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If you've ever wondered how much do advertising agencies charge for their services, the answer really depends on the fee structure used and the services involved. Below are the most common pricing models:
Hourly Rate
Some agencies charge a set hourly fee for their time, typically ranging from $100 to $300 per hour, depending on the technical expertise required, location, and scope of engagement.
Flat or Project Fee
This fixed rate applies to specific projects, like ad campaign creation or website design, with prices varying from a few hundred to tens of thousands of dollars.
Retainer
A retainer involves a recurring monthly fee for ongoing services such as SEO, social media management, or content marketing. These retainers can run anywhere between $500 to $20,000 per month.
Performance-Based Fee
Using this model, agencies earn their fees based on results, such as a percentage of ad spend or revenue generated. This model is commonly used for one-time events like email marketing blasts, with the agency receiving a pre-determined percentage of the sales generated.
Commission-Based
Agencies may also charge a commission, typically 10-15% of the media budget, to manage ad placements effectively. Commissions are often used for Google Ad, Facebook Ad, LinkedIn Ad and other paid media campaigns.
As you can see, there are quite a few variables involved in how much digital advertising agencies charge for their services. Need help with your own company's advertising? Give me a call at 800.519.5391 and let's talk about what you'd like to do. I'll be happy to put together a custom proposal just for you.
Related: Is digital marketing an expense or investment?
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