How to Choose the Right Advertising Agency
Choosing the right advertising agency is a crucial decision that can shape your brand’s future. With countless agencies claiming to be the best, finding the right fit isn’t always straightforward. In this guide, we'll walk you through 10 actionable steps to help you find, vet, and ultimately select the ideal partner for your business.
Step 1: Understand What an Advertising Agency Actually Does
Before you even think about hiring an agency, it’s important to understand what an advertising agency actually does. It’s not just about coming up with catchy slogans or running a few Facebook ads.
At its core, an ad agency helps businesses connect with the right audience in a way that builds trust, drives engagement, and ultimately fuels growth. How they do that, however, depends on their structure, philosophy, and capabilities.
Here’s what a modern agency might handle:
- Creative strategy and execution (branding, campaigns, design, content)
- Media planning and buying (TV, radio, paid search, paid social, etc.)
- Brand development and identity
- Performance marketing (lead generation, conversion optimization)
- Analytics and reporting
Depending on the type of agency, the strategies they use to accomplish those objectives can vary significantly. That doesn’t necessarily mean one approach is right and another is wrong. It simply means some may be a better fit for your current goals, team structure, or stage of growth.
As our Creative Director often puts it:
“There isn’t necessarily one right way to do things, but there are definitely some wrong ways.”
That sentiment captures the essence of what you should be looking for. The right agency is the one that applies its expertise in a way that aligns with where your business is today, not where someone else is, and not where you think you’re supposed to be based on industry noise or outside pressure.
It's also important to note that the agency landscape has evolved. Some teams now specialize entirely in social media content. Others are built around B2B lead gen, while some focus solely on brand identity and development. That’s why this first step is so important. You need to define what’s on your plate before you place the order.
If you’re unsure whether you need a full-service agency, a creative partner, or a performance shop, you’re not ready to choose. And that’s okay. The important thing is to recognize that gap and take time to figure it out. The biggest mistake you can make is rushing the decision and hiring a team that’s built for the wrong job.
Step 2: Identify Your Goals Before You Start Looking
One of the biggest mistakes companies make when hiring an agency is skipping this step: getting crystal clear on what they actually want out of the partnership.
Too often, brands begin the search process with vague goals like “we need better marketing” or “we want to grow faster.” But agencies can’t solve problems that haven’t been clearly defined. One we hear all the time during rebrands is, “We want it to look clean.” The problem is that “clean” can mean twenty different things to twenty different people, depending on what they’re picturing in their minds.
Another common one is, “We want to reach everyone,” when asked about their target audience. That simply isn’t realistic. Unless your brand is Aquafina, and even then, some people just don’t drink water.
The more specific you are about your business objectives, the better equipped your agency will be to recommend strategies that actually work.
Start by asking yourself:
- Are you looking to build awareness for a new brand or product?
- Do you want to generate more leads or sales through performance-driven campaigns?
- Is your goal to reposition your brand in a crowded or shifting market?
- Do you need better creative output than your internal team can deliver?
- Are you hoping to consolidate multiple vendors into a single full-service partner?
Once you define your objective, add some constraints and context:
- What’s your monthly or quarterly budget range?
- How quickly do you need to see results?
- Is this a short-term engagement or a long-term relationship?
The more clarity you bring to the table, the easier it becomes to identify agencies that are actually built to help you. When you start with specifics, the right partners will be able to respond with real solutions instead of vague ideas.
Step 3: Start Your Agency Search
This is the part where most businesses freeze.
You’ve decided it’s time to find a partner, but suddenly every option starts to look the same. You run a few searches. You look at a couple agency websites. You scroll through jargon about “storytelling,” “strategic creative,” and “data-backed performance.” Somehow, you’re more confused than when you started.
That’s normal.
Finding the right agency is not about who ranks highest on Google or who has the flashiest homepage. It is about identifying partners who are equipped to solve the kinds of problems your business is facing. To do that, you need a search strategy that saves time, filters the noise, and surfaces agencies worth having real conversations with.
Many people begin by Googling “advertising agency near me,” and that’s a solid way to get a feel for your local market. But if you're looking for more than what’s geographically closest, it’s worth casting a wider net. There are agencies outside your city, and even your region, that may be far better aligned with your goals, industry, or creative expectations. You might give up the convenience of an in-person meeting, but the value you gain in specialization and results can make that tradeoff well worth it.
Here are the best ways to start that process:
1. Use reputable agency directories
These platforms exist specifically to help businesses like yours filter and vet agency partners.
- Clutch.co - This is one of the most trusted directories for B2B and service-based agencies. Its review system is difficult to manipulate because clients are verified and often interviewed. You can filter by budget, location, industry, and capabilities.
- DesignRush - Ideal if you’re looking for branding, UI/UX, or creative-led agencies. This platform leans more heavily toward visual design and content.
- UpCity - Great for smaller and mid-size businesses. Their filtering tools make it easy to find regional agencies and niche service providers.
These platforms can save you hours of time by giving you a way to quickly sort agencies by specialty, budget range, client satisfaction, and real-world results. You are not trying to find perfection. You are trying to build a shortlist that feels worth pursuing.
2. Ask your network
Referrals are still one of the most honest and effective ways to find good partners. If someone you trust has worked with an agency, had a positive experience, and is still working with them, that is a strong endorsement. Ask fellow business owners, marketing directors, and even people outside your industry who they’ve worked with and what that experience was like.
This often surfaces hidden gems that won’t show up on the first few pages of search results.
3. Look at the work, then trace it back
Seen a campaign you liked? A brand that nailed the tone and visuals you’re going for? An ad that actually made you click? Do a little digging. Many agencies showcase their work on their websites or social channels. If something resonates with you, find out who created it and reach out. Even if it wasn’t their work, they might point you in the right direction.
This approach helps you build a list of agencies based on what they’ve done, not just what they say they can do.
Your goal at this stage is not to pick a winner. It is to build a focused, realistic list of three to five agencies that check the right boxes. Look for relevant experience, proven outcomes, and signs that their team might click with yours. From there, the real conversations begin.
Step 4: Evaluate Portfolios and Understand Their Specialization
A lot of agencies look great on paper. Their websites are polished, the work is flashy, and the brands they’ve worked with might make you pause. But a good-looking portfolio isn’t enough. You’re not hiring an agency for what they’ve done before. You’re hiring them to solve a problem for you.
This is where a lot of businesses make the wrong call. They get drawn in by big-name clients or award-winning visuals without asking the more important question: Does this agency actually know how to solve the kind of challenge I’m facing?
Start by figuring out whether you’re looking at a generalist or a specialist agency. That distinction matters more than most people think.
Generalist Agencies
These agencies offer a wide range of services and tend to work across multiple industries. You’ll often see them describe themselves as “full-service.” They can be great if you want to consolidate multiple marketing needs under one roof; If you have strategy, branding, web, media, and content all handled by one team it avoids a lot of the legwork in keeping your campaign and branding efforts on message. They’re built for long-term relationships, consistency across touchpoints, and scalability as your business grows.
But generalists aren’t always the fastest to onboard. If they’re not familiar with your industry or product, they may need time to ramp up.
And sometimes their “full-service” claim is stretched thin. There’s nothing wrong with using a few trusted contractors to handle overflow or fill a skill gap. That’s common. But some agencies market themselves as full-service while only having in-house staff for one or two things. Everything else gets outsourced to third-party vendors, which can lead to inconsistencies, slower timelines, and less accountability. A good way to assess this is to ask how many departments or service areas are actually staffed in-house. If strategy, creative, media, and analytics are all run by separate teams under different roofs, it may not be the truly integrated experience they’re selling you.
Specialized Agencies
These teams focus on doing one thing exceptionally well. Maybe it’s performance marketing for SaaS companies. Maybe it’s branding for food and beverage startups. The point is, they’ve seen your kind of challenge before, and they’ve already built systems to solve it.
Specialists can move quickly, onboard efficiently, and bring deep expertise that generalists just can’t match in certain areas. But the tradeoff is usually scope. They may only solve one part of your marketing puzzle, which means you’ll need to coordinate with other partners or internal teams to fill in the rest.
If you’re early-stage, launching something new, or working in a niche market, a specialist might get you further, faster. But if you’re looking for a long-term partner that can grow with you, a agency could be the better bet.
Once you’ve figured out the type of agency you’re evaluating, start digging into their actual work. Don’t just scroll the portfolio for logos or pretty campaigns. Look for patterns. Do they show consistent results across different clients? Do they explain the behind the work, or is it all just surface level?
A strong case study should answer three questions:
- What problem was the client trying to solve?
- What approach did the agency take?
- What were the results?
If the agency doesn’t show that kind of thinking in their work, chances are you won’t see it in their process either.
Step 5: Prioritize Cultural Fit and Chemistry
Most agency-client relationships don’t fall apart because of bad creative. They fall apart because of mismatched expectations, poor communication, or a general feeling that the teams just aren’t clicking. That’s why cultural fit is not just a nice-to-have. It is one of the most reliable indicators of whether the relationship will actually work.
You are not just hiring a vendor to complete a task. You are adding a team to your team. They will be in your meetings, building your messaging, shaping your customer experience, and presenting ideas that require buy-in and trust. If the energy is off or communication feels like a chore, it does not matter how good their portfolio is.
During your early interactions, look past the pitch deck. Pay attention to how the agency actually shows up:
- Are they listening to understand or waiting to talk?
- Do they speak clearly and confidently, or fall back on buzzwords and vague promises?
- Are they asking smart questions about your business, your customers, and your challenges?
Responsiveness is another early signal. Are they organized? Do they follow up when they say they will? Do their internal team members seem aligned and aware of what is going on?
You should also pay attention to who you are actually meeting. Are you talking to the people who will be doing the work? Or are you getting sold by senior leadership and then handed off to junior staff the moment the contract is signed?
You do not need to become best friends. But you do need mutual respect, aligned working styles, and clear communication from day one. It should feel like a partnership, not like you are constantly trying to manage them or explain yourself.
And finally, do not underestimate your gut. If something feels off, it probably is. Trust is not just built over time. It often starts in the very first conversation.
Step 6: Understand Pricing Models and How Agencies Actually Charge
Let’s talk about money.
Pricing is one of the most uncomfortable parts of hiring an agency, but it should not be mysterious. If you ask how an agency charges and get vague answers or shifting numbers, that is a red flag. You do not need a detailed quote in the first meeting, but you should walk away with a clear understanding of how their pricing works and how it scales based on the work.
Most agencies do not list their rates on their website, and that is normal. Pricing often depends on factors like project scope, timeline, complexity, the number of deliverables, and the seniority of the team. But once you start the conversation, transparency is non-negotiable.
Here are the most common pricing models you will run into:
1. Project-Based Pricing
This is typically a flat fee for a specific deliverable or defined scope of work. Examples include a brand identity package, a campaign launch, or a website redesign. Everything is scoped up front and billed once or in milestones.
Project pricing works well when you have a clearly defined need with a clear start and finish. The challenge comes when scope starts to creep or expectations shift mid-way through, which is why it is important to clarify what is and is not included.
2. Hourly Billing
Some agencies work on an hourly basis, particularly for flexible or open-ended projects. You are billed for the time spent, whether it is on strategy, design, revisions, meetings, or research.
Hourly work gives you flexibility, but it can be harder to budget unless the agency also provides time estimates or caps. Always ask how time is tracked and reported, and whether you will have visibility into how hours are being spent.
3. Monthly Retainers
This is common for long-term partnerships where the agency functions as an extension of your internal team. A retainer secures a set number of hours or services each month, usually with a rolling scope or a fixed deliverables list.
Retainers offer stability and predictability, especially if you are running ongoing work like content, media, email, or paid advertising. They are also a good fit if your needs change from month to month, but you still want a consistent team at the ready.
There are also hybrid models. Some agencies use retainers for ongoing services but bill separately for big initiatives. Others offer performance-based pricing or tiered packages. None of these models are inherently better than the others. It depends on your goals, timeline, and how hands-on you want to be.
Here are some questions worth asking:
- How is pricing structured, and what drives changes in cost?
- Do you charge for meetings, revisions, or strategy time?
- What happens if we need to pause work or change the scope?
- Is your pricing based on time, deliverables, or value?
- Will we be billed monthly, per milestone, or in advance?
Also ask about minimums. Some agencies will not take on projects under a certain amount or may only offer retainers once you hit a baseline commitment. That is not a red flag, but it is something you need to know up front.
A final note: there is a difference between cost and value. The cheapest agency is not always the best option, especially if it means cutting corners or settling for surface-level thinking. You want a team that brings experience, quality, and clear communication. If they can explain their pricing model, justify their rates, and show how it ties back to your business goals, that is the kind of partner worth paying for.
Step 7: Know the Red Flags and Avoid the Wrong Fit
When it comes to choosing an advertising agency, knowing what to look for is only half the battle. You also need to know what to avoid. Plenty of agencies can talk a good game, but not all of them can deliver, and even fewer are built to be true partners.
This is where a lot of businesses get burned. They pick an agency based on a flashy proposal, a name-drop, or a perfectly rehearsed pitch. But once the contract is signed, things start to fall apart. Timelines get fuzzy. Communication breaks down. The creative work feels off. Eventually, the relationship becomes more about fixing problems than producing results.
Here are some of the most common red flags to watch for when evaluating a potential agency partner:
1. They talk more than they listen
If an agency spends most of your intro call selling themselves and barely asks about your business, that is a problem. A good agency wants to understand your goals, challenges, and customers before they start pitching solutions. If they are not asking smart questions, they probably are not going to give you smart answers.
2. Everything is vague
If you ask about process, timelines, or pricing and get responses like “it depends,” “we’re flexible,” or “we’ll figure it out later,” that should give you pause. Flexibility is great, but clarity is better. The right agency can adapt without being ambiguous.
3. It sounds too good to be true
If the agency promises fast results, low costs, and minimal involvement from your team all in one package, you are probably being sold an unrealistic outcome. Great marketing takes time, iteration, and collaboration. The old saying applies here: you can have it good, fast, or cheap, but you only get to pick two. If they are promising all three, that is a red flag.
4. Their team is a mystery
You should know who you will actually be working with. Some agencies send in senior staff to pitch the work, then hand you off to a junior team the moment the project starts. That disconnect leads to misalignment, uneven quality, and missed expectations. Always ask about the day-to-day team structure and whether the people you meet are the ones doing the work.
5. No documented results or case studies
An agency that cannot show real examples of past work with measurable outcomes is asking you to take a risk. You do not need to see a deck full of awards. You need to see proof that they have solved problems like yours, for businesses like yours, with results that matter.
Spotting red flags early is one of the best ways to avoid wasting time and budget. When you are figuring out how to find the right agency partner, it is just as important to rule out the wrong ones. The best advertising agencies will be upfront about their capabilities, transparent in their process, and honest about what they can and cannot do.
If anything feels off, whether it is the tone, the lack of detail, or the way they handle your questions, pay attention. A bad agency experience does not usually start with bad work. It starts with a disconnect that gets ignored until it becomes a problem.
Step 8: Decide If You Really Need an RFP
A lot of companies think that choosing the right advertising agency means writing a formal RFP. And in some cases, that is true. But more often than not, especially for small to mid-sized businesses, an RFP is overkill.
The truth is, most agencies do not love RFPs. There is only one winner, and unless the opportunity is large enough to justify the time and cost, many agencies see them as a poor investment. They take a ton of resources to complete, often ask for strategy without much context, and create a process that favors structure instead of chemistry. If you are not running a competitive bid with a clear decision-making framework, writing an RFP may just slow you down.
So when does an RFP make sense?
- You have a large or multi-year contract to award
- You are subject to procurement or government processes
- You are comparing a high volume of bids and need a standardized format
- You are spending six figures or more and need documentation for internal approvals
If that is your situation, then yes, an RFP can be a useful tool. But if you are a growing brand or marketing team just trying to find a great partner, there is a better and faster way to make a decision.
Here is a smarter path:
- Shortlist three to five agencies like mentioned previously, that already look like a good fit based on your goals, industry, and budget
- Schedule discovery calls where you can have a real conversation about how they work and how they would approach your challenges
- Ask for a proposal or a lightweight strategy audit that outlines how they would approach your project, including pricing and timeline expectations
- Talk through the scope in detail. Do not just review a PDF. Ask questions and dig into their thinking
This saves time on both sides and gives you far more insight into what working together would actually feel like.
If you do decide to write an RFP, keep it short and focused. Clearly outline what you want help with, your decision-making timeline, any must-haves, and a rough budget range. Agencies are much more likely to respond with thoughtfulness and enthusiasm when they are not being asked to jump through hoops without knowing what they are competing for.
There is no single right way to choose an agency. But when you treat the process like a conversation instead of a procurement drill, you are far more likely to find a partner who brings real value, creativity, and long-term alignment.
Step 9: Evaluate Thoughtfully and Choose Confidently
Once you have proposals in hand, the decision-making process can feel overwhelming. Each agency might present their ideas in a different format. Some will lean heavily on design, others will drop in big strategy ideas, and most of them will sound confident and compelling. So how do you actually compare them?
Start by going back to your original goals. What are you trying to accomplish? Who outlined a clear path to get there? The best proposals do not just sound smart. They demonstrate a real understanding of your business and show how the agency would approach solving your specific problem.
Here is what to look for in a strong proposal:
- Clarity and specificity. Are they outlining concrete actions and deliverables, or are they relying on vague language?
- Strategy that connects to your goals. Does their plan align with what you want to accomplish, or are they trying to fit you into their process?
- A clear timeline and scope. Can you see how long things will take, how progress will be measured, and what is included?
- Transparency around pricing. Is it easy to understand how they arrived at the cost, and what that budget includes?
Try not to get too distracted by the proposal that looks the best. The most beautifully designed presentation is not always the one that will deliver the strongest results. What matters most is the thinking behind the work and the way the agency communicates their process.
Tone matters too. Do they sound like a team that understands your brand and your market? Do they speak to you like a collaborator, or do they just sound like they are pitching something they have said a dozen times before?
You can also gut-check your own reaction. Which proposal made you feel excited or relieved? Which one sparked curiosity or made you want to pick up the phone and keep the conversation going? Those are often the best signals that you are on the right track.
You are not just comparing documents. You are choosing the team that is going to help you grow. Look for clarity. Look for alignment. And if it feels right and makes sense on paper, it is probably worth taking the next step.
Step 10: Start Small and Scale Smart
Choosing the right advertising agency does not mean you need to jump into a massive engagement on day one. In fact, starting small is often the smartest move you can make. It gives you a chance to test the relationship, understand how the team works, and build trust before you commit to a long-term partnership.
A good agency will not shy away from a smaller initial project. In many cases, they prefer it. It gives both sides a chance to collaborate, solve a real problem, and see what the working relationship feels like in practice.
Here are a few great ways to start small:
- A one-off campaign or creative concept
- A brand or messaging audit
- A single landing page or microsite
- A test media buy or paid ad sprint
- A content or social strategy project
You can learn a lot from a four-week project. You will see how the agency communicates, how they think, how they present ideas, and how they respond to feedback. Most importantly, you will see if they care about the outcomes, or just about finishing the deliverable.
Once you know what the working rhythm feels like, you can start to build out a larger roadmap together, whether that means a multi-channel marketing push, a full rebrand, or an ongoing retainer.
Smart partnerships are not rushed. They are built. Starting small gives you the space to make better decisions, reduce risk, and set the stage for real momentum.
If the fit is right, there will be plenty of room to grow.
In Closing…
If you have made it this far, you should have a much clearer idea of how to move forward with choosing the right agency partner. You know what questions to ask, what red flags to watch for, and how to evaluate proposals with confidence.
Here’s a quick recap of the essential steps to guide you:
1. Understand Agency Roles: Know what an advertising agency does and determine which type aligns with your business needs.
2. Define Your Goals: Clearly establish specific, measurable objectives before starting your search.
3. Build Your Shortlist: Cast a thoughtful net to compile a list of relevant agency candidates.
4. Evaluate Portfolios: Distinguish between generalist and specialist agencies by reviewing their past work.
5. Prioritize Cultural Fit: Focus on finding an agency whose team aligns with your business culture and communication style.
6. Clarify Pricing Models: Ensure transparency around how agencies charge, whether project-based, hourly, or on retainer.
7. Spot Red Flags: Watch for warning signs like vague promises, unclear processes, or mismatched team structures.
8. RFP or Discovery: Decide whether to go the formal RFP route or opt for direct, conversational discovery calls to narrow your choices.
9. Evaluate Proposals: Compare proposals with your original goals in mind and look for clear, actionable strategies with measurable outcomes.
10. Start Small, Scale Smart: Test the waters with a small project to validate the relationship before committing to a long-term partnership.
At Frank, we believe that finding the right partner matters more than simply closing a deal. If you are still working through this process or need an extra set of fresh eyes, we can help. We offer free, no-pressure consultations for businesses navigating the complex landscape of agency selection. We will sit down with you, dig into what your business truly needs, and point you in the right direction, even if that means recommending another partner who might be a better fit.
If that sounds helpful, let’s talk.