How to Choose a Digital Marketing Agency: 12 Questions to Ask
How to choose a digital marketing agency: 12 questions to ask, red flags, contract terms to insist on and honest pros and cons of pricing models.
Key takeaways
- Set one clear goal and a budget before contacting agencies, then send all of them the same brief.
- Ask about the 90-day plan, the actual team, reporting, fees, markups and what happens if you part ways.
- Walk away from guaranteed rankings, claims of special Google access or refusal to give you account ownership.
- Insist that you own every ad account, analytics property and creative, with a short notice period.
- Retainers suit ongoing work, project fees suit defined builds, and performance deals need clean tracking.
To choose a digital marketing agency, start with one clear business goal, shortlist three or four agencies with proven work in your sector, and ask each the same set of questions about strategy, team, reporting and contract terms. Sign only when you own every ad account and the notice period is short.
The rest of this guide covers the 12 questions worth asking, the warning signs to watch for, the contract clauses that protect you, and an honest look at the three common pricing models.
What to do before you contact any agency
Most poor agency relationships start with an unclear brief. Before the first call, write down what you want to change in the next six to twelve months. “More sales” is too vague. “Bring online orders from 300 to 500 a month at a cost per order below our current level” gives an agency something to plan against.
Also note your monthly budget for ad spend and for fees as two separate figures, the channels you already use, and who in your team will approve work. Agencies can only give useful proposals when they know these limits.
- Set one primary goal and two or three supporting metrics.
- Fix a budget range for ad spend and a separate range for agency fees.
- List current assets: website platform, ad accounts, analytics, social profiles and who controls each login.
- Shortlist three or four agencies from referrals, case studies and work you have seen in your sector.
- Send the same brief to each so you can compare answers fairly.
12 questions to ask a digital marketing agency before you sign
1. What would you do in the first 90 days?
A good agency will describe an audit, a short list of priorities and the first tests it would run. A vague answer about “boosting visibility” suggests there is no real plan yet.
2. Can you show work for a business similar to ours?
Ask for case studies with the starting point, what was done and the result over a stated period. Google’s own advice on hiring an SEO suggests asking for examples of past work and speaking to past clients. The same test applies to any marketing agency.
3. Who will actually work on our account?
Senior people often lead the pitch while junior staff run the account. Ask for names, roles and how many other clients each person handles.
4. How will you measure success, and over what timeframe?
Agree on the numbers that matter to the business, such as leads, orders, cost per acquisition or revenue, rather than impressions or follower counts alone. Ask when you should expect early signals and when you should expect real results.
5. What will your reports include, and how often?
Ask to see a sample report. It should show spend, results, what changed and what is planned next. Google’s advertiser guide says you have the right to know, at minimum, the clicks, impressions and total cost of your Google ads.
6. Who owns the ad accounts, analytics, website and content?
The answer should be: you do. The agency should work inside your accounts with access you grant. This is covered in more detail in the contract section below.
7. How do you charge, and what is not included?
Get a written breakdown of fees, ad spend, software costs and any extra charges for creative work, landing pages or shoots. Google’s guidance for advertisers notes that partners often charge fees on top of ad spend and recommends understanding the full cost before working out return.
8. Do you mark up ad spend or software?
Some agencies bill ad spend through their own accounts and add a margin. That is not wrong in itself, but it should be disclosed. Ask whether invoices from platforms are passed on as they are.
9. How will we communicate, and how fast do you respond?
Agree on a regular review call, a named point of contact and a response time for urgent issues, such as a campaign overspending or a website going down.
10. What will you need from us?
Agencies depend on product information, approvals, stock updates and access. Ask what they will need each week. Delays on the client side are a common reason campaigns stall.
11. How do you use AI and automation in your work?
Most agencies now use AI tools for drafting, analysis or bidding. Ask how work is checked by a person before it goes live, and whether any of your data is shared with third-party tools.
12. What happens if we part ways?
Ask how the handover works: account access, files, creatives, tracking setup and documentation. A confident agency will answer this without hesitation.
Red flags when choosing a marketing agency
Some warning signs appear early, often in the first email or proposal. Treat any of the following as a reason to ask harder questions or walk away.
- Guaranteed rankings or results. Google states that no one can guarantee a number one ranking. Its advertiser guide also says third parties must not guarantee a specific ad position, because placement is decided by auction.
- Claims of a special relationship with Google or Meta. Being a certified partner is real, but no agency gets favourable treatment in organic results.
- Refusal to give you admin access to your own ad accounts or analytics.
- Vague or secret methods. Google warns that you remain responsible for the actions of anyone you hire to work on your site.
- Long lock-in contracts with heavy exit penalties and no performance review point.
- Reports full of vanity numbers such as reach and likes, with nothing on leads, sales or cost.
- Pressure to sign quickly, such as a discount that expires the same day.
Contract terms to check before you sign
The contract decides what happens when things go well and, more importantly, when they do not. Read these clauses closely and ask for changes in writing. Google’s advertiser guide also recommends getting an official written copy of any agreement.
Notice period
A notice period of 30 days is common and fair for both sides. Be cautious of 90-day notice periods combined with a long minimum term. If an agency asks for a minimum term, link it to a review point, for example a three-month trial followed by monthly rolling terms.
Ad account and asset ownership
Your Google Ads account, Meta ad account, Google Analytics property, Search Console, domain, website hosting and social profiles should be registered to your business. The agency should be added as a user or partner. Google’s guidance says a third-party agency must set up a separate Google Ads account for each advertiser.
On Meta, an agency can be added as a partner to your business portfolio so it can run your ad account without owning it. On Shopify, store owners can give agencies a collaborator account with limited permissions instead of sharing the owner login.
Reporting
Write the reporting format and frequency into the contract: for example, a monthly report with spend, results against agreed targets and next month’s plan, plus live dashboard access. Google recommends reviewing spend and results every month.
Scope of work
List deliverables in numbers: how many posts, ad creatives, blog articles or landing pages per month, and how many rounds of revisions. Unclear scope is the most common cause of billing disputes.
Intellectual property and data
The contract should state that creatives, copy, content and campaign data paid for by you belong to you, and that all access is returned or removed when the contract ends.
Agency pricing models compared: retainer, project and performance
Most agencies use one of three models, or a mix. None is best in every case. The right one depends on how steady your needs are and how much risk each side is willing to carry.
| Model | How it works | Pros | Cons | Suits |
|---|---|---|---|---|
| Monthly retainer | Fixed fee each month for an agreed scope | Predictable cost, ongoing attention, easier long-term planning | You pay even in slow months; scope can drift if not written down | Ongoing SEO, social media and ad management |
| Project fee | One price for a defined piece of work | Clear cost and end date, easy to compare quotes | No ongoing support; changes after sign-off cost extra | Website builds, brand identity, audits, launches |
| Performance-based | Fee tied to results, such as per lead or a share of revenue | Agency shares risk; payment follows outcomes | Disputes over attribution; agency may chase cheap, low-quality leads | Businesses with clean tracking and clear unit economics |
| Hybrid | Smaller base retainer plus a performance bonus | Balances stability and incentive | More complex to agree and track | Growing ecommerce and lead generation businesses |
Retainer: honest view
Retainers work well for channels that need steady effort, such as search engine optimisation or social media. The risk is paying for activity rather than progress, so pair a retainer with clear monthly deliverables and targets.
Project: honest view
Project pricing is simple to approve and suits work with a clear finish line, such as a new website. Ask what is included after launch, because bug fixes, training and small changes are often billed separately.
Performance: honest view
Paying only for results sounds safe, but it depends on accurate tracking. If the agency is paid per lead, define what counts as a qualified lead. If it is paid on revenue, agree how sales from other channels, repeat customers and returns are treated. Many performance marketing arrangements end up as hybrid deals for this reason.
How to compare agency proposals side by side
Once proposals arrive, put them into a simple scoring sheet. Rate each agency from 1 to 5 on the points below and add short notes. This keeps the decision from resting on who gave the most polished presentation.
- Understanding of your business: did they ask about margins, customers and competitors?
- Quality of the 90-day plan: specific actions, not general promises.
- Relevant proof: case studies and references you could verify.
- Team: named people with relevant experience.
- Transparency: fees, markups, ownership and reporting clearly stated.
- Contract fairness: notice period, exit terms and IP clauses.
- Fit: communication style and time zone overlap with your team.
Call at least two references for your top choice. Ask what went wrong at some point and how the agency handled it. That answer often tells you more than a case study.
If you would like a second opinion on your current marketing before speaking to agencies, Squarebase offers a free growth audit through its contact page.
Frequently asked questions
How do I know if a digital marketing agency is legitimate?
Check its own website, case studies, client references and team profiles. Ask for admin-level ownership of your accounts from day one. Be wary of guaranteed rankings, claims of special access to Google, and pressure to sign quickly.
Should I hire a specialist agency or a full-service agency?
A specialist suits a single, well-defined need such as paid search. A full-service agency suits businesses that want brand, website, content and ads planned together, with one team responsible for the overall result.
What notice period is normal in a marketing agency contract?
Thirty days is common for monthly retainers. Longer terms may be reasonable for large projects, but they should come with review points and fair exit clauses.
Who should own the Google Ads and Meta ad accounts?
The business should own them. Google’s advertiser guidance says agencies must set up a separate Google Ads account for each advertiser, and Meta lets you add an agency as a partner without transferring ownership.
How long should I give an agency before judging results?
Paid ads usually show early data within weeks, while SEO often takes several months. Agree specific milestones at the start so you can judge progress against them rather than against feelings.
Sources: Google Search Central: Do you need an SEO?, Google Ads: Advertiser guide to working with third parties, Shopify Help Center: Collaborator accounts.
