How Much Does Hiring a Digital Marketing Agency Cost in Canada?

By Srikanth
6 Min Read
How Much Does Hiring a Digital Marketing Agency Cost in Canada? 1

There are many facets to the modern digital marketing strategy. That’s one of the hardest parts of managing your marketing. Especially if you’re by yourself or you’re a small team, there are simply too many hats for them to wear to be effective. Thankfully, you can save yourself a lot of headaches by hiring a digital marketing agency. There is, however, the all-important question, “How Much Does Hiring a Digital Marketing Agency Cost in Canada?”

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In this article, we will clarify everything you need to know about the cost of a Canadian digital marketing agency. We’ll explore factors that affect the cost, average ranges, and what you might expect from agencies of different sizes.

  • What’s the average cost to hire a Canadian agency?
  • Does location matter at all?
  • Can you get a better price for longer campaigns?

Factors Influencing Cost

Scope

One of the biggest factors is the size of your expectations in terms of scope and the services you require. If you’re looking for an agency to do simple social media posts a few times a week, you’ll pay a relatively small amount. If you want a full digital strategy that includes content marketing, email marketing, SEO, and PPC management, you should expect to spend considerably more.

Business Size

Larger businesses with a wider scale of operations will pay more than smaller businesses focused on a local area. Managing national and international marketing campaigns is a big responsibility. It requires more work and is expected to have higher budget requirements.

Agency Expertise

Some services simply cost more. They might take more time or require a deeper level of expertise. Video editing, for instance, is a relatively niche skill with fewer experts than social media management.

You’ll also find that agencies that have been around for longer, with a proven track record and expertise to match, will charge considerably more. Especially when compared with newer businesses or individual freelancers.

Location

Agencies in larger cities such as Vancouver or Toronto will have a higher rate, thanks to the higher cost of living in those areas. You can still find lower-budget agencies in those cities but far cheaper agencies in more rural locations.

Average Cost Ranges in Canada

There is a huge range of costs, and you’ll find that fees will vary depending on the above factors.

Small businesses looking for an entry package will pay between $1,000 and $3,000 monthly.

Medium-sized businesses targeting a wider range will spend between $3,000 and $10,000 monthly, based on the complexity of services.

Larger, national, or international businesses should expect to pay $10,000 plus. These campaigns focus more on full-scale, outsourced digital campaigns.

Costs By Service Type

Based on a monthly retainer, here are some average price ranges for individual services:

  • SEO: $500 to $15,000 a month – SEO cost in Canada is based on the scope of the project and results achieved.
  • Social Media Management: $1,000 to $7,000 a month – number of posts, amount of engagement required, and number of platforms tend to influence this the most.
  • PPC (Pay-Per-Click): Many agencies will charge a percentage fee based on the campaign spend. The typical percentage range is between 15-30%.

Types of Digital Agency Agreements

Type of Agreement DescriptionTypical DurationCost Implication
Project-BasedSpecific, one-time projects that have a defined scope and timeline. Often, projects like web design or event management.Weeks to months.A fixed amount is agreed in advance before the project starts.
RetainerA range and scope of services are agreed upon and delivered every month. Perfect for businesses that want to develop a relationship with a specific marketing agency.Many agencies will suggest a minimum of 6-12 months with a contract.Retainers are set to a monthly fixed rate. Rates vary depending on the services required.
Performance-BasedThe agency’s fees are linked to performance metrics such as conversions, sales, or leads. Great for results-focused businesses.Typically linked to a specific campaign or against milestones.Sometimes, tiers of cost are available depending on the level of achievement. It’s a high-risk strategy for the agency, so often comes with a high reward expectation.
Hybrid AgreementA mixture of our first two models where ongoing support is required with occasional individual campaigns.Flexible but typically 6-12 months with individual projects.A retainer with individual invoices on a project basis.

Key Takeaways

Working with a Canadian digital marketing agency is a smart move for most businesses. It’s a far more cost-effective and efficient method of marketing. Plus, you have the added benefit of a whole team worth of expertise and experience to lean on.

  • When thinking about cost, always consider the overall return on investment rather than the upfront cost.
  • Price is important, but maintaining a positive relationship with long-term goals is also crucial.
  • Expect transparency at a minimum. You should be clear on the costs associated with any campaign you start with an agency.
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