The Cost of Digital Marketing

What is digital marketing pricing? Digital marketing cost is the price 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 help their digital presence flourish.

Digital marketing services pricing 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 pricing of digital marketing services. Different agencies charge rates so it is hard to identify a reasonable 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 dramatically grow. 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

What is Digital Marketing

Digital marketing is advertising that is transmitted through digital channels. These digital channels include: search engines, social media, website, email, etc. Through digital marketing channels, businesses can provide endorsements for various products and their company. 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 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 down effectively to produce a good ROI from the marketing campaign. One of the best ways to 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. Agencies charge different prices depending on their 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 this that I am going to be going into detail in below.

Office Expenses 

Office expenses differ depending on where the agency works from. Working from home would decrease the cost more than likely because 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 includes: 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 be costly depending on how large the business is. Aside from salaries, companies must budget for things like benefits, including health insurance, retirements plans, and more.

Professional Fees

As you know, running a business is expensive. There are a whole host of government licensing fees to legal fees and the biggie: corporate taxes. These costs can get way out of hand, especially for a small business, so prices might be more 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 project they are going to deliver. The only issues 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 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 performance determines the pay. This approach is similar to commission. Agencies can receive a percentage of 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. This might seem confusing, but there are different methods to effectively carry out your digital marketing plan.


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 search engines 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 for $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 newsletter are all used in email marketing. Social media marketing consists of company accounts, 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 $2,500-over $100,000.

digital marketing cost

Digital Marketing Services & your Company

Digital marketing is necessary for companies to operate against their competitors. Pricing is tailored to what your company needs. For all of your digital marketing needs contact SEO Design Chicago today!

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