There are a few truisms in our industry. Truism no. 1: Marketing drives business. Customer-centricity is where the game is at; it’s been true for a number of years now but even more so in 2025. Truism no. 2: Products and brands don’t sell themselves. We don’t all live in Field of Dreams (the 1989 Kevin Costner movie famous for the line “If you build it they will come”.) You need to actively connect your supply (i.e., what you build) to market demand. And that requires 2 things: (1) There must be demand to begin with, and (2) How do you connect that demand to your supply. Here’s where marketing comes in. Small and medium enterprises (SMEs) need a marketing agency to help with this.

Unfortunately, many SMEs in Singapore don’t have an in-house marketing team or even a dedicated marketer on staff. An external marketing agency can help SMEs either seed the demand and/or connect it to their supply. And since we’re now in 2025, to also track, report on and optimise for results. Marketing these days is nothing if not tied to business performance. Not to mention, the scene moves fast. Marketers themselves are struggling to keep up with the scene, let alone those in SMEs whose day job isn’t marketing.

How do SMEs need a marketing agency now?

We hear the following questions from SME owners all the time: “Do small and medium enterprises need digital marketing?” “Is it worth it to hire a digital marketing agency?” or “Should we hire a social media agency instead?” and “When is the right time to invest in brand strategy? How are they different from digital marketing?”. Social media agency, digital marketing agency, branding agency, integrated branding agency… Which is right for you? It can all be pretty confusing. And it may be hard to tell them apart.

There was a time in the aughts when SME owners were told they cannot not have a website. That was when small businesses awakened to the idea that they needed a digital presence. Good news for them, there were grants available to defray web development costs. It follows that digital marketing firms were flushed with business, with some dedicated to helping SMEs apply for grants followed by building and launching a website. While this helped to push many SMEs into the digital space, the approach was templated and it was difficult to distinguish one website/brand from another.

Fast forward years later (circa mid-2010 to now). Many businesses wised up to the fact that it’s one thing to build a website and quite another to maintain it. But more important, customers were increasingly turning to social media for inspiration, discovery and information. And many SMEs got the memo: Websites were no longer necessary when an Instagram page would do. This was made more apparent when social media giants like Instagram, Facebook, YouTube and TikTok started to integrate shopping features into their platforms; even as marketplaces like Shopee and Lazada became the alpha and omega of retail designed to bring customers from inspiration to purchase without ever leaving their walled garden. We had entered the era of discovery commerce. Social media agencies became flavour of the month.

What kind of marketing agency is best for SMEs then?

COVID certainly had a role to play in this accelerated push into digital. But post-COVID, and even more so in 2025, we’ve witnessed a return to offline shopping. Customers now want the best of both worlds: Physical and digital. Omnichannel has transitioned from buzzword to a non-negotiable. In this time of personalisation and journey fragmentation, SMEs may do well to partner marketing agencies that are customer-obsessed and omnichannel-focused. So the right question to ask yourself is not what agencies call themselves, but it’s more of what they know and how they partner.

This presents a conundrum. Most businesses discover agencies from search (as they do everything else). So does an SME owner who need a marketing agency then search “marketing agency singapore”? “best social media marketing agency”? “best digital marketing agencies singapore”? or “brand agency singapore” and then hope for the best?

Where can SMEs find the marketing agency they need?

Search engine marketing is certainly one way to go. But as mentioned, different agencies bill or position themselves differently. And then there are those that are the marketing equivalent of a quick change artist: They can be anything you want them to be. The savvier ones even have meta descriptions that present their offerings differently, based on your search query. With AI, it becomes easier than ever to pull off this sort of customisation. Is this dishonesty? Not necessarily. It’s a start.

The trick then becomes, Where do you go from there? Most will click on a search result and land on the agency website and/or social media channel. And these run the gamut: From the wholly creative ones to the purely informational ones. But the best ones will give you a sense of their culture, values, attitude and point of distinction. Study their clientele and case studies: Have they worked on industries that you’re in? Do their vibes mesh with your company culture? Do they help you see possibilities and make you excited about marketing?

These are all good questions to be asking. But you likely can’t answer many of them from a pitstop on a website, so take the next step: Meet them. Nothing beats having that 1st face-to-face. This is critical, actually.

Where else can you find marketing agencies outside of search?

Besides search, SMEs can look for agencies also at events, like seminars and trade shows. Whether franchise shows, IP shows, tech events or seminars by organisations of interest to you (e.g., Association of Small & Medium Enterprises, Singapore Business Federation, Association of Trade and Commerce, Intellectual Property of Singapore, Enterprise Singapore); it’s good to get out there. These typically mean you bypass that agency’s digital marketing and take that 1st in-person meeting. There are benefits to this, because well you’re busy; it’s a chance for you to get past the seductive imagery and clever copywriting and get right down to it.

Don’t discount word of mouth as well. What’s the word on them? Are they buzzed about on the awards circuit? What kind of reputation have they earned? Speak to your partners. Who have your competitors used or are using? Some agencies may have non-compete/non-competition clauses in place; but the good and friendly ones will happily refer you to another agency that’s good if they can’t take you on. It’s a small industry. And one that thrives on word of mouth and referral.

Criteria for selecting the right marketing agency

So you have now taken a meeting or about to take a meeting. How should you go about choosing the right one? Besides things like chemistry and reputation, it’s now down to brass tacks. You want to consider things like their ability, credibility and integrity. Here’s a cheatsheet to guide your conversations and choice.

1. Does this agency understand your industry?

Look out for relevant case studies they share. Ask about the challenge they had set out to solve, the thought process, and also the results. Most good case studies will contain these. Throughout your conversation, observe if they demonstrate familiarity with your industry, its ecosystem and your target audience. Are they familiar with your competitors? The trends and issues that impact you? The category norms and the opportunities you can harness? But of course, don’t fault them if they don’t have all the answers. Some industries are fragmented and fast-moving. But the agency you want to work with should have a more-than-basic understanding. They can add value, and this can really help move things along.

2. Are they brand-focused and impact-oriented?

Look for an agency that’s relational, not (just) transactional. Is the agency brand-sensitive? In 2025, with social media giants relaxing guidelines for content moderation, brand safety has taken on a sense of urgency again. There’s a saying that it takes years to build a brand but only 1 incident to break it. Equity and reputation are everything to your business.

Look for an agency that seeks to understand the essence of your positioning and prioritises telling (and propelling forward momentum for) your brand narrative. Campaigns come and go, but a brand is one that will go the distance. Research has already proven the correlation of brand building to business performance. Don’t be seduced by the siren call of performance marketing without understanding how it works within a marketing mix…it could be hurting your brand in the long run.

To that end, consider whether the agency you have in mind is impact-oriented. Are they focused on outputs? Or outcomes? The conversations they have…are they about results and KPIs, or just about hours and deliverables? If you want to go the distance, look for an agency willing to go the distance with you.

3. Do they dialogue? Or just take orders?

The best marketing agencies will engage you in dialogue. They will probably have lots of questions at that initial meeting…not about your industry (they should already know), but about your aims, goals and challenges. They might even ask what keeps you up at night, and what success means to you. These are good questions any agency worth their salt will want to address. And you shouldn’t be afraid to answer them. Their help can only be as robust and meaningful as you will allow them (without giving away trade secrets and business-sensitive information, of course). It’s a good idea to have the agency sign a non-disclosure agreement if you’re worried.

So don’t be hesitant about going with an agency that interrogates your business, organisational structure and decision-making process. In fact, it’s beneficial. That’s when you know they want to help you succeed. Going back to my earlier point on impact, order takers are plenty out there. They add convenience, but not value. It’s a telltale sign that an agency is not impact-oriented if they merely take a brief, and not interrogate it. An agency’s real value is to help you see things you cannot (yet) see, to understand the dynamics of your organisation (that may have become a blind spot), to skilfully navigate the quirks of your business (for smooth buy-in and roll-out) while never taking their eyes off the prize (results).

4. Are they up to speed with the marketing landscape (not just social media)?

Omnichannel is where the game is at today. Don’t be fooled by just social media marketing. That’s only 1 step in the buyer’s journey (albeit an important one). Even if you decide to work with an agency specialising in social media or influencer marketing or digital marketing, be sure they give you solutions that put the entire user journey into context and consideration.

Beyond strategies, tactics, platforms, design and production, you may want to ensure the agency you partner with keeps itself up to date on movements that affect the industry and customer behaviour; as well as your ability to roll things out at speed and at scale, with precision, productivity and the right levels of protection and governance. We’re talking about things like data, privacy, personalisation, use of AI, martech and sustainability.

5. Does the agency have an ESG orientation?

Do SMEs need a marketing agency that understands and advocates for ESG? To wit, consumers are showing greater affinity and loyalty for brands with an ESG orientation (backed up by their wallets, no less). While companies are increasingly examining their supply chain. Working with a branding and/or marketing agency with strong sensitivity toward ESG means it can help you craft the right narrative, shape the right image, and keep your supply chain squeaky clean. (Because sustainability reporting is already here for some, and imminent for others.)

Over and above governance and good corporate citizenship, any agency that doesn’t engage you on conversations about the relationship between ESG and brand growth is probably doing you a disservice. There are also plenty of reasons why SMEs can benefit from ESG. So do look out for an agency that is ready to engage you on that level of conversation if you’re intent on future-proofing your business.

6. Are they sensitive to and respect intellectual property?

The onslaught of generative AI has accelerated public opinion and heightened sensitivity toward intellectual property. Perhaps not coincidentally, the tenders that we see these days increasingly have clauses spelling out expectations in this regard. At last! So work with an agency that exhibits integrity, that respects the rights of creators, that work toward building a thriving marketing trade in Singapore, and one whose work doesn’t land you in legal trouble. One that respects fair usage, accuracy, and are sensitive to the cultural nuances and legality of marks in classes for markets you will be operating in.

One tip is to look for affiliations and certifications the agency may have. It can be a signal of their intent, and credibility.

7. Are they ethical?

Finally, it may be good to query your marketing agency’s stance on their use of (generative) AI and how they handle data and privacy. After all, data, privacy and AI are new marketing ethical minefields any agency would be aware of, and should be actively addressing. Speaking of governance, there is a movement now where customers and brands are blacklisting and boycotting agencies that have oil and gas contracts and exploit labour. We live at a time where consumers are calling people/companies/brands/agencies out and holding them accountable for their choices and decisions. So it’s always a good idea to do your due diligence and check out the reputation of any agency before making that final call.

So there you have it. It really boils down to ability, credibility and integrity. Work with an agency that wants to run the distance with you, not just the sprint. Ultimately, you want an agency that has heart, that is as invested in your success as you are yourself.

How to get the best ROI from your marketing budget

Of course I would be remiss if I don’t address the 1 thing on every SME owner’s mind: Price. For many years, marketing has been seen as an expense, with CFOs querying the ROI of marketing followed by Marketing giving them some fluff about “awareness” and “affinity”. The savvier ones will justify their marketing budget with consumer sentiment and research scores. But not any more!

Today, marketing drives business performance. Marketing is a department closest to the customer; and as already established, customers are everything. If you don’t have the demand, there’s no point for you to even supply. Successful companies today use marketing as a centrifugal force to drive their business. Marketing-led organisations use research to investigate market gaps and what people need…and want; and then use that to direct innovation, product and pricing strategies.

In this age of omnichannel, marketing has to contribute directly to lead generation and sales too. The former divide between Marketing-Qualified Lead (MQL) and Sales-Qualified Lead (SQL) is a false one. It’s all a continuum. Applied correctly, marketing can help you attract, convert and retain customers; it can help you build cash flow and pipeline by helping you build the right relationships.

SME marketing budget requires a rethink

So don’t just look at Cost of Sale, look at Cost Per Acquisition (CPA) or better yet Customer Acquisition Costs (CAC) instead. Talk to your agency about how you can nurture and leverage Customer Lifetime Value (CLV) and Net Promoter Score (NPS), so your marketing and sales don’t have to “work as hard”. These meatier and measurable KPIs can justify your investment in marketing and yield better ROI, because they have direct correlation to results and sales, and pitch your customers for the long haul. A good marketing agency can advise where your marketing budget is best deployed for best ROI.

So yes, marketing is an investment. Used correctly (such as for market and psychographic research, business intelligence, branding and innovation), an asset even. It’s a potential untapped by many SMEs, who look upon marketing as an expenditure on their income statement. There’s a longstanding debate whether marketing is CapEx or OpEx. I’m of the opinion that marketing (esp. branding) is CapEx, and this sentiment has been echoed by 79% of financial analysts from the Institute of Practitioners in Advertising (IPA) too. A marketing agency can be an asset when you partner the right one. Will you join me (and them) in this paradigm shift?