5 Reasons why companies outsource their marketing
Posted: Mon Dec 09, 2024 9:55 am
Many companies do not have internal staff with strategic and operational experience in marketing. These companies know that hiring staff with this knowledge is expensive, but if they decide to hire inexperienced staff they also assume opportunity costs (lost time and money), learning costs, costs derived from errors, etc. Therefore, they find that the best option is to hire a marketing agency or company to help them with their marketing activity.
2. Technological investments are avoided
Nowadays, the marketing function is closely linked to the Internet. With this marriage between the Internet and marketing, technological needs have been generated for the execution of campaigns, their monitoring, management of leads resulting from campaigns, etc. Marketing and female database advertising agencies have these technologies, so that companies pay the agency for a service and can enjoy the use of specialized marketing software (such as marketing automation software ), without having to carry out internal processes of evaluation, purchase, management, use and maintenance of the same.
On the other hand, agencies are aware that the market is changing rapidly and constantly, so they stay up to date with tools. This is another attraction for companies when thinking about outsourcing their marketing function.
Free Ebook: What you need to do to not waste a single lead
3. Companies prioritize other strategic areas for their development in the company
The trend in recent years, especially in countries where hiring people is expensive, has been to outsource those areas that are not the core of the company's economic activity. For example, if we are talking about a company that develops software, the core activities of its business take place in the technical department. In this case, companies prefer to keep these activities under internal control because they are the heart of their business and to make other areas, such as the commercial or legal areas, more flexible.
4. Difficulties in scaling the marketing function internally.
If business is doing well, growing a marketing department can be expensive. In addition, some CEOs prefer to put money into campaigns and tools rather than people.
On the other hand, if business is doing poorly, it is difficult to reduce marketing spending when most of the expenses are incurred in payroll. Not only because of the financial costs of layoffs, but also because of the high psychological toll they take on team morale.
CEOs, therefore, see more flexibility in increasing or decreasing marketing spending when it is done through contracting services from agencies or specialized marketing companies.
5. They look for a completely new approach to what they have been working on
This is a very important reason, because unlike most of the ones we have talked about, this one has nothing to do with costs. It is about eliminating biases and finding another perspective when things do not work or do not go as well as expected. From within, it is sometimes very difficult to see what the holes are in our strategy, the weak points of our campaigns, where the friction is in our sales cycle , etc.
We need eyes that are not biased or contaminated by internal opinion to detect what we are not doing very well.
2. Technological investments are avoided
Nowadays, the marketing function is closely linked to the Internet. With this marriage between the Internet and marketing, technological needs have been generated for the execution of campaigns, their monitoring, management of leads resulting from campaigns, etc. Marketing and female database advertising agencies have these technologies, so that companies pay the agency for a service and can enjoy the use of specialized marketing software (such as marketing automation software ), without having to carry out internal processes of evaluation, purchase, management, use and maintenance of the same.
On the other hand, agencies are aware that the market is changing rapidly and constantly, so they stay up to date with tools. This is another attraction for companies when thinking about outsourcing their marketing function.
Free Ebook: What you need to do to not waste a single lead
3. Companies prioritize other strategic areas for their development in the company
The trend in recent years, especially in countries where hiring people is expensive, has been to outsource those areas that are not the core of the company's economic activity. For example, if we are talking about a company that develops software, the core activities of its business take place in the technical department. In this case, companies prefer to keep these activities under internal control because they are the heart of their business and to make other areas, such as the commercial or legal areas, more flexible.
4. Difficulties in scaling the marketing function internally.
If business is doing well, growing a marketing department can be expensive. In addition, some CEOs prefer to put money into campaigns and tools rather than people.
On the other hand, if business is doing poorly, it is difficult to reduce marketing spending when most of the expenses are incurred in payroll. Not only because of the financial costs of layoffs, but also because of the high psychological toll they take on team morale.
CEOs, therefore, see more flexibility in increasing or decreasing marketing spending when it is done through contracting services from agencies or specialized marketing companies.
5. They look for a completely new approach to what they have been working on
This is a very important reason, because unlike most of the ones we have talked about, this one has nothing to do with costs. It is about eliminating biases and finding another perspective when things do not work or do not go as well as expected. From within, it is sometimes very difficult to see what the holes are in our strategy, the weak points of our campaigns, where the friction is in our sales cycle , etc.
We need eyes that are not biased or contaminated by internal opinion to detect what we are not doing very well.