How Much Do Marketing Agencies Charge?

There's no doubt that digital marketing is worth investing in. A recent survey of CMOs found that if given an extra $1M in budget to use any way they wanted, 10.3% would invest in digital advertising and marketing (second only to hiring and talent development at 16.5%).

If you’re looking into hiring a marketing agency, you're probably asking, “How much does it cost?” or “What should I look for?" We're here to demystify the costs of marketing agencies, help you justify the spending to your stakeholders, and walk you through how the right agency can pay for itself.

Let's demystify digital marketing agency pricing 

Marketing agency pricing can vary widely based on several factors, including the agency's expertise, the scope of work, and your company's needs. According to the CMO Survey, companies spend an average of 11.7% of their total company budget on marketing, with B2C product companies spending the most at 15.9%.

While every partnership is different, there are baseline numbers we can point to when it comes to investing in marketing. Here is a quick look at a typical investment in Vye's marketing agency services.

1. Initial Investment:
   For a comprehensive marketing strategy and initial implementation, expect to invest $10,000 to $30,000 over the first 60-90 days.
2. Ongoing Monthly Retainers:
   • Small businesses: $6,500 – $12,000 per month
   • Mid-sized companies: $12,000 - $18,000 per month
   • Large enterprises: $15,000 - $30,000+ per month
3. Web-Based Pricing:
   • Website redesign: $20,000 – $80,000+ based on size, complexity, special functions and features, and animation.

ROI: What returns can you expect?

A study by Adobe found that companies leveraging digital marketing have a 2.8x higher revenue growth expectancy. While ROI can vary significantly based on industry, strategy, and execution. Here are some benchmarks:

1. Organic search: Driven by SEO, user-friendly websites, and relevant content marketing, 49% of businesses say that organic search brings them the best marketing ROI.
2. Content Marketing: According to the Content Marketing Institute, content marketing costs 62% less than traditional marketing and generates about three times as many leads.
3. Email Marketing: For every dollar spent on email marketing, businesses get an ROI of $40
4. SEO: The ROI for SEO spend can be as much as 748%. You read that right — 748%.
5. Social Media Marketing: HubSpot reports that 71% of consumers who have had a positive experience with a brand on social media are likely to recommend the brand to their friends and family. And 33% of respondents discovered a new product on social media in the past three months.

While there are always quick wins we can hammer out up front, our client's marketing dashboards often see a drastic climb in everything from web traffic to leads and revenue 12-24 months after a strategy build. 

When it comes to a return on investment, there are no guarantees. Agencies can, however, increase the odds of success by:

• Tapping into the experiences of other companies, industries, and strategies. This allows them to formulate an educated approach based on past discoveries.
• Digging into the data to make decisions. Numbers don’t lie, so an agency must rely on trackable results to influence the overall strategy.
• Putting the right people on the right projects. One of the luxuries of working with an agency is that every team member provides a specialized skill set, increasing your overall chance of achieving an ROI. 

Remember: real ROI requires time

At Vye, the return on investment all comes down to one thing — time. After the inbound strategy is built, the content is planned, and the strategy is executed, data begins to snowball. While there are always quick wins we can hammer out up front, our client's marketing dashboards often see a drastic climb in everything from web traffic to leads and revenue 12-24 months after a strategy build. 

Here's just one example

We take pride in putting up some big numbers for our clients in their first year of partnership, but the real magic happens after we get to know a business well. 

For example, our client Marco wanted to connect with its target audience using social media. Over time, our relationship grew to support them as they became established as a national brand. Today, we can proudly say that our efforts have led to:

How do you budget for a marketing agency?

A recent 2024 CMO Survey found that marketing expenses account for an average of 10.22% of a company's overall budget and 10.07% of its revenue.

If you're considering bringing on a marketing agency, chances are you want to know what it will cost you. But to get those answers, an agency will need to hear from you about your goals and current state of business.

For example, a company with a smaller team and fewer internal resources will need to rely on the agency for more assistance. This will increase the cost. Similarly, a partner searching for bigger results at a faster rate can expect to invest more money upfront to get things moving.

A good rule of thumb is to think about the investment of a marketing agency like one to two new hires. For many mid-size businesses, that means you will need to invest anywhere from $80-150k annually.

How do you justify the cost of a marketing agency? 

Don’t let sticker shock keep you from investing in the growth of your business. Look at it like this — you can spend the same amount of money you would use to hire 1-2 salespeople to hire a top-tier marketing agency with a proven track record for success. However, unlike a new hire, the right agency will provide a faster return on investment with measurable, long-term success. 

Why should you partner with a marketing agency long-term?

Some of the best agency success stories begin with a commitment to continuous marketing. If you are looking for quick fixes to problems like SEO optimization, low social media engagement, or a malfunctioning website, an agency might not actually be the best investment.

Agency work improves over time based on familiarity with the business and previous strategy success. Not to mention, a data-driven approach, and a strategic plan, should set you on the path toward tangible results. 

Marketing success is inherently tied to understanding the culture, vision, customer, and industry. So, the longer you partner with a marketing agency, the better understanding they will get of your business. All of this, in turn, leads to better results and a long-term, tangible impact on your overall business. 

Why Vye?

We could provide a long list of reasons to partner with Vye Agency — from our award-winning content and customized strategies to our Premier HubSpot Partnership. But that’s not the secret sauce.

Whether you entrust Vye with $5,000 or $500,000 marketing dollars, our process remains the same. Our unique, empathetic, and data-driven hybrid sets up for success. Simply put, we don’t project — we partner. We utilize uncommon creativity, science, and storytelling to help companies win. 

Are you ready to grow your business to the next level? See what we've helped other clients achieve long term.