How much do you have to invest in a digital marketing agency to get results that will take your business to the next level? Today, marketing has evolved from traditional offline channels to the digital world. The good news is that costs have also come down. We can argue that digital marketing is much more effective than its predecessors, which consisted primarily of print advertising, television and radio advertisements, and direct mail.

The price of creating and implementing a digital marketing strategy varies greatly depending on the services and activities requested from the agency. You must know that the total cost will depend on these services and the time it takes to generate them.

Digital marketing is more effective and affordable than traditional forms of marketing. However, business owners need to know the prices involved before deciding to use them to drive growth and success for their businesses. 

Businesses should expect to spend 10-20% of their revenue thanks to digital marketing. Still, if done right, it can increase revenue by more than 109%!

You must consider that digital marketing is an ongoing strategy and that your budget may change as your business grows.

Pricing for Digital Marketing Services

There is no fixed price for digital marketing services because it all depends on what you are getting. However, the average costs of digital marketing services range from $2,500 to $50,000.  But like many things in the world of digital marketing, it all depends.

The prices of each agency will depend largely on:

• The agency’s operating costs
• The amount of money to invest in advertising campaigns
• The level of competition that your market has
• The type of project to contract

The 3 main activities of a digital marketing agency

Search engine optimization (SEO)

SEO refers to search engine optimization. It encompasses website optimization, web page structuring, keyword research, search intent, content development, and content optimization. SEO is entirely free; you only have to pay the marketing agency that applies it to your website.

You don’t have to pay Google anything like PPC. If you have the required knowledge, you can do everything yourself. Otherwise, you should outsource the SEO implementation to a professional SEO expert or agency. The recommendation is always to verify the experience of the independent professional or agency. Interview them, ask for references, and look for reviews from other clients. 

According to data from Moz, an agency specialized in SEO, this is the average cost of SEO services, if you decide to outsource:

• Hiring a freelancer for SEO costs between $200 and $500 per hour.
• Hiring a digital marketing agency costs between $3,000 and $20,000 per month
• An SEO campaign or project costs between $5,000 and $7,500 .

Advertising costs on Social Media Networks

Social media marketing (SMM) includes optimizing social media and advertising for your business or company. As with SEO, if you or your marketing team are experts in this area, you won’t have to spend a lot other than what your team’s salaries cost.

Major social media platforms like Facebook, Twitter, Instagram, and LinkedIn offer advertising options like sponsored posts. There is no established minimum, and the costs can vary from $500 per month to $10,000 per month.

However, it is common for social media advertising costs to drop between $3,000 and $7,000 per month, depending on the platform, the target audience and its size, and the frequency of posts, ads, etc.

The pricing also depends on where you are located. If you’re located in Los Angeles then it might be higher price than if you were in Boise. So it really all depends. An agency like Kobe Digital, since we’re located in LA, it might be a higher cost.

Why pay so much to advertise on social media if it’s free for everyone? Social media marketing goes beyond just sharing images and creating hashtags; It involves paid advertising so that your publications or ads reach the target audience. 

And is that if you have few followers with little brand awareness, you will have difficulty reaching the people you want. Advertising on social media channels helps you narrow down your audience, increase your reach, and increase brand awareness.

Pay Per Click (PPC) advertising costs

Pay-per-click advertising is a marketing strategy in which the advertiser pays for the clicks or impressions of the ad. One of the largest PPC advertising platforms is Google Ads . It was previously called Google AdWords, which you may be more familiar with. 

This PPC online advertising platform allows advertisers to display their ads on the Google search engine network. Bing is another search engine that also offers PPC advertising. Bing Ads has been renamed to Microsoft Advertising. These ads are similar to Google Ads and appear on the search engine results page (SERP).

As you know, people turn to a search engine when they have a question. Search engine advertising gives you the ability to reach peopleat the precise moment they have a question or need.

It depends on the budget you have for marketing. You can decide to invest from $600 to $50,000 or whatever you choose. What I can recommend is that each company allocates an annual percentage to marketing. You will need to determine the percentage that makes the most sense for your business.

At Kobe Digital we provide web design services in Los Angeles with much digital marketing, and we’ll make sure to find the right web design project with the right pricing for your budget.