TLDR;
- Most UK paid ad agencies are not very good. Your number one job is to filter out the 99% who talk a good game but can't deliver quality leads.
- Forget fancy London offices and slick sales pitches. The only things that matter are relevant case studies with real, verifiable numbers and a deep understanding of your specific business challenges.
- Never, ever hire an agency that "guarantees" results. It's the biggest red flag in the industry and a sign they'll either lie or lock you into a useless contract. Real paid ads is about testing, not magic wands.
- This article includes an interactive calculator to help you figure out your customer LTV. Knowing this number is the first step to understanding how much you can actually afford to pay for a new customer.
- The most important part of the hiring process is the discovery call. Ask them to walk you through a campaign that failed. Their answer will tell you everything you need to know about their honesty and expertise.
I hear this all the time. You're a UK founder, you know you need to get paid ads working to grow, but you're drowning in a sea of agencies all promising the earth. They've got slick websites, offices in Shoreditch or Manchester's Northern Quarter, and a sales guy who could sell ice to an Eskimo. But when you ask for specifics on how they'll get you quality leads, it all gets a bit vague.
The truth is, the barrier to entry for starting a "paid ads agency" is basically zero. Anyone with a laptop and a bit of confidence can spin up a website and start charging retainers. That's why so many businesses get burned. They sign a 6-month contract and end up with a big hole in their bank account and a handful of rubbish leads to show for it.
So, how do you find the genuine experts? How do you sort the wheat from the chaff? It's not about finding the agency with the best sales pitch. It's about having a rigorous vetting process that forces them to prove their expertise. This is my no-nonsense guide to doing just that.
First things first: What should you actually be looking for?
Let's get a few myths out of the way. The location of the agency doesn't matter. Whether they're in London, Edinburgh, or working from a shed in Cornwall is irrelevant. What matters is their experience and results. Don't be impressed by a fancy office address; you're the one paying for it in their overheads.
The only thing that should be on your radar is concrete proof that they can do the job. And that comes down to two things: case studies and the quality of their advice during the sales process.
A good agency's website should be packed with detailed case studies. I'm not talking about a logo with "Increased traffic by 200%" underneath it. That's a vanity metric and tells you nothing. I'm talking about proper, in-depth breakdowns of a project. For instance, on one campaign for a B2B software client, we generated leads for just $22 each on LinkedIn, and for another client running prize draws, we generated £107k in revenue from Meta Ads. Those are real business outcomes.
When you're looking at their case studies, you need to be ruthless. Ask yourself:
- -> Is it relevant? Have they worked with businesses like mine? If you're a B2B SaaS founder, an agency that only shows off eCommerce fashion brands is probably not the right fit. The strategies are completely different. They need to have direct, hands-on experince in your world.
- -> Are the results meaningful? "10 million views" sounds great for a luxury brand launch, but if you're trying to get signups for your accounting software, it's a useless metric. Look for results that impact the bottom line: Cost per Lead (CPL), Cost per Acquisition (CPA), Return on Ad Spend (ROAS), and actual revenue figures in pounds.
- -> Can they explain the 'how'? A good case study should give you a glimpse into the strategy. What platforms did they use? What was the thinking behind the targeting or the creative? It doesn't need to give away all their secrets, but it should demonstrate that there was a proper thought process involved, not just luck.
If an agency can't show you at least a few case studies that are directly relevant to your business model and goals, that's a major red flag. It likely means they don't have the experience you need, and they'll be learning on your dime. And that's a very expensive way to learn.
Step 1: Research
Analyse their case studies for niche relevance and real results (£).
Step 2: The Call
Book a discovery call. Do they ask smart questions or just sell?
Step 3: The Audit
Do they offer a free audit or strategy session? This shows expertise.
Step 4: The Proposal
Is it a custom strategy based on your chat, or a generic template?
Step 5: Decision
Hire based on proven expertise, not empty promises.
The Discovery Call: Where You Separate the Experts from the Amateurs
So you've found an agency with some promising case studies. The next step is getting them on a call. This is where you can realy dig in and test their knowledge. A bad agency will spend the whole call talking about themselves and how great they are. A good one will spend most of the call asking you sharp, insightful questions about your business.
They should be trying to understand:
- Your business model inside and out.
- Who your ideal customer is, what their pains are.
- What the lifetime value (LTV) of a customer is.
- What your sales process looks like.
- What you've tried before and what the results were.
They are trying to diagnose the problem before they prescribe a solution. If they jump straight into "Oh yeah, we'll run some Facebook ads and get you loads of leads" without understanding the fundamentals of your business, hang up the phone. They're just trying to make a quick sale.
You also need to come prepared with your own tough questions. Don't be afraid to put them on the spot. Here are some of my favourites:
- "Walk me through a campaign that didn't work. What went wrong and what did you learn?" - This is my number one question. If they say they've never had a campaign fail, they're lying. Failure is part of the process in paid advertising. A true expert will be honest about it and can clearly articulate what they learned and how they adapted. Their answer reveals their honesty and their problem-solving skills.
- "Based on what you know about my business, what platforms would you start with and why?" - Their answer should be specific and justified. It shouldn't just be "Google and Facebook". It should be "We'd start with Google Search ads because you're selling an emergency service and need to capture people with immediate intent. We'd focus on keywords like 'emergency electrician near me' and use call extensions to drive immediate leads." Their reasoning is more important than the platform itself. You can find out more about how to choose the right ad platform for your UK business in our guide.
- "How will you measure success and what will reporting look like?" - You want to hear about business metrics (leads, sales, ROAS), not vanity metrics (impressions, clicks, CTR). Reporting should be clear, concise, and focused on the numbers that matter to your bottom line. Ask to see a sample report.
- "Who will actually be working on my account?" - Often, you'll speak to a senior person in the sales process, but then your account gets handed off to a junior account manager. You have a right to know who you'll be dealing with day-to-day and what their level of experience is.
Tbh, if an agency gets defensive or gives you vague, waffly answers to these questions, it's a huge red flag. An expert will welcome the scrutiny because it's a chance to show off their knowledge. They shouldn't just be trying to sell you a service; they should be actively consulting with you and giving you value, even before you've paid them a penny. It's why we offer a free initial consultation and strategy review; it's the best way for a potential client to get a real taste of our expertise. The process of finding the right person can be tough, but our complete guide on how to hire a paid ads consultant in the UK can make it much simpler.
Let's Talk Money: What's a Fair Price for Paid Ads Management in the UK?
Pricing can seem like a black box, but it generally breaks down into a few models. Understanding them is key to not getting ripped off. You need to budget for two separate costs: the agency's management fee and the actual ad spend that goes to Google, Meta, or LinkedIn.
For the management fee, you'll typically see one of three structures in the UK:
- -> Flat Monthly Retainer: This is the most common. You pay a fixed fee each month for the agency to manage your campaigns. It's simple and predictable. For a decent small agency or experienced freelancer, you should expect to pay anywhere from £1,000 to £3,000+ per month. Larger agencies with more overheads will be significantly more.
- -> Percentage of Ad Spend: This is common for larger accounts. The agency takes a cut of whatever you spend on ads, usually between 10-20%. It incentivises them to help you scale, but you need to make sure they're not just encouraging you to spend more without getting a return.
- -> Performance-Based: This sounds attractive but can be tricky. The agency might charge a lower retainer plus a fee for every lead or sale generated. The danger here is that it can incentivise them to go for quantity over quality. They might generate a hundred cheap, useless leads just to hit their numbers.
Be very wary of anyone offering to manage your ads for just a few hundred quid a month. You get what you pay for. At that price, they're either outsourcing the work to someone cheap and inexperienced, or they're stacking up dozens of clients per account manager, meaning your business will get almost no attention. Proper, strategic management takes time and expertise, and that has a cost. Deciding between hiring an agency or building an in-house team is a big decision, and understanding the real costs is vital, which is why we put together a founder's cost guide for the UK market.
The Math That Matters: Stop Chasing Cheap Leads and Start Chasing Value
Here's the biggest mindset shift you need to make. The goal isn't to find the agency that can get you the cheapest leads. The goal is to find the agency that can get you profitable customers. To do that, you need to understand your numbers, specifically your Customer Lifetime Value (LTV).
Most businesses have no idea what a customer is actually worth to them over their lifetime. But without this number, you're flying blind. You have no idea if paying £50, £100, or even £500 for a qualified lead is a brilliant investment or a terrible waste of money.
Let's run through a quick example. Imagine you run a SaaS business.
- Average Revenue Per Account (ARPA): £200/month
- Gross Margin %: 80% (Your profit on that revenue)
- Monthly Churn Rate: 5% (The percentage of customers you lose each month)
The formula is: LTV = (ARPA * Gross Margin %) / Monthly Churn Rate
So, LTV = (£200 * 0.80) / 0.05 = £160 / 0.05 = £3,200.
In this scenario, each customer you acquire is worth £3,200 in gross margin to your business. A healthy LTV to Customer Acquisition Cost (CAC) ratio is at least 3:1. This means you can afford to spend up to £1,066 (£3,200 / 3) to acquire a single new customer and still have a very healthy business.
Suddenly, paying £100 for a lead doesn't seem so expensive, does it? If your sales team converts 1 in 10 of those leads into a customer, your CAC is £1,000, which is perfectly sustainable. This is the kind of strategic thinking a good paid ads partner brings to the table. They aren't just traffic-buyers; they're growth partners who understand the commercial realities of your business. If an agency isn't asking you about LTV and churn, they're focused on the wrong things. Many founders struggle with this part, but it's essential if you want to stop wasting money on ads and start acquiring profitable customers.
Interactive LTV Calculator
My Final Advice: Your Vetting Checklist
Finding the right paid ads partner is one of the most important hiring decisions you'll make. Get it right, and it can transform your business. Get it wrong, and it's a costly, frustrating mistake. Don't rush the process. Be thorough, be skeptical, and trust your gut.
If an agency makes you feel pressured, confused, or like you're asking stupid questions, walk away. The right partner will feel like a partner. They'll educate you, challenge you, and be just as invested in your success as you are. The vetting process itself can feel overwhelming, which is why having a clear framework is so helpful. We've written a detailed guide on the founder's guide to vetting and hiring UK ad agencies that goes even deeper into this process.
To pull it all together, here's the exact process I'd recommend you follow.
| Vetting Stage | What to Do | What to Look For (Green Flags) | What to Avoid (Red Flags) |
|---|---|---|---|
| 1. Initial Research | Shortlist 3-5 agencies based on their website and case studies. | Detailed case studies in your niche with real £/ROAS results. Clear explanation of their process. | Vague results, vanity metrics (clicks/impressions), no relevant experience, stock photos everywhere. |
| 2. Discovery Call | Book a 30-minute call. Prepare your tough questions in advance. | They ask more questions than they answer. They challenge your assumptions. They offer initial ideas freely. | A hard sales pitch. Promises of "guaranteed results". Vague answers. They don't ask about your LTV or business model. |
| 3. Strategy/Audit | Ask them for a brief audit of your existing accounts or a high-level strategy document. | They provide a custom analysis with specific, actionable recommendations. It shows they've done their homework. | They refuse, or they send a generic, one-size-fits-all document that could apply to any business. |
| 4. Proposal Review | Carefully review their proposal and contract terms. | Clear scope of work, transparent pricing, realistic goals, flexible contract (e.g., 30-day notice period after an initial term). | Long, restrictive contracts (6-12 months). Unclear deliverables. Pricing that feels plucked from thin air. |
| 5. Reference Check | (Optional) If you're still unsure, ask to speak to 1-2 current clients. | They happily provide contacts for relevant clients who give glowing, specific feedback. | They get defensive or make excuses. Tbh, if you've done the other steps right, this shouldn't be necessary. It can signal a lack of trust. |
Ultimately, this entire process is about reducing your risk. By being diligent and asking the right questions, you can dramatically increase your chances of finding a partner who will become a vital part of your growth engine.
If you've been struggling to find reliable paid advertising services in the UK, it might be because you're looking for a vendor when what you really need is a strategic partner. An expert won't just run your ads; they'll help you understand your market, refine your offer, and build a scalable customer acquisition machine. It's a significant investment, but the right expertise is worth its weight in gold.
If you're tired of the guesswork and want to talk to a team that focuses on tangible business results, we offer a completely free, no-obligation strategy session. We'll take a look at your business, your goals, and what you've tried so far, and give you our honest, straightforward advice on what we think your next steps should be. Feel free to book a call if you'd like a second opinion.