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$40,000 or $400,000? Verticals Make the Difference!

By Deborah Kurfiss, Umbrella Content Marketing Director on Jul 7, 2023

 Increase Your Agency’s Revenues by Focusing on Verticals

If you are establishing a marketing agency, becoming a successful, well-known marketing agency that clients seek out can be a long slog as you battle growing competition. One of the most effective methods of setting yourself apart to gain top of mind awareness with prospects and dominate a market quickly is to focus on specific verticals.

Vertical marketing concentrates on targeting a specific industry or niche market segment with tailored messaging and specialized offerings.

That doesn’t mean you need to stick to one or a few verticals forever. Once you get are well-known in a vertical you can turn your attention to others.

Here is what you need to know about the whys and hows of marketing to verticals.

Build Customer Trust

When business executives and business owners are looking for a marketing agency or consultant, they want to know whoever they hire can successfully create and implement marketing campaigns that will help them achieve their business goals. They want assurances the agency can do the job for their business.

Rightly or wrongly, most customers want a marketing agency that knows their industry well. If they are in real estate, for example, prospects value a marketing agency’s proof of success marketing in the real estate field much more than their experience running marketing campaigns for lawyers or dentists or retail stores. Testimonials and case studies from a vertical speak much more strongly to those in the vertical than those outside it.

Clients comfort with providers that are experienced in their industries is well substantiated by studies. For example, a McKinsey study found that 38 percent of companies they surveyed with a vertical focus had annual contract values of more than $100,000 per customer compared with 4 percent of companies with a horizontal focus.

Target Your Marketing Messages 

It’s a given that prospects respond to advertising and other types of marketing that is aimed at their own challenges and goals. If you are targeting a specific vertical, you can customize your services and marketing messages toward that vertical. This targeted approach resonates with the audience, as they perceive the brand as an expert in their industry, leading to increased trust and loyalty.

For example, you could create marketing packages specifically for attorneys. Your ads could promise solutions to marketing and business challenges common to attorneys.

Create Buzz

By customizing both your services and your messaging to a specific vertical, you capture their attention. People in that industry speak with each other, and it’s much easier to create buzz within one community than across all communities. In other words, your customers become your evangelists. If you can catch one or two of the big fish in an industry, word spreads. And you can help spread it with their testimonials and success stories.

Enhance Credibility and Visibility Through Thought Leadership

By immersing your agency in specific verticals, you will gain a deeper understanding of your clients. This knowledge helps in developing customer-centric strategies, refining product offerings, and delivering superior customer experiences.

By understanding the unique pain points and opportunities within the vertical, you can position themselves as a thought leader. This can be done by publishing articles and white papers, giving webinars, offering valuable information resources and speaking at industry events

Spend Less Money and Use Fewer Resources

Instead of spreading resources across multiple markets, vertical marketing enables businesses to concentrate their efforts on a specific audience. When you focus on verticals, marketing becomes much more targeted and less expensive. You can focus on the big players in the industry rather than shot gunning everyone and their brother.

This focused approach allows for better resource allocation including marketing budgets, sales efforts, and marketing services development resulting in increased efficiency and effectiveness.

Form Partnerships

Collaborating with industry influencers, associations and thought leaders can provide valuable networking opportunities and help establish credibility within the vertical.

Partnerships can also open doors to joint marketing initiatives and shared resources. For example, if you want to sell marketing services to attorneys, you could partner with a vendor selling time tracking software for lawyers. You could write a letter that goes out under their signature recommending your marketing agency services to their clients. You could then perform some service of value to them.

Choose Verticals that Make Sense

If you have expertise in a particular vertical, that might be a place to start. Do some marketing research to determine their growth potential and what services would be good to offer them. Consider the specific needs, pain points, and trends within each industry. By selecting the right verticals, you can maximize the impact of your marketing efforts and ensure a higher return on investment.

Need Help Building Your Marketing Agency?

If you are looking for help building your marketing agency, consider partnering with Umbrella if you have not already done so. Umbrella can also help you to develop vertical marketing strategies for your clients.

Contact us by completing this web form or call us at 1 (866) 760-2638.

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