The Cost of Digital Marketing

What is digital marketing pricing? Digital marketing costs include the costs you pay to connect with and target consumers on various digital platforms. As digital marketing continues to grow, it is no secret that businesses are turning to internet marketing agencies to run a successful digital marketing campaign.

Digital marketing services pricing, however, is a little tricky. The amount your specific company should spend on digital marketing services varies. Furthermore, consider your budget, marketing goals, and audience when looking at the pricing of digital marketing services. Different agencies can have different digital marketing pricing, so it is hard to identify a reasonable digital marketing agency price.

Digital marketing services pricing has a pretty large range and can depend on the industry your business is in. We do know one thing, though: Digital marketing is vital for a business and is continuing to grow dramatically. This article will describe everything you need to know about digital marketing services pricing. In addition to this, it will touch on what digital marketing is, what is typical for digital marketing agency pricing, what general digital marketing pricing is, and digital marketing costs.

digital marketing cost

Definition of Digital Marketing

Digital marketing is advertising that is transmitted through digital channels. These digital channels include search engines, social media platforms, websites, email, etc. Through digital marketing channels, businesses can provide endorsements for various products and their company, making digital marketing prices well worth the cost. Now that the world transitioned to the internet to interact with friends, watch the news, find recipes, etc., people need digital marketing now more than ever. Consumers rely on technology to research products and find gift ideas. In fact, 48% of consumers start their search via the popular search engine, Google.

Digital marketing is a very large system comprised of many channels. Navigating through these channels is very intricate work and must be done effectively to produce a good ROI from the marketing campaign and make digital marketing prices worth it. One of the best ways to yield a good ROI against the cost of digital marketing and target consumers is through engagement marketing. Engagement marketing works by collecting data from consumers over time and then using this data to foster meaningful interactions with your consumers. The more engaged the consumer is, the more likely they are to make a purchase and remember your brand.

Digital Marketing Agency Pricing

Digital marketing agency pricing varies significantly. There are many factors that go into configuring rates and prices for digital marketing agencies. A given agency can charge a different digital marketing agency price depending on its own finances. Digital marketing agency pricing is determined by how much it costs the agency to run its own business. There are several figures included in a given digital marketing agency price that I am going to detail below.

Office Expenses 

Office expenses can affect the cost of digital marketing and differ depending on where the agency works. Working from home would decrease the cost more than likely because the rent on a separate office building would not have to be paid. This is not always an option if the company is big and requires room to collaborate with one another. With office expenses, the agency has to consider its operational expenses, which include: rent, equipment, utilities, supplies, etc.

Production Expenses

Another factor that determines digital marketing agency pricing is production expenses. In order to produce effective campaigns, agencies must invest in specific software and tools to serve their clients. There are a plethora of tools and software that might need to be used, including office productivity software, SEO tools, CRM, task management, email marketing, social media automation tools, and many more. These tools can be extremely costly for agencies. The more innovative tools a company has, the more expensive it is going to be (quality is important).


Just like you pay your employees to help run your business, digital marketing agencies do the same. Salaries and wages can deeply affect digital marketing services pricing depending on how large the business is. Aside from salaries, companies must budget for things like benefits, including health insurance, retirement plans, and more.


As you know, running a business is expensive. There are a whole host of government licensing fees, legal fees, and the biggie: corporate taxes that can also impact a digital marketing services cost. These costs can get way out of hand, especially for a small business, so that prices might be higher because of this.

Other Expenses

Agencies need to set aside money for their business to attract customers just like you. Can an advertising agency allocate money to advertise their service? Of course! Travel fees are included in this category as well. If an agency sends a representative to meet with your business a few states away, you bet there is a price for that. The representative will most likely not cover the bill, but the agency will.

digital marketing cost

Digital Marketing Pricing

Digital marketing pricing is different per client. This is contingent on the services being offered and the business that is requesting them. There are many different ways to go about determining the digital marketing pricing of different companies. Here are a few different options:

Project Pricing

Some digital marketing agencies determine a flat fee right off the bat after meeting with the company and coming to an agreement on what type of digital marketing plan the client wants. This pricing method is very straightforward and leaves little room for confusion. There are no hidden fees or additional prices attached. The agency dictates the prices based on their expertise and the quality of the project they are going to deliver. The only issue for agencies with this is it may be difficult to determine how long the project is going to take.

Hourly Pricing

This is the most used option for newer agencies, as determining a time frame can be hard in the beginning. In this method, agencies charge a fixed rate for every hour of work spent on the company’s digital marketing project. Some people like the hourly pricing approach some do not. It really just depends on the client and agency. To sum it up, this method works well for clients who continually ask for revisions on the project and who are still unsure of what they want to accomplish with their digital marketing.

Retainer Model

The retainer model is used for recurrent clients who consistently use your service. This is done once agencies have developed a steady relationship with their client and have a routine plan for them. In the retainer model, clients agree to a prepaid sum.

Performance Pricing

Performance pricing is when an agency’s performance determines the pay. This approach is similar to commission. Agencies can receive a percentage of the money the company they serve generates from the project. This approach promises the best effort from an agency and can be very effective in delivering a great digital marketing plan.

digital marketing cost

Digital Marketing Costs

So, what is typical of digital marketing costs? Truth be told, digital marketing costs are different per project and the type of digital marketing used. There are different digital marketing strategies to choose from, and they all have different prices. Social media marketing costs vary from SEO services. Your digital marketing strategy might be comprised of one or many of these strategies. Here is your digital marketing pricing guide:


Search engine optimization (also known as SEO) increases both the quantity and quality of traffic to your website via organic results. SEO provides more exposure to your brand and can foster new relationships with new clients. Search engine optimization informs you on words users typed into Google to land them on your website. This information can help you draw connections between what verbiage is most effective and what wording attracts customers. Search engines like Google rank websites. As a result, the higher your website ranks, the higher it will show up when someone is searching for something that relates to your website. In terms of digital marketing costs, search engine optimization costs range from $500 to $20,000 per month, based on the company.

Pay-Per-Click Advertising

PPC or pay-per-click is when advertisers pay a fee each time one of their ads is clicked. Simply put, it buys visits to a company’s website. Search engine advertising is a well-known form of PPC. An ad is placed in a search engine’s sponsored links. It then populates when someone searches a keyword related to the website. PPC accounts for 5-20% of monthly ad spend.

Email Marketing and Social Media Marketing

Email marketing and social media marketing are two well-known marketing methods. The first (email marketing) promotes products and services and fosters relationships with customers. Ads, coupons, and newsletters are all used in email marketing. Social media marketing consists of company accounts and paid and non-paid advertisements. Businesses can create free social media accounts to interact with followers and promote their brand. Some companies pay influencers money to endorse their brand’s products on their social media accounts. Email marketing costs around $300-$5,000 per month.

Website Design

Lastly, there is website design. In terms of digital marketing services pricing, this option can get very expensive. Website design services help companies design their website. They carefully place pages so it is easy for consumers to find and navigate through. Website design can cost from $2,500 to over $100,000.

digital marketing cost

Digital Marketing Services & Your Company

Online marketing is necessary for companies to operate against their competitors. The cost of online marketing depends on a variety of factors. Pricing is tailored to what your company needs. For all of your digital marketing needs, contact SEO Design Chicago today! We are a full-service digital marketing agency that offers a variety of digital marketing services like digital advertising, Google Ads, social media, email marketing, web design, video marketing, social media marketing, and more. We will help you choose the best digital marketing strategies for your brand and work within your digital marketing budget.


  • What is digital marketing?
  • What are the different digital marketing pricing models?
  • Which factors affect digital marketing prices?
  • How much does email marketing cost?
  • How much does website design cost?

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