Agencies use various pricing models depending on scope, services, and client needs. Understanding these helps you compare proposals and budget appropriately.

Common Pricing Models

View Pricing Models

Monthly Retainer: Fixed fee for ongoing services. Predictable costs, dedicated resource.
Project-Based: One-time fee for defined deliverable. Website, campaign, audit.
Hourly Rate: Pay for time spent. Flexible but less predictable.
Percentage of Spend: Fee based on ad spend (10-20% typical). Aligns interests but can incentivise higher spend.
Performance-Based: Fee tied to results. Rare, high risk for agencies.

Typical Agency Costs (UK)

  • Small agency retainer: £1,500-£5,000/month
  • Mid-size agency retainer: £5,000-£15,000/month
  • Large agency retainer: £15,000-£50,000+/month
  • Hourly rates: £75-£200/hour
  • Percentage of spend: 10-20% of ad budget

What Affects Pricing

  • Scope and complexity of work
  • Number of channels/services
  • Agency size and reputation
  • Level of seniority involved
  • Contract length and commitment

Beyond the Fee

Consider total value, not just cost. A higher-priced agency delivering better results is more cost-effective than a cheap agency wasting budget on poor performance.