As digital marketing continues to evolve in 2024, understanding the cost structure and potential return on investment is crucial. This guide will provide insights into typical pricing models, from hourly rates to comprehensive packages, and highlight the benefits of choosing a professional agency over DIY efforts. You’ll learn how to effectively budget for services like SEO, social media management, and PPC advertising, ensuring you get the best value for your marketing spend.
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How much should my Digital Marketing Agency charge me in the current Australian market?
There are a couple of schools of thought on this question. Firstly, are you looking for an hourly rate or a value-based arrangement?
Hiring a digital marketing agency gives you access to skilled experts that know how to get the most out of your budget. Many agencies offer comprehensive packages with services such as content creation, SEO optimisation, social media marketing, paid advertising management and more. It also frees up your time so you can focus on other areas of your business. The downside is agency fees, which can be expensive and vary depending on the agency’s services offered.
B2B companies usually spend between 2% and 5% of their revenue on marketing, while for B2C companies, the proportion is often higher—between 5% and 10%.
Australian Digital Marketing Agency Hourly, Monthly, and Annual Rates
The cost of digital marketing services can vary based on the type of service required and the size of your business. According to PriceItHere.com, the average annual digital marketing cost ranges from AUD$50,000 to $206,000. Digital marketing agencies have different rates based on the level of expertise and the complexity of the tasks involved. Junior staff members and simpler tasks may be charged at around $130 per hour, while senior staff with greater experience and involvement in strategic activities may charge $250 or more per hour. For specific projects, the cost can range from $6,400 to $10,000.
Hourly Marketing Consultant Services
For hourly marketing consultant services, most businesses can expect to pay around AUD$130 to $360 in Australia. This provides you with access to expert advice and guidance on your marketing strategies.
Monthly Services
For monthly digital marketing services, the price range is typically between $5,000 and $14,300. This includes ongoing support and management of your marketing campaigns.
Facebook Advertising Costs
Facebook advertising costs are influenced by audience size and reach. Prices can range from $30 to $145 per click or impression. The cost of Facebook ads will depend on the targeting options and the competition within your industry.
PPC Advertising Costs
Pay-per-click (PPC) advertising costs can vary depending on the campaign and platform. Prices can range from a few cents to over $70 per click. The cost will depend on factors such as keyword competitiveness and the industry you’re in.
Understanding the cost of digital marketing services allows you to make informed decisions about budget allocation and maximise the effectiveness of your marketing efforts.
The average local business puts 5-10% of its revenue towards its digital marketing budget, but for larger businesses, that number can climb to about 14%.
Social Media Management Costs in 2024
The cost of social media management in Australia varies based on several factors. On average, social media advertising can range from $3,000 to $5,000, while the cost per click (CPC) on platforms like Facebook, Twitter, and Instagram ranges from $0.50 to $6.40 per click.
Content Creation Costs
Hiring a copywriting freelancer can cost around $20,000/year, while a full-time social media graphic designer’s pricing ranges from $70,000 to $84,000. The type of social media platform you choose also affects costs, as each platform has its own advertising methods and competencies.
General Pricing Range
In 2024, the cost of social media management services typically ranges from AUD 770 to AUD 7,700 per month. However, exact pricing can vary significantly depending on several factors.
Factors Affecting Cost
- Scope of services
- Agency vs. Freelancer rates
- Experience and expertise
- Number of platforms managed
- Content creation requirements
- Advertising management inclusion
Detailed Cost Breakdown
- Basic packages: AUD 770-1,540 per month
- Mid-range packages: AUD 1,540-7,700 per month
- Comprehensive packages: AUD 7,700-15,400+ per month
Additional Considerations
Boosting content through sponsored posts can increase visibility but adds to the cost. Long-term services like analytics and SEO are also important for optimising social media strategy and improving search rankings.
Agency Services
Social media management agencies offer services including platform management, social strategy, content development, and paid social campaigns. Costs range from $1,500 to over $5,000 per month.
Alternative Options
- Volume outsource providers: $200 to $800 per month
- Full-service marketing agencies: $4,000 to $22,000 per month (check out our pricing)
Additional Costs
When budgeting, consider potential advertising spend and social media management software costs, which can range from AUD 160 to AUD 1,600+ per month.
Consider your goals, budget, and specific needs when choosing the right social media management option for your business. Remember that these are general ranges, and actual costs can vary based on specific business requirements.
Flexible packages that cover all your business needs. Brisbane’s 5-star rated Digital marketing agency. Start with a FREE consultation.
Google Partners Sales Masterclass recommended $162.50 per hour
Attending one of the Google partner events, where they take you through best practices for client management. The facilitator Cardinal Path, a partner at the leading data-driven agency, was adamant that no agency should charge less than USD$162.50 per hour and this was nearly six years ago!
They came to this rate through a series of internal cost calculations. It clearly demonstrated the hourly rate could not possibly be any lower than this. He also confirmed this was the case for any agency whether they be in the US, the UK, Australia or Canada.
In general, we think they are right, but not just so we can charge a respectable hourly rate. But because any less than this does not make it viable for a digital marketing agency in Australia to achieve the desired results for clients.
“You Pay Peanuts You Get Monkeys”
That saying definitely applies to the realm of digital marketing. In fact, there are so many so-called digital marketing agencies out there who might know their way around a website, but the strategy is a foreign term to them. The cheaper the hourly rate, the less the quality of people any agency can attract and get the right outcome for the client.
Lower rates also tend to attract clients who are just looking for the cheapest option. Instead of looking at the potential growth that can be achieved by working with the right digital agency partner.
Simple equation: more clients in an under-resourced team creates time pressures and time pressures breed the ‘skim’ effect. Where work only happens on an account in a reactive sense, not a proactive sense, where every client should want their agency performing.
Hiring a Digital Marketing Agency vs. DIY
Doing it yourself has its own pros and cons too. You will have full control over every aspect of your marketing campaigns and can tailor them to suit your budget. You can also trial different techniques to find what works best for you. However, this does mean spending your own time researching and learning about all the marketing techniques available, so unless you are a digital marketing expert yourself, it’s easy to get overwhelmed.
On one hand, DIY marketing can be a great way to save money and give you more control over your marketing plan. You’ll likely have fewer resources than an agency, but if you have time and marketing know-how, it can save you money.
On the other hand, a marketing agency could offer access to more marketing tools and strategies than if you tried to do everything on your own. While the startup costs of hiring an agency may be higher, they will have expertise in marketing campaigns and analytics that can help your business grow quickly.
Related: In-House Marketing vs. Agency Marketing: Making the Right Choice for Your Business
Conclusion
So how much does digital marketing cost in 2024? Ultimately, it depends on your budget and marketing goals. If you’re willing to put in some time and effort yourself, DIY marketing could be the way to go – but if you need expert help, an agency might be worth investing in. Whichever route you choose, make sure it’s right for your business!
Flexible packages that cover all your business needs. Brisbane’s 5-star rated Digital marketing agency. Start with a FREE consultation.
