How do marketing agencies work?
What type of people do they have on their team? What do they do? How do they research for their clients marketing needs? What are some success stories? What are some of the pain points? Any insight on how agencies gather information for prospective clients? How do they increase their revenue?
1. What type of people do they have on their team?
Depending on the size and breadth of the agency you have corporate management, HR, accounting, account executives, account planners, media buyers, graphic designers, PR personnel and a whole lot of other functional positions including researchers.
2.) What do they do?
This depends on the structure of the agency and its size. They could be wholly siloed in the particular function or they make cross-functional teams and do multiple tasks. Some agencies are virtual and don't have employees and are using only contractors or strategic alliances. Each of those contractors or alliances fills a void that the rest of the people don't have.
3.) How do they research for their clients marketing needs?
Typically, this function is part of the account planning department if the agency has one. And your question has a lot of meanings to it. In most cases, the client tells the agency what work needs to be performed.
4.) Any insight on how agencies gather information for prospective clients?
What do you mean? Gather information on a prospective client or gather information about a prospective client's market to conduct a pitch?
5.) How do they increase their revenue?
Just like every other business does. Get new clients. Sell more services to existing clients.
However, you must understand there is a trust issue at play. Clients very rarely fully trust an agency from the very beginning. So the agency maybe given a very specific assignment in the beginning to prove themselves and build trust with the client. And, by the time trust is fully gained, if at all, the CMO, VP or Director of Marketing is toast. So the process starts all over again.
If you want to learn more about how agencies work, you might want to reach out to AAAA, Ad Federation, BMA and SecondWind. Or go to Amazon. There are a ton of books on how to set up and run an agency.
I think a better question to ask is why are you asking this? Are you looking to expand our business by hiring a marketing agency? Depending on your field of interests, different agencies work differently. For example, I work with a company called Alpha beta Creatives. We specialize in small business development from the ground up, logo, website, marketing materials etc. Then continue through research of industry, client acquisition and then expand to real estate and corporate space. Clients are gathered by many different means, and therefor revenue fluctuates.
Y ou give them ork to promote any thig let say your web site ,than need to know few information in short what is your target market,in which country you promote the site so on the they use 1-smm 2-internet marketing,e mail marketing,use forum,and if you have budget the use print media ,it is very short ans of your question other wise it neec 3 page to explain you
I will address the revenue generation portion.
Depending on the agency type, model, suite of services and client base they serve, they tend to generate revenue in a few distinct ways:
- Selling professionals services - essentially bodies (FTE) and hours for holistic strategic services to various marketing disciplines discussed
- Project based - On a scope of work or RFP defined by the client or the agency helps define based on their investigation into client needs
- Mark-up's on media buys or subcontracted services
- Ancillary services
I hope this helps.
Hello Dee Rivers,
Different Marketing Agencies specialize in different areas. Examples,
Many agencies classify themselves as
- Digital Marketing
- Print Marketing
- Outdoor Marketing
- Events Marketing
Mid to big sized agencies have all the capabilities- either in-house or through a network of independent associates.
You as a client need to decide 1. what your products and services are and 2. who are your prospective clients.
Once you get these two coordinates clear , then decide upon the marketing strategy and marketing mix.
If you sell/market through internet, then search engine optimization (SEO) is the must strategy. It works on 3 to 6 month's horizon.
Effectiveness of your marketing agency will be directly proportional to the clarity of the brief that you feed them with. It does feel like an extra work at times, but having a clear brief helps tremendously.
Hope this helps :-)
I wish you the very best and success!
This is an outrageously broad question, but I'll try and address what specifics you've asked for here.
- What type of people do they have on their team?
The staff of a marketing agency is going to vary depending on who you're talking to. Some are aggressively working to become complete solutions providers, doing everything from Social Media, to Pay Per Click, to Search Engine Optimization, to website design, to custom programming, on and on.
- What do they do?
This might be a bit too broad to answer, could you try and rephrase this?
- How do they research for their clients marketing needs?
The company I work for has a questionnaire for new clients that we ask them to fill out and then give us 24 hours to process their answers. On top of that, we schedule a kick-off call to get more insight on products, business history, goals, past issues, revenue numbers, margins, conversion structures, etc. In addition to this, we assign a Strategist to work with them directly. The strategist is in charge of learning everything they can about their business, making recommendations, studying their competition, and then orchestrating all site updates, strategies, marketing, and features to work in sync.
- What are some success stories?
Every agency is going to boast their numbers. Some will talk about improving Return on Investment, others will point out how much more traffic they've brought a site. Depending on the goals of the clients they work/partner with, you're going to get very different answers. You can usually check their website for some clients they've worked with, samples of work, or metrics that they're proud of. Always ask their sales rep this question, you'll get some cool answers.
- What are some of the pain points?
Again, every agency is going to have issues here or there, it's going to depend on who you're talking to. The biggest issue for any agency is expectations and understanding. There are many times when agencies will have an idea or understanding for a need or goal, and it will be very different from the client. (or even slightly different, and this can still be a huge issue). Most agencies understand that the reason you're hiring them is that you either don't have time or the understanding to manage the channels you're speaking with them regarding, and they'll do their best to drive qualified traffic to your site/business. The goal is to make everyone sync on what "Qualified Traffic" really is. If the agency doesn't work with site development or on-site strategy, you might have an issue with the traffic they're generating hitting road-blocks even though they're completely interested in your product. It then becomes a "whose fault is this?" issue. Most agencies will be able to point out features and functionality of your site that are stopping the user from converting/reaching your goal.
- Any insight on how agencies gather information for prospective clients?
Many of them have an ideal business in mind and will search out other companies in the same niche. My company works exclusively with eCommerce sites running on the Volusion or Mozu platforms.
- How do they increase their revenue?
Marketing agencies increase their revenue by bringing on more clients, and expanding their portfolio. Other ways may include better performance or reaching certain metrics. Some agencies bill hourly for work, others a flat rate, and even others will bill based on their success such as a percentage of the increased revenues from their work.
I hope this helps!