The COVID-19 pandemic has undoubtedly affected digital marketing agencies of all sizes, but the reality is that the impact is felt quite differently by small and large firms. Larger agencies typically have more employees and significant office rent expenses, which can limit their pricing flexibility. Increased overhead often translates to greater financial vulnerability. Consequently, many larger agencies are reducing internal costs to stay afloat as they grapple with client losses.

With countless businesses shutting down, agencies of all sizes are fighting to survive (COVID-19 Business Trends) For smaller agencies and individual contractors, client loss can be even more detrimental. However, their lower overhead often allows for greater agility in adapting strategies or shifting focus to navigate this economic downturn. This article outlines six strategies to help sustain your small paid media agency:

1. Evaluate the impact on each client
2. Maximize flexibility
3. Deliver added value whenever possible
4. Explore different client types
5. Prioritize strategic planning
6. Prepare client accounts for recovery

1. Evaluate the impact on each client

Regardless of your client roster size, it’s crucial to individually assess the impact of COVID-19 on each one. If you specialize in a particular industry, your clients likely face similar challenges. However, if your clientele spans multiple industries, understanding the unique impact on each business is essential. View larger image

Reviewing your client portfolio’s performance is key to determining the necessary actions, from damage control to strategic adjustments. Identify clients at the highest risk of churn and determine the steps needed (or possible) to retain them. This also allows you to pinpoint clients minimally affected, potentially presenting opportunities to expand services or propose innovative solutions for venturing into other paid channels. Understanding the environment and allocating time and effort effectively is always valuable for digital marketers but even more so now. Auditing your client portfolios is also crucial for maintaining strong client relationships. Be empathetic to their situations and identify ways to maximize your current value proposition. Client loss is sometimes unavoidable, as many businesses directly suffer from the economic lockdown. The key is to mitigate potential losses during these challenging times.

2. Maximize flexibility

Flexibility is a significant advantage smaller agencies hold over larger ones during economic crises. If overhead isn’t a major concern, you have more pricing flexibility, allowing you to retain clients by offering lower prices for a specific period or until the crisis subsides. By identifying the most impacted and at-risk clients, you can proactively restructure contracts, demonstrating understanding and valuing the relationship.

Adaptability in pricing models can be crucial for navigating COVID-19 (from State of the Agency 2020) When working with larger companies or businesses undergoing layoffs, flexibility regarding contractual obligations is paramount. Highlight that the cost of an external marketing contractor is significantly lower than that of a full-time employee, emphasizing the value you deliver. Communicating your client retention strategy and demonstrating flexibility and understanding will underscore your worth and integrity. Here are some approaches:

• Defer invoices: Depending on your financial situation, consider delaying invoice schedules. This allows you to maintain rates while granting clients temporary payment extensions.
• Reduce pricing: As mentioned, temporarily adjust your contract to accommodate your client’s needs, showcasing your commitment to the relationship.
• Restructure contracts: If a client’s budget is slashed and the required work decreases, rework the contract to include limited services at a reduced price, maintaining a limited engagement until business recovers. Gain insights into your post-COVID-19 customers to effectively address their evolving needs and challenges.

3. Deliver added value whenever possible

Beyond flexibility, identifying areas to provide more value can enhance client retention. After assessing your client portfolio, explore potential additional services. While not always feasible, if you possess creative expertise or other valuable skills, pitch them to your clients. For instance, if you have a background in conversion rate optimization and landing page design, offer it as a complimentary service. Other skills that can be transformed into services include:

• Web development
• Data analytics
• Marketing automation support, CRM support
• Content creation
• Marketing software auditing
• Video editing If you lack certain skills but have time to learn, capitalize on it. Identify areas where you can further assist your client base and proactively develop those skills. Mastering design tools like Photoshop and Illustrator, attaining HubSpot certifications, familiarizing yourself with new analytics software, and becoming proficient in landing page creation are all ways to expand your service offerings. Many clients outsourcing paid media often have limited in-house marketing resources. By broadening your digital marketing skillset, you can provide more value, benefiting your business both during and beyond COVID-19.

4. Explore different client types

In addition to serving existing clients, consider expanding your clientele. You might lower your minimum ad spend threshold or shift from local businesses, which might be pausing operations, to e-commerce clients.

These sectors are witnessing increased activity during COVID-19, and embracing new client types can help manage cash flow and sustain your agency.

5. Prioritize strategic planning

Adaptability is crucial for paid marketing professionals, and you must be prepared to completely re-strategize all your managed accounts. Understanding the impact on each client is essential, enabling you to assess the account’s current state and communicate necessary changes effectively. These changes could range from revising ad copy and messaging to completely overhauling promotions.

Some businesses have shifted from revenue-focused offers to prioritizing brand awareness and top-of-funnel content. This strategy aims to keep the marketing funnel operational without overwhelming the system and ending up with no leads to nurture as time progresses. Users converting on these offers may not spend money now but could become paying customers later. Another common strategy is adapting ad copy to acknowledge the crisis, mentioning COVID-19 and how the business aims to provide value during these times. This demonstrates awareness and relevance without appearing insensitive.

6. Prepare your clients and your agency for recovery

After gauging the financial impact and being transparent with your clients, propose proactive measures at the account level to alleviate anxiety. Having a plan is always essential, even for your own business. Plan and save accordingly, cutting costs where possible. The goal is to survive the economic lockdown for as long as possible. While the uncertain timeline can make it challenging, remember that most businesses are in the same boat. Be adaptable and resilient. For more guidance on marketing during COVID-19, listen to Goal Talk Podcast Episode 15: Updates on Marketing During COVID-19—Data, Reactivation, & More.