Marketing is a major business function, and businesses that tend to overlook its importance either have an excellent product or they're making a bad decision. Despite this importance and the fact that marketing is an introductory business course, there are companies which choose not to build internal capacity but rather outsource some part of this task to the marketing agencies.
Marketing agencies might have been founded to cater to a new legion of clients, and employ a new generation of employees. Why are many Bangladeshi entrepreneurs inclined to start a marketing agency? 
Easy barrier to entry: In most cases, marketing agencies are quite easy to start. Unlike traditional businesses, they can be piloted with zero investments. Most agencies do not require external staff until they have acquired a respectable amount of clients.
"You don't need much to start a marketing agency. All you need is someone to write and design," says Ifteker Mahmud, managing director at Purplebot Digital. "For university students, this is increasingly accessible - and more often than not, more lucrative than teaching students or doing a different day job," he adds, reflecting upon the humble beginning of his current venture, which now employs over more than 30 people.
Even as you acquire more clients, secure more cash flow, and scale up -- agencies do not have to exist in glass panel corporate offices with massive rent. In most cases, they are located in small apartments in non-commercial areas. Most expenses an agency incurs are sustainable, contrary to traditional businesses -- making it more accessible.
On a similar note, resources are also increasingly available. In most roles, marketing agencies are not looking specifically to hire people from advertising or marketing backgrounds. It is fine even if one has never read a copy of Philip Kotler's books. They are looking for fast learners with creative ideas and basic software skills - things that do not need to be validated with a degree. This is why a significant portion of the agency workforce in the entry level is part-time university students who exhibit high energy at low labour costs.
Companies demand agencies: Despite how saturated the market is, most agencies have clients and cash flow. In other words, the market demands a lot of marketing agencies. There are a few factors that contribute to this.
First, agencies are a creative crowd -- and managing creatives is not everyone's cup of tea. Second, agencies operate on economies of scale. One designer is allocated the work for three to eight clients on average, allowing agencies to offer services at cheap rates. In comparison, if a company were to hire a dedicated graphic designer -- it would cost them more, while the resource would be underutilised. Third, agencies are flexible -- companies are at full liberty to delegate different projects to different agencies, paying for only the services utilised.
Finally, agencies minimise liability. “It's easier to fire and replace a marketing agency than your in-house marketing team,” says Zahid Shovon, senior strategic planning manager at Madmen Digital. “Companies aren't just buying your time and services. They are also buying the right to make you do the routine things they don't have the time for, such as maintaining a content calendar or replying to queries on their Facebook Business Page,” he added.
Agencies spawn agencies: Not all marketing agencies are thrifty. Some heavyweights operate on high-price points, often inaccessible to the average client. To meet client budgetary requirements, these agencies often create 'low-budget alternatives' that the same people ultimately own. Mr Kashem (pseudonym), working as brand manager at a reputed educational institution, reiterates, "We reached out to a few agencies to pitch us, and the major agencies sent us multiple proposals at varying price points."
Similarly, agency employees are likely to start their own agencies at a point in their careers. Whether it be due to a lack of growth, workplace frustration, or an entrepreneurial desire -- agency employees with the skillsets and the networks are often tangent into their own ventures within the same industry. This process eventually repeats itself -- leading to a cycle of agencies spawning more agencies, a tale old as time itself.
An easy start to entrepreneurship: For many, owning an agency is considered 'an adventurous part-time earning source'. A university student with a natural comedic flair could start his/her own marketing agency -- giving him /her extra-pocket money for the month. Someone with a separate full-time job with access to clients and work could easily outsource it under the name of a marketing agency -- helping them pay the bills.
Marketing agencies are not necessarily created with the grandiose expectation of building teams that can churn out award-winning campaigns regularly. Many marketing agencies are piloted without the same sense of ambition that founders often preach -- they can simply be a low hanging fruit to be an entrepreneur while having fun in the process.
Should you start an agency too?: Starting a marketing agency can be a profitable enterprise and can often be a gateway to your future entrepreneurial ventures. This is because agency work experience exposes people to a lot of knowledge across many industries. Popular companies like GoZayaan & ShopUp and many restaurant franchises like Chillox, Cheez, etc., are a few examples of businesses led by founders with agency experience.
While the market for general content agencies is heavily saturated, there is an immense opportunity for agencies to serve niches with more modern approaches. Also, marketing innovation focusing on creating more avenues for brands can bring out interesting startups. Among these are companies like Hypescout, a platform for brands to connect to influencers for their marketing needs, and StickerDriver -- a digital platform that allows you to advertise on vehicles across Bangladesh. These unique approaches tend to raise eyebrows and, if appropriately done, can truly leave a mark on the industry.
The bottom line: These perspectives are echoed by many working within the industry; this may also be tangent into other diversely opinionated conversations such as the quality of local advertising, the prospect of working within this industry, and perhaps the undercutting tendency of new agencies. However, one thing is for sure - - there are a lot of marketing agencies trying to capture a piece of the market with a similar approach. Whether you're a student looking for employment, an aspiring agency owner, or a business owner looking to delegate your marketing function, you have the scope to channel these agencies' entrepreneurial drive to a fruitful outcome.
The author is a founder, former employee, and client of multiple marketing agencies.
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