Digital marketing can be make or break for small and medium-sized businesses. With almost everyone on the internet now, digital marketing is one of the most effective types of marketing out there. However, many SMBs operate with limited marketing budgets, and it can be a lot of work for them to run their marketing campaigns on their own. In this article, we will take a look at an up-to-date breakdown of marketing costs in 2025.
Understanding Marketing Agency Costs
Digital marketing agencies help businesses promote their products and services online. They provide a range of services, such as Search Engine Optimization (SEO), Pay-Per-Click (PPC) advertising, social media marketing, content creation, email marketing, and website design.
While many of these agencies offer similar services, they do not all charge the same way. There are several different common pricing structures that agencies may use. Some of the most common types are hourly rates, retainers, project-based fees, performance fees, and value-based pricing.
- Hourly Rate Pricing: With the hourly rate model, businesses pay for the exact hours the agency works on their project. This model is clear and flexible and gives clients an understanding of the time and costs involved. If the project grows, the hours and budget can be increased.
- Retainer-Based Pricing: This model involves businesses paying a regular monthly fee for ongoing marketing services. These services may include SEO, social media management, or content creation. This type of pricing model keeps services consistent and supports a long-term relationship between the business and the agency.
- Project-Based Pricing: For project-based pricing, the agency and client agree on a set price for the entire project based on the work scope, timeline, and deliverables decided at the start. This fixed cost gives businesses a predictable budget and removes the need to track hours. This may make it easier to manage expenses.
- Performance-Based Pricing: In performance-based pricing, payment depends on results. This often includes the number of clicks or conversions achieved. This model shares both the risk and reward and motivates the agency to meet performance goals, making it easier for businesses to see their return on investment.
- Value-Based Pricing: With Value-based pricing, the cost is based on the perceived value that the agency delivers. This may depend on factors such as more leads, website traffic, or conversions. This model focuses on high-value outcomes, and businesses may pay higher fees for exceptional results or specialized expertise.
Factors Affecting Digital Marketing Agency Costs
There are many different factors that can influence marketing agency costs. Some key factors that influence the costs of a digital marketing agency include the marketing strategies they use, the specific goals you want to achieve, the agency’s level of experience, the size of your company, any technology fees involved, and their areas of specialization.
These different cost factors can often drive up the price for clients unless they decide to limit the services they use. For example, some SMBs may choose to reduce their costs by limiting the work they hire the agency to do. In other words, instead of letting the agency take care of all of its marketing, a business may choose to let its own in-house team work on marketing projects like social media and email campaigns while having an agency work on its SEO.
Generally, the larger the goal the business has an agency working on, and the larger the size of the business, the more money it will cost them. Certain technology uses and specializations may also require premium fees.
Sometimes, a good way to cut down on marketing agency costs is by choosing to go with a newer, nimble agency like Simpler Strategies. These types of agencies are more likely to be able to offer cost-effective solutions without sacrificing quality. This way, SMBs can still afford all of the marketing services they need without having to limit the extent of the work they have the agency do for them.
2025 Digital Marketing Cost Estimates for SMBs
Digital marketing services can cost anywhere from a few hundred dollars to tens of thousands each month depending on the services and agency. For example, social media marketing averages about $900-$20,000 per month, email marketing averages about $300-$1500 per month, and PPC ads average about $350-$5000 per month. SEO services also average about $1500-$5000 per month, and general content marketing can average anywhere from $5000-$10,000 per month.
Social Media
There, of course, are more budget-friendly variations of each of these services. Social media can be paid for in the form of monthly payment, per post, or per hour of work. Those with limited funds are able to get cheaper rates from basic service agencies.
Email Marketing
Email marketing remains one of the most budget-friendly and effective digital marketing channels for SMBs. It offers excellent value with costs averaging $300-$1500 per month and has a high return on investment (ROI) of approximately $44 for every $1 spent.
PPC Ads
While PPC campaigns can range from $350-$5000 per month, SMBs can start small. PPC ads are easy to limit budgets for since the business only owes money when someone clicks on their ad. On average, PPC advertising costs about $2.59 for each click and $3.12 for every 1,000 impressions. This allows businesses to set stricter daily budgets and target more specific keywords that get fewer people’s attention but a more specific target.
SEO
To limit spending on SEO, some companies may choose to hire someone to do the SEO work for them hourly and limit the hours they choose to have them working for. Hourly rates are often about $100-$150 per hour, and there may also be some option to pay for individual projects. However, paying for individual projects can add up quickly.
Content Marketing
Content marketing is usually more costly because it includes a wide spectrum of services. To make these solutions more budget-friendly, some businesses may want to focus on individual services within the umbrella of content marketing. These services may include copywriting, promoting content, videos, graphics, and more.
Other Factors that Impact Cost
No matter what the task, there are a couple of other factors that can impact the cost. For example, longer and more complicated tasks may cost more money for the time and effort spent working on them. The competitiveness of the market may also impact the cost since there is higher demand and more competition.
Simpler Strategies offers all of these services for everything having to do with web design, content marketing, website care, and branding. We offer competitive rates to other similar agencies without sacrificing the quality of work we provide. Our team is well-versed in everything marketing, so we can help you get the maximum ROI for all of your marketing needs.
Finding the Right Digital Marketing Partner for Your SMB
Choosing the right digital marketing agency is crucial for small and medium-sized businesses (SMBs) looking to maximize their online presence and marketing efforts. Here are a few tips on how to choose the right agency:
- Evaluate the Agency’s Expertise and Specialization
Look for agencies that have experience working with businesses similar to yours. Agencies often specialize in certain areas, such as e-commerce, B2B, or local services. Choose one that understands your specific market and challenges. You could also go with an agency with a network of specialized talent, like Simpler Strategies, that has experience with all different types of industries.
- Make Sure They Are Using Data to Form Strategies
An agency that prioritizes data uses analytics to guide its strategies and assess its achievements. They should be able to demonstrate how they use data to make decisions, set clear and quantifiable targets for your campaigns, and provide ongoing updates on key performance indicators.
- Review Their Track Record
Looking at reviews from former clients is a great way of figuring out how your experience may be. Examine the agency’s portfolio and case studies to look for the results achieved for past clients. Many agencies may have pages dedicated to this on their website.
- Consider Communication and Transparency
Good communication is key to making a partnership work well. You want to make sure the agency meets your criteria and listens to your concerns. They should be quick to respond, easy to reach, open about their charges, and share regular updates. For example, our team is transparent about timelines and is always available to answer any questions.
Digital marketing plays a key role in the growth of small and medium-sized businesses and will continue to do so in 2025. Digital marketing has a significant ROI when done correctly. Whether it’s SEO, PPC ads, social media, or content marketing, businesses can find flexible solutions to fit their budget and goals. However, it is important to make sure they are working with the right agency.
Contact us at Simpler Strategies today to explore how we can help you create the most effective marketing plan for your business.
