Having a niche for your agency can improve your chances at growth and profitability. You will focus all your efforts on scaling up your expertise and showcasing your portfolio when you have chosen a niche. It also allows you to select which brands or agencies you want to collaborate with, which helps you with the profits.
You can start with a broad niche before narrowing it down to your specialization.
However, the tricky part is choosing a niche for your agency. There are plenty of niches for every industry segment making it more complicated than ever.
We have listed out a few tips that can help you select a niche for your agency:
Find Your Passion
What is that one thing you would love to do when you have lots of free time on hand? That’s your passion. For some, it is painting. They try their hands on different styles while carrying on with a full-time job. Some love traveling and do it whenever they can.
When you are passionate about something, it becomes easier for you to conduct in-depth research in that segment. You also possess lots of information that you can share with the audience.
The idea here is to choose something that you love or have good knowledge about and which can prove value to clients. For instance, if you are passionate about SEO and have in-depth knowledge of how it works, you can niche down and offer SEO services to your clients.
When you offer value to the audience, they are more likely to convert into clients.
Validate the Niche
Once you know what you’re passionate about and consider it as a niche, you need to validate your idea.
Will it work with the audience segment you are targeting? Are people interested in what you have to offer? Are there too many people offering similar things to the end customers?
These questions will help you discover whether there is a market for the niche you are planning:
- Take help from Google. Check for keywords and their search volume on various tools to see how many people are interested in this segment.
- Check out your competition and know how they are working on this niche.
The numbers will give you an overall idea of how profitable the niche is.
Identify The Problem
What major problems do people face in this niche? What are the solutions they expect from you? Answering these questions will help you narrow down your niche further. It will also help you strategize and work towards a specific goal.
When you look at the problems, you also need to look at the competition and how they aim to solve this issue. Can you notice any gaps in the current competition? Will you be able to remove these gaps with the solution you are planning?
This aspect goes in sync with the validation of your niche.
Check Out Your Competition
This is a crucial step when selecting the niche. You should know your competition well. How do they rank? What keywords have they chosen to use? Are they offering high-quality services? And how can you differentiate yourself from them?
When looking at the keywords, check out what kind of companies are ranking for those phrases. If they are well-known, then it may not be worth pursuing this niche as it is already flooded with enterprises. Your chances of thriving, in this case, are low.
When you are pursuing a keyword that does not offer much of an opportunity, you might have to think again. In some cases, there would be companies showing up for the keywords. However, these companies don't offer the quality of information or services that the user wants.
Finalize After Testing
This is a crucial step when selecting a niche for your digital marketing agency. You should test the niche to know how the market responds to it.
You could launch a landing page and check for the audience’s interest in that product/service. If many people sign up for the same, then it is time to launch your niche.
It is not enough to conduct these five steps, although they are primary to identify a niche. It would help if you also looked at the value you will be offering to your audience.
Since the market is so large and there are so many agencies out there, don’t generalize your services. Look at what specific problem your company is really good at solving (and one that you also enjoy doing) and specialize in that! Identify a USP for your services that make the target audience choose you over the competition.