Digital marketing is undoubtedly a hot business in the 2020s. So much so that it seems like every entrepreneur with a new computer and a high-speed internet connection wants to start a digital marketing agency. And just as with businesses in any other industry, some new agencies succeed while others fail.
Those that fail tend to make a few common mistakes. If you’d like to learn about some of them, check out a May 2024 Forbes piece written by Forbes a Council’s Member Solomon Thimothy here.
It turns out that his post is the impetus for this one. In it, Thimothy offers five reasons new digital marketing agencies fail. I am going to expand on those five reasons by explaining in more detail why new agencies should avoid them.
1. Taking Misaligned Clients
Thimothy’s first reason for failure is taking on new clients that are misaligned with the agency’s values. This is pretty common practice among startups who simply need clients to get the ball rolling. But being careful about clients that do not align with the agency’s values is good advice.
Digital marketing is not an exact science. It’s also not governed by a long list of hard and fast rules. There is a lot of room to move in different directions, so taking on misaligned clients could force a new digital marketing agency to do things ownership otherwise would not do. That sets agency and client up for significant disagreements down the road.
2. Failing to Address the Audience
Next, a digital marketing agency’s top priority is to reach the client’s audience with the right messages. In theory, this seems easy enough to do. But as Salt Lake City’s Webtek Digital Marketing points out, it is very easy for a new digital marketing agency to completely overlook a client’s audience by focusing on things that don’t matter.
In order to effectively reach an audience, the agency has to know that audience intimately. So in the early stages of any new agency-client relationship, a lot of time has to be spent on learning. That can be difficult for a new agency chomping at the bit to start billing for services.
3. Chasing the Bottom Line
Another common mistake among new digital marketing agencies is chasing the bottom line. Management obsesses over revenue at the expense of making the effort to build a solid business from the ground up. And oftentimes, chasing the bottom line turns into greed.
Making fast money is nice, but it should not be the foundation of an agency’s day-to-day operations. Long-term success in digital marketing requires a focus on clients and their success. Sometimes that means making less money in the early stages in order to make more later on.
4. Delivering Inconsistent Results
Convincing clients to invest in digital marketing services is tough enough. Keeping them on board is even tougher when an agency fails to deliver consistent results. According to Webtek, consistency is key in this business. Even if initial results are not everything an agency had hoped for, they should at least be consistently positive and gradually improving over time.
5. Neglecting In-House Marketing
Finally, it is imperative that the new digital marketing agency actually market itself. Putting every ounce of energy into marketing new clients while neglecting the agency’s needs is a recipe for stifling growth. A new agency must market itself as aggressively as it markets clients.
It is entirely possible to be successful with a new digital marketing agency. It is also possible to fail. Digital marketing is not an ‘if you build it, they will come’ endeavor.
