Most paid media agencies charge a percentage of ad spend, a flat monthly retainer, or a hybrid of the two. Percentage-of-spend fees are commonly in the 10–20% range, often with a monthly minimum. Performance-based pricing exists but is less common for full-service work. The right model depends on how much you spend, how much that changes, and what's included beyond buying the media.
The four common models
Percentage of spend
Flat retainer
Hybrid
Performance-based
What the fee should cover
Strategy & planning
Channel mix, budgets and goals, updated as results come in.
Setup & management
Building campaigns and managing them day to day.
Tracking & analytics
Tag setup, conversion tracking and analytics fixes are sometimes billed separately.
Creative
Many agencies guide creative but don't produce it. Know who makes the ads.
Reporting
Dashboards and regular reviews, and how often you'll meet.
Tools & data
Whether platform, tool or data costs are passed through.
Questions to ask before you sign
Is there a minimum monthly fee?
Many percentage-based agencies have one, which matters at lower spend levels.
Does the fee cover every channel?
Some agencies price each channel separately.
Are there markups on media?
Especially for programmatic, print and offline buys, ask whether rates are net or include a markup.
What's the contract length and notice period?
A short initial term with a reasonable notice period is common.
Who owns the accounts and data?
Your accounts should stay yours regardless of how you pay.
We can review your current media and, for print, compare your rates against what we can secure. See how we can help →