Agency Fee structures vary widely in the Digital Marketing industry, sometimes even within client accounts. It is not uncommon for a client to compensate their digital agency using different fee structures for different types of media campaigns. For our clients, the common agency fee model for paid media work is a percentage of spend. On average, our agency margins range between 15%-60% of a client’s digital media spend on paid search, display, and social media advertising campaigns. Smaller clients may pay a higher percentage, while enterprise clients may pay a smaller percentage due to the larger dollar volume of their accounts. Our clients’ fees may be adjusted at any time in accordance with historical campaign performance.
Campaign optimization work from our Search Advertising Partners GOOGLE & BING and our own Certified Search Engine Marketing team typically result in improved response volume, relevance, and overall campaign performance each month; even with static monthly budgets. We reserve the right to lower our client’s fees at any time we deem necessary upon analysis of current and historical campaign performance data/conversion metrics by client/industry/market. Margins typically range from 5%-15% for website development, digital content creation, and search engine optimization marketing services; these margins are also adjusted over time in accordance with performance metrics.
Fee-based models are available for our clients with a minimum 5K/month or 60k/year budget and are becoming more attractive for our clients because they provide predictable fee expectations; particularly on long-term accounts that require ongoing maintenance including monitoring/updating Conversion Metrics for all digital content, SEO rankings, and paid media/social media content delivery and management. Clients are encouraged to test new digital campaign strategies and tactics with this fee-based model.