The video discusses the rising costs of running a digital marketing team in South Africa. Several factors contribute to this trend. Firstly, the increasing demand for digital marketing services has led to a shortage of skilled professionals, driving up the cost of hiring and retaining top talent. The complexity of digital marketing strategies has also increased, requiring a team of skilled professionals with diverse expertise, which can be expensive to build and maintain.
Exchange rates play a role in digital marketing costs as well. When the South African rand weakens against major currencies, the cost of digital marketing services, which are often priced in foreign currencies, can increase. Currency fluctuations are challenging to predict, but businesses can work with agencies that offer transparent pricing models and exchange rate protections to mitigate the impact.
The high cost of technology and software is another contributing factor. Digital marketing relies on various tools and technologies, such as analytics platforms and automation software, which can be expensive for businesses, especially smaller ones. Additionally, some banks in South Africa have introduced international payment fees for transactions involving foreign currencies, adding to the cost of digital marketing services.
The digital market in South Africa has grown significantly, leading to increased competition. Some platforms and service providers have introduced minimum ad spend requirements to prioritise higher-spending advertisers. Meeting these requirements can give businesses a competitive edge and wider audience reach.
In light of the rising costs, businesses may need to focus on cost-effective strategies, such as leveraging automation and outsourcing, and investing in the ongoing development of their digital marketing teams. Outsourcing options, like Ideation Digital, are suggested as a potential cost-effective solution, offering technical expertise and various certifications.