How Much Does a Facebook Ad Agency Cost UK?

Facebook ads can be a powerful tool for growing your business, but figuring out how much to budget can feel like trying to solve a Rubik’s cube blindfolded.

You know you need to invest in advertising, but the costs seem to vary wildly from one Facebook ads agency to another. It’s enough to make your head spin.

Let’s cut through the confusion and get to the heart of the matter.

How much should you really be paying for Facebook ad services? What factors influence these costs? And most importantly, how can you make sure you’re getting value for your hard-earned money?

Buckle up, because we’re about to explore the world of Facebook ad pricing. By the end of this article, you’ll have a clear understanding of what to expect and how to make the best decision for your business.

Ready? Let’s jump in.

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Understanding Agency Pricing Models

Before we get into specific numbers, it’s crucial to understand how agencies typically structure their pricing for Facebook ad services. There’s no one-size-fits-all approach, but most agencies use one of three main models percentage of ad spend, flat fee, or hourly rate.

The percentage of ad spend model is quite common. Here, the agency charges a percentage of your total ad budget.

For example, if you’re spending £5,000 on ads and the agency charges 15%, you’d pay them £750 for their services.

This model can be attractive because it aligns the agency’s interests with yours they make more money when your ads perform well and you increase your budget.

Flat fee pricing is exactly what it sounds like. You pay a set amount each month for the agency’s services, regardless of how much you’re spending on ads.

This can be good for budgeting purposes, as you know exactly what you’ll be paying each month. However, it might not be as flexible if your ad needs change significantly.

Some agencies charge by the hour for their work on your Facebook ads. This can be beneficial if you have a very specific project or need a lot of customisation. However, it can also be unpredictable in terms of total cost.

Now that we’ve covered the basics, let’s dig into some actual numbers.

Percentage of Ad Spend Pricing

If an agency is charging based on a percentage of your ad spend, you can typically expect to pay between 10% and 20% of your total ad budget.

So, if you’re planning to spend £1,000 on Facebook ads, you might pay the agency £100 to £200 for their services.

This percentage often decreases as your ad spend increases. For instance, an agency might charge 20% for ad spends up to £5,000, 15% for £5,000 to £10,000, and 10% for anything over £10,000. Why? Because managing larger ad budgets doesn’t necessarily require proportionally more work.

It’s worth noting that some agencies have minimum fees. Even if your ad spend is small, you might need to pay a minimum of £500 or £1,000 per month for their services. This ensures that it’s worth their time to take on your account.

The percentage model can be great if you’re just starting out with Facebook ads. As your budget grows, so does the agency’s compensation, incentivising them to help you scale your campaigns effectively.

Flat Fee Pricing

Flat fee pricing can vary widely depending on the agency and the services included. On the lower end, you might find agencies charging around £500 to £1,000 per month for basic Facebook ad management.

This might include setting up your campaigns, creating a few ad sets, and doing some basic optimisation.

For more comprehensive services, including strategy development, extensive creative work, and detailed reporting, you could be looking at £2,000 to £5,000 per month or more. Some high-end agencies working with large brands might charge £10,000+ per month for their services.

What do you get for these higher prices? Often, it includes things like in-depth audience research, custom creative development, advanced targeting strategies, and more frequent campaign optimisation. You’re also likely to get more personalised attention and strategy from senior team members.

Remember, these fees are just for the agency’s services. Your ad spend would be on top of this. So if you’re paying a £2,000 flat fee and spending £5,000 on ads, your total monthly cost would be £7,000.

Hourly Rate Pricing

Hourly rates for Facebook ad management can range from about £50 to £200 per hour, depending on the agency’s expertise and location.

A small local agency might charge on the lower end of this range, while a top London agency with a track record of working with big brands could command £200+ per hour.

How many hours does it take to manage Facebook ads? That can vary greatly depending on the complexity of your campaigns and how frequently they need to be adjusted. As a rough estimate, you might expect an agency to spend 10 to 20 hours per month on a moderate-sized account.

So, if an agency charges £100 per hour and spends 15 hours on your account, you’d be looking at a monthly fee of £1,500. Again, this is just for their time your ad spend would be additional.

Hourly pricing can be good if you need a lot of customisation or have a specific, time-limited project. However, it can be less predictable than other pricing models, which might make budgeting trickier.

Factors That Influence Agency Pricing

Now that we’ve covered the basic pricing models, let’s look at some factors that can influence how much an agency charges for Facebook ad services.

The complexity of your campaigns is a big factor. If you’re running straightforward e-commerce ads to a broad audience, that’s relatively simple to manage.

But if you need multi-stage funnel campaigns with custom audiences and complex retargeting strategies, that’s going to require more time and expertise and likely cost more.

The level of reporting and analysis you need can also impact pricing. Basic performance reports might be included in a standard package, but if you need in-depth analysis of your customer journey or detailed ROI calculations for each product line, that extra work will usually come with an extra cost.

The amount of creative work required is another consideration. Some agencies include basic ad creation in their fees, while others charge extra for it. If you need high-quality video ads or extensive graphic design work, expect to pay more.

Your industry can also play a role in pricing. Some industries, like finance or healthcare, have strict regulatory requirements that can make ad management more complex and time-consuming. Agencies might charge more for working in these sectors.

The size and reputation of the agency will influence their rates too. A well-known agency with a track record of success can command higher fees than a newer, smaller outfit. But that doesn’t always mean they’ll deliver better results it’s important to look at their experience with businesses similar to yours.

What’s Included in Agency Fees?

When you’re comparing agency prices, it’s crucial to understand exactly what’s included in their fees. Here are some services that are often part of a Facebook ad management package.

Strategy development is typically a key component. This involves researching your target audience, analysing your competitors, and creating a plan for your Facebook ad campaigns. A good agency will take the time to understand your business goals and develop a strategy that aligns with them.

Ad creation is usually part of the package, though the extent can vary. Some agencies might create a few basic ads using your existing assets, while others offer full creative services including copywriting, graphic design, and even video production.

Campaign setup and management are core services. This includes creating your ad sets, setting up targeting, and launching your campaigns. Ongoing management involves monitoring performance, adjusting bids, and optimising your ads for better results.

Most agencies provide some level of reporting and analysis. At a minimum, you should expect regular reports on your ad performance. Better agencies will offer deeper insights, helping you understand not just what’s happening with your ads, but why, and how to improve.

A/B testing is often included, though the extent can vary. This involves creating multiple versions of your ads to see which performs best. It’s a crucial part of optimising your campaigns over time.

Some agencies also offer landing page optimisation as part of their services. Since the performance of your ads is closely tied to the quality of your landing pages, this can be a valuable addition.

Is It Worth Hiring an Agency for Facebook Ads?

With all these costs in mind, you might be wondering whether it’s worth hiring an agency at all. Why not just manage your Facebook ads in-house?

The main advantage of working with an agency is expertise. Good agencies have deep knowledge of Facebook’s ad platform and stay up-to-date with its frequent changes. They know best practices for ad creation, targeting, and optimisation, which can lead to better results for your campaigns.

Agencies also bring experience from working with multiple clients. They’ve likely encountered and solved many of the challenges you might face, and can apply those learnings to your campaigns.

Time is another factor. Managing Facebook ads effectively can be time-consuming. By outsourcing to an agency, you free up your team to focus on other aspects of your business.

Access to tools is another benefit of hiring a Facebook ads agency. Many agencies use sophisticated software for ad management, reporting, and analysis tools that might be too expensive for an individual business to justify.

However, hiring an agency isn’t always the right choice. If you have a very small budget, the agency fees might eat up too much of your total spend. In this case, it might be better to start by managing ads yourself and consider an agency when you’re ready to scale up.

How to Choose the Right Agency

If you’ve decided to work with an agency, how do you choose the right one? Here are a few tips.

• Look for experience in your industry. An agency that has worked with businesses similar to yours will have a better understanding of your challenges and opportunities.

• Check their track record. Ask for case studies or references from past clients. Good agencies should be able to show concrete results they’ve achieved.

• Consider their size and structure. A large agency might have more resources, but a smaller one might offer more personalised service. Think about what’s most important to you.

• Evaluate their communication style. You’ll be working closely with this agency, so it’s important that their communication approach aligns with your preferences.

• Ask about their reporting process. How often will you get reports? What metrics do they focus on? Make sure their reporting aligns with your needs.

• Discuss their approach to strategy and optimisation. A good agency should be able to clearly explain how they develop strategies and continuously improve campaigns.

• Don’t just focus on price. While budget is important, choosing an agency solely based on cost can be a false economy. Consider the value they offer and how that aligns with your goals.

Making the Most of Your Agency Relationship

Once you’ve chosen an agency, how can you ensure you get the best value for your money? Here are a few tips.

• Be clear about your goals from the start. The more the agency understands what you’re trying to achieve, the better they can tailor their strategies to your needs.

• Provide as much information as possible about your business, customers, and previous marketing efforts. This context can help the agency develop more effective strategies.

• Stay involved in the process. While you’re hiring experts to manage your ads, your input is still valuable. Regular check-ins can help keep campaigns aligned with your business objectives.

• Be patient. It often takes time to optimise Facebook ad campaigns for the best results. Give the agency time to test and refine their approach.

• Ask questions if you don’t understand something. A good agency should be happy to explain their strategies and decisions.

• Provide feedback regularly. If something’s not working for you, speak up. The agency can only improve if they know what’s not meeting your expectations.

The cost of hiring an agency for Facebook ads can vary widely, but understanding the different pricing models and what influences costs can help you make an informed decision.

Keep in mind that the cheapest option isn’t always the best value. Look for an agency that offers a good balance of expertise, service, and cost that aligns with your business goals.

Ultimately, the right agency can be a valuable partner in growing your business through Facebook ads. They bring expertise, save you time, and can often achieve better results than managing ads in-house.

By choosing carefully and fostering a good working relationship, you can turn your investment in agency services into a powerful driver of business growth.