Could working with the right marketing agency be what makes or breaks an eCommerce business?
A new study of over 150 eCommerce businesses, conducted by DesignRush, has provided insights into the types of agencies that businesses utilized in 2018 and are projected to utilize in 2019.
The results offered clear insights into what the most effective marketing strategies are for businesses looking to grow.
Respondents were asked questions about ROI, investments, and agency utilization relating to the major marketing channels, consisting of social media marketing, SEO, paid search ads (PPC), and offline advertising.
Of these five categories, one emerged as a clear winner: social media.
Most of the eCommerce businesses surveyed were smaller, with less than 10 employees, to businesses with over 10,000 team members. On the low end, annual incomes were less than $500,000 — on the high end, over $40 million.
The companies surveyed conducted business on the most popular eCommerce platforms, including Amazon, and also used their own eCommerce websites and mobile apps.
Marketing agency utilization questions related to each of the aforementioned marketing channels. For example, an agency that helps a company with the SEO marketing channel may be known as an SEO agency.
Let’s dive into some of the important discoveries made by this study, which will offer valuable insights for eCommerce businesses of all sizes.
While full-service agencies can assist with a wide variety of marketing elements, some businesses have to prioritize the channels that they take on. Considering the reported difficulty that many eCommerce companies have with social media — combined with the high ROI — it’s no wonder why many companies are utilizing social media management agencies.
A large majority of eCommerce companies used a marketing agency of some kind in 2018. Survey respondents were asked to provide information about the specific channels they were assisted in managing, if they used an agency at all:
We also wanted to know what the future looked like for eCommerce businesses in terms of agency use.
Survey respondents were asked about their plans on using a marketing agency in 2019. What we found is an increased usage of agencies overall, along with a channel allocation that resembles the previous year:
Social media marketing is popular for its low cost — businesses can advertise on Facebook for as little as a dollar a day.
Since social media is integrated into many of our personal lives, the basics of posting content and replying to comments are well understood by much of the public.
However, when social media interaction expands to the business scale, the amount of regular engagement that is necessary can be difficult for companies to keep up with.
The responses we received showed that many businesses are experiencing difficulty with managing social media:
Survey respondents were also asked about which marketing channel is the easiest to manage.
A high number reported that social media is actually the easiest channel for them to deal with. As mentioned earlier, this may be because of the familiarity that casual social media users have with the platforms.
Our survey found that an increasing amount of eCommerce businesses are planning on stepping up their marketing investments.
These investments may include hiring a marketing agency, which is why we can draw parallels between agency utilization and overall channel spending:
For 2019, we will continue to see a shift away from the traditional marketing channels of email and offline advertising, and more toward the modern marketing avenues of SEO, PPC, and social media marketing:
For businesses looking to invest in a marketing agency , they need to know that the channel they are delegating to the agency will have a positive ROI.
In short, they want to be sure that they’re making a good investment. That’s why we inquired which marketing channel gave companies the best returns:
The goal of this study was to discover which marketing channels are the best investment for eCommerce businesses.
One of the primary investments a business can make is to partner with an agency which specializes in a given channel.
Our survey found, conclusively, that social media management agencies are the best marketing channel investment for eCommerce companies.
Whether companies find social media difficult to manage or not, the high ROI of the channel provides adequate incentive for businesses to partner with an agency.
Facebook, Twitter, and Instagram all require consistent engagement to be effective, which is beyond the scope of many businesses. Social media agencies help companies maintain a strong online presence across various channels.
For companies looking to maximize their marketing potential, a social media marketing agency is recommended.
Our survey clearly shows that social media is the preferred marketing channel for eCommerce businesses, and investments into the channel are worthwhile.
This begs the question: Could your business benefit from the use of a social media agency?
DesignRush helps companies find the right agencies to meet their marketing goals by comparing reviews, bios, and budgets. If you’re looking to find the perfect social media partner for your brand, check our list of top social media agencies and get started today!