How Much Do Online Advertisng Agencies Charge?

Robert Stingman
Marketing Manager at Seazon

17 December 2006 18:44pm

How Much Do Online Advertisng Agencies Charge? How much do they charge hourly?, are there diffrent rates for diffrent types of activities like ppc. email, banner campaigns etc.?, please give some numbers if oy can.

thanks,

Robert
Jonathan Davey
Director at LiaiseOnline Limited

17 December 2006 19:08pm

I know a web designer who'll build you a 10 page site for £250.. and they are based in the UK!

I know another major agency that would charge you £15,000 for the same thing.

It's not the hourly rate that matters, it's the success of the campaign.

We've come up with an offer for 2007 that helps people sit up a listen, we're calling it Online Marketing Magic!

Take a look:

http://www.businessinberkshire.co.uk/businessinberkshire/extra479.html
Peter Abraham Staff
Executive Vice President EMEA & Asia at Econsultancy

18 December 2006 07:28am
Hi Robert
We've got a large amount of info regarding day rates etc. here:
http://www.e-consultancy.com/publications/rate-card-survey/
How much do UK digital agencies charge? Find out in this annual benchmarking report. Statistics included in this research survey:
- Average daily charge out rates for different roles
- Variance by location and company size
- Changes and trends in charging
- Size of market
- Use of freelancers
Peter
James Moffat Platinum
Director at Organic-Development.com

18 December 2006 09:21am

Hi Robert - It varies a huge amount. You can often pay from £50 to £5000 for the same service!

Sometimes you pay hourly, sometimes a retainer, sometimes a % of media bought. Normally a collection of all three.

Be sure to look for someone who offers results orientated reporting... like cost per action / lead tracking as part of their services - that way you can at least see the results you are getting for your money and know if you are getting a return.

James, www.organicdevelopment.co.uk
Robert Stingman
Marketing Manager at Seazon

18 December 2006 19:13pm

Ok , thanks, so who desides which type of fee its going to be ?
Robert Stingman
Marketing Manager at Seazon

18 December 2006 19:22pm

Very interesting, but im just wondering if its profitable to do it for around £1000 it sounds like you would put in a lot of hours to provide that service. So what would your hourly fee turn out to bee?
Robert Stingman
Marketing Manager at Seazon

18 December 2006 19:23pm

Thanks Peter
Peter Abraham Staff
Executive Vice President EMEA & Asia at Econsultancy

19 December 2006 09:46am

Ideally you should work to what suits you best, but It depends on the agency offering and fit to your requirements and their flexibility to offer one or more financial options. However, if it's marketing biased it will more than likely be a retainer basis if you are running campaigns on a regular basis.
Justine Wyness
Head of Digital Marketing at Future Publishing

19 December 2006 10:51am

I find it easiest to work on a %age of media spend, my agency, All Response Media, give me so much more value on my search campaigns that I almost get the service free! I handle budgets for lots of internal clients and its so much easier to explain, budget and manage this way, there's no set up fees or hidden costs - they're really transparent, which is how you would want any agency to work.
On 09:46:48 19 December 2006 PeterAbraham wrote:
Ideally you should work to what suits you best, but It depends on the agency offering and fit to your requirements and their flexibility to offer one or more financial options. However, if it's marketing biased it will more than likely be a retainer basis if you are running campaigns on a regular basis.
Vinod Nambiar
Director Global Delivery at Position2

20 December 2006 13:34pm

There are also companies that engage on the basis of performance. And while this model will not kill other models, this is definitely here to stay. But then, yes, these companies will de-risk their investments by carefully choosing clients, so they dont end up trying to sell something that just doesnt have a market or is a flop.
Its either pure Pay-per-sale, a setup + pay-per-sale or a retainer + Pay-per-sale. In our case (www.position2.com), we use internal process efficiencies and tools like ( search engine PPC, natural optimisation, ad-networks, emails etc) to run the campaigns.
Agencies find this attractive as it gives them an opportunity to break the 10-15% barrier.