Is outsourced marketing good for small businesses? Outsourcing has become common for small businesses striving for creative excellence and internal efficiency. It’s not just about cutting costs – it’s about amplifying impact with expert input.
As small business leaders like you juggle full calendars and competing priorities, leveraging outsourced marketing resources can be a game changer for growth, time management, and strategic campaigning. All of that can play a huge part in your business growth, helping you get ahead in an increasingly competitive landscape.
Small businesses move mountains with sometimes tight budgets and limited resources. Owners often wear many hats, managing operations while trying to stay competitive. Outsourced marketing allows these businesses to tap into specialized skills without the burden of hiring full-time staff.
In this guide, we’ll answer some of the most common questions we hear about outsourced marketing for small businesses and explore how outsourcing certain marketing functions can benefit small businesses. From accessing strategic expertise to freeing up your time, outsourcing might just be the key to your business growth.
What is outsourced marketing for small businesses?
Before we can really answer the question, “Is marketing good for small businesses?” we have to define what outsourced marketing encompasses.
Outsourced marketing is when small businesses hire external experts or agencies to handle their marketing activities. This can provide a small business with access to a range of skills that its in-house team might lack. It also helps business owners focus on their core business goals and product development.
Commonly Outsourced Marketing Services:
- Social Media Management
- Content Marketing
- Search Engine Optimization (SEO)
- Email Marketing
- Marketing Strategy Development
- Website Design and Development
- Integrated Marketing Campaigns
- Paid Digital Advertising
- Marketing CRM Implementation and Support
Small businesses often outsource these functions to marketing agencies to save on costs, tap into expert knowledge, and increase Return on Investment (ROI).
By the numbers:
Aspect | Percentage of Small Businesses Outsourcing |
At least some marketing | 40 – 55% |
Full-time team replacement | 25 – 30% |
Source: Teamstage
Outsourcing provides access to a team of experts without the expenses of a full-time team. It allows small businesses to optimize their marketing budget and improve their marketing campaign. By doing so, you can better align their internal teams with their business objectives while utilizing specialized external expertise.
What’s the definition of a small business?
Now that we know what outsourced marketing is, we’ll need to dive a little deeper into the term “small business.” To answer the question, “Is outsourced marketing good for small businesses?” we’ll need a definition for small business!
Generally, a small business employs fewer than 500 employees and has revenue typically under $20 million. These businesses can range from sole proprietorships to larger entities with hundreds of staff. Oftentimes, businesses of this size can afford a single marketing employee, but not an entire in-house marketing team.
The term “SMB” stands for Small to Medium-sized Business. These businesses have a broader range. They may employ up to 1,000 employees and revenue for SMBs can go up to $100 million. Some SMBs do have in-house marketing teams, but still need the help of a digital marketing agency for specific marketing campaigns, brand refreshes, or other specialties.
Small businesses cover a wide spectrum. They include a mix of services and products. Each has its unique challenges and advantages. Understanding these sizes helps tailor support and growth strategies. Business owners can plan better and achieve their goals efficiently. Whether it’s through internal teams or external services, knowing this definition is crucial for success.
Which small businesses should consider outsourced marketing?
Outsourced marketing can be a great asset for certain small businesses. Companies with at least $10 million in annual revenue should consider it. If you have a sales team of at least two people, outsourcing might benefit you. Define your growth goals clearly. When growth is a priority, external expertise can provide a strategic edge.
Outsourced marketing is also effective for all B2B businesses in general. These businesses often need a more sales-focused and strategic approach, and outsourced marketing agencies offer that long-term vision.
Here’s when to consider outsourced marketing:
- Your company earns over $10 million in revenue.
- You’ve got a sales team of at least two people.
- Growth is a clear and defined goal.
- You’re in the B2B sector needing strategic, long-term marketing.
Outsourcing suits businesses that can’t maintain a full-time marketing team. It allows access to a team of experts with a range of skills. These experts handle marketing campaigns, content marketing, and social media management. Outsourced marketing often results in cost savings, better customer engagement, and higher Return on Investment.
What marketing functions can I outsource?
Small businesses often face challenges with marketing. Outsourcing can help. Here are some marketing functions that can be outsourced:
- Content Marketing: Outsourcing helps ensure consistent, high-quality content.
- Search Engine Optimization (SEO): Experts can boost your website’s visibility.
- Social Media Management: Agencies can handle posts, comments, and engagement.
- Email Marketing: Professionals can create effective campaigns.
- Marketing Strategy: External experts can craft strategies aligned with business goals.
- Creative Design: Agencies provide design skills that may not be in-house.
- Paid Advertising: Professionals manage cost-effective ad campaigns.
- Customer Engagement: Outsourcing can improve customer relationships.
Outsourcing these functions can lead to a better Return on Investment and success in reaching marketing goals.
How could my small business benefit from outsourced marketing?
Small businesses often face marketing challenges due to limited resources and expertise. Outsourcing can offer a lifeline.
It provides access to seasoned professionals who understand how to achieve business goals effectively. By delegating marketing activities to experts, businesses can optimize their strategies without the need for a full-time team. You save on payroll costs for internal resources, can control your spend on office space, and focus more on your core business activities.
This approach not only saves costs but also enhances the quality of marketing efforts.
As a result, small businesses can focus more on product development and customer engagement. Outsourcing can lead to improved marketing campaigns, bringing significant returns on investment.
You get to onboard expertise without the overhead.
Outsourcing your marketing efforts allows you to tap into a team of experts. You can access experienced marketing professionals without hefty expenses. Recruitment, payroll, and equipment costs can add up quickly. By working with external marketers, you avoid these overheads. The cost savings from not having a full-time team are significant. You only pay for the services needed, ensuring a flexible marketing budget. This arrangement allows you to focus funds where they’re most effective, aligning with specific business goals.
You get deeper strategic knowledge.
Outsourced marketing agencies provide a wealth of strategic knowledge. These agencies employ professionals familiar with the latest industry trends. They can offer insights that give your business a competitive edge. Their fresh perspective often highlights overlooked opportunities. This depth of expertise allows your business to adopt innovative solutions. Agencies have the benefit of diverse experiences across multiple industries. Their exposure helps them develop effective strategies tailored to your needs. By leveraging advanced marketing tools, they enhance your capabilities. Agencies are driven by performance metrics, ensuring they continually refine strategies. This dedication leads to successful marketing campaigns that contribute to your business’s growth.
You unlock fresh ideas and perspectives.
Outsourcing marketing brings fresh ideas and perspectives. An external marketing team sees things from different angles. They can suggest creative strategies that might not occur in-house. This fresh perspective is invaluable for reaching growth goals. New ideas can spark innovative marketing campaigns. Creativity is key to standing out in a competitive market. By unlocking fresh perspectives, your business can better engage its audience. Outsourcing facilitates this by introducing varied expertise. Such innovation can lead to successful outcomes in customer engagement.
You’ll benefit from expensive tools and software.
Investing in advanced marketing tools can be costly. Fortunately, marketing agencies usually have the latest software at their disposal.
They use this technology to achieve optimal results for clients. Examples include analytics platforms and email marketing tools. Agencies also handle social media management software. These tools are often expensive for a small business to maintain in-house. By working with an agency, you gain access without the direct cost, resulting in more efficient and effective marketing efforts.
You’ll have time to renew your focus on growing the business.
Outsourcing marketing provides valuable time for business leaders. It frees you from managing complex marketing functions.
According to a Gartner survey, in 2024, 62% of CEOs identified growth as their top business priority, the highest level since 2014.
With more time, you can focus on strategic areas of the business. Leadership can concentrate on setting long-term goals. Product development and improving business processes become priorities. Other activities to focus on include building client relationships and exploring new markets. These leadership tasks drive growth and improve business performance. Outsourcing allows you to develop a vision and plan for future success.
A full marketing team for a price your business can afford
Outsourcing marketing can be a smart choice for small businesses. It offers a full marketing team without the need to hire a full-time team. This can be more cost-effective and provide a range of skills. Marketing agencies bring external expertise to the table, which can enhance marketing efforts like content marketing, social media management, and search engine optimization. With a team of experts, business owners can focus on other business goals and product development. Outsourced marketing includes functions like email marketing and creating effective marketing strategies. It can also improve customer engagement and deliver a solid return on investment. Moreover, businesses can streamline their marketing activities and campaigns without straining internal teams. Outsourced marketing aligns with keeping marketing budgets in check, making it accessible for small businesses. Here’s a quick list of benefits:
- Cost Savings: Affordable compared to hiring in-house teams.
- Expertise: Access a wide range of skills and knowledge.
- Flexibility: Scalable services based on your needs.
- Efficiency: Focus on core objectives while professionals handle marketing.
By outsourcing, small businesses can enjoy a robust marketing presence that matches their budget.