11 Questions to Ask Before Signing with an Ad Agency
Choosing Ad Agency
Oct 25 2024

You’ve made a big decision: you’re outsourcing your marketing to an ad agency. This is a significant step for your business, especially if you’ve been managing marketing in-house or with limited resources. Now, you’re ready for the experts to help you grow.

But before you sign on the dotted line, it’s crucial to do your due diligence. Many companies, large and small, have been burned by agencies that overpromise and underdeliver. They might have good intentions, but at the end of the day, they’re running a business too. To avoid costly mistakes, ask these 10 essential questions:

Who will be working on your account?

After the sales pitch from higher-ups, request bios for everyone who will be involved, especially account managers. Who will be your primary contact at the agency?

What does the retainer include?

If they require a retainer, ask how it was determined, what’s included, what’s excluded, and what the rates are if you go over. What if they go under? Also, ask what deliverables you’ll receive monthly to track the agency’s work.

Did they ask about your business goals?

If they haven’t discussed your company’s goals—like revenue targets, customer acquisition, or new product launches—they’re likely skipping straight to tactics, which is risky. A solid strategy should always come first.

What’s their minimum charge for tasks?

Typically, agencies charge a minimum of 0.25 hours for small tasks but be cautious of agencies that bill a full hour for tasks that take minutes to complete.

Status meetings?

Most agencies will give you access to a dashboard for your digital campaigns, but most of the time clients don’t sign in to check out the data. You want an agency that’s going to be very transparent about their digital results and the day-to-day tasks they are executing for you, so this should be done together. Ask the agency how often you will have a meeting with your main point-of-contact to go over the account, their tasks and the results.

Who owns your website?

If they’re building, coding, or hosting your site, verify that you’ll fully own it—both the creative and technical aspects. Will you be able to move it to another host if needed?

Can they help with your positioning?

If you don’t have clear positioning (what makes you unique and desirable to your target market), can the agency help? What’s their process for developing this, and what’s the cost?

How do they handle PPC management?

What percentage of your PPC budget goes to their fees versus media spend? Who’s handling the actual purchases—an in-house team or a third party? How often will you review search terms, costs per click, and conversions? Will everything be set up in your company’s name or in theirs? If it’s set up under their company name, then you can’t take that information with you if you go elsewhere.

What’s their fee for media buying?

If they’re purchasing media (OTT, paid social, display ads, print, etc.), what’s their fee compared to the actual media cost? Will everything be set up in your company’s name or in theirs? Again, if it’s set up under their company name then you can’t take that information with you if you go elsewhere.

What’s their cancellation policy?

Understand the terms of the contract before you commit. What happens if you need to cancel?

What is their mark up?

How much mark-up do they have on print, premiums, etc.?

By asking these questions upfront, you’ll ensure you choose an agency that aligns with your goals and delivers results without wasting your budget.