Digital Marketing Agency Prices In Australia: What To Expect
By Gareth Henry | Last Updated 15 July 2024
If you’re looking to hire a digital marketing agency in Australia, you might be wondering about the TRUE costs involved. We’re all sick of the “Australia tax”, right? But in my experience, Aussies prefer working with Aussies.
Knowing how much you’ll need to budget can help you make informed decisions, allocate resources correctly, and get the best value for your money.
This guide will walk you through everything you need to know about digital marketing agency prices in Australia.
These prices are in AUD, whereas you might be used to seeing numbers in USD. We are also quoting you approximate Australian agencies, not agencies from overseas who target Australians.
Factors Influencing Marketing Agency Prices
Scope of Services Offered
The range of services a digital marketing agency provides can greatly affect the price.
Common services include:
- SEO
- PPC
- Social media marketing
- Content creation
- Email marketing
For instance, a full suite of services for a comprehensive digital marketing strategy will cost more than a single service like SEO, but it will tend to be more impactful.
An example of a full-service agency package might include SEO, social media management, and PPC, costing around $10,000 per month, while a smaller package focusing only on SEO might be around $2,500 per month.
Expect to pay more per month if you like the results and want to scale up at a higher pace and want even more results!
Agencies often prefer clients who like to grow quickly, and you may find that if you only spend the minimum amount for too long, the agency may drop you as a client or simply deliver the bare minimum.
It’s not the fault of you or the agency. It just simply happens. The market is fast-paced and quality agency work is in high demand, so the agency may be offered a better contract that they can’t refuse.
Agency Reputation and Experience
Agencies with a strong reputation and years of experience often charge more due to their proven track record of delivering results. For example, a well-known agency in Sydney might charge higher fees than a newer agency in a smaller city. This is to account for demand, higher wages, and office space. So, you get experience and expertise, but at a premium.
A case study from a reputable Sydney agency might show how they helped a local business increase their online sales by 150% through a combination of SEO and PPC, justifying their higher fees. This is verifiable and gives you confidence that the agency can reproduce the results for you, without risk.
If the agency can produce these kinds of results, you need to make it worthwhile for them to do it for you (by paying the higher price), otherwise, they could simply start a profitable side hustle for themselves using that same knowledge.
Project Complexity and Duration
The complexity and duration of your project also play a big role in determining the cost. A simple project with a short timeline will cost less than a complex project that takes several months to complete.
For example, a six-month SEO campaign aimed at improving rankings for competitive keywords might cost $15,000, whereas a one-time comprehensive SEO audit might only cost $2,500.
A lot of people think agencies charge $10,000+ for an hours worth of SEO advice and reporting, and that is not the case.
Agencies are busy implementing hundreds of jobs and do so more economically than an equivalent in-house employee. How? Because they do this work all day, every day, and have built systems and institutional knowledge to do it quickly.
An in-house employee has to constantly train to adeptly manage all these marketing tasks. And they usually don’t have a positive team to bounce ideas off, which is vital for this work.
Client Requirements and Customisation
If you have specific requirements or need custom solutions, this can increase the cost. Tailoring services to meet your unique needs often requires more time and effort from the agency.
For instance, developing a custom content marketing strategy that includes blog posts, videos, and infographics might cost significantly more than a standard package due to the additional creative work involved.
On one hand, you don’t want to get plagiarised creatives that platforms will heavily penalise. However, you also don’t want to design everything from the ground up. There is a sweet spot in the middle that agencies can advise you on.
Common Pricing Models for Digital Agencies
Monthly Retainers
Many agencies use a monthly retainer model, where you pay a fixed amount each month for a set range of services. This is great for ongoing support and allows for flexibility. For example, you might pay between $2,500 and $12,000 per month if you limit your service to only the ones that provide the highest ROI.
Project-Based Pricing
Some agencies charge based on the project. This is common for one-time tasks like a website redesign or a marketing campaign. Project costs can vary widely, but you might expect to pay anywhere from $5,000 to $30,000 depending on the scope and complexity. Less than $5,000 tends to be for more consultation-based tasks.
Hourly Rates
Hourly rates are another common pricing model. Agencies charge you based on the time they spend working on your project. Rates can range from $130 to $250 per hour, depending on the agency’s expertise and the task at hand.
Average Costs of Digital Marketing Services
SEO Services
SEO services aim to improve your website’s visibility on search engines. In Australia, you can expect to pay between $500 and $5,000 per month for SEO services.
The cost depends on the complexity of your website, the competitiveness of your industry, and the level of optimisation needed.
For example, an e-commerce site targeting highly competitive keywords might pay closer to $5,000 per month, while a local business targeting less competitive terms might pay around $1,000 per month.
Social Media Marketing
Social media marketing involves creating and managing your social media presence.
The average cost for social media marketing services ranges from $1,500 to $10,000 per month. This depends on the number of platforms you want to focus on and the level of engagement you’re aiming for.
Content Creation
Creating high-quality content, such as blog posts, videos, and graphics, can also be a significant expense.
Prices can vary, but on average, you might pay between $100 and $500 per piece of content. More complex content, like videos, can cost even more. For instance, a professionally produced video might cost $2,000 or more, while a blog post could be around $200.
PPC and Paid Advertising
Pay-per-click (PPC) advertising involves paying for each click on your ads. The cost can vary widely based on your industry and the keywords you’re targeting. On average, businesses in Australia spend between $1,000 and $10,000 per month on PPC campaigns.
For example, a business in a highly competitive industry like finance might spend $8,000 per month on Google Ads, while a local service provider might spend $1,200 per month.
Now, that’s just the cost of the ad spend. Agencies commonly charge 10% of the monthly PPC spend on account management. However, some may also receive a retainer or have an initial set-up fee, but it all depends on the work performed and the contract you have agreed to.
As Google Ads is pretty much a necessity for all businesses, and such a significant spend amount, I’d advise getting the best agency possible and paying them well. A good agency can ensure you have the right creatives, put in place anti-fraud measures, set up retargeting, and experiment and test.
Value vs. Cost: What to Look for in an Agency
Balancing Budget and Quality
While it’s important to stay within your budget, you also want to ensure you’re getting good quality services. Cheaper options might save you money upfront, but they can cost you more in the long run if they don’t deliver the results you need.
Case Studies and Testimonials
Always check an agency’s case studies and testimonials. This will give you an idea of their past work and whether they’ve successfully helped businesses similar to yours. The great thing about working with an Australian business is you are protected by the courts. An international agency can lie about previous work and results and remain unprosecuted.
Look for detailed examples of their work and the results they’ve achieved.
How Much Should I Spend on a Marketing Agency?
Understand Your Budget
Determine how much you can realistically allocate to your marketing efforts.
According to BDC, businesses often spend between 5% to 10% of their revenue on marketing, but this can vary based on your goals and industry. B2B companies generally allocate 2-5% of their revenue to marketing, while B2C companies spend slightly more, typically between 5-10% [1].
But always take these ranges with a grain of salt. From personal experience with clients, many that are just starting up will spend much more than 10% because initial revenue is low. And many B2B companies spend 30% on affiliates, which means their total marketing spend greatly exceeds the 5% stated.
Assess Your Needs
Identify the specific services you require from a marketing agency, such as SEO, PPC, or social media management. The scope and complexity of your needs will influence the overall cost.
Try to keep things simple, share goals, and develop key metrics. Diversify your marketing and use the data and insights to reduce the overall marketing cost.
Consider the ROI
Think about the potential return on investment when choosing your budget. Investing more in a reputable agency can lead to better results and higher revenue in the long run.
A case study by Big Leap demonstrated a 10,076% increase in revenue for the health and wellness brand Truvy after employing a comprehensive digital marketing strategy, including SEO and marketing automation services. This resulted in a ROI of 6 times i.e. for every dollar spent, they saw a return of $6 on average [2].
Negotiating with Digital Marketing Agencies
Setting a Realistic Budget
Before approaching an agency, have a clear idea of your budget. This will help you communicate your needs effectively and ensure you find an agency that can work within your financial constraints.
Let the agency know there are resources available, and that you are a responsible business owner. There’s nothing worse than having to chase a client up for payment that will never come.
Asking the Right Questions
When meeting with potential agencies, ask specific questions about their pricing models, the services included, and how they measure success. Make sure there are no hidden fees and that you understand exactly what you’re paying for.
Sometimes what you consider may be a “hidden fee” is actually a bill that the agency has incurred on your behalf. This is not “hidden”. You are still responsible for paying your own website registrations, ad spend, hosting, and software subscriptions. It is not the responsibility of the agency to pay for your business costs.
Why You Should Hire an Agency Rather Than Doing It Yourself
Expertise and Experience
Digital marketing agencies have teams of experts who specialise in various areas like SEO, PPC, social media marketing, and content creation. These professionals have the experience and knowledge to create effective strategies and deliver results.
By hiring an agency, you gain access to a wide range of skills without needing to recruit and train staff.
For example, a case stufy by WebFX demonstrated that implementing conversion rate optimisation (CRO) strategies led to a 50% increase in conversion rates for Triple Crown Corporation by redesigning their website homepage.
These results are fairly achievable for fix ups of in-house jobs or under-invested websites. If you think a 50% increase in revenue for no extra ongoing spend would be helpful, it might be time to think about vetting a good agency.
Time and Resource Management
Managing digital marketing campaigns takes a lot of time and effort. By outsourcing this task to an agency, you can focus on running your business and let the experts handle your marketing.
Agencies can manage your marketing budget efficiently to maximise ROI, ensuring that every dollar spent contributes to your marketing goals.
Access to Advanced Tools and Technologies
Digital marketing agencies use advanced tools for analytics, keyword research, competitor analysis, and more. These tools can be expensive and require expertise to use effectively.
By hiring an agency, you gain access to these tools without the additional costs, and they can make data-driven decisions to continuously optimise your campaigns for success.
For example, Semrush Pro which can be used for keyword research, keyword tracking, site audits, competitor analysis and more costs USD139.95 per month. By hiring an agency which uses Semrush themselves, you can get access to these tools and reports as part of your contract.
Frequently Asked Questions
Should I hire a digital marketing agency or a freelancer?
Agencies offer comprehensive services and resources for larger projects, while freelancers can be more cost-effective for smaller tasks.
Consider your project scope, required expertise, and budget when deciding. Do you have time to hire, manage, and quality control multiple specialist freelancers?
Why are digital marketing agencies so expensive?
Agencies provide extensive expertise, advanced tools, and data-driven strategies, reflecting their higher costs. They also spend time consulting, advising, and educating you.
The investment often leads to a healthier business and better results and ROI.
Are there digital marketing agencies for small businesses?
Yes, many agencies specialise in working with small businesses (and even micro businesses), offering tailored solutions that fit smaller budgets. These services are scalable to grow with your business.
What is a full-service marketing agency?
A full-service marketing agency handles all aspects of marketing, including SEO, PPC, social media, content creation, and web design. They provide a cohesive and integrated approach to achieve your business goals.
Final Thoughts
Choosing the right digital marketing agency in Australia involves understanding the various factors that influence pricing, the common pricing models, and the average costs for different services.
By doing your research and asking the right questions, you can find an agency that fits your budget and meets your marketing needs.
If you’re ready to take your digital marketing to the next level, contact us today on 0407 974 847 for a free audit. We’ll help you understand your options and create a tailored plan to achieve your business goals.
Sources
[2] Big Leap: https://www.bigleap.com/case-studies/truvy-case-study/
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