Abby is a Digital Marketing Analyst at WebFX, where she implements, optimizes, and tracks SEO and digital marketing strategies that are powered by data for WebFX. With certifications in SEO, Local SEO, and Google Analytics, Abby has implemented hundreds of optimizations and led strategies and initiatives that have helped WebFX improve online visibility, traffic, and leads. Before her time as a Digital Marketing Analyst, Abby was an innovative content writer who created content for WebFX clients in various industries and for WebFX’s own blog and website. When she’s not implementing strategies and optimizations that drive leads and revenue, you’ll find her walking her dog, travelling around Europe, or watching her favorite reality TV show.
What is a digital marketing agency? A digital marketing agency provides professional services to help businesses improve their visibility, reach, and revenue from online channels like search, social media, email, and paid advertising — either on a one-time or ongoing basis.
What core services do digital marketing agencies offer? Agencies typically offer SEO, AI search optimization, PPC advertising, content marketing, social media marketing, email marketing, conversion rate optimization, web design and development, and marketing analytics to drive measurable business results.
How do digital marketing agencies measure success? How do digital marketing agencies measure success? Good agencies focus on metrics that matter to business outcomes, such as revenue attribution, lead quality and volume, customer acquisition cost (CAC), return on investment (ROI), and conversion rates, rather than vanity metrics like impressions or likes without context.
How do I choose the right marketing agency for my business?Look for agencies with relevant experience in your industry, clear communication, and a strategic approach to your goals.
Do any of these scenarios look familiar to you?
Marketing tasks keep falling through the cracks.
Reports don’t get analyzed.
Marketing campaigns are not optimized.
Content gets deprioritized.
Perhaps you don’t have enough hands on deck. Maybe your team is stretched too thin. Or maybe you’re not sure which marketing strategies will move the needle for your business.
It’s probably why you’re here, trying to figure out what a digital marketing agency can actually do and whether hiring one makes sense for your business.
A digital marketing agency helps businesses drive measurable revenue through online channels like organic search, social media, email, and paid advertising. In other words, a digital marketing agency can be your revenue-driving, time-saving hero when it comes to marketing your business online.
In this guide, we’ll cover these topics to address your questions surrounding digital marketing agencies:
A digital marketing agency provides professional services to help businesses improve their visibility, reach, and revenue from online channels.
Digital marketing companies work with clients either on a one-time or ongoing basis. These firms offer services for the following:
Search
Paid advertising
Email
Social media
Other digital channels
By partnering with an agency, you gain access to specialized marketing expertise and proven strategies without the time and expense of hiring, training, and managing an entire in-house team.
Types of digital marketing agencies
Not all digital marketing agencies are the same. You need to find the agency that’s the best fit for your business’s needs and projects.
Here are a few different digital marketing agencies you’ll run into:
Full-service agencies: Full-service digital marketing agencies offer nearly any service you need, from SEO to influencer marketing to web design. These agencies are the best option if you think you’ll need help with multiple marketing strategies.
Niche marketing agencies: Niche marketing agencies typically only work with a certain set of clients. For example, an agency may specialize in home services marketing and only work with clients in that industry.
Strategy-specialized agencies: If an agency isn’t full-service, they likely only specialize in one or two strategies that they offer to clients. SEO agencies, which only offer SEO services, are the most common. These agencies are an option if you’re only looking to invest in a certain strategy, like SEO or web design.
When do businesses typically hire agencies?
Businesses turn to digital marketing agencies at different stages of growth and for various reasons. Here are the most common scenarios:
Your team is juggling too many responsibilities, and marketing tasks are falling through the cracks. An agency fills this gap by handling campaigns, content, and analytics so your team can focus on core business operations.
Digital marketing is always evolving — from SEO algorithm updates and AI search optimization to new advertising platforms. Instead of trying to become an expert in everything, businesses hire agencies to get access to specialists who know the latest industry changes and best practices.
While you can DIY SEO and create a website with AI-powered site builders, there will be times when businesses need to run time-sensitive campaigns or respond to market opportunities. Agencies have established processes and dedicated teams to immediately execute campaigns without sacrificing quality.
What does a digital marketing agency do?
Expert insights from
Emily C.Senior Content Team Lead at WebFX
“Digital marketing agencies help clients drive results online. Whether combining content marketing and SEO to boost your brand in search results or launching targeted social ads — digital agencies help you reach and convert more leads into revenue.”
A digital marketing agency provides strategic marketing solutions for businesses to:
Increase their brand visibility
Generate qualified leads
Drive sales through online channels
A good agency always starts by understanding your business goals, ideal customers, and competitors. This key step ensures the strategies and recommended budget align with your specific needs.
Digital marketing agencies typically offer a combination of the following services, tailored to your specific business goals and customers:
SEO is the process of optimizing your ranking in search results to drive more qualified traffic to your business’s website.
When done right, SEO helps your business appear when potential customers search for products or services you offer. This means reaching buyers who are actively looking online for what you sell.
Half of marketers say that SEO provides a better return on investment (ROI) than any other marketing strategy. SEO results also compound over time as your website builds authority and pages rank higher.
After analyzing your site’s overall SEO health, the agency will typically prioritize quick wins first by:
Fixing technical issues
Claiming and optimizing your Google Business Profile, if you’re a local business
Optimizing the pages with the highest potential to show results
Then, they’ll focus on building longer-term success by:
Building your site’s technical SEO foundations
Creating helpful content for your customers
Fostering trust through partnerships, digital PR, and reputation management
Throughout this process, agencies monitor performance and adjust tactics as search algorithms evolve. That way, they ensure your rankings don’t just grow, but stay consistent over time.
2. AI search optimization
As search behavior evolves, leading digital marketing agencies are now helping businesses maintain visibility in AI-generated answers from ChatGPT, Perplexity, and Google AI Overviews.
If you’ve noticed your organic traffic declining recently, you’re not alone. Generate AI search is growing 165x faster than organic search. Your customers are already using AI search to research solutions and evaluate businesses like yours.
For example, when someone looks for “best project management software for construction,” Google’s AI Overview synthesizes information from multiple sources into one answer. That being said, this doesn’t mean your business becomes invisible — it means visibility strategies must evolve.
Businesses that optimize for AI search maintain their visibility and authority as search behavior shifts. Our study shows that traffic from generative AI delivers a 23% higher conversion rate than organic search, meaning these visitors are highly qualified and likely shopping around.
While traditional clicks may decrease, appearing in AI-generated answers keeps your brand top-of-mind and positions you as a trusted source when prospects are ready to buy.
Agencies that are quick to adapt can improve your business’s visibility in AI searches through a structured approach:
Foundation: Focusing on traditional SEO foundations and ensuring site crawlability
Relevance: Aligning content with customer search intent and the query patterns AI platforms recognize
Trust: Building real-world credibility and industry authority (via E-E-A-T signals, backlinks, and reviews) that AI systems recognize and trust
Influence: Creating an external footprint across reviews, directories, forums, and media that LLMs recognize and cite when generating answers
These agencies also track where and how often your brand appears in AI-generated responses, so they can adjust strategies to improve your brand’s citation frequency and visibility.
Search engines (through Google Ads and Microsoft Ads)
Social media platforms (like Facebook, LinkedIn, and Instagram)
Display networks
Unlike organic strategies that build momentum over time, PPC delivers immediate visibility by targeting users based on demographics, interests, online behavior, and buying intent.
When someone searches for exactly what you offer, PPC ensures your business appears at the top of search results—precisely when prospects are ready to take action. You only pay when someone clicks your ad, making every dollar directly tied to engagement.
For example, if you offer HVAC services, PPC can place your business at the top of search results when someone searches for “HVAC services near me.” You only pay when someone clicks your ad, so your budget goes toward people genuinely interested in your services.
PPC is best for capturing high-intent buyers actively searching for solutions. In fact, 65% of all high-intent searches result in an ad click, meaning prospects who are ready to buy are clicking ads, not just browsing.
If you need immediate leads or sales, PPC can deliver results within days, not months. You’re also in control — you can increase spend on campaigns that perform, adjust ones that don’t, or immediately pause what’s not working and reallocate your budget.
After analyzing your market and current performance, agencies typically structure PPC campaigns around:
Audience targeting: Identifying high-value customer segments based on search behavior, demographics, and buying signals
Campaign architecture: Building ad groups and keyword strategies that match customer intent at different stages of the buying journey
Creative testing: Developing and testing ad copy, visuals, and landing page combinations to maximize conversion rates
Budget optimization: Allocating spend strategically across platforms and campaigns to maximize ROI
Campaign monitoring and reporting: Tracking performance metrics (cost per click, conversion rates, customer acquisition cost) and adjusting bidding, ad creative, and targeting to improve results and lower costs over time
4. Content marketing
Content marketing is the strategic creation and distribution of valuable content that educates your audience, answers their questions, and builds trust in your business. Content types include the following:
Blog posts
Videos
Guides
Case studies
Original research or survey
Infographics
When prospects are researching solutions, your content guides them through their decision-making process, helping them understand their options and recognize your business as a knowledgeable partner. Over time, your published content will establish your business as an authority in your field, support your SEO efforts, and nurture your prospects throughout their customer journey.
Content marketing delivers compounding returns over time. The key advantage is longevity — evergreen content continues attracting organic traffic, generating leads, and building authority long after it’s published.
For example, a single comprehensive guide can drive qualified traffic for years, generating leads month after month without additional investment. This long-term asset approach directly impacts your bottom line by reducing customer acquisition costs and building sustainable revenue streams.
Based on your customers’ pain points and information needs, agencies typically build content strategies around:
Content planning: Identifying topics that address customer pain points at each stage of the buyer journey (awareness, consideration, and decision)
SEO integration: Creating content optimized for search engines to drive organic traffic while naturally incorporating target keywords
Content creation: Producing high-quality blog posts, guides, videos, case studies, and resources that establish your expertise
Distribution strategy: Promoting content through email, social media, and other channels to maximize reach and engagement
Performance tracking: Monitoring organic traffic, lead generation, and conversion metrics to understand what content drives real business results and refine the strategy accordingly
5. Social media marketing
Social media marketing is the strategic use of social platforms like LinkedIn, Facebook, Instagram, and TikTok to build brand awareness, engage with your audience, and drive business growth.
Social media gives you direct access to where your customers spend their time. You can build community, share your expertise, and stay top-of-mind through consistent engagement.
The right platforms depend on your audience. B2B businesses often prioritize LinkedIn to reach decision-makers, while consumer brands typically focus on Instagram and Facebook for visual storytelling and community building.
Social media creates multiple touchpoints throughout the customer journey — from initial brand discovery to ongoing relationship building. Successful social media strategies focus on both community engagement and business outcomes.
For example, a professional services firm might use social platforms to answer common client questions publicly, demonstrating expertise that engages both their existing clients and prospects. This engagement directly impacts your bottom line because you’re attracting and possibly acquiring new customers while nurturing your relationships with current customers, increasing their lifetime value.
Email marketing delivers strong ROI. For every dollar spent, businesses see an average return of $36 to $40.
For example, an e-commerce business might use automated emails to recover abandoned shopping carts. A B2B company might send educational emails over several months to stay in touch with prospects until they’re ready to buy.
Email drives revenue by bringing customers back for repeat purchases, recovering lost sales, and keeping your business top-of-mind with prospects throughout their decision-making process.
List building and segmentation: Growing your subscriber base and organizing contacts by behavior, interests, and buying stage
Automation and drip campaigns: Creating automated email sequences that nurture leads based on triggers and actions
Personalization: Tailoring content, subject lines, and offers to individual subscriber preferences and behaviors
Campaign creation: Designing and writing compelling emails that drive opens, clicks, and conversions
Performance tracking and reporting: Monitoring open rates, click-through rates, and revenue attribution to optimize campaigns
For example, agencies work with you to understand your customer behavior, segment your customer list, and set up automated emails for different scenarios
Welcome emails for new customers
Cart abandonment sequences
Re-engagement campaigns
Agencies also track and measure your email marketing campaigns’ performance, so they can refine your strategy to maximize revenue.
7. Conversion rate optimization
Conversion rate optimization (CRO) is the process of improving your website and landing pages to turn more visitors into leads, subscribers, or customers.
CRO focuses on getting better results from your site traffic. Instead of spending more to drive more additional visitors, you’re optimizing your existing website work harder for you by making it easy for site visitors to convert.
CRO maximizes the value of every visitor. For example, even small improvements in conversion rates can increase revenue without spending more on advertising.
These improvements compound over time across all channels. Traffic coming from organic search converts better and your paid ad campaigns deliver improved returns.
A good agency will work with you on a comprehensive CRO approach, which includes the following:
Conversion analysis: To identify where visitors drop off and what prevents them from taking your desired action
A/B testing: To test different copies, layouts, calls-to-action, and page elements to check what drives better results
User experience improvements: To simplify navigation and forms, and remove friction from the conversion process
Landing page optimization: To create and refine dedicated campaign pages that focus on a conversion goal
Performance tracking and reporting: To measure CRO results and its impact on your revenue, so it can prioritize high-value improvements
8. Website design and development
Web design and development is the process of creating and updating your website so it looks professional, works smoothly, and attracts visitors to become customers.
Your website is often the first impression potential customers have of your business. In fact, half of consumers say their impression of a business depends on its website design, making your site a critical avenue to improve your company’s credibility.
Good agencies providing website design and development services will ensure that your site is intuitive for your users. Their approach will likely include:
User experience (UX) design: To make your website easy to navigate, use, and interact with
Responsive design: To make your website work properly on desktops, tablets, and mobile devices
Performance optimization: To improve site speed and technical performance to improve rankings and reduce bounce rates
9. Marketing analytics and reporting
Good digital marketing agencies don’t just run campaigns and call it a day. They monitor results, identify what’s working and what’s not, and continuously optimize your campaigns.
With marketing analytics and reporting, agencies can better understand which efforts are driving results and where to invest your budget.
Clear reporting turns marketing into a measurable investment. When you see which channels drive revenue and qualified leads, you make smarter budget decisions.
For example, analytics might show that visitors who read case studies before requesting a demo are three times more likely to become customers. The agency would use that insight to make case studies more prominent and include them in nurture sequences.
Goal and KPI setup: Defining success metrics aligned with your revenue goals
Performance dashboards: Creating visual reports using tools like Google Analytics, or building custom dashboards for your needs
Revenue attribution: Understanding which marketing efforts contribute to sales
Regular reporting: Providing consistent performance updates and recommendations
Data-driven optimization: Using insights to adjust strategy and budget allocation
What should a digital marketing company do for its clients?
A reputable digital marketing company should do the following for clients:
Learn your business and marketing goals, audience, and market
Provide your business with a custom strategy or plan for achieving your goals
Track your marketing performance and provide regular reports on results
Give your team regular updates on work completed and campaign progress
Help your business navigate market changes and digital marketing shifts
How digital marketing agencies measure success
Good agencies focus on metrics that matter to your business, such as revenue, qualified leads, customer acquisition costs (CAC) and not vanity metrics like impressions, likes, or page views without context.
When evaluating potential agencies or reviewing proposals, look for clear connections between marketing activities and business outcomes. Their reports must answer questions like the following:
Will campaigns drive revenue?
Will leads convert into customers?
Will your CAC decrease over time?
Agencies that focus on these questions are focused on results, and not just marketing activities.
5 key metrics to expect from digital marketing agencies
Revenue attribution: How marketing efforts connect to actual sales
Lead quality and volume: Not just more leads, but leads that convert
Customer acquisition cost (CAC): What you’re spending to gain each customer
Return on investment (ROI): What you’re getting back for every dollar spent
Conversion rates: How well traffic or engagement turn into leads and sales across channels
Realistic timelines to expect from digital marketing strategies
Different strategies deliver results at different speeds. PPC and paid social can show immediate results, typically within days or weeks.
SEO and content marketing typically take three to six months to gain momentum, with results compounding over time. Email and social media engagement build gradually and don’t happen overnight.
Look for an agency that sets realistic expectations upfront and explains how they’ll show and report progress along the way, even if full results take time. That said, avoid agencies that promise instant results — either they’re using risky shortcuts that could harm your reputation, or they’re overpromising to get clients on board.
4 signs of quality reporting from digital marketing agencies
Clear, regular updates on performance and progress toward goals
Honest communication about what’s working and what needs adjustment
Strategic recommendations based on data, not just reporting numbers
Focus on your business goals, not just marketing metrics
If your agency only reports on clicks, impressions, or engagement without connecting to revenue or leads, that’s a red flag. Marketing should drive business results, and good agencies prove them with data.
How much does hiring a digital marketing agency cost?
Digital marketing agency costs vary widely based on your business goals, the services you need, the agency itself, and the scope of work. Most agencies work on monthly retainers for ongoing services, with project-based pricing for one-time work like website redesigns.
Here’s how much businesses typically invest in digital marketing services:
Overall digital marketing: $50 – $6,000/month depending on the mix of services
SEO: $2,500/month on average
PPC management: $100 – $5,000/month (separate from your actual ad spend)
Content marketing: $5,001 – $10,000/month
Social media marketing: $100 – $5,000/month
Email marketing: $51 – $1,000/month
For one-time projects, here are the typical cost:
Web design: $1,000 – $100,000 per project
Website redesign: $3,000 – $75,000 per project
5 factors that affect how agencies price their services
Several factors affect how agencies price their services. Here are the five most common ones:
Your market competition: Highly competitive industries require more aggressive strategies and larger budgets.
Your business goals: Larger goals require more resources. Generating 100 leads per month requires more content production, higher ad spend, and more sophisticated targeting and nurturing strategies than targeting 10 leads per month.
Geographic targeting: Local campaigns typically cost less than national or international efforts
Current digital presence: Starting from scratch requires more initial investment than optimizing existing assets
Bundled services: Combining services like SEO and content marketing within one agency often costs less than purchasing each service separately.
How to evaluate if pricing is fair (5 red flags and 5 positive signs)
When comparing agency proposals, use this checklist to distinguish fair pricing from potential problems:
🚩 Red Flags
🏁 Fair Pricing Includes
No breakdown of what’s included in the monthly fee
You get a clear breakdown of all services and deliverables.
Guaranteed rankings or instant results
They set realistic expectations about timelines and results.
Pressure tactics to sign immediately
They’re willing to answer questions and explain their approach.
Prices significantly below market rates
They have competitive pricing that reflects quality and expertise.
No commitment to reporting or communication
They provide transparent reporting and maintain regular communication.
Pro tip: Think about cost vs. value.
The right question isn’t “What’s the cheapest agency?” but “What return will I get on this investment?”
For example, an agency charging $3,000/month that generates leads worth $15,000 in revenue delivers a 5x return. The investment pays for itself many times over.
Shorlist agencies that tie their work to measurable business outcomes. The investment should pay for itself through increased revenue, not just increased traffic or engagement.
Good agencies help you understand the expected return before you commit, showing how their services will impact your bottom line based on your customer value and conversion rates.
🎥 Watch: 7 Red Flags to Avoid When Choosing a Marketing Agency
Whether hiring a digital marketing agency makes sense depends on your resources, goals, and growth stage. Here’s a quick comparison:
Choose an agency if…
Build an in-house team if…
You need multiple marketing specialties
You have one specific ongoing need
You need to execute strategies immediately
You have six months to 1 year to hire and train a team
Your marketing budget allows for agency fees but not full-time employee salaries and benefits
You have budget for salaries, benefits, and turnover costs
You need flexibility to scale up or down
You have consistent, long-term workload
You want an agency to handle all tool investments and management for you
You’re willing to invest in software licenses and training
For most SMBs, agencies provide access to specialized expertise across multiple strategies and channels for less than the cost of hiring one senior marketing employee. You get access to an agency’s extensive experience, proven strategies, established processes, and results faster than building a team from scratch.
The key question isn’t whether agencies cost money, but whether they generate more value than they cost through increased leads, higher conversions, and reduced customer acquisition costs.
Yes, working with digital marketing agencies is standard practice for businesses of all sizes. Many successful companies use agencies to supplement in-house teams or handle their entire marketing operation.
Agencies allow businesses to access expertise without the overhead of full-time employees. Even large companies with internal marketing teams often hire agencies for specific capabilities, like an SEO agency for technical optimization or a paid media agency for campaign management.
For SMBs, agencies are often the most practical way to compete online without building an entire marketing department and purchasing marketing tools.
Great digital marketing agencies offer a variety of services to help their clients achieve their marketing goals. This includes digital marketing services like:
Digital marketing uses online platforms and technology to effectively market your products and services on the Internet, so you can better reach and convert qualified leads. With digital marketing, you can also easily monitor customer behavior and engagement, so you can track the success of your campaigns and easily identify which strategies are driving results.
Most businesses hire digital marketing agencies when they recognize gaps their internal teams can’t fill. Common triggers include:
Marketing tasks consistently fall through the cracks due to limited bandwidth
You need specialized skills that don’t justify full-time hires
Results from your in-house efforts have plateaued or are declining
You’re launching a new product, entering a new market, or scaling quickly
Current marketing efforts aren’t generating measurable results
Essentially, if marketing is critical to growth but your team lacks the time, expertise, or tools to do it effectively, that’s when an agency makes sense.
Look for agencies with relevant experience in your industry, clear communication, and a strategic approach to your goals.
During consultations, ask about:
Their process
Past results with similar businesses
Reporting cadence
Contract terms
Pay attention to whether they invest time understanding your business before proposing solutions — template pitches are a red flag. Read our guide on how to choose a digital marketing agency.
If you’re hiring a digital marketing agency as an extension of your current marketing team, you might feel a little nervous about making the partnership work. Here are a few tips to help you make your collaboration a breeze:
Setting a communication frequency: Setting expectations about communication frequency will help reduce a lot of friction and set expectations. For example, you could agree to monthly reporting, taking place at the beginning of the month, through a video chat. Setting this guideline holds your agency accountable while keeping your team in the loop.
Use project management tools: It’s always a great idea to go with an agency that has project management software. It makes it easy for you to keep tabs on your campaigns and stay in the loop on what your agency works on.
Create an approval process: If your agency needs your approval for certain campaigns or marketing copy, make sure you have a process in place to give approval in a timely manner. It will ensure that everyone works harmoniously between the teams.
Unlock the benefits of a digital marketing agency
Hiring a dependable digital marketing agency has several benefits for your business.
Get a turnkey solution to online marketing with our full-service digital marketing agency, which creates custom, effective strategies. Browse our digital marketing services now or contact us online today to learn more!
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Craft a tailored online marketing strategy! Utilize our free Internet marketing calculator for a custom plan based on your location, reach, timeframe, and budget.
Craft a tailored online marketing strategy! Utilize our free Internet marketing calculator for a custom plan based on your location, reach, timeframe, and budget.
Abby is a Digital Marketing Analyst at WebFX, where she implements, optimizes, and tracks SEO and digital marketing strategies that are powered by data for WebFX. With certifications in SEO, Local SEO, and Google Analytics, Abby has implemented hundreds of optimizations and led strategies and initiatives that have helped WebFX improve online visibility, traffic, and leads. Before her time as a Digital Marketing Analyst, Abby was an innovative content writer who created content for WebFX clients in various industries and for WebFX’s own blog and website. When she’s not implementing strategies and optimizations that drive leads and revenue, you’ll find her walking her dog, travelling around Europe, or watching her favorite reality TV show.
