When a marketing agency niches down by industry they have chosen to only work with clients who are in a certain industry. This might be because they enjoy marketing for a certain industry, have a passion for it or it’s profitable. If there is a passion for an industry they are going to be the true heart behind the marketing for you. Either way, we feel if you are a niche or not you have to believe in what you are marketing for. So we are not quite sure this is an advantage.
The second reason is you are in a profitable industry and that is why your industry was chosen. This means your industry can support having larger marketing budgets. Everyone needs marketing but some industries lend a hand in being able to afford more money to work with. More money to work with means it’s easier to perform marketing tactics as there is more money for retainer fees and ad spending.
The third less known reason might be because of the available market. They have decided to niche so they chose an industry that is wide and broad and gives more opportunities for them as an agency.
Some marketing agencies might niche down in B2B vs B2C, which is very broad but does have some unique marketing aspects to them. We’re not sure it’s unique enough to call yourself an expert in B2B vs B2C. Within these categories, there is also “wholesale marketing” and e-commerce marketing”.
By Service Line:
The other way an agency might niche down is by a certain service line within marketing. There are lots and lots of marketing types and they are not all needed in every case. So having a marketing team that is say heavy into ads (also known as an advertising agency) can specialize (no matter what the ad platform is) in how to drive qualified traffic to the website. They might also have another specialty that lends to say ads such as creating landing pages or email funnels to take someone down a marketing funnel. It’s very difficult for any marketing agency especially on the marketing side to not be involved in all parts of the funnel.
There are other types of marketing such as video marketing or website building that lend its self to only needing to know certain parts, somewhat. Take video marketing, for instance, a marketing agency might understand every aspect of building a compelling video, but if they don’t under how to use the video to market then they could build videos that won’t help the marketing funnel.
We see this with website companies too, we feel there are actually three parts to building a website, development, design, and SEO. The developer understands the technology setup, coding, and more. While the designer makes it look pretty. Finally, the SEO side of it ensures the website is set up with the best SEO technique in mind. SEO is a long game but the development of a website needs to structurally be built to work for SEO. So even a website development company needs several other experts on the bench.
Now that we have talked about the different ways an agency can niche down. Let’s talk about their advantages and disadvantages of them.