INDUSTRIES
Outsourced marketing and advertising services
Businesses have been outsourcing marketing, advertising, and other creative services for years and because of this rich track record, third-party service providers are now well-equipped with the tools and expertise to carry out strategic, analytical, and high-value operations as well.
In 2022, the global market size of sales and marketing outsourcing was pegged at $28.65 billion, and is expected to expand at a compound annual growth rate of 9.4 percent from 2023 to 2030. According to Statista, 53 percent of B2B companies in the United Kingdom outsource elements of their marketing to third-party providers.
Besides the obvious cost advantage of outsourced services, companies are outsourcing their marketing functions to better compete in an increasingly digital world.
A 2024 survey by Marketing Week found that nearly 50 percent (48.7%) of the marketers who were polled had to outsource areas of their function due to a lack of skills in-house. The most common aspect of marketing they outsource is digital marketing. As the capabilities and use cases for technologies such as AI and cloud computing advance and expand, businesses will likely find that their need for technical and creative expertise will also intensify.
Marketing service providers are rising to the occasion by offering sophisticated marketing analytics using computer models. These algorithms can determine detailed customer preferences, competitive landscape, and other data to assist in developing advanced marketing strategies.
Many marketing firms continue to provide transactional marketing services, such as customer call centers, sales force deployment, and staffing. But those that offer dynamic, innovative, and end-to-end marketing solutions are likely to grow their market share significantly in the near term. To gain the most value from marketing outsourcing engagements, executives must become proactive brand ambassadors and drive a customer-focused culture within their own organizations and among their suppliers. Service providers should be seen as partners that create long-term value, instead of mere contractors that need to be controlled.
Marketing and advertising outsourcing: Challenges and solutions
Companies that outsource marketing and advertising functions often do so for strategic reasons. Some outsource all non-core functions, while others outsource higher value activities because they lack the marketing resources to cope with rapid or sudden business changes.
Access domain expertise
Both small and medium-sized businesses (SMBs) and larger companies may realize that they lack the expertise to execute certain marketing functions successfully. When effective marketing that requires number crunching and high-level analytics is outside an organization’s purview, a specialist provider can fill the resource gap. Marketing analytics and database marketing are commonly outsourced, for example. An outsourcing provider with marketing domain expertise will be able to provide strategists, analysts, auditors, product specialists, brand managers, e-commerce professionals, content developers, and other expert marketing staff. It can be expensive to source this group of high-caliber professionals internally and in a location where talent is unavailable.
Access latest technology
Marketing efforts are becoming increasingly technology driven. Organizations often lack the necessary marketing tools, and even companies in high-tech industries may not prioritize marketing initiatives. Developing marketing tools and analytics applications can tax internal resources. Working with a specialist provider that has an arsenal of marketing applications and leading-edge technology is a superior alternative. Vendors have experienced marketing staff who know how to use the right tools effectively.
Turn fixed costs into variable costs
Fixed labor, infrastructure, and overhead costs typically account for the largest portion of an organization’s marketing budget. On top of these are the hidden costs of scaling the workforce, maintaining in-house marketing assets, and of delays caused by attrition and lack of support. Outsourced functions and projects mean better overall flexibility. A three-year database outsourcing contract, for example, is easily scalable depending on the business requirements.
Advertising and marketing outsourcing to the Philippines
Custom marketing solutions provide tangible business outcomes for clients, helping them grow profitably while reducing costs. Outsourcing advertising and marketing functions to established locations such as the Philippines can deliver results amid many challenges faced by organizations. Unlike traditional marketing agencies, a reliable service provider such as Sourcefit aims to be a trusted partner that delivers long-term value.
Please contact us to find out about Sourcefit’s custom advertising and marketing outsourcing solutions.
