The ROI of Partnering With A Video Agency vs Full Time Employee
The world of Digital Marketing is still new, yet mature at the same time. The landscape has changed and will continue to change. Facebook is not the same Facebook as it once was back in 2007. Instagram is not the same Instagram as it once was back in 2010. TikTok wasn't even on anyone's radar until 2020. Video content is next gold rush of the digital era.
The typical duties of a single Digital Marketing Specialist can include a variety of specialized skill sets including social media management, graphic design, copywriting, paid media, and as of 2022, video storytelling. A lot for a single employee to handle at once.
There are several factors that can impact the return on investment (ROI) of partnering with a content agency versus hiring a full-time marketing employee. Some of the key considerations include the cost of the agency or employee, the scope of work, and the expected results.
To calculate the ROI of partnering with a content agency, you will need to consider the following:
Cost of the agency: This includes the fees for the agency's services, as well as any additional expenses such as travel, supplies, and other costs.
Scope of work: Determine the specific tasks or projects that the agency will be responsible for, and how much time and resources these tasks are expected to take.
Expected results: Estimate the expected increase in revenue or other desired outcomes from the agency's work.
To calculate the ROI of hiring a full-time marketing employee, you will need to consider the following:
Cost of the employee: This includes salary, benefits, and any additional expenses such as training or professional development.
Scope of work: Determine the specific tasks or projects that the employee will be responsible for, and how much time and resources these tasks are expected to take.
Expected results: Estimate the expected increase in revenue or other desired outcomes from the employee's work.
Once you have gathered this information, you can use the following formula to calculate the ROI:
ROI = (Expected results - Cost) / Cost
For example, if the cost of partnering with a content agency is $10,000 and the expected results are a $20,000 increase in revenue, the ROI would be:
ROI = ($20,000 - $10,000) / $10,000 = 1, or 100%
On the other hand, if the cost of hiring a full-time marketing employee is $60,000 per year and the expected results are a $20,000 increase in revenue, the ROI would be:
ROI = ($20,000 - $60,000) / $60,000 = -0.67, or -67%
This indicates that partnering with a content agency would likely have a higher ROI in this scenario. However, it is important to note that these calculations are estimates and may not accurately reflect the actual results of either option. It is also important to consider other factors such as the quality of the work and the level of expertise of the agency or employee, as well as any potential long-term benefits or drawbacks of either option.
By partnering with a Video Agency, companies are able to focus on existing marketing priorities while also maintaining a steady flow of video content. Turning their small but mighty team into a content machine!
If you see value in a video focused marketing strategy but don't have the internal bandwidth to dedicate additional resources to video editing and content creation, perhaps partnering with a video agency would be worth exploring.
For almost half the cost of a full time hire, with no benefits, and a team of specialized video storytellers on demand.
