TLDR;
- Most UK ad agencies fail because they focus on vanity metrics instead of your bottom line. Stop paying for clicks and start demanding a return on investment (ROI).
- The single most important document an agency has is their case studies. If they can't show you real, recent results (in £) for a business like yours, walk away.
- On the intro call, if they promise you the world or can't talk numbers like Lifetime Value (LTV) and Customer Acquisition Cost (CAC), they're salespeople, not advertising experts.
- Don't hire an agency to fix a broken business. You need a solid offer and a website that converts *before* you pour money into ads. An agency just accelerates what's already working (or not working).
- This article includes an interactive calculator to figure out your LTV and what you can actually afford to pay for a customer, plus a flowchart for vetting agency case studies properly.
I get it. You're a business owner in the UK, you're probably getting bombarded with emails from agencies promising to "skyrocket your sales" or "10x your leads". It's a minefield of buzzwords and flashy presentations. Most of them will happily take your money, set up a basic campaign, show you a dashboard full of green 'impression' numbers, and then wonder why you're not happy in three months when your bank balance hasn't moved.
The truth is, finding a paid media agency that actually delivers a return is bloody hard. The majority of them are set up to manage retainers, not to grow businesses. They talk a good game but lack the deep, commercial understanding of what actually makes a campaign profitable. They focus on the wrong things, and it costs you a fortune. Let's cut through the nonsense and talk about how you can find a partner that will actually make you money, not just spend it.
So, why do most UK ad agencies get it so wrong?
The problem usually starts with the objective. I've audited countless accounts where a business owner has been sold on a "brand awareness" campaign. The agency tells them they need to "build their brand" and "get their name out there". So they set up a campaign on Facebook or Instagram with the objective set to 'Reach'.
Here's the uncomfortable truth about that. When you tell an algorithm like Meta's to get you the most 'reach' for the lowest cost, you are giving it a very specific instruction: "Find me the largest number of people, for the cheapest possible price, who are least likely to do anything." The algorithm does exactly what you asked. It finds users whose attention is cheap because they don't click, they don't engage, and they certainly don't buy. You are literally paying the world's most powerful advertising machine to find you the worst possible audience for your product. It's a complete waste of money, but it produces a lovely report full of massive numbers to justify the agency's fee.
A good agency knows that for most businesses, awareness is a byproduct of sales, not the other way around. You get 'aware' when people are buying your product and telling their friends about it. That's why any competant agency will be obsessed with conversion-focused campaigns from day one. They should be talking to you about leads, sales, trials, and bookings—not likes and impressions. If they're not, it's a massive red flag that they don't understand how to generate a return.
How do I tell the good from the bad before I sign anything?
Forget their fancy office in Shoreditch or their slick sales deck. The only thing that matters is proof. And that proof comes in the form of detailed, relevant case studies. This is the first and most important piece of due dilegence you need to do.
But don't just glance at the headline. You need to dissect them. I've seen agencies use a single outlier result from five years ago to sell their services today. The ad landscape in the UK changes so fast that anything older than 18 months is practically ancient history.
When you're looking at a case study, you need to be ruthless. Ask yourself these questions:
- -> Is it for a business like mine? If you're a B2B SaaS company in London, a case study for a local eCommerce shop in Cornwall is pretty much irrelevant. You need to see that they understand your specific market and customer type. I remember we've worked on campaigns for everything from a medical job matching SaaS to luxury brands, and the strategy for each was completely different.
- -> Are the results in pounds (£)? This shows they're working with UK clients and understand the market. It's a small detail, but it matters.
- -> What metrics are they talking about? "10 million views" sounds great, but it means nothing for your bottom line. Look for commercial metrics: Return On Ad Spend (ROAS), Cost Per Acquisition (CPA), Revenue Generated. For one of our eCommerce clients selling cleaning products, for instance, we were focused on hitting a 633% return, not just getting clicks. That's a real business metric.
- -> Is it recent? The strategies that worked on Google Ads in 2021 are not the same as what works today. You need to know they're on top of the latest platform changes.
To make it simpler, here's a quick flowchart to help you evaluate any case study an agency sends you. If you end up in a red box, you should probably keep looking.
Okay, their case studies look good. What happens on the discovery call?
The initial call is where you find out if they're actually experts or just good at marketing themselves. This is your chance to interview them. A good agency will be interviewing you right back, trying to figure out if your business is a good fit for them. Here’s what to watch out for.
Red Flags on the Call:
- -> Making Guarantees: Tbh in paid advertising, you can't really promise anything. If anyone on a call guarantees you a specific result, like a "guaranteed 5x ROAS," end the conversation. It's impossible to predict performance with 100% accuracy. They're either lying or naive.
- -> Vague Strategy Talk: If you ask how they'd approach your account and they reply with fluff like "we use our proprietary optimisation process" or "we'll leverage data-driven synergies," it's a massive warning sign. They should be able to give you specific, tangible ideas based on the information you've given them. For example, "For your type of B2B software, we'd likely start with LinkedIn Ads, targeting specific job titles in these industries, and test a lead gen form against a landing page with a free trial offer." That's a real answer.
- -> They Don't Ask Tough Questions: An expert needs data. If they don't ask you about your average customer value, your profit margins, or your sales cycle, how can they possibly build a profitable campaign? They should be digging into the commercial realities of your business.
- -> They Try to Rush You: High-pressure sales tactics like "this offer is only good for today" are a classic sign of a churn-and-burn agency that prioritises sales over client relationships.
Green Flags on the Call:
- -> They Ask About Your Numbers: When an agency lead asks "What's your average Customer Lifetime Value (LTV)?" or "What's your target Customer Acquisition Cost (CAC)?", it's a brilliant sign. It shows they're thinking about your profitability, not just their ad spend commission.
- -> They Critique Your Offer/Website: A true partner isn't afraid to tell you the truth. If your landing page is confusing or your offer isn't compelling, they should point it out. We often tell prospective clients their website needs work before we'd even consider running ads to it, because we know bad ads and a bad website is a recipe for wasted money.
- -> They Offer Free, Actionable Advice: The best way to demonstrate expertise is to... well, demonstrate it. We offer a free initial consultation where we'll actually go into a potential client's ad account and give them specific feedback. An agency confident in its ability should be willing to provide some upfront value to earn your trust. Properly vetting an agency is about looking for these signals of genuine expertise.
- -> They Manage Expectations: They'll be honest about the challenges. They might say, "Your niche is very competitive in the UK, so we should expect a higher CPL initially while we test, and it could take 60-90 days to become profitable." That's the kind of realistic, straightforward talk you want to hear.
Before we go further, is my business even ready for an agency?
This is a question not enough founders ask. Hiring an agency is like pouring petrol on a fire. If you have a small, well-controlled fire (a product that sells and a clear customer profile), an agency can turn it into a bonfire. But if you have a pile of damp wood (an unproven offer, no customers), you'll just get a lot of smoke and an empty jerry can. An agency is an accelerator, not a magic wand.
Before you even think about hiring help, you need two things nailed down:
1. A Proven Offer: You must have something that people already want to buy. This is called product-market fit. If you're struggling to make organic sales, paid ads won't solve that problem. It'll just be a very expensive way to prove that nobody wants what you're selling. The number one reason I see campaigns fail is a weak offer. It's not the ads, it's the product.
2. You Know Your Numbers: You absolutely must know your Customer Lifetime Value (LTV). Without this number, you are flying blind. You can't possibly know if your ad campaigns are profitable unless you know what a customer is worth to you over the long term. If you don't know your LTV, any decent agency will make you calculate it before they start. It's that important.
The maths is actually quite simple. The real question isn't "How low can my CPL go?" but "How high a CPL can I afford to acquire a truly great customer?"
Suddenly, a £300 lead from a highly targeted LinkedIn Ad doesn't seem so expensive, does it? It looks like a potential bargain. This is the maths that unlocks aggressive, intelligent growth. Without it, you're just guessing. If you're serious about scaling, you can't afford to guess.
What should I expect to pay for a good agency in the UK?
This is always a tricky one. The price can vary wildly, and as with most things, you get what you pay for. If an agency is charging you £500 a month, you have to ask yourself what you're actually getting for that. After they've paid their overheads, how much actual expert time is being spent on your account? Probably not much.
For a proper, results-focused agency in the UK that is managing a decent ad spend (£5k-£50k+/month), you should expect to pay a monthly retainer that starts in the low thousands and goes up from there depending on the scope and complexity. Some agencies charge a percentage of ad spend (usually 10-20%), while others work on a hybrid model or even performance-based fees (though these are rarer and usually come with a higher base fee).
The key isn't to find the cheapest option. It's to find the option that provides the best value. An agency that costs £3,000 a month but generates you £30,000 in profitable revenue is a brilliant investment. An agency that costs £500 a month but gets you zero results is a complete waste of money. It's all about the return. If you want to understand more about the specifics, we've written a detailed guide on what you should expect to pay for paid ads management in the UK.
When you're comparing proposals, don't just look at the price. Look at the strategy, the team who'll be working on your account, and their track record. Are you getting a junior account manager, or a seasoned strategist? The difference in results will be enormous.
The Final Check: What should be in their proposal?
A good proposal isn't just a price list. It's a strategic document. It should show that they've listened to you, understood your business, and have a clear plan of action. It should include:
- -> A Recap of Your Goals: It should start by confirming they understand what you want to achieve (e.g., "generate 50 qualified leads per month with a target CPL of under £150").
- -> A Clear Strategy: This is the core of it. Which platforms will they use and why? What audiences will they target first? What kind of ad creative and messaging do they propose? It should feel tailored to you, not a copy-paste job.
- -> A Phased Approach: A good agency will usually propose a 90-day plan. Month 1 is often about testing, data collection, and finding initial winning combinations. Month 2 is about optimising and scaling what works. Month 3 is about expanding and building on that success. They won't promise you the moon overnight.
- -> Clear Deliverables and Reporting: What exactly will they do each month? How often will they report to you, and what will those reports cover? (Hint: it should be focused on business metrics, not vanity metrics).
- -> Transparent Pricing: The management fee should be clear, and they should recommend a starting ad spend budget.
Tbh if a proposal feels generic, it's probably because their approach is generic. Look for the agency that demonstrates they've put real thought into how they're going to help your specific business grow.
I've put together a final checklist in a table below to summarise the main advice. Use it as your guide when you're going through this process.
| Vetting Stage | What to Look For (Green Flags) | What to Avoid (Red Flags) |
|---|---|---|
| 1. Initial Research | Recent, relevant case studies with real business metrics (£ ROAS, CPA, Revenue). Lots of positive, detailed reviews from similar businesses. | No case studies, or only old/irrelevant ones. A focus on vanity metrics like "reach" or "clicks". Vague testimonials. |
| 2. Discovery Call | They ask deep questions about your LTV, margins, and sales process. They offer specific, actionable ideas for your account. They are honest about challenges. | They guarantee results. They use vague buzzwords instead of a clear strategy. They don't ask about your business fundamentals. High-pressure sales tactics. |
| 3. The Proposal | A tailored strategy document with a clear 90-day plan. It recommends specific platforms, audiences, and messaging. Reporting is focused on ROI. | A generic, one-page price list. A "secret sauce" approach with no specific details. Unrealistic timelines and promises. |
| 4. Your Own Readiness | You have a proven offer that already sells. You know your LTV and have a realistic ad budget. Your website is professional and built to convert visitors. | You have an unproven product with no sales history. You don't know your numbers. Your website looks untrustworthy or is difficult to use. |
So, what's the next step?
Finding the right paid ads partner in the UK is a critical decision. It can be the difference between stagnating and achieving rapid, profitable growth. It requires you to do your homework, ask tough questions, and look past the sales pitch to find genuine expertise. Don't be afraid to take your time and speak to a few different agencies. The right fit is out there, but you won't find them by just picking the cheapest quote.
This whole process can feel overwhelming, especially when you're trying to run a business at the same time. The complexity of platforms like Google, Meta, and LinkedIn is constantly increasing, and what worked last month might not work today. This is why working with a specialist can be so valuable - we're in these platforms every single day, managing hundreds of thousands in ad spend across different industries. We see what's working right now and can apply those learnings to your account, helping you avoid costly mistakes and get to profitability much faster.
If you're a UK business owner and you're tired of trying to figure this all out on your own, or you feel your current agency isn't delivering, we offer a completely free, no-obligation 20-minute strategy session. We'll have an honest look at your business, your goals, and your current ad campaigns (if you have them) and give you a straightforward assessment of what we think the opportunity is. No hard sell, just clear, expert advice to help you move forward.