In Spain, SMEs and the self-employed account for practically the entire business network. The so-called "startups" have received investment of more than 1,200 million last year 2018 (9 times more than 8 years ago). All of them have many things in common, but undoubtedly one of the most important is how difficult it is for them to make themselves known. Very modest budgets in the marketing section is very common in all of them.
Experience tells me that this problem is exacerbated in the start-up world, where it is normal to have only one cartridge to survive. In this sense, high turnover in key positions such as the CMO can be a problem that breaks the pace of growth and significantly raises costs.
It is very complicated (and expensive) for a CMO to cover all the areas of a complete marketing department: corporate image, creative, SEM, SEO, Affiliation, campaign design, offline strategy, definition and monitoring of KPIs, negotiation with the media, communication, etc. It is always necessary to have more staff and the support of one or more agencies. This increases the cost of marketing, sometimes even exceeding the amount spent on advertising.
Marketing outsourcing is a very good option to solve this problem. It is a cheap and effective alternative that can be a life insurance policy at a time when growth and stability determine the success or failure of a company. Companies turn their marketing departments into specialised agencies. Companies have at their disposal all the services that cover the needs of the business at a much lower cost than hiring a full-time CMO. It ensures that they can stay on the cutting edge of marketing, allowing managers to focus on their business. It is a flexible option, which lays the foundations of a crucial department at a very limited cost and of optimum quality.
Alberto Corcóstegui
Founder and CEO of No Limits Media/BIMADS, and collaborating professor at Deusto Business School.