How to Find the Best Ad Agency for Your Brand, Budget, and Goals

TLDR: Finding the best ad agency for your brand, goals, and budget means digging deep into what’s available to you. This article will guide you to what an ad agency is, what its types are, and what they can provide you. Furthermore, it will also delve into the design-as-a-service platform to help you see the difference and how you can use it.

Are you finding it hard to increase sales, reach your target audience, or introduce your product to consumers? If so, you may not be taking advantage of one of marketing’s most powerful tools: advertising. However, this is a task that you alone can do for your business. You need assistance in the form of the best ad agency. Here’s what you need to know about finding the right fit and working with one:

What Does an Ad Agency Actually Do?

Many people initially see advertising agencies as companies that create pretty ads. However, the reality is, an ad agency does more than create, plan, and execute its clients’ advertising campaigns. Beyond that, they are a strategic partner that helps you shape your brand perception—how consumers see your business. In addition, they define your brand identity, craft campaign strategies, create visual assets, and analyze their performance.

A typical advertising agency offers the following:

• Brand Strategy: Ad agencies help you define your brand positioning, messaging, and target audience.
• Creative Direction: An ad agency will develop your visual assets and your brand’s conceptual foundation.
• Campaign Planning: They will help you create timelines, choose channels, and set goals for each of your initiatives.
• Copywriting and Storytelling: They will craft compelling messages, making sure they’ll resonate with your target market.
• Visual Design: They provide ad design services, including ad creatives, social media graphics, and other branded content.
• Media Buying and Placement: They will place your ads strategically, finding you the best digital and traditional platforms.
• Analytics and Optimization: An ad agency will track your campaign performance and refine it for better ROI.

While these are the key services ad agencies offer, the emergence of a digital-first world has changed this. Today, many firms provide graphic design services, operating the same way as design-as-a-service platforms. As a result, some ad agencies follow subscription-based models by providing ongoing access to ad design services. 

In essence, an ad agency helps you build your brand that efficiently connects, converts, and scales.

Why is Choosing the Right Ad Agency Important?

Now that we understand how important working with an ad agency is for your business, let’s tackle why choosing the right fit is crucial. You just don’t search for an ad agency to work with, then select the one that comes up first on a list. After all, your brand’s visual identity is a strategic asset that influences how consumers see you. That’s why you need to work with an ad agency that will help your business grow, instead of the other way around.

In other words, this makes the selection of an ad agency crucial. You need one that will craft strong designs for your brand. Visual assets that convert, increase your click-throughs, and get your business the brand recall it needs. Ultimately, it means more than just hiring creatives, it’s about working with strategists who can craft visuals that align with your goals. 

How Do You Find the Right Ad Agency for Your Business?

A flashy portfolio may be the first thing you see from an ad agency prospect and may make you decide instantly. However, don’t be easily fooled. The right fit is about alignment. The best ad agency for your brand is the one that can match your goals and budget. Here are a few factors you need to consider:

• Their Expertise: Find an ad agency to work with that understands your industry and audience. Furthermore, their proven results in your niche speak volumes.
• How Diverse Their Portfolio is: A strong portfolio showcases an ad agency’s range. It should contain different tones, formats, and platforms. This will show you how flexible they are at crafting your brand’s visual assets.
• Their Collaboration and Communication Style: Find an ad agency that is responsive and easy to work with. Remember, you’re looking for a long-term design partner, not just a vendor.
• The Scalability They Offer: Check if your ad agency prospect can keep up with your demanding design needs as your business grows. Look for one that offers both graphic design services and design-as-a-service models to allow for scalability without changing providers.
• Pricing Transparency: Many businesses hesitate to work with an ad agency for fear of the high costs. This is why you need to check for transparency in pricing. Avoid vague proposals or hidden fees.

What are the Different Types of Ad Agencies?

Not to make your decision even harder, but ad agencies come in a variety of expertise and models. To find the perfect match, you need to know which will go well with what your brand needs, depending on its size, goals, and resources. With that in mind, below is a list of the most common:

Full-Service Agencies

These are the agencies that handle everything there is in advertising. Whether you need strategy or media buying, full-service agencies are your all-in-one solution. These are suitable for medium to large businesses with complex advertising and marketing requirements.

Digital Advertising Agencies

These are the agencies that focus on online platforms, such as Google Ads, social media, email, and SEO. 

Creative Boutiques

These are the small and design-led agencies that focus on storytelling, branding, and giving your business visual impact. These provide high-touch creative direction and can sometimes outsource media and analytics work. This is the agency type that’s ideal for brands looking to stand out visually or those seeking rebranding.

Limited Service Agencies

As the name suggests, limited service agencies specialize in only one area. Typically, they are media buying, copywriting, or ad design services. While they’re affordable, they can also be a bit of work as you’ll need collaboration with other agencies.

In-House Agencies

These are internal teams that you build yourself. On the positive side, they offer control and brand consistency, but on the downside, they can sometimes lack fresh eyes or scalability.

Social Media Advertising Agencies

These are agencies that consist of experts in all platforms on social media. In particular, they are excellent if you regularly need paid and organic social campaigns. Additionally, they will manage your content calendar, handle influencer partnerships, and implement other platform-specific ad strategies. Therefore, if your brand targets mobile-first users, lifestyle niches, or Gen Zs, this is the ad agency for you.

Specialized Agencies

These are agencies that work specifically for certain industries, like healthcare, fintech, ecommerce, fashion, and many others.

Public Relations and Reputation Agencies

These are companies that focus on your brand’s image, media coverage, crisis management, and influencer outreach. Moreover, these are suitable for businesses that manage public perception or high-profile campaigns.

Media Buying Agencies

These are the agencies you go to if you want to run a large-scale campaign on multiple channels. in addition, they have experts in negotiating and placing ads on TV, radio, print, and digital spaces.

Brand and Identity Agencies

These are agencies that specialize in building brand foundations. They handle logo creation, tone, messaging, and other visual systems. They are ideal for startups, brands entering new markets, or those rebranding.

Subscription-Based Creative Services (Design-as-a-Service)

These offer graphic design services through monthly pricing plans. If you need a steady supply of visual assets but have a limited budget, these are for you.

How Much Does Working with an Ad Agency Cost?

Pricing is a very tricky subject, yet it’s one that many entrepreneurs and marketers are always on the lookout for. Working with an ad agency does incur expenses, but pricing can vary depending on a number of factors. These include scope, service type, and your business’s size. To help you understand the main pricing models, here is a general guide:

• Retainer: This is the fixed monthly fee an agency charges for its ongoing services. This is suitable for long-term partnerships for those with consistent creative requirements.
• Typical range: $2,000-$20,000 per month
• Per Project: This is the one-time fee agencies charge for specific deliverables, such as campaigns, rebrand, or a website design.
• Typical range: $3,000 to $50,000, depending on the project complexity
• Subscription (Design-as-a-Service): Fixed monthly rates for unlimited graphic design services. Penji, for one, has affordable pricing plans.
• Typical range: $400-$1,500 per month

Below is a sample budget comparison to help you decide:

Model	Best For	Typical Range of Costs	Pros	Cons
Retainer	SMEs, enterprise brands	$2,000–$20,000/month	Consistent and strategic support	Higher commitment
Per Project	Campaigns, rebrands	$3,000–$50,000/project	Clear and flexible scope	No ongoing support
Design-as-a-Service	Startups, lean teams	$400–$1,500/month	Fast, scalable, predictable	Limited strategic input

Do note that working with an ad agency does not stop at the costs listed above. In fact, that’s only half of the equation, as you also need to consider several expenses. For instance, the biggest concern is your ad placements. You need to place your ads strategically for them to reach your target audience. 

Moreover, like the costs associated with working with an ad agency, media buying costs depend on platform, audience size, and campaign duration. To illustrate this further, take a look:

• Social Media Ads (Facebook, X, Instagram, TikTok):
  • Typical range: $500-$5,000 per month for startups and small businesses
  • Cost drivers: audience targeting, bidding strategy, ad format
• Google Ads (Search and Display):
  • Typical range: $1,000-$10,000 per month
  • Cost drivers: keyword competition, geographic targeting, conversion goals
• Traditional Media (TV, radio, print, outdoor):
  • Typical range: $5,000-$100,000 or more, depending on region and reach
  • Cost drivers: airtime, circulation, placement timing

This can be overwhelming for some business owners, the reason many media buying agencies thrive. After all, they are the ones who handle these, including negotiating better rates and optimizing placements for higher ROI.

How to Start Working with an Ad Agency?

By now, you should have narrowed down your options. This leads us to the next step. So, how do you actually start working with an ad agency? To make it easier, here’s what you can do:

• Research and Compare: Explore your options, review portfolios, pricing plans, and testimonials. Is a full-service ad agency right up your alley? Or are you looking for something more cost-effective, like a design-as-a-service?
• Make a Shortlist: Select 3 to 5 ad agencies that you see having a smooth working relationship with. Make sure to choose scalability and flexible pricing options first.
• Ask for Proposals: You may want to request proposals. Base them on your campaign goals, comparing timelines, scope, creative approach, and pricing transparency.
• Test Their Communication: Ask for discovery calls and check for responsiveness. Look at how well they understand your brand and communicate with you.
• Start a Pilot Project: If possible, start with a small project that will allow you to assess their design quality, turnaround speed, and their communication and collaboration styles.

Here’s a short checklist to help you get ready to work with the best ad agency:

• Clarify your goals, audience, and budget
• Check portfolios and reviews
• Request and compare proposals
• Test communication and responsiveness
• Pilot project
• Review revisions, timelines, and deliverables

These can help you build a creative partnership that will grow with your business.

Can Design-as-a-Service Replace Traditional Ad Agencies?

The emergence of design-as-a-service companies has changed how businesses get their ad creatives. These models have their focus on providing high-quality visual content, ad design services included. Moreover, they are affordable, fast, and scalable. This chart illustrates it better:

Feature	Traditional Ad Agency	Design-as-a-Service (Penji)
Scope	Full-service: strategy, media, creative	Focused: graphic design and ad creatives
Cost Structure	Retainer or per-project	Fixed monthly subscription
Turnaround Time	Weeks, months	24–48 hours (depending on plan)
Scalability	Requires renegotiation or team expansion	Scales easily with pricing plans
Flexibility	Fixed contracts, limited revisions	Unlimited requests, flexible output
Best For	Large campaigns, brand launches	Daily design needs, lean teams

That said, traditional ad agencies are still effective for many businesses, especially those needing strategic oversight. However, for small businesses and startups, design-as-a-service platforms are ideal. They are cost-effective and can provide them with a wide range of visual assets.

In fact, many brands use both. Penji has clients who use them to complement their agency work. They let the ad agencies handle strategy and media, while they delegate the design tasks to Penji. Thus, getting the best of both worlds.

What are the Common Mistakes to Avoid When Hiring an Ad Agency?

Now, for the nitty-gritty. Whether it’s an advertisement agency you’re working with or a design-as-a-service, there are sure to be hiccups along the way. That’s why it’s best to be aware of setting your expectations right. To help you prepare, here are the most common mistakes you must avoid when hiring an advertising agency:

• Choosing based on hype: Popularity may not be the best criterion when selecting an ad agency to work with. Instead, never skip the vetting process and always check their portfolio, pricing, or client fit. Doing so avoids mismatched expectations.
• Not checking contract details: In many cases, excitement can make us overlook small but critical details. However, failing to clarify revision limits, cancellation terms, asset ownership, and other issues can result in disputes or hidden charges.
• No definitive goals: Always be specific with your briefs. Avoid phrases like “we want to extend our reach,” which can be vague.
• Choosing based on price: Remember, cheap doesn’t always mean poor quality. However, it also does not mean they are the best. Instead of going for the most affordable, look for value.
• Expecting strategy from a design-only partner: Finally, as its name suggests, design-as-a-service does just that: provide design. So, if you choose to work with a DaaS and expect them to come up with strategies for you, you’ll be disappointed. Always know what you’re hiring for.

How Do You Measure the Success of Your Ad Agency Partnership?

Investing in the services of an advertisement agency is a big commitment. This is why expecting to get back your ROI is crucial for many. But how will you know if your investment is reaping benefits for you?

Here are a few metrics you must track:

• Return on Ad Spend (ROAS): First and foremost, this metric that calculates how much your ads are generating when compared to what you are spending. 
• Conversion Rate: Next is the metric that tracks how many users are engaging: buying, signing up, or clicking, after seeing your ads.
• Engagement: These include shares, likes, comments, and others on your social media platforms. They will tell you if your campaigns are helpful and if consumers are becoming aware of your brand.
• Brand Lift: Finally, this tells you of any changes in consumers’ perception of your brand, the recall, or the sentiment. You’ll know about this through surveys and third-party tools.

Final Thoughts

Finding the best ad agency for your business isn’t an easy task. It takes patience, planning, and careful consideration. After all, it’s a grand move that can help you grow your brand, connect with your target audience, and convert prospects into customers. If you’re a startup needing consistent visual assets, design-as-a-service platforms may be your best bet.

On the other hand, if you’re looking for full-service campaign support, there are plenty of options available to you. Ultimately, whatever you decide on, this guide can help you understand and find the right fit.

Click here to watch Penji’s demo video to learn how we can help you get affordable and fast ad design services. Alternatively, you can start by sending your first request through this link.

FAQs

• Which is better, working with a local agency or a remote design service?

Ad agencies in your locality can offer cultural nuance with face-to-face collaboration. However, in this digital-first world, you can do almost anything remotely, with efficiency. In fact, design-as-a-service platforms like Penji offer speed, quality, and affordability even when working remotely.

• Can I work with an ad agency for a single campaign?

Yes. Many ad agencies have per-project pricing, which is suitable for product launches, seasonal campaigns, and rebranding.

• How will I know if a design-as-a-service is what I need?

If, aside from ad creatives, your brand needs a regular supply of social media graphics, banners, pitch decks, and other marketing paraphernalia, you need a design-as-a-service company.