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Online Marketing

Expectations & Projections
Conversion Rates Compared Between In-House and Outsource

Online marketing is an industry consisting of a large array of solutions including search engine optimization, pay per click management, and reputation management. Due to the nature of the industry, many businesses opt to outsource their marketing endeavors towards providers which specialized in creating comprehensive online marketing strategies. These efforts ultimately save time and money as an in-house team would need to learn to work together in order to create a strategy as effective as one produced by an agency.

The costs for in-house marketing often go above those of an online marketing agency in addition to the added stress and the lack of performance as the in-house team looks for the right software and solutions to bring their plan together. We continue to hear from more businesses which opt to outsource their online marketing initiatives including major enterprises with internal advertising departments.

ROI Compared Between In-House and Outsource

While it is important to understand the costs associated with starting an online marketing campaign either through outsourcing or building an in-house team, it is also important to determine how long it will take to see a return on the initial investment. Online marketing agencies often have years of experience in producing an ROI and will often have a general understanding of when the client should expect to see a return.

With an in-house team, while individual team members may be well-versed with their role, it can often be a gamble in terms of when the team will produce a return. A "well-oiled" online marketing agency will have more experience in inter-office communications and can better understand how to improve performance in key areas to ensure that a return is achieved within the given timeline.

Time to ROI Achievement

Online marketing strategies are often very different between different industries. There are numerous variables which will affect the amount of time it takes for a business to realize a return on their online marketing investment. Many of these variables include the amount of the investment, the nature of the campaign in regards to how aggressive and ambitious the campaign is, and the size of the online marketing agency.

The chart to the right represents the averages we have seen in discussing the duration of online marketing campaigns with clients of the top online marketing companies within the rankings. For companies in Healthcare and Entertainment, there was a large divide in the average time it took to realize a return on their online marketing investment, often a result of different business plans and price points for their products or services.

Online Marketing Budget Distribution by Industry

Alongside the expansion from traditional marketing endeavors towards a more digital and online approach, a number of industries which have often relied on traditional marketing will be making plans to expand their online presence over the next 10 to 15 years. Businesses within the healthcare and financial industries are searching for new ways to reach an online audience.

We've seen a shift from a consumer standpoint in regards to how consumers find those which they do business with. Even within the healthcare industry, a patient is likely to perform a search online for the nearest treatment center and will look for online tools in order to identify whether their provider is covered by their network, or if they need to travel towards another healthcare provider. This shift is expected to continue into the foreseeable future with the emergence of mobile devices.

Marketing Budget Distribution by Year

Over the course of our research we have seen an increase in the allocation of the average marketing budget of small and medium-sized businesses towards online marketing initiatives. As the Internet has become a major platform for many businesses a larger emphasis is placed on driving potential buyers to an online presence as opposed to marketing towards a physical location or phone sales.

We believe the marketing and advertising industry will continue to see a surge in businesses turning towards online marketing as opposed to traditional marketing and advertising efforts. In addition, with the expansion of mobile and the mobile web, we believe there to be a shift towards mobile marketing and advertising platforms. Social media will also continue to play a large role in expansion.

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