One agency quotes €1,500 a month, another €3,500. Both include campaign management and reporting. The difference tells you little until you know what work, responsibility and additional costs each quote covers.
In brief: Compare quotes for the same scope and count the full cost of the engagement. A low fee can suit a narrow assignment. A higher fee makes commercial sense when the additional work has measurable value.
The amounts below are worked examples, not market averages or Canem Errant prices. A useful DACH pricing benchmark would need comparable services, contract terms, a documented sample and an observation period. A range without those details is a weak basis for choosing a supplier.
What are the four pricing models?
1. Percentage of ad spend
The fee is an agreed percentage of a defined spending base. For example, €20,000 in media spend × 15% = €3,000 in fees. Check whether the base includes taxes, how platform credits are handled, and whether minimums or caps apply.
As spending rises, so does the fee. That may pay for additional work, but it does not tie agency income to your profit. Agree who approves increases and how their commercial value will be reviewed. A large budget does not make this model compulsory.
2. Monthly fixed retainer
A fixed amount covers agreed channels, campaigns, tests, meetings and reports. Costs are predictable while that scope stays stable. A new country, another product feed or additional creative production may require a revised agreement.
Define what counts as additional work and how it is approved. A fixed fee does not mean unlimited support. A smaller, achievable scope can be more useful than a broad proposal without priorities or sufficient resources.
3. Base fee plus performance bonus
The base pays for ongoing work; the bonus depends on a defined result. Specify the metric, data source, period, payout cap and verification process. A bonus calculated from ad spend after reaching a target remains spending based, rather than a share of incremental profit.
For ROAS, agree the revenue definition, returns, attribution window and overlap between channels. For B2B, define a sales-accepted lead and allow time for follow-up. A reach bonus can suit an awareness objective, but should not be described as payment for sales. Unreliable data makes a complex bonus harder to administer.
4. Project-based engagement
A diagnostic, campaign launch, creative production or tracking implementation can be a defined project. Inputs, scope, timetable, acceptance criteria and handover should be agreed before work begins. Ongoing campaign management is not automatically included.
A project can help test whether a team fits the task. It should leave usable outputs and a clear owner for maintenance. A report without a decision or maintainable implementation does not become useful because it was billed once.
How do the models compare?
| Model | Cost, predictability and use |
|---|---|
| Percentage | Spending-based formula; the fee scales automatically. Suits identifiable additional work with controlled budget approvals. Less predictable cost; risk of higher spending without better economics. |
| Fixed fee | Price for defined work; predictable while scope is stable. Expansion needs agreement. Risk of more work than the contract can support. |
| Base and bonus | Ongoing work plus a verifiable result; medium predictability, expansion governed by the agreement. Risk of disputes over attribution or quality. |
| Project | Price for a bounded task; highly predictable with clear limits. Suits diagnosis and setup. Risk of no ongoing support. |
Describe the work and measurement first, then choose the payment model. A bounded project is one way to start; a fixed initial scope with a scheduled review is another. No model is universally more honest or more effective.
Which additional costs belong in the quote?
Setup and preparation
Account analysis, campaign structure, product feeds and event configuration may be separate items. Distinguish setup from ongoing maintenance. If setup is paid in instalments, the full amount should still be visible before work starts. Agree what will be handed over if ongoing management does not follow.
Tools and infrastructure
Reporting, heatmaps, server infrastructure and creative tools can create recurring charges. Check the subscription, purpose, account owner and access after termination. Supermetrics, DashThis, Hotjar, Foreplay and Motion are examples, not a shopping list: each tool should address a specific need.
Creative production and landing pages
UGC, photography, video, editing and website changes need a defined scope. Ask for quantities, variants, revision rounds, languages and usage rights. External production is not automatically slower or weaker than an in-house team. Assess quality, availability and turnaround.
Markups and other charges
Check markups on media or subscriptions, urgent work, currency conversion and exit costs. Separate payments to advertising platforms from the agency fee. VAT treatment depends on the specific agreement and invoice. A fixed fee and a percentage can be alternative models, rather than two charges to add automatically.
Ask: “Which work and expenses are not included in this amount?” The answer should name specific items.
Which warning signs deserve attention?
Unclear ownership or access
Establish ownership and permissions for ad accounts, domains, analytics and materials, including handover. Poor access makes oversight and changing suppliers harder. Agree the exit process before the engagement begins.
Reports you cannot verify
A sample report should show actual spend, fees, confirmed orders or leads, data gaps, tests and decisions. Three screenshots do not explain sales. Agree a reporting cadence suited to the task and access to the underlying figures.
Undefined scope and pricing
“Campaign management” alone is not an assessable assignment. Clarify channels, responsibility and resources. No minimum retainer does not prove that an agency lacks a team; a narrow task may be priced differently. The problem is being unable to identify what the customer receives.
Financial promises before reviewing data
Guaranteed sales, CPA or ROAS before examining demand, margins and measurement are grounds to challenge a proposal. Work and deadlines can be agreed and checked. Contract length alone does not establish quality: assess exit costs, handover and the reason for the proposed term.
What should a strong proposal include?
- Price and scope: ongoing work, setup, subscriptions and additional costs.
- Access and ownership: control of your assets and appropriate supplier permissions.
- Term and handover: review points and what you receive when the work ends.
- Verifiable commitments: for example, a test plan and report within 30 days if appropriate, rather than a guaranteed ROAS.
- Measurement: how orders or CRM outcomes connect to advertising, where data is missing and what access is required. Server-side tracking may be useful but is not automatically part of every assignment. More on measurement architecture.
Why is the revenue left over not profit?
Consider two hypothetical scenarios. All amounts exclude VAT. Media spend is €10,000 and average order value is €80. Order counts are rounded down for this simplified calculation, so CPA is an assumed approximate input.
- A: Fee €1,500, assumed CPA €45, 222 orders. Revenue €17,760; media plus fee €11,500. Amount left before product costs and other expenses: €6,260.
- B: Fee €3,500, assumed CPA €28, 357 orders. Revenue €28,560; media plus fee €13,500. Amount left before product costs and other expenses: €15,060.
The €8,800 difference is not additional profit. Products, shipping, payment fees, returns and other costs are missing. A higher fee does not cause a lower CPA; any improvement needs evidence. How to investigate CPA.
Add a 40% contribution margin
Suppose 40% of revenue remains after variable costs and returns, before advertising and agency fees. A: €17,760 × 40% − €11,500 = −€4,396. B: €28,560 × 40% − €13,500 = −€2,076. B is €2,320 better, but both scenarios are already negative before other fixed costs.
How should you assess the return?
ROAS divides attributed revenue by media spend. It excludes product costs and agency fees. For commercial evaluation, compare incremental contribution after variable costs with all additional marketing costs. If you report ROI, define the numerator, denominator and measurement period.
Attributed revenue is not necessarily incremental: a customer might have bought without the new activity. Compare completed order cohorts under similar conditions, accounting for returns and channel overlap. In B2B, also allow for the sales cycle. Only then can you assess whether the additional work paid back.
Why does creative production affect the fee?
A concept, shoot and review take time. Ask how quickly another version can be produced and which costs need approval. A 3×2×1 framework can help organise testing; the number of variants still needs to fit the budget and observations. Our creative testing framework.
In our Fashion demonstration framework, structured alignment between creative messaging, on-page sizing guidance, and transparent checkout terms is modeled end-to-end. This highlights that trust elements and cohesive ad angles work in concert, rather than acting as isolated performance guarantees.
How does Canem Errant agree the scope?
We establish the business question, available data and decision you need to make. The proposal defines work, price, required permissions, timing and outputs. Ownership and handover are discussed before the engagement starts.
An introductory conversation or public website check is not a full account audit. Advertising and CRM data are reviewed in a separately agreed diagnostic. Implementation and ongoing management have their own scope; CAPI, landing-page development or unconditional monthly cancellation should not be assumed to be included. Tracking and analytics.
What should you compare before deciding?
Request quotes for the same assignment. Compare the total cost, responsibility, acceptance criteria, team availability and exit terms. If reliable sales data is missing, a bounded diagnostic may be the useful starting point. If the task is clear, evaluate the specific implementation. A defensible fee matches achievable work and its measurable value.
Frequently Asked Questions
How much does an agency cost in Austria each month?
It depends on channels, scope, production and measurement. Ask for a written quote including additional costs. The €1,500 and €3,500 examples are neither market averages nor Canem Errant prices. Media spend is counted separately.
Which pricing model is best?
A fixed fee suits stable scope, a percentage can suit controlled expansion, and a project suits a bounded task. A bonus requires a verifiable outcome. Agree scope and the data source before choosing a payment formula.
Which additional expenses should I check?
Setup, tools, creative production, landing pages, markups and termination. Separate one-off and recurring payments; clarify rights and taxes. Included and additional work should be equally specific.
How do I calculate agency ROI?
Count incremental contribution after variable costs, advertising, fees and other marketing expenses. ROAS is not profit. In the example, the €8,800 difference before product costs becomes €2,320 at a 40% contribution margin; both scenarios remain negative before other fixed costs.
What are the red flags when choosing an agency?
Financial guarantees before reviewing data, unclear access, undefined scope and unverifiable reporting. Fee size or contract length alone is insufficient. Ask for specific commitments and an agreed asset handover.
If the invoice is clear but its connection to sales is not, discuss the task and suitable scope with us →. Diagnostics and ongoing management are agreed separately, with pricing established before work starts.
