Digital Marketing Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

Businesses must use rate benchmarking to make sure they are paying a reasonable price for their digital marketing services. The digital marketing industry is highly competitive. The prices might differ greatly based on a variety of criteria, including the specific services required, the experience and skill of the digital marketing agency, and the location of the organization. For example, Google and WebFX are two of the leading digital marketing agencies in the world, and their rates vary depending on the specific services required. For example, Google's SEO services start at USD 5,000 per month, while WebFX's SEO services start at USD 3,000 per month. Google's social media marketing services start at USD 10,000 per month, while WebFX's social media marketing services start at USD 5,000 per month.

Businesses can learn important information about current market trends, competing price tactics, and opportunities for cost optimization by benchmarking rates. Businesses may use this information to make better-educated decisions about their digital marketing expenditures and to make sure they get the best potential return on their investment.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, social media managers at Google receive an 35-40% higher base salary compared to the salary received by social media manager working in companies such as Webfx and Nobel Studios. However, the year-on-year increment rate in all these companies majorly depends on experience, location and performance.

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within digital marketing services over the last three years:

• In January 2023, Mountaingate Capital, a Denver-based private equity firm, made an investment in WTWH Media, a business-to-business digital media and marketing company. The investment aimed to increase WTWH Media’s growth and expansion. WTWH planned to use the funding to hire new talent, launch new products and services, and expand into new markets.

• In September 2022, Shamrock Capital, a Los Angeles-based investment firm, invested in Highwire PR, a communications partner for technology and healthcare companies. The investment accelerated growth and expanded Highwire’s integrated communications and digital marketing services, helped to hire new talent, and enter new markets.

• In January 2021, MuteSix, one of the leading direct-to-consumer digital marketing companies, was acquired by Dentsu Aegis Network and joined iProspect, a division of Dentsu Aegis Network to expand their digital marketing business.