13.03.2025

What Does a Social Media Agency Do? (And How to Choose the Right One)

8 min read by Annabel Wood

In today’s online world, we live and breathe social media. From fleeting viral trends to culture-defining moments that change everything, social media is how we share information. It’s where culture is created. For businesses to achieve maximum reach, they have to go where the consumers are.

But simply being on social media isn’t enough. Businesses need a powerhouse social media strategy to drive engagement, brand awareness, and conversions. With the rise of digital marketing, and over 5.2 billion social media users worldwide, social media agencies play a pivotal role in shaping a brand’s online success.

But what exactly does a social media agency do, and how do you choose the right one for your business? This guide explores their key services, benefits, and how to select the perfect agency for your brand.

What Is a Social Media Agency?

A social media agency is a specialised company that manages a brand’s online presence across platforms like Facebook, Instagram, LinkedIn, X, Snapchat, and TikTok. These agencies offer services such as content creation, digital design, paid advertising, influencer partnerships, campaigns, community management, social listening, and data-driven strategy to help businesses grow their social media presence effectively.

Partnering with an agency who offers expert knowledge and a strategic, scalable approach will help your brand to stay ahead in the ever-evolving digital and cultural landscape. Outsourcing social media management can significantly improve engagement rates and ROI. Businesses gain access to data-driven insights, creative execution, and trend-driven strategies that maximise engagement and strengthen brand presence. Can’t keep up with the social trends? Agencies can. But how do you find the right one?

In this article, we’ll deep dive into how to evaluate agencies, considering factors like niche expertise, pricing models, and scalability, which play a critical role in determining the right fit.

What Does a Social Media Agency Do? Key Services Explained

A full-service social media agency provides a range of services that help businesses create, manage, and optimise their online presence. These services go beyond simply posting content; they encompass a strategic, data-driven approach aimed at maximising engagement, impressions, traffic, follower growth, visibility, and conversions.

1. Social Media Strategy Development

Conducting brand analysis, including core values, mission, and unique selling propositions (USP), to ensure brand consistency across all channels.
Performing comprehensive audience research to identify demographics, interests, and online behaviors, ensuring content resonates with the right people.
Defining SMART goals tailored to business objectives, whether for brand awareness, lead generation, or sales.
Crafting platform-specific strategies, optimising content formats, posting schedules, and engagement tactics based on platform algorithms.
Implementing social listening to track customer sentiment, brand mentions, and industry trends in real-time.

2. Content Creation & Digital Design

Crafting compelling brand narratives through storytelling-based content that connects emotionally with audiences. Leveraging user-generated content (UGC) and micro-influencer collaborations to build authenticity and engagement.
Producing platform-specific content, including short-form videos, branded graphics, interactive carousels, and blog posts.
Utilising A/B testing to analyse which content formats drive the highest engagement and conversions.
Ensuring SEO optimisation for content discoverability, using keyword research and trending hashtags.

3. Community Management & Engagement

Responding to comments, messages, and brand mentions in real time to foster stronger relationships with followers.
Managing brand reputation by addressing negative feedback and implementing crisis communication strategies.
Engaging in proactive outreach, including outbound engagement and personalized interactions with followers.
Running interactive campaigns, such as contests, live Q&A sessions, and customer polls, to boost engagement.
Implementing social listening tools to monitor conversations and sentiment about the brand.

4. Paid Social Advertising & Influencer Marketing

Developing data-driven ad strategies tailored to specific audience segments.
Identifying and managing influencer partnerships that align with the brand’s values and goals.
Running A/B split testing on ad creatives and messaging to optimise for conversions.
Tracking and analysing ad performance metrics to ensure budget efficiency and campaign ROI.
Adjusting ad placements and strategies based on real-time performance insights.

5. Social Media Analytics & Reporting

Tracking key performance indicators (KPIs), including engagement, reach, website traffic, and customer acquisition cost.
Providing data-driven recommendations for improving social media performance.
Conducting competitor analysis to benchmark performance against industry leaders.
Implementing real-time tracking tools for campaign optimisation.

6. Social Listening & Trend Analysis

Monitoring brand sentiment and audience feedback to adapt strategies in real-time.
Identifying emerging trends and adapting content to capitalise on viral moments.
Using AI-driven analytics to determine optimal posting times and engagement triggers.
Tracking platform changes and algorithm shifts to maintain content relevance.

By implementing these strategies, social media agencies help businesses enhance brand awareness, engage customers effectively, and drive measurable growth.

How to Choose the Right Social Media Agency

With so many agencies available, selecting the right one can be challenging. Consider the following factors:

1. Define Your Goals and Needs

Before selecting an agency, clarify your objectives.

Do you want to increase brand awareness, drive sales, boost engagement, or improve customer support?
Identifying clear goals ensures you partner with an agency that aligns with your business vision.
Setting clear and measurable KPIs is crucial for tracking progress and ensuring a social media strategy aligns with business goals.

2. Industry Experience & Expertise

A specialised agency understands your industry, audience, and competitors. Look for:

Case studies and success stories within your niche.
A team with relevant certifications and awards.
Experience with brands of similar size and goals.

3. Range of Services

Ensure the agency offers the specific services you need, such as:

Full-service social media management.
Paid advertising and lead generation.
Digital design and creative content production.

4. Proven Track Record & Client Reviews

Reputation matters. Review:

Client reviews on Google, Clutch, or LinkedIn.
Video testimonials and social proof.
Before-and-after case studies showcasing ROI improvements.

5. Reporting & Transparency

A good agency provides detailed performance reports. Ask:

How often will reports be shared (weekly/monthly)?
What metrics do they track (engagement, conversions, ROI)?
Do they provide actionable insights or just raw data?

6. Budget & Pricing Structure

Social media services can range from $2,000 to $20,000+ per month, depending on:

The number of platforms managed.
Ad spend and campaign complexity.
Level of customisation and creative content production.

Common Questions About Social Media Agencies

What services does a social media agency provide?

A social media agency offers a range of services, including strategy development, content creation, community management, paid social advertising, influencer marketing, analytics, and reporting. Agencies help brands craft engaging posts, run targeted ad campaigns, monitor brand sentiment, and track performance to optimise engagement and ROI.

How much does a social media agency cost?

Social media agency pricing varies based on services, industry, and agency experience. Expect to pay anywhere from $4,000 to $15,000+ per month, depending on the level of service. Some agencies offer à la carte pricing, where clients can pick and choose specific services. Others work using retainer fees where clients pay a set amount on a recurring basis (monthly, quarterly, etc.) for ongoing services, ensuring consistent support and strategy execution. Agencies might use project-based fees for a one-time or short-term project, such as a campaign launch.

What are the benefits of hiring a social media agency?

A reputable agency should offer clear KPIs, such as follower growth, engagement rates, website traffic from social, conversion rates, and ROI from paid campaigns. Regular performance reports and insights are essential for tracking progress and making data-driven decisions.

How do I measure the success of a social media agency?

How long does it take to see results from a social media agency?

Results vary depending on the strategy, platform, and campaign goals. Organic growth strategies (such as content marketing and engagement) typically take 3-6 months to show significant impact, whereas paid advertising and influencer campaigns can yield faster results within weeks or months.

Can a social media agency help with crisis management?

Yes. A strong agency will have crisis management protocols in place to monitor brand sentiment, respond to negative feedback, and implement damage control strategies. Agencies use social listening tools to track mentions and sentiment in real-time, helping businesses stay proactive in managing their online reputation.

What platforms do social media agencies manage?

Most agencies manage major platforms like TikTok, Facebook, Instagram, LinkedIn, YouTube, X, and Pinterest. Some agencies also specialise in platforms like Snapchat, Reddit, Discord or more niche emerging social channels based on audience needs.

Should I hire an agency or manage social media in-house?

This depends on your budget, expertise, and available resources. An in-house team provides brand consistency and full-time focus, but a social media agency offers specialised expertise, scalability, and access to advanced tools. Many brands opt for a hybrid approach, using agencies for strategy and execution while maintaining some in-house oversight. For the very best chance at curating social-first content and increasing engagement, agency knowledge is preferred.

What’s the difference between a social media agency and a digital marketing agency?

A social media agency focuses primarily on organic and paid social media strategies, content creation, and engagement. A digital marketing agency typically offers a broader range of services, including SEO, PPC, email marketing, website development, and overall brand strategy. Businesses looking for multi-channel marketing solutions may benefit from a digital marketing agency, while those focusing on social growth and engagement should choose a social media agency. However, a social media agency might cover both, and vice versa.

How do I choose the right social media agency for my business?

To choose the right agency, consider their experience, industry expertise, portfolio, pricing structure, and client reviews. Make sure their strategic approach aligns with your goals and that they provide clear reporting on results. Check reviews for honest opinions from clients. You can learn more about evaluating agencies here.

What next?

A social media agency can help brands achieve significant growth, visibility, and engagement across digital platforms. The key is choosing the right agency that aligns with your goals and can execute a strategic, data-driven approach.