As per market surveys, the cost reduction and quality improvement are two key reasons why companies outsource marketing and advertising processes.
While the factors like availability of specialized talent, higher return on investment, lower cost per project and quick delivery are also attracting companies to outsource their marketing and advertising services. And as the digital media and the Internet continue to make traditional engagement channels less effective, there is a need for marketing domain expertise and innovation is projected to grow further.
As the marketing efforts are now completely driven by technology, the companies require the necessary marketing tools so as to prioritize their marketing initiatives. But, as developing marketing tools or analytics applications can tax internal resources, the superior alternative is to outsource a company with the right set of marketing applications and latest technology.
Turn fixed costs into variable costs:
The marketing budget of an organization is largely spent on fixed labour, infrastructure and overhead costs. Additionally, there are hidden costs associated with maintaining in-house marketing assets, scaling the workforce and delays caused due to attrition and lack of support. Whereas, outsourcing projects provide better overall flexibility. As when you outsource the contract, it becomes easily scalable based on the needs of the business.
Marketing domain expertise:
When SMBs and larger companies realize that the effective marketing requires number crunching and high-level analytics is outside their organization’s purview, they outsource the work to fill the resource and human capital gap and have their certain marketing functions successfully. An outsourcing company with extensive marketing domain expertise will help in providing analysts, strategists, brand managers, e-commerce professionals and other expert marketing staff. On the other hand, it is too expensive to hire this group of high-calibre professionals internally.