Choosing a Niche for Your Digital Agency: Industries to Focus On in 2023
Choosing a niche is a critical step to take for digital agencies as there can’t be enduring growth rates without devotion to a specific industry. To ensure you’re taking firm steps forward you need to identify your marketing agency niche.
In 2023, clients will be looking for specialized services to always be sure that they’re working with devoted professionals. But which niche will be your key to success? To answer that question you need to identify your interests, do market research, and understand the needs and differences of each remarkable digital agency niche of 2023.
Why Do You Need to Pick a Niche for Your Agency?
“To increase your ROI” is the simplest and foremost answer to this question. But, how?
Many may think that focusing on a variety of niches and broadening the services is a better path to follow for revenue’s sake. This can only be true if your potential clients are into buying a pen from Primark instead of a Lamy store.
So there’s no correlation between the number of industries you provide service in and the amount of ROI you get. Clients looking for agencies providing niche marketing services and being ready to spend more for a higher quality of service are essential to increasing ROI and accelerating growth.
Also, sticking to a single marketing agency niche increases productivity by lowering the mental energy and time you have to spend on different industries. For instance, digital marketing strategies required by the healthcare sector are much more regulated, than those required by eCommerce platforms. So, you’ll be researching all the time to meet the industry-specific needs of your clients if you provide services in more than one niche.
Focusing on only one marketing agency niche will allow you to offer more services in that field. The more you work with your clients, the more they’ll want to demand services from your agency including the ones that you don’t offer yet! Also, focusing on a niche will lead to your success as it is easier to make a mark in one niche instead of many. After that, you’ll find clients for your agency effortlessly.
How to Choose the Best Digital Marketing Niche for Your Agency
If you want to find the most profitable option for your digital agency, you need to focus on your interests, passions, and expertise to narrow down your options. Then, you need to analyze the strong and weak points of your agency considering former success stories or potential ones. Therefore, you can identify the intersection of your strengths and interests that would lead to high motivation to have a proper shortlist of niches.
After you’ve pinned down the niches you may focus on, researching these fields in terms of profitability, longevity, and ease can be the next logical step to take. There should be a profitable market to get a large piece of the pie but if the market has already been dominated, looking for other promising marketing agency niches is what you need to do.
Talking to professionals and learning what problems they encounter in this niche will help you decide and choose among the best niches for digital marketing agencies.
If you’re not inventing a marketing agency niche, you’d better immediately make a detailed competitor analysis. This can help you understand how powerful your competitors are as well as their strengths and weaknesses. In this way, you can become the long-missing piece that completes the puzzle.
Digital Marketing Niches to Focus On in 2023
Every year comes with different opportunities! Let’s look at what is expected from 2023 and which industries are considered promising and about to boom:
The energy crisis that started in 2022 will continue in 2023 according to Fidelity. So, promoting renewable energy resources and the power of sustainability for both the sake of the planet and renewable energy companies can be a life-changer as there’s a growing interest in renewable energy. If you decide to take advantage of the energy crisis, your agency can help these companies tell their stories in the best possible way and connect with their target audience.
Fitness & Wellness
Since the Covid-19 pandemic, there has been an increasing interest in the fitness industry as it is directly related to boosting the immune system and being healthy. Although the darkest days of the pandemic have been long-gone, interest in the fitness and nutrition industry is still rising. The fitness industry’s market size is expected to continue its growth in 2023, according to Paramount Acceptance’s report.
According to Insider Intelligence’s report, 20.8% of the sales will be made online in 2023. The acceleration of the Covid-19 pandemic may have lost its skyrocketing force but still, the eCommerce industry continues to grow year by year. So, there will be an increasing demand for eCommerce marketing agencies in 2023. If your target is to focus on this niche, get ready to play big!
Making appointments and even consultations can be done online today. As healthcare providers begin offering their services online, effective digital marketing can help them in boosting their online presence.
Among the other digital marketing niches, the goals, concerns, and regulations faced by this sector are starkly different and require expertise. You can check the expert healthcare digital marketing agencies to view how they solve problems.
Just like other industries, this niche requires specialization for digital agencies. The content needs of a non-profit organization are very different from corporations. Here, the key is not to promote your business, but the cause.
Generally, non-profit organizations value content more than any other tool used in digital marketing. Whether it be blog posts, videos, podcasts, or webinars, anything that helps push their mission forward is appreciated. For non-profit digital marketing agencies, having a firm grasp on content marketing is a must.
Educational institutions are facing increasing competition for students and need to be able to effectively communicate the value of their programs. A digital marketing agency can help educational institutions to reach their target audience through digital marketing campaigns.
Also, there are forecasts about the leverage of the use of technology in education which means providing more online education options. The more educational institutions offer online courses for different age groups and levels, the more the digital side of the marketing world will be required to promote them. If you focus on this niche while the growth of online education is accelerated, it can be your smooth path to success.
The retail industry is a highly competitive and constantly evolving space, making it a prime niche for a digital marketing agency. With the rise of eCommerce, retailers need to have a strong online presence to compete. Having a user-friendly website and app will provide their customers with an easy path throughout their shopping journey while the ads created by a digital marketing team and optimized content attract more people to these shopping mediums.
According to Deloitte, never-ending changes in customer profiles and behavior will be an important factor to be successful in the retail industry in 2023, and if it’s not taken seriously the volatile economic atmosphere may affect retail companies negatively. To prevent revenue losses, they’ll get help from marketers to reach more customers. So, if you choose the retail industry as your marketing agency niche, you can make a profit out of the recession economy.
How to Come Up With New Digital Marketing Niche Ideas
A more profitable but risky option is finding a new niche to jump in before most or maybe create one. To do so, you can start with trend research to understand what is currently needed most and how the queries are shaped accordingly. With a real agile and proactive mindset, coming up with a highly promising digital marketing niche idea and focusing on it can be more rewarding than trying to get a piece of others’ pie.
To diversify your trend research, you can look at both social trends and Google searches. To detect newly emerging social media marketing niches, you can look at TikTok creative center, Twitter TTs, YouTube Trending, etc. And for the Google side, using Google Trends can be a really good start.
You must pick a niche for your digital agency that is profitable in today’s landscape carefully. Playing it safe is better than specializing in the wrong niche.
Rather than trying to be good at it all, it is much better to specialize in a few fields and gain a significant market share in them, instead of holding a small market share in a large pie. The industry you focused on can impact your digital marketing agency’s pricing too.