Agencies on the decline?

Very few companies survive today without professional marketing. In competitive markets, it is not enough to offer a good product or a convincing service if nobody knows it exists. For many companies, the path inevitably leads to an online marketing agency. A new study shows that for many, working with these external players did not deliver the results they had hoped for. "A full 70 percent of the companies surveyed have worked with an agency in the last two years, but only just under 39 percent are very satisfied with the results," explains Bastian Sens, Managing Director of Sensational Marketing GmbH and client of the aforementioned study. The main points of criticism: High costs, slow implementation and a lack of industry knowledge. External services are often too expensive and inefficient, especially for medium-sized companies. "Many companies pay high sums for external agencies, but do not receive the expected performance," says Sens.

Costs as a decisive factor

A key finding of the study is that companies spend between 2,000 and 4,000 euros per month on agency services without an advertising budget. The same amount could also be used for an internal specialist who deals exclusively with the company's specific requirements. "An in-house marketing employee knows the company's DNA and can act in a much more targeted manner than an external agency that first has to familiarize itself with the company," explains Sens. "This saves companies a lot of time and effort, especially in complex sectors that require explanation." Only 21% of companies still rate the cost-benefit ratio of agency services as very good - probably also for this reason. However, slightly more than half say they are satisfied (see chart below). Almost 95 percent of all respondents state that they would prefer an internal solution should this prove to be a feasible alternative.

In-house marketing as a strategy for the future

But how can the results of the study be put into practice? "We are experiencing a paradigm shift. Companies are realizing that they can successfully manage their marketing themselves with the right know-how and the right tools," explains the Managing Director of Sensational Marketing GmbH. Especially in industries with complex products and services, it is essential to have marketing in your own hands. "The results provide a clear recommendation for action," summarizes Sens. Those who are prepared to invest in internal structures can free themselves from costly agency dependencies and strengthen their control over their own brand communication." But external input can also help here: By working with educational organizations that offer targeted training and further education on successful marketing, the necessary knowledge can be imparted and help for self-help can be provided instead of creating the classic relationship of dependency on the agency.

Source: https://sensational.marketing/