5 Challenges Faced By Agencies And Media Companies

by Amir Levi 07.Jun.2018 4 min read Views
5 Challenges Facing Agencies and Media Companies
Amir Levi

Overcoming the many challenges of digital marketing is no easy feat. Agencies and Media Companies encounter complex variables at all levels of their businesses. In an effort to better understand this, let’s examine a list of the 5 most common challenges facing your company as well as gain some insight to address them.

1. Maintaining Healthy Gross Margins

As the digital marketing landscape becomes more competitive and complex – margins become smaller and smaller. The larger companies are opting for in-house solutions. Additionally, when the competition is on the rise, then pricing continues to drop. You’ll find yourself using all of your resources for lower returns.

2. Navigating Between Complex Platforms

The established advertising platforms are constantly evolving and becoming more complex to better serve audiences. While newer and smaller platforms continue to arrive with their own specific set of parameters. You will need to keep up with this highly dynamic industry or you will be left behind.

3. Reducing Customer Churn Rate

What’s more important: acquiring new customers or retaining existing ones? Existing customers provide the financial foundation for your business to grow. But with so many digital marketing services available, customers are finding it easier to switch suppliers.

4. Measuring Marketing ROI

In the digital age, everything is measurable and customers are expecting continuous improvement. Meeting customer demands in today’s competitive market is becoming more challenging due to the annual inflation of Price-Per-Click. Customers are measuring agencies by nominal expectations but are not adjusting according to actual data results.

5. Scaling

Initially, agencies are in lock-step with dozens of customers and provide them great service. But as the customer base grows, agencies fall into the trap of trying to scale their business without increasing margins.

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