With the increasing demand for digital marketing, it can be challenging to determine the right budget for these services. But fear not; we've got you covered.
In this article, we'll explore the factors that impact the cost of digital marketing and provide insights on estimating the expenses for your campaign. After reading this article, you’ll be able to make informed decisions and achieve your marketing goals within your budget.
Table of Contents
- Six Factors Affecting the Cost of Digital Marketing
- Average Digital Marketing Cost
- Five Types of Digital Marketing Pricing Packages
- What Do Digital Marketing Services Include?
- Things To Look for When Researching Digital Marketing Agencies
- Best Digital Marketing Agencies To Hire
- Takeaways on the Cost of Digital Marketing
- Digital Marketing Cost FAQs
Six Factors Affecting the Cost of Digital Marketing
Before estimating the costs, you need to understand the factors that influence the pricing for digital marketing. These are:
- The Niche
- Timeline for Getting Results
- Current Search Engine Ranking
- How Well the Website Performs
1. The Niche
The niche or your target market affects the price the ad network charges you, along with the conversion rates. For instance, to get 1,000 clicks per month from ad spend, a bail bond company will have to pay 50% more on Google Ads than a pest control company.
Location determines the price of both organic SEO and PPC. The cost of digital marketing for a car dealership in New York will be higher because of the greater competition that the business faces compared to a similar business in Wyoming.
The competition also influences the price of digital marketing services in your market. This is because some markets generally put less effort into digital marketing than others. Similarly, in some niches, almost all big and small companies spend significantly on digital marketing.
4. Timeline for Getting Results
Paid ads bring results faster than most other mediums. This is because driving website visitors through ads takes place more quickly than improving organic search engine results. Consider that any marketing effort that leads to quick results comes with a higher price.
5. Current Search Engine Ranking
If your business currently ranks well for the desired keywords, you’ll need to put less effort into getting to the top. However, if you’re ranking low, for example, on the third page of Google, you’ll need to spend more on improving your existing website.
6. How Well the Website Performs
You need to consider if your website converts visitors into potential customers. If the conversion rates are low, you must focus more on producing quality content than ad spending and SEO. This will further influence the pricing.
Average Digital Marketing Cost
How much digital marketing costs depends on various factors, as seen in the previous section. However, these are the average prices of different digital marketing services:
- SEO - from $1,500 to $5,000 per month
- PPC advertising - up to $10,000 per month
- Email marketing - from $500 to $5,000 per month
- Content marketing - from $2,000 to $10,000 per month
- Social media marketing - from $1,000 to $20,000 per month
- Website Design - from $2,500 to $100.000 per website
In terms of hourly rates, agencies charge between $80 and $200 on average.
Small to mid-sized businesses spend between $2,000 and $6,000 on digital marketing services, while more ambitious companies may spend between $10,000 and $20,000 monthly to achieve their marketing goals. Large enterprises may allocate well over $100,000 monthly toward their online marketing efforts, depending on their budget and objectives.
Five Types of Digital Marketing Pricing Packages
There are various ways to calculate digital marketing costs:
1. Packaged Pricing
Digital marketing agencies offer different package services, and potential buyers are aware of prices upfront. The package pricing varies widely, from $1,000 to $20,000. This pricing mode is convenient for clients and providers, promising transparency in deliverables. Small businesses can choose a package that suits their budget.
2. Public Pricing
Some agencies prefer public pricing, which implies pricing the services individually. This way, prospects can pick the individual services per their needs, wants, and budget. If you choose this pricing model, you need not fill out a detailed contact form.
3. Price Quote Calculator
This pricing model combines the public and package models. A price for each service is set, and clients can build their packages using the calculator. The method is ideal for clients with a specific budget. They can also get a customized quote for the opted services.
4. Hourly Pricing
Estimating the time needed to execute a task can be tricky. If you are looking for digital marketing strategies for small businesses, avoid the hourly pricing model to prevent added costs.
However, enterprises with bigger budgets and complex websites prefer to pay by the hour. They realize the importance of requiring added resources arising from unforeseeable issues.
5. Flat Project-Based Pricing
Certain SEO projects, like recovering from Google penalties, are one-time occurrences. In contrast, other tasks, like conducting content audits and keyword research, are essential but only required periodically. Such tasks are best suited for flat-fee pricing.
Paid advertising is another digital marketing service suitable for the flat fee approach. The costs of PPC can be anywhere from $500 to $5,000 flat. Based on the deal structure, you can negotiate an extra 15-30% ad spend.
On average, an SEO campaign costs $2,500 to $5,000 per month, while it can go up to $25,000 to $50,000 per month for the larger websites.
For video marketing projects, the project pricing is primarily determined by the scope of work. Content creation is also commonly priced by the flat fee structure. Some clients might even have to pay $50,000 for these services.
What Do Digital Marketing Services Include?
Digital marketing is a vast area, and businesses must be aware of the different services that come under it. These are:
- Search Engine Optimization (SEO)
- Pay-per-Click (PPC) Advertising
- Content Marketing
- Social Media Marketing (SMM)
- Email Marketing
- Video Marketing
- Voice Search Optimization
- Web Design
1. Search Engine Optimization (SEO)
SEO is a core digital marketing service comprising a wide range of strategies for improving the online visibility of businesses. SEO is indispensable, with more than 80% of consumers relying on search to find their preferred products and services.
2. Pay-per-Click (PPC) Advertising
Pay-per-click (PPC) campaigns, like SEO, increase the online visibility of your business, but through paid advertising. PPC is a cost-effective digital marketing method for many companies, promising quick results.
3. Content Marketing
Content marketing promises impressive ROI; it generates 3x more leads than traditional marketing but costs up to 62% less. User-friendly content improves conversions, brand awareness, and revenue.
4. Social Media Marketing (SMM)
SMM is focused on enhancing your online presence, brand awareness, and brand loyalty. Social media provides a massive opportunity for businesses today and must be a part of any digital marketing strategy.
5. Email Marketing
Email marketing increases brand awareness and loyalty, increasing sales and conversions. It is a time-tested and cost-effective digital marketing service. It offers an unparalleled ROI of $36 for every $1 invested.
6. Video Marketing
Another valuable digital marketing asset that focuses on creating helpful and informational content for users and increasing conversions.
7. Voice Search Optimization
Gradually growing in demand, voice search optimization focuses on earning relevant featured snippets for your keywords. This service can range from $600 to $2,000 per month.
8. Web Design
Web design is an overlooked area in digital marketing. In most cases, web design is a one-time investment. However, web design is crucial because it offers a significant ROI.
If you are considering web design, its price ranges from $5,000 to $15,000 for a custom website and $300 to $1,000 for a customizable website from a template. Website maintenance costs vary from $50 to $2,000 a month.
Things To Look for When Researching Digital Marketing Agencies
Now that you have an idea of the services and an estimate of the costs, here is a quick look at what you should look for while finding a provider:
- Deliverables – You must know what your business is paying for, so reviewing an agency’s deliverables before signing a contract is essential.
- Quotes – Several agencies do not disclose their prices online, leading to hidden fees. You must ensure your website’s digital marketing costs align with the custom quote they offer.
- Methods – The agency must not follow a one-size-fits-all marketing approach. A personalized approach and customized methodologies should be preferred.
Best Digital Marketing Agencies To Hire
If you’re considering hiring a digital marketing agency to help you with your online presence, look no further. Here is the list of top experts in the industry:
- Matcha Design
- Envicion Studio
- Stellify Digital Solutions
- Ernst Media
- Chicago Marketing Consultancy LLC
- DS&P Digital Marketing Agency
- Adchemist Digital
- Di Pietro Marketing Group
- Decibel Blue
- Blue Bumble Creative
- Bright Pink Agency
- ENHANCED MEDIA GROUP LTD
- Centaur Interactive
- Joombooz doo
- Clash Copy Corp
- Location: 8211 East Regal Place, Suite 100, Tulsa, Oklahoma 74433, United States
- Average Hourly Rate: Inquire
- Expertise: Website Development, UI/UX Design, Digital Marketing, Social Media Marketing...
Matcha Design is a Tulsa-based creative agency that helps businesses connect with their target audiences through web design, social media, logo design, and other marketing services.
Since 2004, the award-winning agency has combined goal-driven creativity with intelligent design practices to meet clients' unique needs. Their rigorous industry research ensures their finished product allows clients to serve their customers best.
Matcha Design is great for brands looking to break away from the status quo with a fresh and disruptive approach to business.
- Location: C-20-3A, Floor 20, 19 Sentral, Jalan Harapan, Seksyen 19, 46300 Petaling Jaya, Selangor, Petaling Jaya, 46300, Malaysia
- Average Hourly Rate: $500/hr
- Expertise: Digital Marketing, Web Design, Social Media Marketing Consulting, Digital Strategy...
Established in 2009, Envicion Studio has grown from a graphic studio to a full-suite creative and digital agency. They are now a trusted agency for technology-driven digital marketing, web and app development, branding, and other end-to-end services. Envicion Studio uses a combination of research, analysis, and design to help clients understand what works in their marketing campaigns.
The agency specializes in developing tailor-made campaigns for real estate businesses. Their clients include SP Setia, BRDB Developments, and Mah Sing.
- Location: Belcourt Parkway, Atlanta, Georgia 30076, United States
- Average Hourly Rate: $100/hr
- Expertise: Small Business Digital Marketing, Legal Digital Marketing, Social Media Marketing, Real Estate Web Design...
Stellify Digital Solutions is an all-inclusive web design and marketing agency that caters to businesses at all levels. With a comprehensive understanding of design concepts, logistics, and positive exposure, the agency helps bring brands up to speed with the latest design and marketing strategies. Their services range from web design, SEO, and social media to platform marketing and online and physical advertising.
The agency caters to brands across industries, including healthcare, real estate, dental, and legal. Clients include Your Premier Image, Bright Future Solar, and ATG Innovations.
- Location: 95 Danforth Avenue, Toronto, M4K 1N2, Canada
- Average Hourly Rate: $125/hr
- Expertise: UI/UX Design, Digital Marketing, SEO, PPC
Based in Toronto, Kaizenzo is a results-oriented digital marketing agency that crafts high-performance and ROI-driven and data-driven strategies. The agency identifies marketing opportunities that allow brands to connect with and engage with audiences around the world, driving more leads and increasing revenue. Their services range from various forms of paid advertising to SEO, content marketing, and web design.
To date, Kaizenzo has successfully completed over 200 projects and managed more than 1,500 campaigns. Their clients include Nissan, Kia, Callture, and Telcan.
5. Ernst Media
- Location: 12402 N. Division St. STE 185, Spokane, Washington 99218, United States
- Average Hourly Rate: $95/hr
- Expertise: Enterprise Mobile App Development, Digital Marketing, Small Business Digital Marketing, Inbound Marketing, and eCommerce PPC.
Ernst Media is a premier digital marketing agency based in Spokane, Washington. Founded in 2018, the agency has become well-known throughout the area for its expertise in mobile app development, digital marketing services, and eCommerce PPC. Ernst Media's impressive client list has included DAV Network, Wisdom Labs, and DNS Filter — all trusting Ernst to bring their visions to life with professional and witty guidance.
Each team member brings more than 15 years of experience to the table and Ernst Media is committed to delivering measurable results.
- Location: 8 S Michigan Ave #2310, Chicago, Illinois 60603, United States
- Average Hourly Rate: Inquire
- Expertise: Digital Marketing and SEO.
Chicago Marketing Consultancy (CMC) is a Chicago-based digital marketing and SEO agency that stands tall in the Midwest business landscape. First founded in 1993 and re-instated in 2020, CMC is a second-generation, family-owned, and managed consultancy that works with local and international clients alike.
CMC is no stranger to taking necessary risks and making lemonade out of the obstacles life throws at them; mirroring the paper plane proverb where challenges are seen as opportunities for creative growth. Moreover, CMC has positioned itself as an asset for any entity vying for digital marketing expertise — SEO understanding included.
Chicago Marketing Consultancy boasts an impressive client roster, some of which include the Hyatt, Marriott, and Hilton Hotels.
- Location: Naples, FL 34103, Naples, Florida 34103, United States
- Average Hourly Rate: $50/hr
- Expertise: Digital Marketing, Search Engine Marketing, SEO, and Local SEO.
Brandignity is a digital marketing agency based in Naples, Florida, that has been gaining traction since its humble beginnings in 2010.
Brandignity specializes in full-service search engine optimization (SEO) and web design that follows the latest advances in technology to optimize its clients' online presence. Brandignity's team of experts also offers services such as social media options, content creation, paid ads, custom web design, and turnkey solutions tailored to each client’s needs — depending on what platform works best for them.
With big-name brands, such as CanadaQBank, Kapta, and Gozen, already benefiting from Brandignity’s commitment to delivering effective and innovative digital marketing strategies, Brandingity is proving itself time and time again a formidable force in this rapidly evolving industry.
- Location: 605 N. Michigan Ave, 4th Floor, Chicago, Illinois 60611, United States
- Average Hourly Rate: Inquire
- Expertise: Public Relations, Mobile App Development, Website Development, Digital Marketing, SEO, PPC, Social Media Marketing, and VR/AR.
DS&P, founded in 2009, is a small but mighty digital marketing agency with offices throughout the U.S. and clients worldwide, with its HQ based in Chicago, Illinois.
Owned and operated by an incredibly talented team of designers, strategists, entrepreneurs, and marketing geniuses, DS&P offers every digital service that your business needs in one bundle. From mobile app development, digital marketing, and PPC to VR/AR, SEO, and PR, DS&P's expertise is unparalleled.
DS&P has successfully serviced clients such as Nelson Propane, Ritzy Rentals, and VastMed through their passion for delivering unparalleled results. DS&P provides the perfect combination of quality services at an affordable cost — boosting the success rate for your company is their main objective!
- Location: 3274 San Jose st Sampaloc, Manila, 1008, Philippines
- Average Hourly Rate: $18
- Expertise: Small Business Branding, Digital Marketing, SEO Consultants, Search Engine Marketing...
Adchemist Digital offers the best local SEO services, social media management, website development, outreach marketing, Amazon listing, and NFT community management from Manila, Philippines.
The agency helps transform, create, and convert your “silver” business to “gold.” In other words, they can develop businesses to a new level to achieve goals and help create a solution to your problems.
- Location: 525 Rt 73 N, Ste 104, Marlton, New Jersey 08053, United States
- Average Hourly Rate: $200
- Expertise: Web Design, Digital Marketing, Legal Digital Marketing, Branding, PPC...
DMG began running PPC campaigns way back in 1998 with GoTo.com. This was a year after Yahoo turned down an opportunity to buy Google for $1 million.
Interesting that no one in the fledgling digital advertising industry at that time even thought of metrics such as AOV and CPA — except this agency. They did because they came from the traditional advertising industry. Being so well-versed in the traditional side of things, they simply ported over their knowledge of marketing and advertising to the digital side.
11. Decibel Blue
- Location: 7524 E Angus Dr., Scottsdale, Arizona 85251, United States
- Average Hourly Rate: $150
- Expertise: Digital Marketing, Social Media Marketing, Real Estate Marketing, Influencer Marketing...
Every organization needs to communicate what makes them exceptional to tell their story. With over 60 years of collective experience, Decibel Blue’s leadership team helps real estate, franchise, and lifestyle clients achieve measurable results by telling their stories strategically and creatively.
With offices in Denver and Scottsdale, the 15-year-old PR firm represents businesses ranging from start-ups to mature regional and national brands.
- Location: PO Box 557, Groton, Massachusetts 01472, United States
- Average Hourly Rate: $150
- Expertise: Branding, Graphic Design, Print Design, Website Development...
This agency is a woman-owned business with a team of passionate graphic designers, web developers, and marketing experts. Blue Bumble Creative (BBC) ensures results with industry-specific marketing techniques proven to drive interest to your business and showcase your brand correctly.
Founded in 2000, BBC is a one-stop solution for premium branding and marketing development. Their goal is to create a unique design or strategy for your business that sets you apart from your competition — and help you rise to the top!
- Location: 5401 N University, Dr Ste 102, Coral Springs, Florida 33067, United States
- Average Hourly Rate: $150/hr
- Expertise: Branding, Public Relations, Advertising, Creative, Web Design, Website Development, UI/UX Design, Digital Marketing, Search Engine Marketing, Legal Digital Marketing, Social Media
In this time and age, you need a digital marketing agency to help you continue taking your business to the next level. That's what Bright Pink Agency aspires to accomplish for its clients.
With 14+ years of experience and a series of prestigious awards, this agency boasts an impressive portfolio that includes work for franchises, multilocation, and nonprofit organizations.
- Location: 2 Broom Avenue, Chesterfield, S45 8HP, United Kingdom
- Average Hourly Rate: $24/hr
- Expertise: Small Business Digital Marketing, Digital Advertising, Digital Marketing, Responsive Website Design, Print Design...
This online development brand agency tailors solutions to provide the best marketing solutions to enhance your business and brand image online. This is done by interacting, engaging, and uploading the most relevant media to platforms such as Twitter, Instagram, and Facebook.
Researching the market and keeping up to date with the latest technologies enables them to provide such a service to you and keep your business on its feet.
- Location: 20140 Oakflower Ave, Tampa, Florida 33647, United States
- Average Hourly Rate: $60/hr
- Expertise: Digital Marketing, SEO, eCommerce, Real Estate PPC...
Centaur Interactive is an eCommerce digital marketing agency providing ROI-based eCommerce solutions. They aim to make new-age eCommerce marketing services accessible to businesses of all sizes.
The agency uses holistic techniques to manage and build effective eCommerce campaigns that provide results. They are dedicated to helping companies grow through a personalized marketing strategy tailored to their needs.
16. Joombooz doo
- Location: Pasterova 16a, Nis, 18000, Serbia
- Average Hourly Rate: $50/hr
- Expertise: YouTube Marketing, Video Marketing, Instagram Marketing, Social Media For Small Business...
Company Joombooz was founded in 2011 in Niš and has been successful in the country and abroad for years. The main activities of the company are web programming and design and digital marketing.
A special team of creative experts in the field of marketing, informatics,and graphic design works on marketing campaigns (content, advertising, social media, etc.). The goal of the company is customer satisfaction and long-term relationships because the client and their wealth are always the top priority.
17. Clash Copy Corp
- Location: 126 Frobisher Cres, Saskatoon, S7K4Y5, Canada
- Average Hourly Rate: $95/hr
- Expertise: Small Business Website Design, SEO, PPC, Email Marketing...
Clash Copy provides collaborative and rewarding marketing solutions to technology businesses of any size. Their mission is to ensure that you close more businesses with content that retains an authoritative presence in the IT industry.
Their services include website solutions, SEO, PPC, copywriting, marketing automation, CRM solutions, email marketing, and more.
Takeaways on the Cost of Digital Marketing
Done properly, digital marketing can be a highly effective tool for businesses looking to reach their target audience. Still, it can also come with a high cost. Therefore, businesses must thoroughly evaluate their digital marketing strategies and estimate the digital marketing cost, following their budget.
With so many digital marketing channels available, determining which ones will be most effective for the specific needs of your business can be challenging. In such cases, seeking the guidance of a digital marketing agency can be highly beneficial. Digital marketing experts can help businesses navigate the complexities of the digital marketing landscape and make informed decisions about where to allocate their resources.
Digital Marketing Cost FAQs
1. How much should a company spend on digital marketing?
According to U.S. Small Business Administration, businesses should invest 7 to 8% of their total revenue on marketing. Large companies with significant ROI can afford bigger marketing budgets — approximately 15% of their revenue.
The amount companies spend on digital marketing depends on the industry too. It is the highest in consumer services (19%) and education (12%), while manufacturing takes only 2%.
2. Is paying for digital marketing worth it?
Yes. Paying for digital marketing is a wise investment for all businesses looking to reach and engage with their target audience. Digital marketing can be a highly effective way to generate leads, build brand awareness and drive sales. Another advantage — often it is more affordable than traditional marketing channels.