UK Startups: Should You Hire A Paid Ad Agency?

So, you're wondering whether to hire a paid ad agency as a startup in the UK? It's a big question, and the answer isn't always straightforward. Loads of startups think they need an agency from day one, but that isn't always the case and it depends on your unique circumstances and ambitions. You might think that it's too expensive, but I've seen a lot of startups in London waste money trying to DIY their marketing without having any experience, only to end up with far less to show for it and far more wasted budget than they would have spent on an agency.

Do you have the time and expertise to handle paid ads in-house?

First, take a long hard look at your team. Do you have someone who genuinely knows their stuff when it comes to paid advertising? I'm not talking about someone who's run a few boosted posts on Facebook. I'm talking about someone who understands the intricacies of Google Ads, Meta Ads (Facebook/Instagram), LinkedIn Ads and all the other platforms. Someone who can set up campaigns, track conversions, analyse data, and optimise for results.

If you don't have that person, or if the person you have is already stretched thin, then hiring an agency might be a good idea. Remember, time is money. How much is your time worth per hour, and how many hours would you need to spend on ads each week?

If you don't have the expertise, the other option is to learn it. Take some online courses, read some books, attend some webinars. There are tons of resources available. But be prepared to put in the time and effort. And don't expect to become an expert overnight. I've known plenty of people start that journey only to get frustrated by how long it takes to get proficient.

What's your budget? Can you afford an agency in London?

This is a big one. Paid advertising costs money. And so do agencies. You need to be realistic about how much you can afford to spend. But also, how much are you willing to invest to see real and quick growth?

Think about it this way: You'll need a budget for the ad spend itself. This is the money that goes directly to the ad platforms (Google, Meta, etc.). How much will depend on what platforms you are advertising on and what you want to get out of the ads. You also need to factor in the agency's fees. This is what you pay the agency for their time, expertise, and services. Fees can be structured in various ways, such as a percentage of ad spend, a flat monthly retainer, or a performance-based fee.

It's really worth noting that a lot of London agencies will try to bamboozle you with a fancy sales presentation. Try not to be fooled - many of the agencies selling services are not particularly good at them, and it's usually best to go with a small agency or a freelancer who can really give you some individual time.

A common mistake startups make is to think they can get away with a tiny budget. This is usually a false economy. If you're only spending a few hundred pounds a month, you're unlikely to see any meaningful results. You need to be prepared to invest a decent amount of money to get the ball rolling. Of course, you don't want to overspend either. Start with a smaller budget and then gradually increase it as you see results. We've got a calculator to help with this!

What are your growth goals? Are they realistic?

What do you want to achieve with paid advertising? Are you looking to generate leads? Drive sales? Increase brand awareness? And how quickly do you want to achieve these goals? Be honest with yourself here. It's no good setting unrealistic expectations. If you're expecting to become a unicorn startup in six months, you're probably going to be disappointed.

The more ambitious your growth goals, the more likely you are to need an agency. A good agency will have the experience and expertise to help you scale your campaigns quickly and efficiently. They'll also be able to help you avoid costly mistakes.

For example, I remember working with a SaaS client where we managed to bring their cost per lead down significantly. We took them from £100 to £7 cost per acquisition (CPA) for their medical job-matching platform using a combination of Meta Ads and Google Ads.

Should you start with one platform or multiple?

When you're just starting out, it's best to focus on one platform. This will allow you to learn the ropes and avoid spreading yourself too thin. Once you've got a handle on one platform, you can then expand to others.

The best platform to start with will depend on your target audience and what they're searching for. If you're selling to businesses, LinkedIn Ads might be a good choice. I recall one software client where we achieved a cost per lead of just $22 using Linkedin ads, as their target audience consisted of B2B decision-makers.

If you're selling to consumers, Facebook or Instagram Ads might be a better fit. For instance, I remember a campaign we ran for a home cleaning company where we achieved a cost per lead of just £5!

If people are actively searching for your product or service, Google Ads should be your first port of call. We're currently running a campaign for an HVAC company in a competitive area, and they are seeing costs of around $60 per lead.

What should you look for in a paid ad agency?

If you do decide to hire an agency, it's important to choose one that's right for you. Not all agencies are created equal. Look for an agency that:

• Has experience in your industry.
• Has a proven track record of success.
• Is transparent about their fees and processes.
• Is a good fit for your company culture.
• Understands your business and what you're trying to achieve.

It's also a good idea to check out their case studies and testimonials. See what other clients have to say about them. And don't be afraid to ask them tough questions. A good agency will be able to answer them confidently and honestly.

How should you manage the relationship with your agency?

Hiring an agency is not a set-and-forget exercise. You need to manage the relationship carefully to ensure that you're getting the most out of it. This means:

• Setting clear expectations.
• Communicating regularly.
• Providing feedback.
• Monitoring progress.
• Holding them accountable.

The agency should be seen as an extension of your team. Work with them collaboratively to achieve your goals. Make sure they understand your business and what you're trying to achieve. And be prepared to give them the resources and support they need to succeed.

So, should you hire a paid ad agency?

Ultimately, the decision of whether to hire a paid ad agency is a personal one. There's no right or wrong answer. You need to weigh the pros and cons and decide what's best for your business. In a lot of cases, you don't need to hire a big advertising agency to do this - a freelance consultant can be just as good, if not better, and cheaper!

Here are some of the key factors to consider:

• Your budget.
• Your in-house expertise.
• Your growth goals.

If you have the budget and the ambition, hiring an agency can be a great way to accelerate your growth. Just make sure you choose the right agency and manage the relationship carefully. But also, think about whether you need an agency or whether a freelance consultant would do the job. If you don't have the budget or the in-house expertise, you can still do paid advertising yourself. Just be prepared to put in the time and effort to learn the ropes and remember to start small. But if you do, remember to set some realistic goals and don't be afraid to take it slow.

I've detailed my main recommendations for you below:

If you're still unsure, why not schedule a free consultation? We can discuss your specific circumstances and help you decide on the best course of action.