Paid media agency pricing varies more than most industries, but there are two dominant models worth understanding before you start getting quotes — and a few less obvious cost factors that often don't show up until you're already comparing actual proposals.
Model 1: Percentage of Ad Spend
Many agencies charge a percentage of your monthly ad spend, commonly somewhere in the range of 10–20% for smaller budgets, scaling down as a percentage for larger budgets. The logic: smaller accounts require nearly as much hands-on management as larger ones, so the percentage needs to be higher to make the work worthwhile. This model has a built-in incentive alignment — the agency's fee grows alongside your spend, ideally because your spend is growing because the results justify it.
Model 2: Flat Monthly Retainer
A flat fee, independent of how much you spend on ads. This is common for businesses with either very small or very large ad budgets, where a strict percentage model doesn't make sense on either end. A flat retainer can be advantageous if you expect spend to fluctuate significantly, since your management fee won't swing with it.
What Drives the Price Up or Down
- Number of platforms being managed simultaneously
- Complexity of the account (multiple product lines, geographies, or audiences)
- Whether creative production is included or billed separately
- Reporting depth and frequency
What's Usually Not Included
Ad spend itself is almost always separate from the agency fee — you're paying the platform (Google, Meta, etc.) directly or through the agency, on top of whatever you're paying them to manage it. Creative production (photography, video, design) is also frequently a separate line item, which can be an unwelcome surprise if you assumed it was bundled into the management fee.
The Real Question to Ask
Rather than just comparing monthly fees across agencies, ask what's actually included at that price point. A cheaper retainer that doesn't include creative testing or proper reporting can end up costing more in wasted ad spend than a pricier option that's genuinely hands-on.
Pricing conversations are always easier with real numbers in front of you. If you'd like a straightforward, no-pressure quote based on your actual budget and goals, reach out to Project Five Digital for a free strategy session.