How much does a Facebook ads agency cost?
By Dan BartleyUpdated 3 minute read
The short answer
An agency fee is separate from your ad spend, and it is usually a flat monthly fee, a percentage of spend, or a base fee plus a percentage. What you pay depends mostly on your spend and what is included. The biggest difference between two quotes is often whether new ad creative is in the fee or billed on top.
What is the difference between ad spend and the management fee?
Ad spend is what Meta charges to show your ads; the management fee is what the agency charges to run them. The spend should go from your own card to your own ad account, and the fee should be invoiced separately, so you can always see both.
Some agencies bill ad spend through their own invoices. If yours does, ask to see Meta's invoices for your account every month, so you know what was spent with Meta and what was kept as fee.
How do agencies price Meta ads management?
Agencies price in one of four common ways, and each rewards the agency for something different. Knowing which model a quote uses tells you what the agency is paid to care about.
| Model | How it works | Watch for |
|---|---|---|
| Flat monthly fee | A set fee, whatever you spend | What the fee still covers as spend and creative needs grow |
| Percentage of ad spend | A share of what you spend with Meta | A reason to raise budgets whether or not profit follows |
| Base fee plus a percentage | A floor, then a share of spend above a set level | Where the threshold sits and how fast the fee climbs |
| Performance fee | A share of revenue, or a fee for each sale | Whose numbers count a sale: Meta's or your store's |
What should the agency fee include?
At minimum: account structure, campaign setup, budget and bid management, testing, and a monthly report you can read. The line to check is creative, because the account needs new ads every month and someone has to make them.
- Campaign structure and setup, including a check that purchases are tracking
- Budget, bidding and audience management
- New ad creative each month, and how many ads that means
- A written testing plan
- A monthly report against the cost per purchase you can afford
- Your ad account, pixel and business portfolio kept in your name
How do I compare two agency quotes?
Turn each quote into one monthly figure that includes creative, setup and GST, then compare what each delivers for it. The lower fee is not always the lower total once creative and setup are added.
- What is the total monthly cost, including creative, setup and GST?
- How many new ads will you launch each month, and who makes them?
- What is the minimum term, and what does it cost to leave?
- Who owns the ad account, the pixel and the finished ads?
- What will you report each month, and against which target?
When does an agency pay for itself?
When the profit it adds is larger than its fee plus the creative it needs. At very small spend that bar is hard to clear, so many stores run one campaign themselves first and bring in help once spend and margin can carry a fee.
If you are unsure where your store sits, start with whether to learn Meta ads yourself or hire an agency.
Other questions people ask about this
Do Meta ads agencies charge GST?
An Australian agency registered for GST adds it to its fee, so ask whether a quote is GST-inclusive. Your ad spend is billed by Meta separately, and whether Meta adds GST depends on the ABN and GST details in your ad account.
Read the full answerIs a percentage of ad spend a fair way to pay?
It can be, as long as the agency is judged on profit rather than spend. Tie budget increases to your cost per purchase target, so the fee grows when the business does.
Why do some agencies set a minimum ad spend?
Below a certain budget there are too few sales each week to test properly, and the fee becomes a large share of the total. A minimum is the agency telling you where its work starts to pay for itself.
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