Guide to Outsourced Marketing (with Definition, Benefits, & Tips)

Guide to Outsourced Marketing (with Definition, Benefits, and Tips)

Guide to Outsourced Marketing blog image

When it comes to business strategy, outsourced marketing has become a game-changer. This article highlights the essentials: defining outsourced marketing, outlining its benefits, and offering practical tips for seamless integration.

Geared towards small to medium-sized business owners, startup founders, and marketing managers, this article aims to clarify the concept so you can grasp its advantages and navigate the nuances of outsourcing marketing tasks effectively.

Takeaways
  • Outsource marketing efforts to cut labor costs; 59% of companies opt for this economical and efficient strategy
  • Explore outsourced marketing services, from content creation to social media strategy and search engine optimization
  • Assess your company’s needs on a scale—whether all functions in-house or outsourcing specific tasks align with your goals
  • By tapping into external marketing expertise, enjoy new perspectives, efficiency, and cost control
  • Consider potential challenges such as brand consistency issues and unexpected costs in your outsourcing journey
  • When seeking an outsourced marketing partner, consider your goals, priorities, and budget;ask for references and ensure clear communication
  • Evaluate outsourcing success through ROI, considering cost savings, productivity, quality improvement, and enhanced expertise

What Is Outsourced Marketing?

Outsourced marketing involves enlisting external professionals or agencies to manage aspects or the entirety of your company’s marketing endeavors. Tasks like crafting content, overseeing social media platforms, executing advertising campaigns, and conducting market research are commonly delegated.

By outsourcing, businesses tap into specialized expertise, streamline operations, and often reduce costs compared to maintaining an in-house marketing team. This strategic approach enables companies to focus on core competencies while benefiting from the proficiency of external partners.

How Does Outsourced Marketing Work?

Outsourced marketing operates by entrusting various marketing functions to external entities, differentiating itself from conventional outsourcing models for measurable tasks like manufacturing or accounting.

Unlike the clarity in outsourcing content creation or website development, outsourcing the intricate marketing domain, with its diverse strategies and tactics, introduces some unique challenges.

Businesses outsource marketing to access a comprehensive marketing department’s expertise, tools, and tactics through a third-party provider. This strategic choice proves beneficial, especially for newly established companies lacking an in-house marketing team.

Even smaller yet thriving businesses require diverse marketing skills from the outset but often face challenges in finding a single agency or individual capable of comprehensively meeting all their marketing needs.

Who Uses Outsourced Marketing and Why?

As per a Sagefrog report, 59% of companies opt for outsourced marketing, primarily driven by its cost-effectiveness and efficiency. External marketing teams or agencies play a pivotal role in assisting companies in implementing new strategies or enhancing existing ones.

This approach proves economically advantageous, allowing businesses to access specialized expertise without the overhead costs of maintaining an in-house marketing team.

Moreover, companies leverage outsourcing to curtail labor expenses, encompassing salaries, overhead, equipment, and technology. This strategic move enables businesses to concentrate on core business functions by outsourcing less critical operations to external organizations.

By doing so, companies optimize their resource allocation and benefit from the specialized skills and insights external marketing professionals provide, contributing to overall business success.

What Types of Marketing Services Can Be Outsourced?

Many marketing services can be outsourced to enhance efficiency and effectiveness. Key areas for outsourcing include marketing strategy, content marketing, social media strategy, and even establishing an entire outsourced marketing department.

The flexibility of outsourcing allows businesses to entrust any or all of their marketing functions as needed.

Hinge has introduced a valuable tool to aid businesses in determining the optimal balance between in-house and outsourced marketing functions. This tool assesses a firm’s level of investment in outsourced marketing by categorizing them into five maturity levels.

From Level 1, where all functions remain in-house, to Level 5, where every aspect of marketing, including strategy, is outsourced, the scale provides a strategic framework. It emphasizes the importance of proactive decision-making in outsourcing, moving beyond reactive responses to unforeseen resource gaps.

Understanding this scale empowers businesses to align their marketing outsourcing strategy with their unique needs, ensuring efficiency, quality, and strategic alignment with overall business objectives.

Benefits of Outsourced Marketing

As business landscapes evolve, entrusting your marketing to a professional external team unveils a host of advantages. Explore how outsourced marketing elevates your strategies, efficiency, and results in the competitive marketplace.

  • Innovative Insights and Expertise: Embrace novel perspectives and skills by outsourcing, breaking free from routine strategies. Armed with diverse experience and best practices, external agencies swiftly troubleshoot and optimize strategies that may not meet expectations.
  • Fast Market Response: Marketing-focused agencies detect market trends, technological shifts, and industry changes promptly. Proximity to issues enables efficient problem-solving and the swift implementation of adaptive action plans.
  • Operational Efficiency: Externalize marketing tasks to enhance efficiency, allowing businesses to concentrate on core activities. Continuous skill evolution within marketing agencies eliminates the need for in-house team training, saving time and resources.
  • Adaptability to Trends: Keep pace with ever-evolving marketing trends facilitated by agencies navigating the dynamic landscape. Expert agencies ensure your strategies align with the latest market dynamics.
  • Seamless Communication and Support: Marketing agencies establish effective communication through various channels, conducting regular video meetings to discuss progress and results and plan upcoming actions. Clients are consistently informed about the entire process, fostering collaboration.
  • Tech Tools Accessibility: Access to advanced tools and technologies invested in by agencies without incurring associated costs and training. Clients benefit from significant cost savings by leveraging the agency’s technology investments.
  • Strategic Over Tactical Focus: Shift from a tactical to a strategic planning focus with outsourcing. Agencies aid in comprehensive strategy creation and implementation, allowing clients to focus on specific activities aligned with broader marketing strategy.
  • Optimized Costs and Personnel Management: Outsourcing reduces costs, enabling payment only for necessary services when needed, avoiding the expenses of a permanent in-house marketing team. Optimizing the marketing department’s structure minimizes personnel costs and eliminates unnecessary overhead.
  • Consistent Superior Results: Agencies with experience, skills, and market insights consistently deliver optimal results using advanced technologies and know-how.
  • Diverse Idea Integration: Agencies working across diverse sectors bring cross-pollination of ideas, enriching strategies with varied perspectives. An external viewpoint enhances problem-solving and solution adaptability, which is especially valuable when workers are specialists in their respective sectors.

Potential Drawbacks of Outsourced Marketing

About 44% of B2B companies opt for marketing outsourcing for either some or all of their needs, a strategy that leverages expert teams, facilitates scalable growth, and enhances results while minimizing costs.

Despite its advantages, outsourcing of your digital marketing plan presents challenges, such as issues with brand consistency, scheduling conflicts, and unexpected costs.

  1. Limited Business Understanding

Outsourcing marketing tasks introduces a potential drawback as external talent, not fully immersed in your company culture, may lack a nuanced understanding of your business and customers.

For instance, a freelancer managing analytics might deliver outcomes without profound business knowledge, leading to strategies that may not align with your objectives. Similarly, while technically proficient, a remote social media strategist may struggle to efficiently address customer queries without insider knowledge, risking misinformation and delays in responses.

  1. Brand Inconsistency Risks

Outsourced marketing strategies can encounter challenges related to brand consistency. Even when provided with guidelines, different individuals may interpret and execute them differently, resulting in inconsistencies in brand voice, colors, and visual elements.

Achieving and maintaining brand consistency becomes crucial, necessitating either retaining specific roles in-house or equipping external creatives with detailed style guides and templates. Effective collaboration and dedicated asset sharing further enhance results.

  1. Schedule Limitations

The autonomy of freelancers and agencies in determining their schedules poses a challenge when urgent marketing tasks or meetings arise. Decreased control over scheduling may lead to difficulty promptly addressing time-sensitive marketing needs.

To mitigate this drawback, planning workloads, tasks, and meetings in advance, facilitated by robust project management tools, becomes essential. Building strong relationships with the extended team may encourage their flexibility in addressing unexpected needs.

  1. Cost Management Challenges

Unexpected and hidden charges emerge as significant drawbacks in outsourcing digital marketing. Issues such as failure to discuss limits, miscommunications, scope creep, intentional slowness, and surprise upcharges can lead to increased costs.

Effective management involves establishing clear agreements, cultivating strong relationships with talent, monitoring results, and taking corrective action if the extended team fails to meet cost expectations. Vigilance in cost management is crucial to prevent financial surprises and ensure a transparent collaboration.

  1. Security Risks with Proprietary Data

Entrusting external entities with proprietary data introduces a potential security risk in outsourced digital marketing. This concern is not unique to outsourcing, as similar issues can arise with in-house talent.

Protecting proprietary data involves limiting access, implementing non-disclosure agreements (NDAs), and emphasizing confidentiality. Regardless of the setting, it is essential to remind individuals handling sensitive data that it is confidential and should not be shared publicly.

Is Outsourced Marketing the Right Choice for Your Company?

Outsourcing is a proven and valuable strategy for many businesses, offering cost reductions and specialized services. Companies can enhance service quality and efficiency by leveraging the expertise of an outsourced marketing team or partner.

Whether aiming for a competitive edge, cost reduction, or revenue generation, the decision to outsource should align with specific business goals. It is crucial for businesses to assess the reasons and benefits of outsourcing, recognizing the positive impact it can have on overall operations.

By considering the unique needs and objectives of the company, organizations can determine if outsourcing marketing efforts to an external team or partner is the right choice for optimizing their business strategy.

How to Choose the Best Outsourced Marketing Agency

During a 2022 survey, 47% of marketing professionals revealed outsourcing graphic design, with video design (43%) and copywriting (37%) following suit as the top three outsourced services for content creation.

Recognizing that not all outsourced marketing agencies are equal is essential, and finding the right fit requires strategic consideration.

Discipline-specific agencies specialize in content, B2B branding, SEO vs PPC, and explainer videos. Full-service marketing agencies, either traditional or digital, offer a comprehensive approach. Digital agencies, leveraging online channels, are often preferred for cost-effective, measurable results.

When selecting an outsourced marketing agency, ask key questions:

  • Define Your Objectives: Clearly outline your needs and expectations. A full-service agency can craft and execute a complete marketing plan if unsure.
  • Identify Top Priorities: Communicate your priorities, whether it’s immediate B2B lead-gen or content-driven organic traffic. Clear communication enhances success.
  • Request References: Treat agency selection like a job interview. Ask for references, ensuring compatibility, satisfaction, and a track record aligning with your expectations.
  • Budget Considerations: Know your budget and ensure the agency’s package aligns. Be cautious of promises that seem too good to be true and prioritize value over cost.
  • Timeline Expectations: Seek transparency regarding the agency’s plan for deliverables within 30, 60, and 90 days. Establish clear communication plans beyond this timeframe.
  • Define Success Metrics: Discuss metrics and goal setting to ensure a clear return on investment. Understand what success looks like for the agency and establish mutually agreed-upon benchmarks.

Tips for Successful Outsourced Marketing

While articulating specific expectations is vital, true success in outsourced marketing involves collaboration with your team. Outsourcing aims for brand evolution, and growth requires directives and a cohesive relationship with your marketing team’s insights. Embrace collaboration to leverage the full potential of external expertise.

Consider outsourcing when your business is expanding, aiming for accelerated growth, facing time constraints, prioritizing insights over operations, seeking expert-driven marketing, desiring a unified strategy, or aspiring to stay ahead of industry trends. Outsourcing isn’t an all-or-nothing endeavor; selectively outsource components that align with your business goals.

Also, outsourcing doesn’t mandate relinquishing control of every marketing aspect. Selectively outsource components such as content marketing, email marketing, social media marketing, influencer marketing, marketing strategy, analytics, digital PR, and other elements. Tailor your outsourcing approach to suit your business’s unique needs and objectives.

  • Choose Between an Agency or Freelancer: Decide between hiring an agency or a freelancer based on your specific needs, considering factors like project scale, the expertise required, and budget constraints.
  • Establish a Clear Budget: Clearly define your budget constraints to streamline the search for potential outsourced partners and ensure cost-effective collaborations.
  • Outline Marketing Requirements: Clearly outline your marketing needs, detailing specific tasks, goals, and expectations. This clarity ensures a smooth collaboration and targeted outcomes.
  • Search for the Right Partner: Conduct thorough research to find marketing agencies or freelancers with expertise aligning with your industry, goals, and values.
  • Communicate Clear Expectations: Provide detailed expectations and instructions to your outsourced team, ensuring a shared understanding of project objectives, timelines, and deliverables.
  • Foster Collaboration with Your Team: Encourage collaboration between your in-house team and the outsourced partner. Valuable insights from both sides contribute to a holistic and effective marketing strategy.
  • Think Creatively and Strategically: Beyond specific instructions, encourage your outsourced team to think creatively and strategically. Embrace innovative approaches that align with your brand’s identity and goals.
  • Monitor Progress Without Micromanaging: Regularly monitor progress but avoid micromanaging. Provide constructive feedback, address concerns, and maintain an open line of communication for optimal collaboration.

How Much Does Outsourced Marketing Cost?

Outsourcing your marketing to a specialized firm involves considerations of cost, a pivotal factor in shaping your overall revenue strategy.

Marketing agency costs exhibit a broad spectrum, spanning from an average monthly range of $900 to $20,000. Whether you’re a small to medium-sized business (SMB) or a large enterprise, defining and allocating your marketing budget is instrumental in achieving revenue goals.

Flexible Fee Structures for Services

Hourly or project-based fee structures characterize the cost dynamics of outsourcing marketing projects. On average, engaging an outsourced marketing firm for a single project can range from $2,500 to $25,000 or more, contingent on project intricacies and duration.

Outsourced marketing agencies commonly adopt hourly rates or a deliverable-based approach, providing flexibility aligned with the services rendered. Understanding these fee structures is essential for businesses seeking effective collaborations and optimized budget allocations.

What Are the Different Levels of Outsourced Marketing?

As businesses explore outsourced marketing, understanding the different levels is key. As discussed earlier in our article, each level offers a unique approach, from keeping all functions in-house to entrusting all marketing endeavors to external experts.

Here is a recap of the levels of outsourced marketing.

Outsourced Marketing LevelsDescription
Level 1 – All functions in-houseBusinesses handle all marketing functions internally. Suitable for those with minimal marketing activities or large, proficient in-house marketing teams.
Level 2 – Some Specialized Functions OutsourcedFirms manage most marketing tasks internally but selectively outsource specific functions requiring specialized expertise. Ideal for businesses with a competent in-house team but lacking specific skills for certain tasks (e.g., web development or design).
Level 3 – Outsource Specialized FunctionsBusinesses focus on internal routine operations while outsourcing specialized marketing functions. Allows for expert intervention in intricate aspects of marketing, ensuring high-quality outcomes.
Level 4 – Most Specialized Functions and Some Routine Operations OutsourcedCompanies maintain a small internal team handling routine operations while outsourcing most specialized functions. This balanced approach leverages external expertise for strategic elements of marketing.
Level 5 – All Functions OutsourcedBusinesses entrust every aspect of their marketing to external agencies at the highest level. This comprehensive outsourcing strategy offers a complete marketing solution without requiring an

How Do I Set Goals for an Outsourced Marketing Campaign?

Setting clear and measurable goals is necessary when starting an outsourced marketing campaign. Rather than vague aspirations, formulate a list of goals backed by numbers, percentages, and timelines.

A proficient outsourced marketing agency can assist in gauging your current standing and guide you in establishing realistic yet ambitious figures. Utilizing these goals as a roadmap, the agency can propose targeted strategies to meet or exceed your expectations.

Embracing SMART Goals

Introducing the concept of SMART goals enhances the precision and effectiveness of your marketing objectives. SMART, an acronym for Specific, Measurable, Achievable, Relevant, and Time-bound ensures that your goals steer clear of ambiguity and demotivation.

These goals provide a clear framework as a yardstick to gauge your progress. Here are some examples of SMART marketing goals applicable to most businesses:

Double Website Traffic in 12 Months:

  • Specific: Increase website traffic.
  • Measurable: Double the current traffic.
  • Achievable: Achievable through targeted blog posts.
  • Relevant: Relevant to overall business growth.
  • Time-bound: Achieve within the next 12 months.

Increase CTR Through Blog Content Redesign:

  • Specific: Improve blog content offer CTAs.
  • Measurable: Increase Click-Through Rate (CTR) by 10%.
  • Achievable: Achievable through strategic redesign.
  • Relevant: Relevant to boosting engagement.
  • Time-bound: Achieve by the end of the calendar year.

Attain Top Rank in Organic Search:

  • Specific: Improve rank for the keyword “marketing goals.”
  • Measurable: Move from 10th to 1st in organic search results.
  • Achievable: Possible through content optimization.
  • Relevant: Relevant to enhancing visibility.
  • Time-bound: Achieve by the end of the month.

Strengthen Backlink Profile:

  • Specific: Enhance backlink profile.
  • Measurable: Obtain 50 backlinks from authoritative domains.
  • Achievable: Achievable through a targeted link-building email campaign.
  • Relevant: Relevant to improving domain authority.
  • Time-bound: Achieve by the end of the month.

How Quickly Can I See Results from Outsourced Marketing?

The speed at which results start to appear in outsourced marketing campaigns can vary significantly based on the intricacies of the strategies implemented. Some strategies yield rapid outcomes, while others demand a more protracted timeline for tangible success.

Considering the previously discussed examples, the goal of doubling website traffic over 12 months shows the importance of understanding that while the ultimate success metric is set for a year, initial signs of progress may emerge within just a couple of months.

Time Frames for Digital Marketing and SEO

For a comprehensive digital marketing or SEO campaign, patience is a must. These initiatives typically require a minimum of six months to commence showing discernible results, and it often takes a full year to witness outcomes that align with your expectations. The intricacies of online visibility, content optimization, and algorithmic adjustments contribute to the gradual progression of these strategies.

Budget Considerations and Campaign Initiation

A crucial aspect to also consider is the budget allocation for a sustained campaign. If the budget falls short of sustaining a campaign for 6-12 months, careful consideration should be given to initiating such a campaign in the first place.

Building a robust online presence and achieving substantial results necessitate a consistent and prolonged effort, ensuring that the allocated resources align with the timeframe required for substantial impact.

Understanding the nuanced timelines associated with different marketing strategies empowers businesses to set realistic expectations and make informed decisions about the duration and nature of their outsourced marketing campaigns.

How Do You Measure the Success of Outsourced Marketing?

The success of your outsourced marketing endeavors is best gauged through a thorough analysis of the return on investment (ROI).

This entails comparing the costs incurred through outsourcing against the value it delivers, encompassing aspects like cost savings, heightened productivity, enhanced quality, and access to specialized expertise.

A positive ROI signifies that your outsourcing initiatives are cost-effective and substantially contribute to your company’s overall prosperity.

Consider these factors in determining ROI:

  • Impact on Cost Savings: Evaluate both direct and indirect cost reductions stemming from outsourcing, such as diminished overhead expenses, lowered recruitment and training costs, and more streamlined management efforts.
  • Enhanced Productivity: Assess how outsourcing non-core tasks has empowered your in-house team to concentrate on core competencies, fostering increased efficiency and more impactful contributions to business objectives.
  • Quality Improvement: Ascertain whether your outsourcing partner’s access to specialized expertise and best practices has translated into an observable enhancement in the quality of your products or services.
  • Access to Specialized Knowledge and Resources: Gauge the broader impact of outsourcing on your organization’s skill set, expertise, and capabilities. Assess how the partnership has facilitated access to specialized knowledge and resources that might not have been readily available in-house.

The ROI analysis serves as a comprehensive framework to measure the financial viability of outsourcing and understand its holistic impact on various facets of your business.

Can Small Businesses Benefit from Outsourced Marketing?

For small businesses, outsourcing marketing functions serves as a strategic lever to alleviate the operational burden on owners and their teams. This approach liberates time, allowing them to channel their energy into critical areas like strategic planning and elevating customer service.

The benefits extend beyond workload management, presenting a cost-effective and resource-efficient solution for businesses with limited budgets and manpower.

  1. Reduced Overhead Costs

Outsourcing marketing shields small businesses from the financial strain of maintaining an in-house marketing team. By sidestepping expenses like salaries, benefits, and office space, small businesses can allocate resources more efficiently.

  1. Access to Cost-Effective Resources

With their established industry networks, marketing agencies can secure favorable deals on various fronts. From marketing materials to advertising space, these partnerships enable small businesses to access resources more cost-effectively than if they were to procure them independently.

  1. Elimination of Training Costs

Small businesses opting for outsourcing can circumvent the need for extensive training programs. Marketing agencies typically boast skilled and experienced teams, sparing businesses the time and financial investment required for onboarding and training new hires.

This all said, according to a recent Clutch survey involving 517 small business leaders, a resounding 83% are either maintaining or increasing their spending on outsourced business services in 2023. Marketing came out as the top service that small business owners tended to outsource.

This trend illustrates the growing recognition among small businesses of the value and efficiency offered by outsourcing, particularly in navigating the competitive landscape and fostering sustainable growth.

Conclusion

Embracing outsourced marketing can propel businesses toward efficiency, cost savings, and strategic growth. By leveraging external expertise, companies gain the flexibility to focus on core functions while tapping into specialized skills.

To explore further insights on optimizing your marketing strategy, consider exploring the best website builders and best web hosting options. Unlock the potential of outsourced marketing to elevate your business to new heights.

Next Steps: What Now?

Learn More About Marketing Basics

Frequently Asked Questions

Is it a good idea to outsource marketing?

Yes, outsourcing marketing can be a smart move. It allows businesses to tap into specialized expertise, reduce overhead costs, and focus on core functions. Small to medium-sized enterprises, in particular, benefit from the flexibility and cost-effectiveness of outsourcing. Assessing business needs, setting clear goals, and choosing the right outsourced partner can enhance efficiency and strategic growth.

When should you outsource your marketing?

Consider outsourcing your marketing when facing growth, time constraints, or a need for specialized skills. If your business lacks an in-house marketing team, outsourcing offers cost-effective solutions. Small businesses can particularly benefit by saving on overhead costs and accessing professional expertise. Assess your goals, budget, and resource constraints to determine if outsourcing aligns with your needs.

Is outsourcing marketing cheaper than doing it in-house?

Yes, outsourcing marketing is often cheaper than maintaining an in-house team. Businesses can avoid costs like salaries, benefits, and training associated with in-house teams. Outsourcing provides flexibility, cost-effectiveness, and access to specialized skills.

Small to medium-sized enterprises find this approach beneficial, allowing them to allocate resources efficiently and achieve marketing goals without the burden of fixed personnel expenses.

What marketing activities shouldn't you outsource?

Critical, brand-specific activities like brand strategy and messaging should be handled in-house to ensure a deep understanding of the company’s ethos. Additionally, tasks requiring immediate response or personalization, such as customer service on social media, are better managed internally.

Core decision-making aspects, like overall marketing strategy and positioning, are best handled by an in-house team closely aligned with organizational goals.

What is the biggest problem with outsourcing marketing?

The biggest challenge with outsourcing marketing lies in maintaining brand consistency. External agencies or freelancers may lack an in-depth understanding of a company’s values and target audience, leading to discrepancies in messaging and branding. Effective communication and collaboration are crucial to bridge this gap and ensure a cohesive brand identity across all marketing efforts.

Sonja Vitas
Edited By:
Sonja Vitas
Content Editor

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