Digital Marketing Agency Customer Profile

Part
01
of five
Part
01

Digital Marketing Agency: Competitive Landscape

Some digital marketing services currently offered by InSegment, Vital Design, Overdrive Interactive, Portent, and Raka Creative includes: Lead Generation, Search Engine Optimization, Content Marketing, Email Marketing, Search Engine Marketing, and Digital Advertising. The average hourly rate of the digital marketing services by InSegment, Vital Design, Overdrive Interactive, Portent, and Raka Creative ranges between $25 up to $149 per hour.

COMPETITIVE LANDSCAPE OF DIGITAL MARKETING AGENCIES

1. InSegment

Overview

  • InSegment, founded in 2007 in Boston, Massachusetts, is a full service digital marketing and advertising agency.
  • They offer their services to industries such as B2B-Tech, Financial Services, and Higher Education.

Digital Marketing Services Offered

Some digital marketing services that InSegment offers are:

Pricing

  • InSegment's average hourly rate for digital marketing services are from $100 — $149 per hour, and their minimum project size rate is about $10,000+ per project.
  • Digital marketing services specific pricing for InSegment is unpublished; It is recommended that you contact InSegment through their Contact Us page form, or via phone at (617) 965-0800 to ask for pricing.

Revenue

  • InSegment's estimated annual revenue is $7 million.

2. Vital Design

Overview

  • Vital Design, founded in 2001, is a "creative agency made up of smart, creative, and passionate people."
  • Vital Design's Headquarters is located in Portsmouth, NH, with other office locations in Boston, MA, and San Francisco, CA.
  • Vital Design currently has about 180 employees, of which around 50-60 employees are located in each of their 3 offices.
  • Vital Design offers services such as website design, website development, branding, graphic design, and inbound marketing.

Digital Marketing Services Offered

Pricing

  • According to Vital Design, their typical digital client invests or pays between $5,500 and $24,500 per month into their digital marketing programs.
  • Vital Design's average hourly rate for digital marketing services are from $100 — $149 per hour.
  • For specific digital marketing services pricing, we recommend contacting Vital Design through their web form, or via phone at 603.766.1902.

Revenue

3. Overdrive Interactive

Overview

  • Overdrive Interactive, founded in 2001, is a Boston-based full-service online marketing firm which serves a wide range of B2B and B2C Fortune 500 companies in the US.

Digital Marketing Services Offered

Pricing

  • Overdrive Interactive's average hourly rate for digital marketing services are from $25 — $49 per hour, and their minimum project size rate is about $1,000+ per project.
  • Digital marketing services pricing for Overdrive Interactive is unpublished; It is recommended that you contact Overdrive Interactive through their Contact Us page form, or via phone at 617-254-5000.

Revenue

  • The estimated annual revenue of Overdrive Interactive is about $14.7 million.

4. Portent

Overview

  • Portent, founded in 1995, is a full-service digital marketing agency based in Salt Lake City, Utah, and Seattle Washington, and has 24 years of digital marketing excellence.

Digital Marketing Services Offered

Pricing

  • Portent's average hourly rate for digital marketing services are from $50 — $99 per hour, and their minimum project size rate is about $5,000+ per project.
  • Portent's digital marketing services specific pricing is unpublished; It is recommended that you contact Portent through Contact Us page form, or via phone at 206-575-3740.

Revenue

  • Portent's estimated annual revenue is about $10 million.

5. Raka Creative

Overview

  • Raka Creative, founded in 2004, is a digital and inbound marketing agency based in Portsmouth, NH, which helps their client's businesses grow through data-driven online marketing strategies aimed at achieving specific goals.

Digital Marketing Services Offered

Raka offers inbound marketing such as:

Pricing

  • Raka Creative's average hourly rate for digital marketing services are from $100 — $149 per hour, and their minimum project size rate is about $10,000+ per project. (s29)
  • Digital Marketing services pricing is unpublished; recommend contacting Raka Creative through Contact Us page form, or via phone at 603.436.7770. (s19)

Revenue:

ADDITIONAL HELPFUL FINDINGS

U.S. Digital Marketing Services Pricing:

SEO

  • According to Credo's 2019 Digital Marketing Industry Price Survey Report, about 71% of SEO agencies in the United States charge between $101-$200 per hour for their SEO digital marketing services.
  • According to Credo's 2019 Digital Marketing Industry Price Survey Report, 29.93% of SEO agencies in the United States charge a minimum monthly retainer between $1,000-$1,999 for their SEO digital marketing services.

PPC

  • Credo's 2019 Digital Marketing Industry Price Survey Report also indicate that 34.83% of agencies in the United States charge an average hourly rate of about $101-$150 per hour for their PPC digital marketing services.
  • According to Credo's 2019 Digital Marketing Industry Price Survey Report, 26.09% of agency projected minimums in the United States are $1,000-$1,999 for their PPC digital marketing services.

Facebook Ads

  • The 2019 Price Survey Report for the digital marketing industry by Credo reveals that 37.66% of ads firms in the United States charge an average hourly rate of $101-$150 per hour for their Facebook Ads digital marketing services.
  • Credo's 2019 Price Survey Report for the digital marketing industry also indicate that 39.34% of ads agencies in the United States charge an average hourly rate of $101-$150 per hour for their Facebook Ads digital marketing services.

Digital Marketing Services

  • According to Credo's 2019 Digital Marketing Industry Price Survey Report, $167.28 is the average hourly rate for US digital marketing agency's digital marketing services.

Research Strategy

In order to provide a competitive landscape of digital marketing agencies which include InSegment, Vital Design, Overdrive Interactive, Portent, and Raka Creative, we researched for their digital marketing services and pricing for those services. First, we searched through the company websites of the mentioned agencies as we saw these as the most credible sources of information in order to address the client's request. We searched from their services page, FAQs, resources, and articles, for any report, online catalogs, or mentions of their digital marketing services offerings and prices of those services. We found the digital marketing services that the 5 agencies are offering and they include Lead Generation, Search Engine Optimization, Content Marketing, Email Marketing, Search Engine Marketing, and Digital Advertising, among others. Also, we used Crunchbase and Inc. Magazine, where we found the estimated annual revenues of the 5 agencies, and also the information that all 5 agencies are private companies. However, we did not find any relevant information about the pricing or costs of their digital marketing services. We only found their "Contact Us" pages with forms that you can fill-up, and also their phone numbers for further inquiries relating to specific pricing/costs of digital marketing services for the 5 digital marketing agencies mentioned, which we also provided to the client. Because of this, we had to move on and change our strategy.

Second, we searched for pricing or costs of digital marketing services of InSegment, Vital Design, Overdrive Interactive, Portent, and Raka Creative from third-party platforms and review websites, such as Clutch.co, G2 Crowd, Hubspot, Business.com, Quotation.tech, Agency Spotter, and The Manifest, among others. We found the general average hourly rates and also the general minimum project size of the 5 agencies for their digital marketing services from Clutch.co. However, the pricing/costs information found were not specific to each digital marketing services of the 5 agencies, thus, they did not directly address the client's request, and we had to move on to the next strategy.

Third, we tried analyzing industry pricing reports for any data and statistics directly related to InSegment, Vital Design, Overdrive Interactive, Portent, and Raka Creative which we could use for triangulating their digital marketing services pricing or costs by using industry sources such as Credo and Rank Pay among others. We found Credo's 2019 Digital Marketing Industry Price Survey Report, with US data and statistics about pricing/costs of specific digital marketing services such as SEO, PPC, Facebook Ads, and general digital marketing. However, we did not find any specific data or statistics directly related to InSegment, Vital Design, Overdrive Interactive, Portent, and Raka Creative that can be used for triangulating their pricing/costs for digital marketing services.

Due to lack of pre-compiled information from agency websites, third-party platforms and review websites, and using triangulation for the purposes of getting the pricing or costs of digital marketing services of InSegment, Vital Design, Overdrive Interactive, Portent, and Raka Creative, we therefore concluded that there are no publicly available information about the pricing/costs of specific digital marketing services of the 5 digital marketing agencies. The reason might be because they are all private companies and did not publicly publish their pricing/costs yet.

However, we were able to find an estimate of the companies' pricing, which are the average hourly rates and minimum project sizes, based on the B2B ratings and reviews firm Clutch.co which was one of the sites researched in Strategy 2. We used this data as proxy information for pricing/costs of the digital marketing services of the 5 digital marketing agencies requested by the client. We also provided the pricing/costs of specific digital marketing services such as SEO, PPC, Facebook Ads, and general digital marketing that we found from Credo's 2019 Digital Marketing Industry Price Survey Report as a helpful finding for the client.

Due to lack of preexisting information, we did not find the pricing/costs of specific digital marketing services of requested digital marketing agencies which includes InSegment, Vital Design, Overdrive Interactive, Portent, and Raka Creative, that addresses the client's request. We employed 3 research strategies as explained above.

We are then presenting this request as a partial client update.

All detailed and helpful findings have been outlined in the Key Findings above.
Part
02
of five
Part
02

Digital Marketing Agency: Client's Decision Makers

Based on the available data, it appears that CMOs and Marketing Directors are the primary decision makers when it comes to choosing a digital marketing agency. The lower-level team members who perform most of the legwork are often marketing and IT employees who combine their expertise in order to vet potential agencies.

MARKETING DIRECTORS AND CMOS = PRIMARY DECISION MAKERS

  • While marketing teams serve on the front lines of their respective companies' marketing tactics, the CMO is often the person who has the final say in digital marketing solutions.
  • Companies' budgets for marketing technology is expected to grow to 10 percent by 2025, which is expected to increase the role CMO's have in digital technology as a result.
  • According to the Digital Marketing Institute, one-third of surveyed CMO's say that within the next five years, digital spending will make up 75 percent of marketing budgets.
  • In one study, 90 percent of CMO's said that they believe they will be responsible for the entire customer experience by 2020, including the selection of digital agencies.

LOWER-LEVEL TEAM

// Roles //

  • Marketing teams may identify consumer demographics while IT members supplement this with data from sources such as CRM, or customer relationship management software.
  • Technology-based roles include collection of customer data, engagement information, and related advertisement specifications.
  • Lower-level team members should keep their CMO's and marketing directors apprised of new technology trends, information, and lingo.
  • While a CMO or other high-leveled executive may have to approve it, the team involved should put together a budget for how much they are willing to pay an agency.

// Who They Are //

  • The increase in digital marketing as a whole has led to more companies requiring their marketing and IT teams to work together in order to understand both sides.
  • The work of both IT and marketing employees affect digital marketing decisions.
  • Employees involved in the selection of digital marketing agencies are often a hybrid of traditional marketing and technology-focused roles.
  • During the process of vetting potential agencies, lower-leveled marketing managers may be responsible for face-to-face meetings and initial contact.
  • Marketing employees are necessary for understanding the marketing and agency aspect of the decision, while IT members knowledge of technology is also crucial.

// Identifying Marketing Agencies //

  • Marketing teams will often wish to review agencies they are considering by speaking with some of their current or previous clients.
  • Before selecting an agency, the decision-making process should consider why exactly a company needs an out-of-house group to begin with.
  • Those involved should consider if they require assistance in areas such as Google Ads, SEO, blog managing, web designing, data analytics, and more.
  • Review of an agency's credibility and willingness to be transparent should be a prime factor in consideration.
Part
03
of five
Part
03

Digital Marketing Agency: Demographic Profile

While there is no hard data that illustrates the demographic profile of mid-level members of the marketing department specific to mid-market companies, we were able to obtain relevant insights on the demographic profile of mid-level members of the marketing department in general. Mid-level marketing managers who control the key communications between the company and its customers most commonly have a bachelor's degree in marketing, public relations, business management, communications, or accounting and finance. The average age of a marketing manager is found to be 42.2 years.

MID-LEVEL MEMBERS OF THE MARKETING DEPARTMENT: DEMOGRAPHIC PROFILE

  • Mid-level members of the marketing department have positions such as marketing managers who coordinate, direct, and plan marketing programs and policies that include identifying the demand for services and products offered by a company, develop pricing strategies, and determining potential customers for their company.
  • Marketing managers control key communications between their company and its customers. Marketing managers are known to work with various forms of media that range from billboards and newspapers to social media channels and digital advertising. Based on the size of the company, a marketing manager is required to specialize and manage one or all media channels.
  • A mid-level member of the marketing department is expected to have specialized industrial know-how that generally takes years to evolve.

EDUCATION AND EXPERIENCE:

  • Most companies ensure their marketing managers have a bachelor's degree in fields such as marketing, communications, public relations, accounting and finance, and business management. Some companies are known to prefer their marketing managers to have a master's degree in addition to a Bachelor's degree in a related field.
  • Marketing managers who have received job-related training are known to have degrees from other fields such as Graphic Design or Journalism. Marketing managers are also well versed in software tools that are used by companies for campaign evaluation and promotion.
  • According to DataUSA, the most common majors for marketing managers' bachelor's degrees are business, communications, social sciences, and communication technologies.
  • It has been found that over 49% of marketing managers have over 10 years of experience while 28% of marketing managers have about 20 years of experience in the industry.

INCOME:

  • According to Career Builder's analysis, the national average salary for a marketing manager in the United States is $130,000 per annum.
  • Based on the analysis published by Payscale, a marketing manager in the United States makes an average of $64,239 per annum.
  • According to ZipRecruiter, the average salary for a marketing manager is $65,792 per annum.
  • Thus, it is estimated that on average, a marketing manager in the United States earns between $64,239 to $130,000 per annum.
  • New York City is found to have the highest paying median for marketing managers with a salary amounting to $176,500 per annum. Houston, Texas, has the second-highest paying median of $156,000 per annum for marketing managers in the United States.

AGE:

  • As of 2017, the average age of a marketing manager is 42.2 years.
  • According to a report published by DataUSA, the median age of a male marketing manager is 44.1 years while the median age of a female marketing manager is 40.1 years.
  • It was also found that in general, male marketing managers are typically four years older than female marketing managers.

RACE:

  • It was found that over 84.3% of marketing managers in the United States are White, 5.2% are Black, and over 6.08% are Asian.
  • It was also found that over 2.08% of marketing managers belong to two or more races and 0.32% of them are American Indian.

GENDER

  • In the United States, approximately 53.6% of marketing managers are male.
  • Over 47.4% of the total marketing manager positions belong to women.

RESEARCH STRATEGY

We began our search by looking for demographic information in terms of Age, Gender, Income, Education, and Race in industrial reports such as Deloitte and PWC; and government databases such as the United States Department of Labor's Bureau of Labor Statistics. We also looked into media reports from websites such as USNews.com, Career Builder, and StudyGuide.com. A thorough search through these channels provided information on different mid-level marketing positions that include Marketing Manager, Communication Manager, Public Relation Manager, and Business Management Manager. We were able to find the total workforce (240,440) along with the annual salary. However, there was no segregation given for mid-level members of the marketing department specifically for mid-market companies.

We then expanded our search to include national surveys such as Nielsen, Pew Research, and DataUsa; and job portals such as Ziprecruiter to obtain demographic information for marketing managers working in mid-market companies. The information found through these channels was regarding the occupation's average pay, gender, race, and income for marketing managers in general. After an exhaustive search, we found no information pertaining to marketing managers working in mid-market companies.

We then began looking for mid-market companies in an attempt to look for profiles of mid-level members of their marketing departments on their websites. We looked for lists of mid-market companies on websites such as Ranker, CEOConnection, and INC. With the lists obtained through these channels, we then researched some of the top companies by looking through their official websites. While we were able to find profiles of marketing managers, most of them do not belong to mid-level members of the marketing department. Example profiles belong to Morgan Day and Allison Kirbo. While their education matched the demographic profile of mid-level marketing managers, their age and experience have been found to belong to a slightly lower marketing level.

While information pertaining to mid-level members of the marketing department of mid-market companies was unavailable, we have provided insights on the demographic profile of a marketing manager in general, irrespective of the company size.



Part
04
of five
Part
04

Digital Marketing Agency: Psychographic Profile

The mid-level team members in the marketing department, such as Marketing Managers, posses values of maintaining relationships and consider recognition important. They also have the creativity, leadership, and multitasking skills.

OVERVIEW

  • According to BLS, marketing managers are part of middle-level management in companies and are responsible to, "plan, direct, or coordinate marketing policies and programs, such as determining the demand for products and services offered by a firm and its competitors, and identify potential customers. Develop pricing strategies with the goal of maximizing the firm's profits and oversee product development or monitor trends that indicate the need for new products and services."
  • Most of the marketing managers are secure with a higher level of employment in advertising, public relations and related services, management, scientific and technical consulting services, and others.
  • The CEO Connections have listed the top mid-market companies in the US which earned $3 billion in 2017 naming Steelcase, Great Lakes Cheese, Univision Communications, and others.
  • Credo lists the mid-market marketing companies in the US naming Stryde, Simpletiger, Wallaroo Media, and BigWing among others.
  • Some examples of marketing managers from mid-market companies include:

PSYCHOGRAPHIC PROFILE

Psychographic data consist of information about a person’s values, attitudes, interests and personality traits as discussed below.

VALUES

  • According to the Illinois Department of Employment, marketing managers typically have the work values which include giving importance to good working conditions, achievement, relationships, independence, and proper recognition.
  • It is found that most of the profiles of marketing managers from mid-market companies stated above posses the common values of maintaining good relationships and giving importance to recognition by sharing endorsements and recommendations.

ATTITUDES

  • Marketing managers at smaller companies handle product introductions and marketing support and need a creativity bend of mindset with analytical, decision-making and interpersonal skills. They should be able to understand the psychological behavior of consumers and possess authenticity and sincerity in work.
  • According to the survey of University of Wisconsin-La Crosse, the top 5 strengths possessed by marketing managers include leadership, communication skills, problem-solving, people skills, and customer service.
  • Other personality skills of marketing managers from mid-market companies include volunteerism, multi-tasking skill by getting engaged in multiple responsibilities, and creativity.

INTERESTS

  • According to the Illinois Department of Employment, the most common interests of a marketing manager include enterprising and conventional interest.
  • Typically, marketing managers like work activities that involve starting up and carrying out projects, especially in business and like to lead and persuade others, make decisions, and take risks for profit, along with work activities that follow set procedures, routines, and standards.
  • It is found that most of the profiles of the marketing managers from mid-market companies stated above possess common interests like carrying out projects, decision making, and planning.

PERSONALITY TRAITS

  • Marketing managers typically are relentless workers who work even for stretched working hours (50hrs), but like traveling, according to BLS.
  • According to U.S. News, marketing managers' job is rated as they have capabilities to handle job stress level (above average level) with possibilities of less flexibility, and generally required to work more than 40 hours per week. This is especially when new products are about to launch or problems arise along with substantial travels that demand creativity and drive big ideas.
  • According to the Survey of University of Wisconsin-La Crosse, the top 5 personality traits possessed by marketing managers include being responsible, outgoing, ambitious, and a good planner.
  • It is found that most of the profiles of marketing managers from mid-market companies stated above posses common personality traits of being:
    • a planner: by planning for various events/trade shows
    • responsible: by undertaking multiple responsibilities such as strategy, lead execution, teamwork, etc.
    • ambitious: by frequent job changes
    • are workaholics: as most of them handle projects which is a stressful task and demands stretched working hours

Research Strategy:

In order to obtain the insights on building the psychographic profile of mid-level team members in the marketing department, such as marketing managers, we looked through multiple industry-wide surveys and reports on marketing managers along with related articles and publications like U.S. News, BLS, HBR, UWLax.edu, and Hubspot among others. Through the search, it was found that no precompiled insights were directly available and most of the information available relevant to the psychographic profile (values, attitudes, interest, and personality traits) of marketing managers are for all industries in general, and are not specifically focused on mid-market companies.

Hence, based on the available information and to directly respond to the request, we triangulated the response wherein: (1) We identified the typical/common values, attitudes, interests, and personality traits of a marketing manager by extrapolating the information correlated through the sample profile of 7 marketing managers from mid-market companies; (2) We corroborated the information through the above sources to identify the psychographic profile of mid-level team members in the marketing department by consolidating all the available information.

Therefore, through the above strategies, we were able to pull together all the insights on what the mid-market companies' marketing managers posses based on their values, attitudes, interests, and personality traits to come up with their psychographic profile as presented above.

Part
05
of five
Part
05

Digital Marketing Agency: Pain-Points

Low marketing budget, staffing, and providing ROI of marketing activities are pain points and challenges faced by mid-level team members in the marketing department.

LOW MARKETING BUDGET

  • According to 10th Degree, one of the challenges mid-level team members in the marketing department face is standing out from larger rivals without a commensurate budget for digital marketing.
  • Another woe to budgeting is the disconnection between the decision makers of a company and its creative staff: the absence of resources for marketing projects is often a top-down decision that can make the work of a marketer very hard, as the C-suite tends to be extremely suspicious of marketing as a whole.
  • According to 10th Degree, the best way to solve this is by targeting specific social target and the use of social media influencers.

STAFFING

  • With so many channels and so many distinct methods to reach the client, companies find that they are compromised when it comes to offering sufficient employees to perform all the required marketing duties.
  • According to the PR Newswire report, six out of 10 marketers (64 %) reported to be shorthanded and they would like to employ people in digital marketing strategy, SEO and SEM.

PROVIDING THE ROI OF MARKETING ACTIVITIES

  • Measurement of the team's marketing activities' Return On Investment (ROI) is a top challenge to mid-level team members in the marketing department. ROI is a vital way for marketers to understand the effectiveness of each marketing campaign and pieces of content. Proving ROI can help the team make an argument on raising the budget.
  • According to Exchange, many senior marketers do not have a seat at the board level and they are unable to communicate or prove the ROI of marketing activities.
  • This can be solved by dedicating resources and time to establish links between sales results and marketing.

RESEARCH STRATEGY

We began our research by looking into industry-wide surveys or reports on pain points and challenges faced by mid-level team members in the marketing department. We were able to find published surveys from firms such as PR Newswire, Hubspot, and others. We analyzed the reports and came up with three pain points and challenges.

Our first source addresses these challenges as those that “stand out against bigger competitors.” A low marketing budget is something that all small- and mid-sized companies would face, but not large companies. By proximity, it would be safe to assume that this is a pain point for mid-sized companies. The marketing efforts of the team would be limited to the available resources. Our second source addresses staffing. It further explains how not having enough people can frustrate the marketing efforts of the team members. Large companies would not experience this issue. Our third source addresses ROI. Large companies would not experience this issue either. This study is a general survey of marketing across various company sizes. Assuming that mid-sized companies make a higher percentage of the spectrum, the findings are a true reflection of some of their pain points. The article provides statistical data to express these pain points. This article points out that determining ROI has become an increasing challenge as many digital marketing efforts are being overwhelmed by digital saturation. 
Sources
Sources

From Part 01