TLDR;
- Most London agencies don't get SaaS. They're stuck chasing cheap clicks (CPL) instead of focusing on the only metric that matters: a profitable Customer Acquisition Cost (CAC) to Lifetime Value (LTV) ratio.
- Scrutinise their case studies. If they're showing off 'brand awareness' or 'reach' instead of trial sign-ups, Cost Per Acquisition, and hard revenue numbers for software companies, they're the wrong fit.
- The consultation call is your interview, not their sales pitch. Ask them how they'd calculate your target CAC and what their process is for generating Product Qualified Leads (PQLs), not just vanity MQLs.
- Forget the 'Request a Demo' button. The best SaaS agencies will push you towards frictionless offers like free trials or freemium models that let the product sell itself. This is the fastest way to scale.
- This guide includes an interactive LTV to CAC calculator to help you understand your own numbers before you even speak to an agency. Understanding this is non-negotiable for SaaS growth.
Finding a good SaaS ads agency in London feels like a nightmare. The city is crawling with them, from slick operations in Shoreditch to big names near Canary Wharf, all promising the world. But here’s the brutally honest truth: most of them are completely clueless when it comes to scaling a software business. They'll take your money, burn through it on vanity metrics, and leave you with a higher churn rate than when you started. They just don't get the unique rythm of SaaS.
The problem isn't a lack of agencies; it's a lack of genuine expertise. They treat a B2B SaaS product like they're selling trainers on Instagram or generating leads for a local plumber. It’s a completely different universe. You're not looking for a vendor; you're looking for a growth partner who understands the intricate maths of recurring revenue, churn, and customer lifetime value. This guide will show you how to cut through the noise and find a team that can actually move the needle, so you can stop wasting your runway and start building a predictable customer acquisition engine.
So, why will most London agencies fail your SaaS?
Let's be blunt. The typical paid ads agency in London, even the ones with flashy offices around Old Street's "Silicon Roundabout," is fundamentally misaligned with the SaaS business model. Their entire playbook is built on a foundation that doesn't apply to you. They are obsessed with front-end metrics like Cost Per Lead (CPL) or Click-Through Rate (CTR). They'll celebrate getting you a £50 "lead" and have no idea if that lead is a CTO with budget or a student doing research.
For an e-commerce brand, a high ROAS (Return On Ad Spend) in the first month is a clear win. For a local service business, a cheap phone call lead is a victory. For you, a SaaS founder, these metrics are dangerously misleading. Your sales cycle might be three months long. Your success isn't a one-off transaction; it's locking in a customer who will pay you every month for the next five years. The initial conversion is just the beginning of the journey.
Most agencies don't think like this. They're wired for immediate results because that's how they justify their retainer. They don't understand the difference between a Marketing Qualified Lead (MQL) – someone who downloaded a whitepaper – and a Product Qualified Lead (PQL) – someone who has actively used your product and experienced its value firsthand. They'll fill the top of your funnel with low-quality MQLs that your sales team will hate, your churn rate will spike, and you'll be left wondering why your revenue isn't growing despite the "great" CPLs the agency is reporting. They don't have the patience or the strategic depth to build a sustainable acquisition model based on your unique unit economics. Before you hire anyone, you need to find a partner who can prove they understand this critical distinction. Without this, you're just setting your money on fire.
How do you filter out the fakes? Start with their case studies.
Forget everything on their homepage. The promises, the client logos, the awards—it's all marketing fluff. The only thing that provides a shred of proof is their case studies. But you can't just glance at them; you need to dissect them with the precision of a surgeon. This is where you separate the agencies that talk a good game from the ones who have actually done the work.
First, are they even showing SaaS case studies? If their featured work is for a fashion brand, a restaurant chain, and a law firm, close the tab. It doesn't matter how great their results were; it's irrelevant to your world. You need to see evidence they have navigated the specific challenges of software marketing.
Once you find a SaaS case study, ignore the headline and look at the metrics. What are they celebrating?
-> Red Flag Metrics: "Increased brand awareness by 300%," "Generated 10 million impressions," "Reached 500,000 users." These are vanity metrics. They are the easiest, laziest numbers to generate and mean absolutely nothing for your bottom line. You can pay Meta to find you an audience of non-customers who will never buy anything. An agency that leads with these numbers is either hiding poor performance or doesn't understand what actually drives SaaS growth.
-> Green Flag Metrics: "Reduced Cost Per Trial from £150 to £45," "Generated 5,082 software trials," "Achieved a 3:1 LTV:CAC ratio within 6 months," "Lowered CPA from £100 to £7." These are the numbers that matter. They speak the language of SaaS. It shows the agency is focused on acquiring actual users and understands the importance of acquisition cost relative to lifetime value. I remember one campaign we ran for a B2B software client where we generated 4,622 registrations at $2.38 per registration, because we focused entirely on the conversion event, not on fluffy awareness metrics. That's the kind of result you should be looking for.
Dig deeper. How recent are the case studies? If their proudest SaaS achievement was in 2018, that's a problem. The paid advertising landscape changes dramatically every few months. What worked back then is likely obsolete now. You need a partner who is in the trenches *today*. And don't be afraid to question the numbers. If they claim a "1000% Return On Ad Spend" for a SaaS company, ask them how they calculated it. Was it based on the first month's payment or projected lifetime value? The details matter, and a competent agency will be happy to explain their methodology. An incompetent one will get defensive. The case studies are your first and most powerful filter. Use them ruthlessly.
1. Find Case Study
Is it for a SaaS or software company?
2. Analyse Metrics
What are they bragging about?
3. Check Recency
Was it from the last 12-18 months?
4. Assess Relevance
Is it a similar business model to yours (e.g., B2B vs B2C)?
Outcome
The consultation call: How to tell an expert from a salesperson
So an agency has passed the case study filter. Now comes the real test: the introductory call. You need to flip the script. This is not a sales presentation for you to sit through; it is an interview where you are the hiring manager for a critical role. Your goal is to break through their polished pitch and gauge their actual, practical expertise. Any decent salesperson can sound convincing; only a true expert can demonstrate deep understanding.
Don't let them control the conversation. Start by asking them pointed, strategic questions that reveal how they think. Here are a few you must ask:
1. "Walk me through how you would determine a target Customer Acquisition Cost (CAC) for our business." This is the killer question. A salesperson will give you a vague answer like, "Well, we'd aim for the lowest possible cost!" or "It depends on the platform." An expert will immediately start asking you questions in return: "What's your average revenue per account? What's your gross margin? What's your current monthly churn rate?" They'll do this because they know that your target CAC is derived directly from your Customer Lifetime Value (LTV). They understand the fundamental maths of SaaS. If they can't have this conversation, they are not qualified to manage your ad spend. It's that simple.
2. "What's your opinion on using 'Request a Demo' as the main call-to-action on a landing page?" This is a great way to test if they follow outdated B2B playbooks. The "Request a Demo" button is often a high-friction, low-value offer. It asks for a huge commitment (time) in exchange for an uncertain outcome (a sales pitch). A forward-thinking agency, one that truly understands SaaS, will talk about reducing friction. They'll suggest alternatives like a free trial (no credit card), a freemium plan, or a valuable, ungated asset like a tool or a calculator. They'll talk about creating Product Qualified Leads (PQLs) who have experienced the product's value, not just MQLs who filled out a form. Finding the right partner is not just about finding someone who can run ads, but about finding a consultant or agency in London that will help you grow.
3. "Tell me about a SaaS campaign you ran that failed initially, and what specific steps you took to turn it around." This question tests for honesty and problem-solving ability. Every single successful campaign involves failure and iteration. Anyone who claims all their campaigns are winners from day one is lying. You want to hear a story of a hypothesis that was proven wrong, how they analysed the data (looking at drop-off points in the funnel, not just ad metrics), and the structured testing plan they implemented to find a winning approach. It shows they have a process beyond just launching ads and hoping for the best.
The answers to these questions will tell you everything you need to know. You're not listening for buzzwords; you're listening for a thought process grounded in the economic reality of a SaaS business. If they sound more like a media buyer obsessed with CPMs than a strategic partner obsessed with your LTV:CAC ratio, they're the wrong choice.
Customer Lifetime Value (LTV)
£10,000Affordable CAC (at 3:1 ratio)
£3,333What does a real London SaaS ads strategy actually look like?
Once you've found an agency that talks the talk, you need to see if their strategic approach makes sense. A competent SaaS agency won't give you a generic, "we'll run ads everywhere" plan. They'll propose a methodical, phased approach that aligns with your specific product, target customer, and business stage. The strategy should be built around intent, not just platforms.
For high-intent, problem-aware customers: Google Ads is king.
This is usually the first place to start, especially in a competitive market like London. You're not guessing who your customer is; you're targeting people who are actively typing their pain into a search bar. The strategy here is about precision. An expert will talk about:
-> Bottom-of-funnel keywords: Instead of broad terms like "accounting software," they'll focus on long-tail keywords that signal purchase intent, like "accounting software for UK startups" or "Xero alternative for small business." These are more expensive clicks, but the conversion rate is exponentially higher. This is a core part of any B2B SaaS growth guide for Google Ads.
-> Competitor campaigns: Targeting users searching for your direct competitors. This is an aggressive strategy, but it allows you to capture users who are already sold on the *category* of software and are in the final stages of their decision-making process.
-> Performance Max for SaaS: Using PMax campaigns with strong audience signals (like lists of your existing customers) to find new users who behave just like your best ones.
A good agency will be able to give you a rough idea of what to expect. For B2B SaaS in the UK, we often see Cost Per Click ranging from £5 to £25 for high-intent keywords, but a good landing page can still deliver qualified trial signups for under £100, which is often very profitable given the LTV.
For precise targeting of decision-makers: LinkedIn is your weapon.
If your Ideal Customer Profile (ICP) is "Head of Engineering at FinTech companies with 50-200 employees in London," then LinkedIn is the only place you can reliably reach them. It's expensive, no doubt about it. You're paying a premium for access to its data. A good agency will be honest about the cost but will have a plan to make it work.
-> Narrow, layered targeting: They won't just target "Head of Engineering." They'll layer it with company size, industry, and even seniority to ensure minimal wastage. I remember one B2B SaaS campaign where we were able to achieve a $22 CPL targeting very specific decision-makers by getting the audience just right.
-> Value-first ad creative: They'll advise against a hard "Buy Now" message. On LinkedIn, the ad needs to feel like valuable content. This could be promoting a short video explaining how you solve a specific industry problem or an invitation to a webinar. The goal is to start a conversation, not force a sale.
-> Lead Gen Forms vs. Landing Pages: They should be able to debate the pros and cons. Lead Gen Forms often get a cheaper CPL but the lead quality can be lower. Sending traffic to a dedicated landing page costs more, but the leads are generally much more qualified as they've had to make more of an effort.
For scaling and finding new audiences: Meta (Facebook/Instagram) is surprisingly powerful for B2B.
Many founders dismiss Meta as a B2C-only platform. This is a huge mistake, and a sign of an inexperienced agency. When used correctly, it can be a scalable engine for B2B SaaS leads. We've generated thousands of trials for B2B software using Meta.
-> Lookalike Audiences: This is the secret sauce. A good agency will insist on uploading a list of your best customers (highest LTV, lowest churn) and creating a 1% Lookalike audience. This tells Meta's algorithm to go and find more people who share the exact same characteristics. It's the most powerful targeting tool available.
-> Interest and Behavioural Targeting: They'll get creative. Instead of broad interests like "business," they'll target people who have shown interest in competing software (e.g., Salesforce, HubSpot), follow industry publications, or are admins of Facebook business pages.
-> Retargeting Funnels: They'll build sophisticated retargeting campaigns to nurture visitors who didn't convert on their first visit, showing them different messaging like case studies, testimonials, or special offers to bring them back. Honestly, i've seen this work wonders for many clients.
A proper strategy isn't about being everywhere. It's about being on the right platforms with the right message for the right stage of the customer journey, with a constant focus on profitable unit economics. It's a methodical process of testing and scaling, not a lottery ticket.
The big red flags: Spotting the signs you're about to be ripped off
By now, you should have a good idea of what a competent agency looks and sounds like. Just as important, though, is knowing the clear warning signs that you should run for the hills. Many agencies have perfected the art of the sale but fall apart during delivery. Here are the non-negotiable red flags that should send you looking elsewhere.
1. They Guarantee Results. This is the biggest and most obvious red flag. No one can guarantee results in paid advertising. There are too many variables: market changes, competitor actions, platform algorithm updates, and the inherent unpredictability of human behaviour. An agency that promises a specific CPA, ROAS, or number of leads is either lying to get your signature or so inexperienced they don't know any better. A confident agency will talk about their process, their methodology, and the results they've achieved for similar clients. A desperate agency makes promises they can't keep.
2. They Insist on Long-Term Contracts from Day One. A reputable agency that's confident in its ability to deliver will not need to lock you into a 12-month contract from the start. They should be willing to prove their value. A typical structure is a 3-month initial pilot project or a rolling monthly contract with a 30-day notice period. This aligns their incentives with yours: if they don't perform, you can leave. Locking you into a long contract is a sign that they are more concerned with their own revenue security than your business's growth. It's a huge red flag signalling a lack of confidence in their own service.
3. They Aren't Transparent. You MUST have full ownership and admin access to your ad accounts. Period. Some agencies will try to run ads through their own accounts, which means you lose all the data and the pixel learning if you ever decide to leave. This is unacceptable. They should be setting everything up in *your* ad accounts, using *your* credit card for ad spend. You're paying for the media, you should own the data. They should also provide clear, regular reporting that goes beyond the platform dashboards, explaining the 'why' behind the numbers and their plan for the coming weeks. If it feels like they're operating in a black box, it's because they are.
4. Their "Strategy" is One-Size-Fits-All. If, during the sales process, they barely ask any questions about your ICP, your product's unique value proposition, your business model, or your unit economics, and then present you with a generic proposal, they are not a strategic partner. They are a cookie-cutter service. A real strategy is born from a deep understanding of your specific business. The proposal should feel like it was written for you and only you. It should reference your competitors and articulate a clear hypothesis for why their proposed approach will work for *your* product in *your* market. If their entire plan feels like it could apply to any SaaS business, it's not a strategy, it's a template, and this is where a solid vetting framework for a B2B ad agency in London becomes so important.
Trust your gut. The relationship with your paid ads agency is a close partnership. If you feel like you're being sold to, if their answers feel evasive, or if something just feels 'off', it probably is. There are plenty of good agencies out there; you don't need to settle for one that raises these red flags.
Your action plan for hiring the right agency
Alright, that was a lot of information. The process of finding the right partner is tough, but it's one of the most important decisions you'll make for your company's growth. To make it easier, here's a summary of the main advice I have for you, broken down into a clear framework.
| Vetting Stage | Green Flag (What to Look For) | Red Flag (What to Avoid) |
|---|---|---|
| Website & Case Studies | Specific SaaS case studies with metrics like CPA, Trials, PQLs, and LTV:CAC. Results should be recent (last 18 months). | Vague e-commerce or local business case studies. Focus on vanity metrics like "reach" or "impressions." No hard numbers. |
| Consultation Call | They ask deep questions about your unit economics (LTV, churn). They can articulate a strategy for generating PQLs over MQLs. They are honest about past failures. | They give vague answers about CAC. They push an outdated "Request a Demo" playbook. They claim every campaign is an instant success. |
| Strategy Proposal | A customised plan based on your ICP and business goals. A clear rationale for platform selection (e.g., Google for intent, LinkedIn for targeting). | A generic, one-size-fits-all template. Proposes being on every platform without a clear reason why. No mention of your specific product or market. |
| Contract & Terms | A pilot period (e.g., 3 months) or a rolling monthly contract. Full transparency and your ownership of all ad accounts and data. | Insistence on a long-term (12+ month) contract from day one. They run ads through their own accounts, withholding data. |
| Overall Vibe | They feel like a strategic partner. They challenge your assumptions and focus on business outcomes, not just ad metrics. | They feel like a slick salesperson. They use buzzwords and make guarantees they can't possibly keep. They seem desperate for the sale. |
Choosing an agency is not about finding the cheapest option or the one with the flashiest website. It’s about finding a team that becomes an extension of your own. They should be as obsessed with your numbers as you are, and have the specialised expertise to turn ad spend into predictable, scalable growth. There are great experts out there, and navigating the process of finding the right Google Ads expert in London is much easier when you know exactly what to look for and what to avoid.
This whole process can seem daunting, especially when you're also trying to build a product and run a business. The stakes are high, and a wrong decision can cost you not just money, but precious time on your growth journey. The right agency partner won't just run your ads; they will provide strategic counsel, help you refine your offer, and build a customer acquisition machine that fuels your growth for years to come.
If you're a SaaS founder in London feeling overwhelmed by this, or if you just want a second pair of expert eyes on your current advertising efforts, we offer a free, no-obligation 20-minute strategy session. We'll review your ad accounts, dissect your strategy, and give you honest, actionable advice you can implement immediately. There's no hard sell, just straightforward feedback from specialists who live and breathe SaaS advertising every single day.
Hope this helps!