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So, you’ve realised you need assistance with marketing and you’re looking at your options. But, what’s best for your business? You’ve probably heard of a marketing retainer, and if you’re serious about growing your business, then you might be considering this. However, what exactly is a marketing retainer and is it right for your business?
Marketing can be overwhelming, especially when you’re trying to handle it all on your own or through sporadic services.
That’s where a marketing retainer comes in.
As a business, we have been offering marketing retainers to clients in various industries for over a decade. As a result, we’ve come to know a thing or two about the benefits and drawbacks of marketing retainers.
We know who they’re best for, and who might not benefit from marketing retainer services.
In this article, you will learn exactly what a marketing retainer is, how it works, and whether it’s the right solution for your business.
By the end of this article, you’ll know whether a marketing retainer is right for your business or not, and if not, what other options you have available.
What is a Marketing Retainer?
A marketing retainer is a contractual agreement between a business and a marketing agency or consultant, where the business pays a set fee on a recurring basis (usually monthly) for a predefined set of marketing services.
Digital marketing retainers aka ‘marketing done for you’ is where an external team, usually a marketing agency, handles all of your team’s digital marketing activities, including strategy, paid media, social media marketing, email marketing, lead generation and more.
Usually, payments are made on a monthly retainer on an ongoing basis, for as long as you engage the agency to conduct your marketing activities.
This arrangement ensures that the business receives continuous marketing support and services every month without the need to negotiate separate contracts for each task or project.
Types of Services Typically Included
The exact services included in a marketing retainer can vary based on the needs of the business and the expertise of the marketing agency.
Some common components are:
- Fortnightly Strategy Sessions: Regular meetings to discuss progress, review results, and plan upcoming activities
- Inbound Marketing: Inbound Marketing is the process of attracting prospects before they are ready to buy through providing educational content. Developing and distributing educational content, as well as identifying what content will work best is what providing Inbound Marketing as a service may look like
- Search Engine Optimisation (SEO): SEO is critical for improving your website’s visibility in search engine results. A marketing retainer may provide ongoing optimisation, including keyword research, on-page and off-page SEO, and regular performance analysis to maintain and improve your search rankings
- PPC Advertising & Media Buying: Pay-per-click (PPC) advertising and media buying involve paid strategies to drive traffic and conversions. A marketing retainer may offer continuous management and optimisation of these campaigns to ensure you get the best return on investment and adapt to changing market conditions
- Video Marketing Strategy & Execution: Video marketing is a powerful tool for engaging audiences and conveying your brand message. With a retainer, you may have a dedicated team to plan, produce, and distribute high-quality videos regularly
- Content Marketing: Content marketing involves creating and sharing valuable content to attract and retain a clearly defined audience. A marketing retainer ensures a steady stream of blog posts, articles, infographics, and other content types, helping to establish your brand as an authority in your industry
- Website Design and Development: A marketing retainer may include ongoing design and development support to keep your website updated, user-friendly, and aligned with your marketing goals, ensuring it effectively converts visitors into leads and customers
Ultimately, what your marketing retainer includes exactly is going to depend on the agency you work with and your needs.
All in all, a marketing retainer offers a holistic approach to marketing, providing businesses with a steady stream of expert support and resources. This stability can lead to more consistent results and a stronger overall marketing presence.
Pros & Cons of a Marketing Retainer
Pros of a Marketing Retainer:
Cons of a Marketing Retainer:
Is a Marketing Retainer Right for Your Business?
f the following things are true, then marketing retainers are probably right for you:
- Your company does not have the budget to employ a full-time marketer
- Your company generates less than $2.5M in gross revenue
- You don’t need to work on long term in-house capacity right now
- Leadership views marketing as a cost centre not a profit centre
- Your company does not have a sales function
If your company is not big enough to invest in an entire in-house team but is comfortable paying one salary, then marketing done for you is probably for your company.
If on the other hand you have a sales team and your company is big enough to invest in an in-house marketing team, you might want to consider insourcing your marketing instead.
How to Choose the Right Marketing Retainer
Before committing to a marketing retainer, you might want to have a think about whether the marketing agency offering the retainer meets the standards of a great agency.
Five definitive signs of a great agency include:
- Self-promotion
- Their team has specialists
- Higher prices
- Up to date practices
- Account management
When choosing a marketing retainer, you may want to consider each of these signs to determine whether it’s the right option for you.
Let’s delve into each sign.
Self Promotion
A key sign of a great paid media agency is that they use the same strategies they’re selling to their clients. If they sell advertising services but aren’t advertising their own brand, then they’re probably not all they are cut out to be.
The best paid media agencies should have confidence in their skills and be their own best client.
Assess their self-promotion by checking their online ads. Are they eye-catching? Relevant? Engaging? If they can make you interested in their service, they could do the same for your potential customers.
To check if an agency is self promoted, you can do one of two things:
- Head to their website and look at when the last blog post was published
- Head to Meta Ads library and observe whether they’re currently running ads. Here’s a quick video explanation on how to find an agency’s ads online.
Knowing how to find their ads is the first step, but after this you will need to assess their ads.
You can assess their ads using a strategic paid media ad audit (specifically for social media ads). You can access this paid ad audit guide here.
If you want to learn about this ad audit first before downloading the guide, you can read this article.
This guide will show you what to look out for and how to identify high-performing ads so that you can assess an agency’s ads before you even start working with them.
Their team has specialists
Anyone can present a big and great team on their website. Where you want to go to see their team members is LinkedIn.
This will give you a clear idea of their team structure, team size, and the experience of their real team members (which you can view by viewing each team member’s LinkedIn profile).
What you want to avoid is a one man show, or an agency that doesn’t have any in-house team members specialising in different areas, like SEO, Paid Ads, Content Marketing and so on.
While a larger team might offer a broad range of skills, smaller teams often provide a more personal, focused service.
With a small agency, you’re likely to have direct access to experts, and they can often be more responsive and adaptable to your needs.
Higher prices
The saying “you get what you pay for” often applies to digital marketing.
One thing you’re going to want to consider before jumping into a marketing retainer is the price.
If an agency’s fees seem too low, they might not spend much time on your account, or they may lack the experience to command higher fees.
More expensive agencies typically offer a comprehensive service and dedicate more hours to your campaigns, providing you with better value in the long run. You should also keep in mind that if the agency’s ideal client profile is larger corporations that have big budgets, they may charge more because the in-house experience required may be higher.
On top of this, if an agency doesn’t share prices with you from the get-go, then that’s probably a warning sign. After all, if they can’t be transparent before you start working together, then how can you trust them to be transparent when you’re working with them?
Up to date practices
The digital marketing landscape is constantly evolving. A great agency stays ahead of the curve and is well-versed in the latest paid media practices.
This could include leveraging new advertising platforms like TikTok or implementing the right tracking techniques.
A good indicator of whether they’re using up to date practices or not is to ask them whether they’ve delved into newer ad platforms like TikTok, or whether they have much experience with newer campaign types like Google Performance Max campaigns
Account management
A good agency ensures each account manager has a manageable number of clients.
With too many accounts, managers can become stretched thin, leading to mistakes or overlooked opportunities.
Ideally, each manager should handle between 6-8 clients, ensuring each client receives the attention and service they deserve.
Before you get started with a marketing retainer, ask the agency how many clients each account manager handles on average.
Alternatives to Marketing Retainers
If you’re not going to engage in an ongoing marketing retainer, here’s some alternatives you may want to consider:
- Hiring freelancers for ad hoc tasks
- Hiring your own in-house marketing team
Hiring freelancers for ad hoc tasks
When it comes to hiring only for ad hoc projects, you might find it to be a little inconsistent, with a lack of continuous support. On top of that, you may need to spend time teaching and instructing your new hire every time you have a new task or project to complete.
On the other hand, when you work with an agency or a dedicated team, they are more likely to learn about your brand and get better at speaking in your tone of voice and representing your brand effectively.
Ultimately, while hiring freelancers for ad hoc tasks is an option, we don’t necessarily recommend it because it comes with a bunch of issues.
Hiring your own in-house marketing team
Hiring your own in-house team can be extremely rewarding because:
- You will have greater quality control
- Execution will likely be significantly faster
- You will save money in the long run
- Increases the value of the company
However, it does come at a steep cost. On top of that, many companies require training for their in-house team, so you may need to invest in training, which can add up quickly.
At RedPandas, we’ve been helping companies hire their own in-house teams while we train them in the marketing and business framework known as ‘They Ask, You Answer.’
Read: Who is ‘They Ask, You Answer’ Coaching Right For?
Choosing the right marketing approach depends on your business needs, goals, and resources. Evaluating these alternatives to marketing retainers can help you find the best fit for your specific situation.
So, What’s Next?
Deciding on the best marketing strategy for your business can be challenging, but understanding your options is crucial to making an informed choice. A marketing retainer offers numerous benefits, however, it’s essential to weigh these advantages against potential drawbacks.
If a marketing retainer doesn’t seem like the right fit, there are several alternatives to consider. In particular, you might want to consider hiring an in-house team, which offers deeper brand familiarity and control.
Ultimately, the best approach depends on your business size, marketing goals, budget, and need for expertise.
By carefully evaluating your needs and the options available, you can choose a marketing strategy that drives your business forward and helps you achieve your goals.
If you’re looking to hire a digital marketing agency on a retainer, then we recommend learning about some of the Best Paid Media Agencies in Australia.
