also come up with the artwork and copywriting for you,
3. To get an expert to do 1 + 2 and also come up with content to do postings to your social media accounts.
To do all 3, if an agency charges you anywhere between $1,500 – $3,000, it is considered really cheap. Just imagine, if you were to hire a junior digital marketing executive at $2,300 per month. On top of that, you still need to subscribe to online resources for this staff like adobe creative suite, shutterstock, analytics, etc.. Here in Singapore, there’s also another a employer contribution to CPF of 17%. You need to get equipment for the staff as well. Paying an agency $2,000 per month is definitely a steal!
So you now know how to go a-la-carte or to get a proper package instead. It is really in your hands to decide.