But with 9,000+ agencies competing for attention, who do you trust to grow your brand?

That’s where this guide comes in.

We’ll break down what digital marketing agencies actually do, why they’re game-changers, and how to choose one that delivers real results.

What is digital marketing?

Digital marketing—also known as online marketing—is how brands show up and sell in the digital world.

It’s everything from Google searches to Instagram ads, emails, websites, and the apps you use daily. Digital marketing took off in the ’90s with the rise of the internet, and it hasn’t stopped evolving since.

Need an example? Take a look at Kia’s 2024 digital marketing campaign, ‘Kia’s Getting a Ute’

The ad, shared across TV, social media, and digital platforms, delivered over 100 million impressions and 15,000 expressions of interest.

That is the power of digital marketing. Traditional paper billboards have transformed into LED advertising displays. Newspapers have given way to targeted email campaigns. In-store promotions? Now they’re Instagram drops and TikTok teasers.

As our online habits shift, so do the strategies smart brands use to connect, convert, and grow.

What does a digital marketing agency actually do?

A good digital marketing agency doesn’t just run ads or post pretty pictures on Instagram.

They’re your strategic partner in growth, marketing, and online reputation. Your digital marketing agency researches your market, has eyes on your competitors, and figures out exactly where your ideal customers spend their time online.

Then, they build campaigns that actually work.

Digital marketing agencies create content that gets shared, design ads that get clicked, and build websites that convert visitors into customers. And, they do it all while tracking every click, view, and sale to prove what’s working.

Most importantly? They adapt fast. When Facebook changes its algorithm or Google updates its rules, they’re already three steps ahead.

(callout box):

“Bez Agency partners with clients from boutique businesses to enterprise-level brands to build and amplify their digital footprint across every touchpoint.”

Working with a quality digital marketing agency is like having a team of specialists without the overhead. You get strategists, creatives, analysts, and tech experts — all focused on growing your business.

Types of digital marketing

Digital marketing isn’t just one thing— it’s a toolkit of different strategies that work together. Think of each type as a different way to reach your customers online.

Some build long-term trust, others drive immediate sales. The best approach? Use the right mix for your business.

Here are the main types every business should know about:

Content marketing

Put simply, content marketing means creating useful content that people actually want to read, watch, or share. Content marketing includes blog posts that solve problems and answer questions (like this one), videos that entertain, and infographics that explain complex ideas simply.

The goal? Build trust so people think of you when they’re ready to buy by creating and sharing free resources. Instead of sharing promotional content, you share educational and informative content, giving people value before you ask for investment.

But, creating content that converts can be tricky — that’s where SEO comes in.

SEO

SEO—aka ‘search engine optimisation is the process of getting your website to show up when people search Google (without ads). It’s about making Google love your site by creating content that is helpful and relevant, fixing technical issues, and earning links from other websites.

SEO involves optimising your site for search engines by creating content that is:

• Unique
• High quality
• Engaging
• Linked internally and externally
• Optimised across all key elements (URL, title tag, H1, H2, sub headings)

PPC

Content marketing and SEO are long-term strategies, whereas PPC— ‘pay-per-click—marketing can be a short-term win.

PPC means paid ads that appear on Google, Facebook, Instagram, and other platforms. You only pay when someone clicks, rather than paying a set amount to run online targeted ads continuously.

The most popular type of PPC is search engine advertising, which is why so many businesses use Google Ads.

 

So how do you get your ads shown on Google?

This is where it gets complicated.

When a spot opens up on a search engine results page (SERP), it triggers an instant auction—and only the best ads win.

Search engines use an algorithm to decide which ads appear, based on key factors like:

• Ad quality
  
• Keyword relevance
  
• Landing page experience
  
• Bid amount
  

The result? PPC ads show up at the top of the page when someone searches a specific query, but only if they meet the mark.

Social media marketing

Social media marketing is all about showing up where your customers hang out online, whether that’s LinkedIn for business professionals or TikTok for Gen Z.

But showing up isn’t enough. You need to drive traffic, brand awareness and engagement with high-quality, relevant content. This means paying close attention to your posting schedule, any comments or direct messages, your audience, and your competitors.

Future cross-link to ‘social media agency’ post

Affiliate marketing

Affiliate marketing is a revenue-sharing model where the affiliate makes money by promoting your business, product, or service. The affiliate can share your links across their blog, website, social media channels, newsletter—wherever they exist online.

To run a successful affiliate program, you must first decide on your commission structure, and then find affiliates who want to work with you. Watch the above video for more information about affiliate marketing.

Influencer marketing

Influencer marketing shares some similarities with affiliate marketing, in that it is a person who shares your business across digital channels.

But the key difference is that you’re partnering with people who already have your ideal customers’ attention, from mega-celebrities to micro-influencers in niche communities.

Whereas with affiliate marketing you pay once a sale is made, with influencers you pay upfront as you’re paying for their existing audience, brand name, and reach.

Email marketing

Email marketing is a simple idea, and one of the oldest forms of digital marketing. It is direct communication with people who’ve asked to hear from you, and so is one of the highest-return marketing channels because it’s personal, targeted, and trackable.

It’s even better when you mix in other digital marketing strategies like audience segmentation, email campaigns, and A/B testing.

Video marketing

Video marketing can be used together with a lot of other digital marketing techniques, like social media marketing, affiliate marketing, and influencer marketing.

It is exactly as it sounds—the use of video content to promote your business. This can be using promotional product videos in your PPC campaigns, long-form YouTube review videos for affiliate marketing, and short-form TikTok videos for influencer marketing.

Example of video marketing in action by BEZ

Video grabs attention in ways text simply can’t, but you must make sure that your videos are high-quality and engaging enough to be shared online.

Text message marketing

SMS marketing is often overlooked, but with over 90% of Australians owning a mobile phone, it’s a great way to connect with existing customers. It’s perfect for urgent offers, appointment reminders, or breaking news.

Plus, SMS marketing has high open rates, because everyone checks their texts.

That’s your digital marketing toolkit. But here’s the thing—managing all these channels effectively while running your business is hard work, and far too much for one person to take on.

That’s where digital marketing agencies come in.

How agencies differ from freelancers or in-house teams

Freelancers are great for specific tasks, but they’re usually specialists in one area. Need SEO? Hire an SEO freelancer. Need ads? Find a PPC expert.

But who’s connecting the dots? Who’s making sure your SEO and ads work together?

On the other hand, in-house teams know your business inside out, but they’re expensive to build and often lack diverse experience. Plus, they might get stuck in one way of thinking as they’re laser-focused on your business and brand.

Agencies give you the best of both worlds:

• Full-service expertise across all digital channels
• Fresh perspectives from working with different businesses
• Latest tools and tech without the hefty price tags
• Scalable resources—ramp up or down as needed
• Proven strategies tested across hundreds of campaigns

Agencies have seen what works and what doesn’t. They’ve made the mistakes so you don’t have to.

How digital marketing agencies work behind the scenes

Want to know exactly how this all works? Here’s what happens when you partner with a professional digital marketing agency like Bez Agency.

Client onboarding and goal setting

First things first: agencies dig deep into your business. They want to understand your customers, competitors, and goals. What’s working now? What isn’t? Where are the biggest opportunities?

They don’t assume anything. They ask hard questions and audit everything from your website to your current marketing efforts.

Take Bez for example

Callout box:

Before Bez Agency touches your website or social media, they dive deep into understanding your core business — how you attract new customers, retain existing ones, and the weekly processes that drive your growth.

After diving deep into your existing business, agencies set clear, measurable goals. Not fluffy stuff like “increase brand awareness”—real targets like “generate 50 qualified leads per month” or “increase online sales by 30%.”

Strategy development and campaign planning

This is where agencies earn their keep. They take everything they’ve learned and create a game plan.

Which channels will work best for your business? What messages will resonate with your audience? How should budgets be split between different activities?

They map out timelines, create content calendars, and plan campaigns months in advance. Every piece of content, every ad, every email has a purpose.

Execution, monitoring, and optimisation

Now the real work begins. Agencies launch campaigns across multiple channels simultaneously. They’re creating content, running ads, managing social media, and optimising websites—often all at once.

But they’re not set-and-forget. They’re constantly watching the data, looking for ways to improve. Ad not performing? They’ll test a new version. Email open rates dropping? Time for a subject line refresh.

This constant optimisation is what separates good agencies from mediocre ones.

Reporting and performance tracking

Good agencies don’t just send you charts and graphs. They translate data into insights you can actually use.

They’ll tell you which campaigns are driving the most valuable customers, which content resonates best, and where to invest more budget for maximum impact.

Regular reports keep you in the loop, but the real value is in their strategic recommendations for what to do next.

This systematic approach is what makes agencies so effective.

Why hiring a digital marketing agency is a game-changer

Why choose an agency over other options? Here’s why it’s often the smartest move for growing businesses.

Access to expert teams and tools

Think about it: To match what a good agency provides in-house, you’d need to hire:

• A strategist
• A content creator
• A designer
• A paid ads specialist
• An SEO expert
• A social media manager
• An analytics specialist

That’s easily $500K+ in salaries, plus benefits, plus expensive software tools.

Agencies give you access to all these specialists for a fraction of the cost.

Faster results through proven strategies

Agencies have playbooks. They’ve run thousands of campaigns and know which tactics work in different situations.

Instead of spending months figuring things out through trial and error, you benefit from strategies that have already been tested and refined.

They can spot problems early and pivot quickly because they’ve seen it all before.

Scalability and flexibility for growing businesses

Your marketing needs change as you grow. Busy season coming up? Agencies can scale campaigns instantly. Expanding to new markets? They’ve got the expertise ready.

Try doing that with freelancers or a small in-house team. You’ll be scrambling to find help when you need it most.

Agencies are built for growth. They can handle your success.

Top 3 digital marketing agencies in Australia

1.Bez Agency

Based in: Melbourne
Services: Full-service digital marketing: video production, photography, content creation, social media strategy (SEO, PPC, CRO, web design and development)
Best for: Brands seeking high-impact creative content with a bespoke, hands-on approach
Notable clients: McLaren, Lamborghini, LEGO, GUESS, National Geographic

Bez Agency is a boutique digital marketing agency known for its immersive storytelling and cinematic content. With a compact, multi-skilled team, Bez brings brand stories to life—especially for clients in lifestyle, automotive, fashion, and retail.

From creative direction to end-to-end execution, they approach every project as if it were their own brand—resulting in scroll-stopping, emotionally charged content that sets brands apart.

2. Clearwater Agency

Based in: Melbourne
Services: Digital strategy, performance marketing (PPC, SEO, paid social), CRO, web design & development
Best for: Mid-to-large businesses looking for data-driven digital transformation and sustainable growth
Notable clients: Metricon, Red Energy, Melbourne Business School, TAFE Queensland

Clearwater is a performance-led digital marketing and transformation agency with a strong foundation in both tech and creative culture. Their signature strength lies in merging analytics with inventive storytelling.

3. Sparro

Based in: Sydney (with national reach)
Services: Paid media, SEO, digital strategy, analytics, CRO, eCommerce marketing
Best for: Medium-to-enterprise Australian businesses seeking hands-on performance marketing.
Notable clients: Webjet, Temple & Webster, Catch, Estee Lauder Companies

Sparro is a family-founded digital agency built on transparency, agility, and delivering value. Now part of the global Brainlabs network, Sparro remains proudly independent in spirit, with a 120+ team managing over $200M in annual digital spend.

Why Bez stands out as one of Australia’s top digital agencies

Overwhelmed by all things digital? You’re not alone.

Most brands know they need digital marketing, but few know where to start. That’s where we come in.

At Bez, we become your strategic partner—guiding you through every step with clarity, creativity, and results that speak for themselves.

Let’s talk about what’s possible.

Schedule your discovery session today

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FAQs

What exactly does a digital marketing agency do?

They handle your entire online marketing strategy, from planning and creation to execution and analysis. This includes running ads, creating content, managing social media, optimising your website for search engines, and tracking what actually drives sales for your business.

What’s the best digital marketing company in Australia?

There’s no one-size-fits-all answer. The best agency for you depends on your industry, budget, and goals. Look for agencies with proven results in your sector, clear communication, and transparent reporting. Ask for case studies and speak to their current clients.

What is a performance based digital marketing agency?

They get paid based on results, not just hours worked. Instead of charging flat monthly fees, they earn money when you hit specific targets like generating leads or increasing sales. It’s a win-win — they only succeed when you do.

What is a full-service vs. a niche marketing agency?

Full-service agencies handle everything from SEO to social media to paid ads. Niche agencies specialise in one or two areas. Full-service is better for comprehensive strategies, while niche agencies offer deep expertise in specific channels.

How can digital marketing benefit my business?

It puts your business in front of people actively looking for what you sell. Digital marketing is measurable, targetable, and often more cost-effective than traditional advertising. Plus, you can track exactly which efforts drive real customers and revenue.

How long does it take to see results from digital marketing?

Paid ads can drive traffic immediately. SEO and content marketing usually take 6-24 months for significant results. Most businesses see meaningful improvements within 90 days of starting a comprehensive digital marketing strategy. The key is consistency and patience.