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How Much Does A Marketing Agency Cost in 2020?

Megan Ealy • Jan 06, 2020

Average Cost of a Marketing Agency: Pricing Guide For Small Businesses & Start-Ups 


We started Sisu in 2018 to be a resource for small businesses and early startups to receive the marketing they need to be successful. Oftentimes, professionals in our industry ask us a common question - " why do you work with some brands at such a low rate?" 


After spending years working with numerous agencies, we found that the standard rate for these services is out of reach for many small business owners. Specifically, they're in a position to grow by leveraging agency services - but don't have the funds to pay a hefty fee. As a result, roughly 50% of them fail and oftentimes it is because they lack marketing. Simply put, this is a frightening statistic - but this isn't the case for everyone - as many businesses thrive from word-of-mouth or they are the “only” show in town (for now). 


To hire a marketing agency in 2020, business owners should expect to spend a minimum of $4000 a month on non-working dollars. Now, what does that mean? 


Non-Working Dollars: Investments that are not directly driving sales - such as paying for creative or marketing staff.


Working Dollars: Advertising spends on Facebook or Google are considered working dollars because they directly drive sales. 


Cost of Marketing Agency For Small Business


But wait? Why spend money on non-working dollars? 


Ultimately, business owners need to invest non-working dollars to drive the business forward in ways that your working dollars can’t do on their own. That said, every non-working dollar needs to be spent wisely to generate a meaningful return. What does it look like when non-working dollars are spent correctly?

Marketing Agency Pricing - Our Request For Proposals


We sent our staff on a mission to see what the market looks like for small businesses in 2020. Below you will find the quotes we received when requesting services for a small business with a revenue of $450,000 annually. You will be shocked to see what we were pitched! 


We reached out to 10 marketing agencies (many are at the top of Google Search Ads). After following up three times, we were only able to speak to four of them and three sent us to their website to look at pricing. Three agencies never returned our calls or emails. Clearly, we weren’t large enough for them! 


Here Are The Quoted Averages From 10 Marketing Agencies

View these in our infographic.

Tactic:
SEO - $2000
Content Marketing - $5200
Paid Social Media - $4200
PPC/ Google Ads - $6000
Website Build - $4500 one-time fee
Marketing Strategy - $3400 one-time fee per marketing tactic

Two example agencies are shown below - one full-service and one designed specifically for small businesses. The remaining eight agency quotes can be viewed below


Agency 1 - “New York City Marketing Agency”

Top of Google Ads for Small Business Marketing Agency


This is a top-notch agency with multiple people assigned to the account and has been in business 20+ years. They will provide full-service and a dedicated account manager. 

Tactic Cost Comments
SEO $15000/month Depending on the number of keywords, blogs and backlinks
Paid Media $5000 /month Social media advertising, native advertising, programmatic, premium mobile distribution, out-of-home, and more
Social Media Marketing $15000/month Content calendars, Community management, Graphic design
Paid Strategy $25000 OTP Competitor research, industry analysis, brand voice workshop

Agency 2: “Small Business National Marketing Agency”
Top of Google Ads for Small Business Marketing Agency

When reaching out to this agency, we ran into the nickel and dime model. In other words, the quoted upfront costs were low - but when factoring unlisted services, the costs drastically increased. For example, social media management is quoted between $400 & $1000. However, this figure jumps significantly when we asked for 2 posts per channel per week (Facebook, Instagram and Twitter) with graphic design, copywriting, picture sourcing, scheduling, responding to messages/comments/liking, software and content strategy.
Services Pricing Additional Comments
Social Media Management $400-$1000/month Depending on the number of channels, the number of posts and engagement needed. Creative not included.
Social Media Advertising Starting at $600 It includes the development, management, and optimization of the campaign. Creative not included.
SEO $800-$2000/month Offer initial 3 months contract
PPC Starting at $600/month Depending on the amount of advertising channels and campaigns
Web Design $1,500 For initial design and development of up to 5 pages. Additional pages cost more depending on complexity.
Email Marketing $300/month It does not include any cost associated with email marketing software, email lists etc.

Why Hire a Marketing Agency?

Let us break it down for you with a few scenarios:

Hire Full-Time Marketing Staff
The average salary for a junior-level marketing staff with 1-3 years of experience is $49K (Glassdoor) - which does not include payroll fees, benefits and taxes. Furthermore, this person should be skilled in a few areas and help manage the day-to-day marketing operations. That said, you will still need to hire freelance graphic designers or purchase user-friendly software like Canva to provide the necessary support. If your company is larger and looking to enhance digital advertising, website management, graphic design, email marketing, etc. - the cost to bring these services in-house will come out to the following:

Marketing Manager - $81,078/yr
Graphic Designer - $48,561/yr
Web Designer - $57,470/yr
Copywriter - $60,296/yr
Digital Marketing Manager - $73,114/yr
Social Media Manager - $55,199/yr
Data Analyst - $67,377/yr

Business Launching Social Media Advertising
Your business wants to launch social media advertising, as it is one of the top digital marketing trends in 2019. You want to spend 10% of your monthly revenue on marketing - giving you a budget of $10,000/month, with $4,000 allocated specifically for social media ads. 

Campaign Brief: 5 Ad Campaigns Created, 4-5 Ad Creative Variations, Audience List Uploads, Adding Tags to Website, Building Ads in Business Manager, Graphic Design, Daily Monitoring and Weekly Reporting. (Approximately 120 hours per month)

No Agency Option and use Part-Time Staff with a salary of $15/hr
  • Cost: $4,000 (Paid to social platform) + $1,800 (Paid to part-time staff) = $5,800
  • Sales Generated: Aim for 2-3x ad spend. $8,000 - $12,000
  • Net: $2,200 - $6,200* Depending on ad performance and skill
Small Business Owner Who Self Manages Marketing
  • Cost: $4,000 (paid to social platform) + Your Hourly Rate (e.g. $100/hr) = $16,000
  • Sales Generated: Aim for 2-3x ad spend. $8,000 - $12,000
  • Net: -$8,000 to -$4,000 (Obviously the business owner will take this task on without paying themselves so we can show it this way instead.)
Here is an example from one of Sisu Media’s clients. 
Industrial Tool Repair shop makes on average $300 per machine repaired and one repair takes two hours. When applied to the scenario above, 120 hours will generate $18,000 in revenue. 
  • Cost: $4,000 (paid to social platform) + Agency Rate (Avg. $2,000/month) 
  • Sales Generated: Aim for 2-3x ad spend. $8,000 - $12,000 (26-40 new customers) + sales generated from owner having time to repair an additional 60 machines (120 hours) $18,000 
  • Net: $20,000 - $24,000

You can see that the cost to hire an agency isn’t much more than paying part-time staff. An agency will eliminate the need to manage staff that are paid hourly (who also carry a high turnover rate), have the knowledge of targeting, placements and advertising that many staff may not have.   

After reading through the numbers, you are probably wondering why marketing agencies charge so much! We have created a series to help you understand (from our viewpoint) how each tactic is priced. Stay Tuned! 

Below you will find the remaining quotes we received.

Agency 3:
Services Pricing Additional Comments
Organic Social Media $22,000/month Content, Scheduling, On-Site Support, Engagement across all channels 
SEO $8000 one time and $2200/month Audit, on-page, off-page, backlinks, speed
PPC Starting at $6000/month Google PPC, Dashboard and 10 campaigns
Web Design $100,000 min spend Custom website builds only
Email Marketing $500 per email It does not include any cost associated with email marketing software, email lists etc.
Content Marketing $15000 for plan and $6500/month for development Blog, infographics, press releases, influencers
Agency 4: 
Services Pricing Additional Comments
SEO $750/month Massive SEO Strategy, 5-10 Optimized Web-Pages, Analytics Setup, Keyword Research & Analysis, Competition Analysis, On-Page & Off-Page SEO Execution, Title Tags, Meta Descriptions, Image SEO, Content Creation & Optimization, Inbound Traffic Management, Initial Backlinks Analysis and Reporting, Ranking Reports
$1250/month Includes Google Maps & local SEO, Ranking & Citation Reports
$2000/month Includes Advanced SEO Techniques / Skyscraper Technique, Weekly Reporting, Social Media profile creation and management, Monthly blog articles
Social Media Marketing $599/month Daily posting, Spam monitoring, Real-time engagement and 6 custom graphic design per month
$999/month Above plus 16 custom graphic design per month, Focused follower growth and Quarterly animated video
$1299/month Above plus 26 custom graphic design per month, Monthly animated video, Professional Photography & Video Production.
PPC $300/month Account Setup, 5 Campaigns, In-depth Keyword Research, Campaign Audits, GEO Targeting, Demographics Targeting, 360 Degree Audit to Increase CTR, Manual Bidding
$700/month Includes 12 Campaigns, Landing Page Creation for Each Campaign, Landing Page Audit to Convert Traffic
$1500/month Includes 20 Campaigns, Live Chat Support to Convert Traffic
Website Design $899 5 Pages, Responsive Custom Design, SEO Optimized, Logo Design, Sitemap Creation, Google Indexation, 5 Stock Photos, 1 Month Maintenance
$2,000 Includes 10-20 Pages, 10 Stock Photos, 3 Months Maintenance, Social Media Account Creation, Normal Press Release
Agency 5: 
Services Pricing Additional Comments
Level 1 - Content Marketing Services $1,800 initial investment 3 content assets Voice search optimization Rich media citations
Level 2 - Content Marketing Services $3,600 initial investment 6 content assets AI software, ContentGeniusFX and PredictionGeniusFX Monthly strategy report
Level 3 - Content Marketing Services $6,000 initial investment 10 content assets Content asset outreach AI software, ContentGeniusFX, PredictionGeniusFX, and ContentAnalyticsFX Competitor content gap intelligence report
Level 1 - Ecommerce SEO Services $1,250/month 4 custom dashboards 20 guaranteed keyphrases 4 pages of SEO copy
Level 2 - Ecommerce SEO Services $2,250/month 8 custom dashboards 20 pages of SEO copy Shopping cart funnel analysis
Level 3 - Ecommerce SEO Services $4,000/month 8 custom dashboards 40 pages of SEO copy Customer review strategy
Level 1 - PPC Advertising Services $350 and up per month, $1,000 setup fee, $0-2,500/month ad spend (paid to networks) Depends on number of campaigns Up to 400 keywords targeted Google Ads Network
Level 2 - PPC Advertising Services $14% of ad spend, $1,750 setup fee, $2,501-$15,000/month ad spend (paid to networks) Up to 2,000 keywords targeted, Google Ads & Bing Networks
Level 3 - PPC Advertising Services Up to 10,000 keywords targeted, Google Ads & Bing Networks, Google Shopping Management $12% of ad spend, $2,500 setup fee, $15,000+/month ad spend (paid to networks)
Agency 6:
Service Pricing Additional Comments
SEO $2,000/ Mon Complete Website Audit, Competitive Analysis, Keyword Strategy Website Optimization, Link Building, Monthly Monitoring
PPC $1500/ Mon n-depth Keyword Research, Campaign Audits, GEO Targeting, Demographics Targeting, 360 Degree Audit to Increase CTR
Web Design / Developing $5,000 Custom
Reputation Management $1500 / Mon Systematic campaign to promote your company multi-dimensionally across the web: social media marketing, directory submissions, blog articles, YouTube videos, etc.
Social Media $1500 / Mon Footprint across Facebook, Twitter, Instagram, YouTube etc, Manage social presence increase brand awareness and sales Management only
Agency 7:
Service Pricing Additional Comments
PPC $6000 a month or 10% of ad spend Targeted Messaging, Optimize Paid Search Campaigns for Better Quality Leads & Nurture Relationships for Stronger Lifetime ROI
SEO $9000 one time plus $2200 a month Effective website optimization, Thoughtful website content development strategies Relationship building and web presence management, Reputation Management, Local & Regional SEO, Content Planning & Management, Link Building & Acquisition
Social Media $2000 one time plus $5000 a month Social Media Advertising, Monitoring & Analytics, Community Management, Facebook Advertising
Web Design Starting at $10000 UX Website Optimization Marketing Strategies, UX Design, UI Improvements, Responsive Development and Ongoing Website Management
Strategy Starting at $20000
Agency 8:
Services Pricing Additional Comments
Website Audit $799 Comprehensive Website Review, Editorial content review, SEO factors – on page and off page, Social profile review, Google My Business review, Directory and citation review, Online reputation review, Competitive landscape
Local SEO $999 a month Google My Business Optimization 2 Pages Onsite SEO Management Review Management Local Citation Management Link Building - 1 per month 1 x 500-word article dashboard + reporting
Early Research $3000 one-time Client Interviews - Email Survey Competitive Research - High-Level Summary + Reports Core Message Development Persona Development - High Level Customer Journey Map Execution Calendar - 3 Months Growth Recommendations
Early Research $5000 one-time Client Interviews - 5 client interviews Competitive Research - 3 competitors Core Message Development Persona Development - Summary Customer Journey Map Execution Calendar - 6 Months Growth Recommendations
Early Research $7500 one-time Client Interviews - 10 client interviews Competitive Research - 6 competitors Core Message Development Persona Development - Deep Reviews Customer Journey Map Execution Calendar - 12 Months Growth Recommendations
Example packages typically include SOME combination of the following tactics. $2,999 Marketing Website: Refresh WordPress site, Mobile friendly, HTTPS secure, Local pages, CRO Landing pages Content Program: Core page content, Home page video, Review funnel, Ongoing blog content, Hub page upgrade for leads, Podcast or webinar, Sales materials, Press releases, Update old content" SEO: Google My Business Optimization, Onsite SEO management, Local citation management link building, Google Search Console set-up, Podcast guesting, Organic CTR optimized, Featured snippet program Social Media: Social profile refresh, Social posting plan, Social promotion plan, Social engagement plan, Media and influencer outreach, Video channel, Live video program Email Marketing: List clean-up, Re-engagement campaign, Monthly newsletter, Lead capture calls to action, Email confirmation and follow-up, Email lead nurture program, Email lead campaigns
Example packages typically include SOME combination of the following tactics. $3999 a month Marketing Website: Refresh WordPress site, Mobile friendly, HTTPS secure, Local pages, CRO Landing pages Content Program: Core page content, Home page video, Review funnel, Ongoing blog content, Hub page upgrade for leads, Podcast or webinar, Sales materials, Press releases, Update old content" SEO: Google My Business Optimization, Onsite SEO management, Local citation management link building, Google Search Console set-up, Podcast guesting, Organic CTR optimized, Featured snippet program Social Media: Social profile refresh, Social posting plan, Social promotion plan, Social engagement plan, Media and influencer outreach, Video channel, Live video program Email Marketing: List clean-up, Re-engagement campaign, Monthly newsletter, Lead capture calls to action, Email confirmation and follow-up, Email lead nurture program, Email lead campaigns Paid Lead Generation: Boost FB posts, Social media ad campaign, Google AdWords, Remarketing campaigns Sales Enablement: Co-marketing partner plan, Lead discovery/orientation process, Speaking for leads, Repeat customer campaigns Customer Experience: Review response plan, New customer onboarding process, Customer delight process, Referral program, Events program, Customer feedback program
Example packages typically include SOME combination of the following tactics. $4999 and up per month - Depends on how much is needed per category Marketing Website: Refresh WordPress site, Mobile friendly, HTTPS secure, Local pages, CRO Landing pages Content Program: Core page content, Home page video, Review funnel, Ongoing blog content, Hub page upgrade for leads, Podcast or webinar, Sales materials, Press releases, Update old content" SEO: Google My Business Optimization, Onsite SEO management, Local citation management link building, Google Search Console set-up, Podcast guesting, Organic CTR optimized, Featured snippet program Social Media: Social profile refresh, Social posting plan, Social promotion plan, Social engagement plan, Media and influencer outreach, Video channel, Live video program Email Marketing: List clean-up, Re-engagement campaign, Monthly newsletter, Lead capture calls to action, Email confirmation and follow-up, Email lead nurture program, Email lead campaigns Paid Lead Generation: Boost FB posts, Social media ad campaign, Google AdWords, Remarketing campaigns Sales Enablement: Co-marketing partner plan, Lead discovery/orientation process, Speaking for leads, Repeat customer campaigns Customer Experience: Review response plan, New customer onboarding process, Customer delight process, Referral program, Events program, Customer feedback program CRM Tool: Data capture and clean up, Sales pipeline process Marketing Automation: Lead scoring process, Lead follow-up sequences Analytics: Analytics goals, Advertising tracking, Call tracking
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