Are Niche Agencies the Next Big Thing?

Are Niche Agencies the Next Big Thing?

Before discussing niche agencies, let’s look at some statistics. As of July 2021, 60.9% of the global population (4.80 billion people) used the internet for nearly seven hours daily. That’s a 5.7% increase from July 2020 to July 2021. That report further indicates that the top three internet activities include finding information, staying in touch with family and friends, and staying up to date with news and events.

Those statistics show that 46.5% of global internet users between the ages of 16 and 64 use the internet to research products and brands. That’s nearly half of all internet users worldwide looking up articles, blogs, social media posts, videos, and other content during their buyer’s journey – all of which a niche agency can provide.

There’s no shortage of digital agencies and the need for high-quality marketing to promote products and (or) services. With that in mind, you must think of how you can set your agency apart from the rest. While it’s tempting to provide services to everyone as a “generalist,” is this the best solution? Or should you niche down?

This guide discusses what niche agencies are, why you should choose a niche for your agency, the benefits of niching down, and how to pick a niche for your agency.

Understanding Niche Agencies and What They Are

Niche agencies are those where you can find teams of experts specializing in the company’s industry or area of focus. For example, the agency’s focus might be on content marketing, SEO, social media, or the like. This choice is optimal for companies needing expert help in a specific area of their content marketing strategy.

Why You Should (or Shouldn’t) Choose a Niche for Your Agency

We learn from HubSpot research that today’s marketers create content for more than one audience segment, with three being the most common. The number one reason you should choose a niche for your agency is that companies look for (and need) specialization.

Niche marketing agencies solve the problem many businesses face. That includes how specific techniques might work for one sector (but not for another). Avoid attempting to be good at “everything” and avoid being a “generalist.” It’s beneficial to specialize and gain market share in a few sectors.

Why You Need to Pick a Niche

By picking a niche for your agency, you’re reducing how many competitors are vying for your target audience’s attention. Niching down ensures you provide your target audience with the solutions they need in a streamlined manner while maintaining a competitive advantage.

Here are some benefits of picking a niche for your agency:

Streamline Marketing Efforts

Agencies that pick a niche can streamline their internal processes because their marketing efforts are repeatable. That means, because you’re consistently providing the services to the same target audience, you can create processes that readily apply to new leads and clients.

Better Understand the Competition

It’s easier for agencies to monitor their competition after they pick a niche. That includes understanding what they offer and identifying ways to explain how your agency can do better.

Improve Conversions and Growth

If your brand doesn’t focus on a specific niche, you might attract many leads – but how many of them convert? Think about it this way – niche marketing is targeted and prevents leads from being all over the place. Niching down allows your brand to develop personalized content for specific segments within your industry.

Why Agencies Might Decide Not to Niche Down

Despite the benefits we list above, agencies might decide not to niche down. Here are some potential reasons why niching might not be a promising idea:

  • Agencies might target an audience that’s too small because no one else is going after it. As a result, it’s a choice that can’t sustain long-term growth or sustainability
  • Niches typically have limitations. That might make your target audience leery of working with limited sets of vendors, services, or products
  • Some agencies feel niching down reduces their target audience too much, resulting in sacrificing opportunities

How to Choose Your Agency’s Niche

Part of digital marketing is advising clients regarding their need to refine their offerings. While this is excellent advice – how often are you following it in your business practices? Learning how to choose your agency’s niche allows you to connect with your target audience. That way, your agency can deliver a unique selling proposition you know speaks directly to them.

Here are some steps for how to choose a niche for your agency:

  1. Focus on digital-friendly niches: Your choice should play nicely with digital marketing campaigns and strategies.
  2. Look at the competition: Look at what other agencies are doing within the niche you’re considering and compare your offerings to theirs.
  3. Identify your target audience’s pain points: After looking at the competition, define who your target audience is and how your agency can solve their pain points.
  4. Determine its growth potential: Make sure the niche you choose has long-term growth opportunities. That means ensuring the services you offer within this niche remain in demand and relevant.

Top Industries to Focus On

  • E-commerce: As consumers shift away from brick-and-mortar shopping in favor of ordering online, stores can turn to digital agencies to market e-commerce solutions
  • Fitness: The demand for online fitness classes and workouts grows when brick-and-mortar locations close down
  • Food & Beverage: There’s an increase in demand for home deliveries, and digital agencies can help the food and beverage industry market to that audience
  • Healthcare: Focus content on spreading awareness, information about current treatments, and where people can find solutions (vaccines, testing, and the like)
  • Legal Services: Law firms need digital agencies to help them with complex content requirements, increase their online presence, and establish credibility
  • Non-Profits: Digital agencies focusing on the non-profit sector can help these organizations spread messaging and raise money
  • Real Estate: There are sub-sectors niche agencies can focus on within this segment. These include targeting those who sell apartments or condominiums and renovators
  • SaaS: As more of our population joins the remote workforce and online education, so does the growth in cloud service providers and their need to support their users, reach them, and deliver the highest quality services