With over 3 billion monthly active users worldwide, Facebook offers an incredible opportunity to connect with your target audience and drive conversions.
But here’s the thing: running successful Facebook ad campaigns is no walk in the park.
Crafting compelling ad creatives, targeting the right audience, and optimizing your campaigns for maximum ROI requires expertise, time, and resources that you may not have in-house.
In fact, the average cost per click for Facebook ads across all industries in the UK is £0.78, which means if you’re not careful, you could be burning through your marketing budget without seeing the desired results.
Boost E-Commerce ROI: Download Our Free CPA & ROAS Calculator
That’s where Facebook ad agencies come in.
By outsourcing your Facebook advertising needs to a team of experts, you can focus on running your business while they handle the complex world of ad campaigns.
But with so many agencies out there offering their services, how do you know which one to choose? More importantly, how much does it really cost to hire someone to run your Facebook ads?
In this article, we’ll break down the different pricing models used by Facebook ad agencies and the factors that influence their charges, so you can have a clear understanding of what to expect when outsourcing your Facebook advertising needs.
How Much Does It Cost to Hire a Facebook Ads Agency?
The cost of hiring a Facebook ads agency in the UK can vary widely depending on several factors such as your monthly ad spend, the complexity of your campaigns, and the agency’s pricing model.
But on average, you can expect to pay anywhere from £1,000 to £10,000 per month for Facebook ad management services.
For businesses with smaller ad budgets ranging from £1,000 to £10,000 per month, agencies typically charge a flat monthly fee of £1,000 to £2,000.
As your ad spend increases, the pricing structure may shift to a percentage-based model. For example, if you’re spending between £10,001 and £50,000 per month on ads, an agency might charge 10% of your ad spend, which translates to £2,000 to £5,000 per month.
Please note that these are just rough estimates, and the actual cost will depend on the specific needs of your business and the agency you choose to work with.
Some agencies may also require a setup fee to cover the initial strategy development and campaign creation.
Understanding the Different Pricing Models Used by Facebook Ad Agencies
Facebook ad agencies use various pricing models to accommodate businesses of different sizes and budgets. Let’s take a closer look at the most common ones:
1. Monthly Retainer Fees
Many agencies work on a monthly retainer basis, charging a fixed fee for ongoing campaign management and optimization.
This fee can range from £1,000 to £10,000 per month, depending on the scope of work and the size of your ad budget.
The retainer usually covers basic tasks like ad testing, performance monitoring, and reporting. Some agencies may also include ad creatives and copywriting in their monthly package.
2. Performance-Based Pricing
Under this model, you only pay the agency when they deliver results, such as a certain return on ad spend (ROAS) or cost per acquisition (CPA).
The agency’s fee is typically a percentage of the revenue generated from your Facebook ads.
While this may seem like a low-risk option, it’s crucial to clarify how the agency defines and measures performance before signing on.
3. Fixed Fees
Some agencies offer fixed-fee packages for Facebook ad management, making their services more accessible to businesses with smaller budgets.
These packages often include a set number of ad creatives, targeting options, and monthly reports. However, the scope of work may be more limited compared to other pricing models.
4. Percentage of Ad Spend
This is one of the most popular pricing models among Facebook ad agencies. They charge a percentage of your total monthly ad spend, usually ranging from 10% to 20%.
For example, if you’re spending £10,000 per month on ads and the agency charges a 15% fee, you’ll pay them £1,500 per month on top of your ad budget.
This model ensures that the agency has the resources to allocate more time and effort to larger accounts.
Reasons for Fluctuations in Facebook Ad Agencies’ Charges
Now that you understand the different pricing models, you might be wondering why there’s such a wide range in Facebook ad agency fees. Here are some key factors that influence their charges:
1. Ad Budget
The size of your monthly ad budget is one of the main determinants of an agency’s fees. Higher ad spends generally require more resources, expertise, and time to manage effectively.
Agencies often use a tiered pricing structure based on ad spend brackets to ensure they can deliver the best possible results for each client.
2. Campaign Complexity
The complexity of your Facebook ad campaigns can also impact an agency’s charges.
If you’re targeting multiple audience segments, running ads across various placements, or integrating advanced tracking and retargeting strategies, you can expect to pay more for the agency’s services.
Complex campaigns require more research, setup time, and ongoing optimization to achieve the desired results.
3. Agency Experience and Expertise
The level of experience and expertise an agency brings to the table can significantly influence their pricing.
Agencies with a proven track record of delivering high-performing Facebook ad campaigns for businesses in your industry may charge a premium for their services.
However, investing in an experienced agency can often lead to better ROI in the long run.
4. Additional Services
Some Facebook ad agencies offer additional services beyond campaign management, such as landing page design, social media management, or email marketing integration.
These services may be included in their monthly retainer or charged separately. Be sure to clarify what’s included in the agency’s pricing package to avoid any surprises down the line.
Wrap-up
Hiring a Facebook ads agency such as Upbeat can be a game-changer for your small business, helping you reach new audiences, drive conversions, and grow your revenue.
But with so many pricing models and variables to consider, it’s essential to do your research and choose an agency that aligns with your budget and goals.
As a general rule of thumb, expect to invest at least £1,000 per month for professional Facebook ad management services in the UK. Keep in mind that higher ad spends often require a larger investment in agency fees to ensure optimal campaign performance.
When evaluating potential agencies, don’t just focus on the price tag. Consider their experience, track record, and the value they can bring to your business.
A skilled agency will work closely with you to understand your unique challenges and develop a customized Facebook advertising strategy that delivers measurable results.
By partnering with the right Facebook ads agency, you can tap into the full potential of this powerful advertising platform and take your small business to new heights.
So don’t be afraid to invest in expert guidance – the ROI will be well worth it in the long run.
