There’s just no room in the digital marketing industry for aimless agencies that fail to hone in on a specific niche.
I’m sure you know what I mean, everyday a new marketing agency is launched by individual entrepreneurs, companies needing to diversify revenue streams, and as side hustles for independent freelancers.
For an agency performing general digital marketing services for small businesses, it’s getting increasingly crowded.
More on that point, small business owners are becoming wary of fly by night agencies that take their money and provide little in the form of results.
As a consequence, many business owners are choosing to work with agencies who are experts within their (the business owner’s) industry.
If you owned a car dealership, wouldn’t it make more sense to trust an agency with experience promoting dealerships, rather than risk giving the job to an agency without that depth of knowledge?
So what’s the answer to this problem? Specializing in profitable digital marketing niches!
Stories of failing agency owners who flipped the switch and exploded sales by servicing profitable digital marketing niches are surfacing on the internet.
In an article by Agency Analytics, they feature 10 successful agencies that were laser focused within a chosen niche.
The article reveals the many benefits a startup agency can achieve simply by building a book of business within a specific industry niche.
List Of Popular Digital Marketing Niches For Agencies
10 profitable industry niches served by successful agencies
• HVAC Repair
• Roofing Contractors
• Dentist Offices
• Automotive Dealerships
• Mortgage Brokers
• Real Estate
• Automotive Repair
• Non-profit Organizations
The industry you choose to serve is up to you. You’ll just want to make sure whichever industry you decide to go with consists of businesses that have high profit margins.
Reaching a good ROI with high profit businesses is much easier than generating hundreds of leads for small margin companies.
Two underserved niches in digital marketing agencies should consider specializing in.
Industry niches aren’t the only way to define your service offerings. Another direction you can take is to provide unique services not available at other agencies.
There a two service type niches that I can confidently say are underserved and can reap phenomenal profits for a startup agency.
1) Digital Event Marketing –
Who doesn’t love a great event that caters to their interests?
In fact, 41% of marketers believe that events are the single most effective marketing channel. You can read that here.
That’s why we’re seeing a huge influx of large corporations hosting niche specific webinars, courses, campaigns and other digital events that target their ideal customers.
Unfortunately, local small businesses currently don’t have this luxury available to them. Which is great news for a startup digital marketing agency seeking a profitable niche to serve.
Using your knowledge of digital marketing to promote a client’s cause, special event, grand opening launch, digital product creation, etc. may be the best entry point into this underserved market.
You can specialize in developing short term digital events that creates buzz in the community and attracts swarms of local customers for your clients.
2) Digital Entertainment Marketing –
In a recent survey, 66% of Gen Z participants stated that they use the internet for primarily for entertainment.
And yet another survey found that millennials prefer YouTube two to one over traditional television.
Younger generations are forcing agencies to rethink how best to reach them. Want to know what’s working… entertaining content.
Take a read of this article I came across on marketing tactics for targeting millennials. It does a wonderful job of detailing how small businesses need to engage with future generations of customers by creating entertaining content.
Why is entertaining content important to growing an agency? It’s completely underserved!
Business owners don’t have the time nor the knowledge to add entertainment value to their marketing campaigns.
And there are very few agencies specializing in this potentially profitable niche, especially on a local level.
To me, this temporary oversight in the digital marketing industry could be an extremely lucrative opportunity for pioneering agencies.
Entertainment ideas might consist of producing a short video comedy series using local performers, influencers or volunteers.
OR maybe you could organize a local game show, talent show, etc.
You could perform these services for a select number of businesses or niche down further and service a specific industry like plumbers, roofers or car dealerships.