How to Choose a Digital Marketing Agency: 8 Steps to Make Finding an Agency Easier

Choosing a digital marketing agency is a critical decision for business leaders and marketers. With a reputable marketing firm, it’s possible to take digital channels like search, paid, social, and email and turn them into the channels fueling your company’s growth.

This guide provides a trusted resource for:

• Understanding what digital marketing companies do
• Learning how to select a digital marketing agency
• Finding some of the best digital marketing firms
• Getting answers to the most common questions about outsourcing marketing

Learn how to choose a digital marketing agency that grows your revenue now!

More Resources: Questions To Ask An Agency Before You Hire Them

3 questions to ask yourself before choosing a digital marketing agency

Use these questions to ensure it’s time to start finding a digital marketing agency:

1. What will a digital marketing company do for us? An experienced digital marketing service provider will help develop, implement, and manage an omnichannel marketing strategy that grows the business’s key metrics.
2. What are the benefits to hiring an agency vs. an in-house team? The biggest benefits are improving performance and optimizing costs. Agencies provide access to seasoned experts at rates that are 40-85% less than a three-person team.
3. How much will outsourcing our marketing cost? Digital marketing agencies cost $2,500 to $10,000+ per month, though this amount varies depending on the number of services, the agency’s experience and location, and the strategy’s scale.

If the above answers align with allotted budgets and expectations, then start the search!

How to choose a digital marketing agency

Follow these steps to help you choose a digital marketing agency:

1. Create a project hub
2. Define goals and objectives
3. Outline requirements
4. Finalize marketing budget
5. Compile potential agencies
6. Create a shortlist of top picks
7. Interview the top digital marketing agencies
8. Select a digital marketing company

Plus, use our free marketing agency research template to help you keep track of everything in the process!

Download Now: Marketing Agency Research Template

1. Create a project hub

Finding a digital marketing company is a multi-step process. Make the process easier with a project hub. This hub will provide you (and any other stakeholders) with a trusted spot for adding updates, storing resources, or reviewing progress.

Your hub should compile key project details like:

• Stakeholders
• Deadlines
• Project status
• Budget
• Project goals
• Agency requirements
• Agencies
• Agency quotes and/or proposals

You don’t have to complete all these fields now. Instead, focus on establishing the stakeholders and the timeline for hiring a digital marketing company. You’ll learn more about setting project goals and a budget below!

Need help creating your project hub? Download our free marketing project hub template to help you get started!

2. Define goals and objectives

Next, outline the goals and objectives for hiring a digital marketing company.

In most cases, businesses will have goals specific to the digital channel (like search or paid), as well as objectives specific to the organization (like lead quality or revenue growth). For the best results, create digital marketing goals that support your organization’s objectives.

Check out the example goals below for some inspiration:

While some businesses will develop specific goals, like “Generate 10% more leads in 6 months,” to present to agencies, it’s ok not to have these goals. Agencies are problem-solvers, and it’s common for brands to approach agencies with a problem to solve vs. a metric to meet.

Agencies are problem-solvers, and it’s common for brands to approach agencies with a problem to solve vs. a metric to meet.

The best digital marketing companies will develop strategies to solve these problems and goals for measuring their success. This setup lets businesses leverage the expertise of digital marketing firms while also providing input on what will make the partnership a success.

3. Outline requirements

A foundational step in how to know if a digital marketing agency is good is to first outline your own requirements. In our experience, businesses have the most success with this step when they categorize their requirements into the following buckets:

Below is an example:

Ask stakeholders for their input, too.

Stakeholders in digital marketing projects range from marketing to IT to finance, so it’s vital to get their input before taking the time to research and meet with agencies. Stakeholders should share the “why” behind the requirement so you can better understand their needs.

Tip: Add these requirements to your project hub for easy access when comparing agencies!

4.  Finalize marketing budget

Too many businesses start the search for a digital marketing agency without a marketing budget.

Experienced digital marketing firms will ask this question to determine if they’re a good fit, so it’s essential to have an estimated budget. It’s also important to have a realistic budget. Most digital marketing services cost $2,500+ per month.

At WebFX, we’ve done extensive research into how much digital marketing costs for strategies like:

Besides the above data points, consider how much businesses spend on marketing overall:

Think about the requirements from the previous step, too.

Do the requirements create the need for a larger digital marketing budget, for example? If they do, outline the cause-and-effect so leadership can understand why the allocated budget needs increased. Additionally, be mindful of the SEO cost and other digital marketing expenses when presenting your budget to ensure that you can effectively meet your business goals.

5.  Compile potential agencies

Next, find digital marketing agencies to consider, like through:

• Stakeholders
• Professional network
• Reputable review and/or rating sites
• Search engines like Google or Bing

Remember to focus on creating a list of potential agencies.

Word-of-mouth recommendations are powerful, and it’s common for businesses to get a recommendation and contact that single agency vs. getting quotes from multiple companies and comparing their options.

As you compare marketing agencies, add potential agencies to your project hub and cross-reference their capabilities with your requirements from earlier. In most cases, certain requirements will require contacting the digital marketing provider (if they make your shortlist).

6.  Create a shortlist of top picks

Now, refine that initial list of agencies into a shortlist of top picks. Focus on the agencies that meet all or most of your must-have requirements. These companies are most likely to meet your and your stakeholders’ needs.

You can build a qualified shortlist by considering factors like the following:

Document your findings in your project hub for your and your stakeholder’s reference.

7.  Interview the top digital marketing agencies

Next, start the interview process with your top digital marketing agencies. Since some stakeholders will need to get involved in this stage, consider limiting the number of firms to the first three to five agencies.

Most digital marketing companies will start the interview process with a phone or video call. You’ll get asked some questions (and have the chance to ask some) to see whether the agency is a good fit for your project.

For example, agencies will often ask about your:

• Budget
• Objectives, goals, or problems
• Duration, like for a short- or long-term partnership
• Timeline, or when you’re looking to get started

You can also take this time to ask some initial questions from requirements, like:

• How much is the required minimum spend?
• Do you have experience with our content management system (CMS)?
• Can you work without site access?

What happens next depends on your project and the agency.

Reputable agencies that don’t fit your project will tell you. In some instances, they’ll provide recommendations for other firms to consider. If that happens, research the agency and add it to your project hub!

If the agency is a good fit, they’ll proceed with creating a custom proposal that includes:

• Deliverables
• Pricing
• Contract

You’ll often meet with the digital marketing company again to discuss the proposal. This meeting is a fantastic time to loop in key stakeholders and ask additional questions about the agency and its services, processes, and pricing.

Questions we recommend asking include the following:

• Do you work with my direct competitors?
• How much of my time will you need ongoing?
• What do you need from me to be effective?
• When should I expect to see results?
• Can you provide client references from my industry?

Your project hub can be a great place to store these questions (and the agency’s answers).

8.  Select a digital marketing company

Now, start comparing agencies.

A few initial steps to this process include:

• Eliminating agencies that do not meet all must-have requirements
• Reviewing the deliverables and pricing
• Getting a legal review of the contract (if applicable)

Meet with stakeholders to review the options and get feedback on their preferred agency. In some instances, teams are universal in their preferred digital marketing firm — in others, they’re not, which will require some compromise.

Use the requirements from earlier to compromise with teammates.

Here is where those categorizations come into use. You’ve marked what is must have, should have, and could have, and those categories can make choosing between two agencies easier by focusing on what is most valuable to you and your stakeholders.

After deciding which digital marketing firm to hire, contact them to get started!

What to look for in a digital marketing agency

Even with a shortlist in hand, you still need to separate the contenders from the pretenders. Here’s what to look for in a digital marketing agency before committing:

5-minute credibility check: Before you commit, confirm the basics. Does the agency have an updated site, credible reviews, clear contact info, and case studies? If any of these are missing, move on.

Budget guardrails for hiring a digital marketing agency

Setting the right budget is one of the biggest challenges when hiring a digital marketing agency. Without clear numbers, it’s easy to either overspend without impact or underspend and stall results. Use these guardrails to anchor your budget in reality:

1. Know the typical range
   Most agencies charge $2,500–$10,000+ per month, depending on services and company size. Enterprise retainers can exceed $25,000/month. Expect the lower end for single-channel work (like SEO) and the higher end for multi-channel campaigns.
   
2. Separate media from fees
   Always clarify what portion of your budget goes to ad platforms (Google, Meta, LinkedIn) versus agency management and strategy. A $15,000 retainer that includes $10,000 in ad spend is very different from $15,000 in pure management fees.
   
3. Use revenue-based benchmarks
   Gartner’s 2025 CMO Spend Survey reports that companies allocate about 7–8% of total revenue to marketing on average. Some larger organizations may spend more, while smaller businesses sometimes invest less. Use this benchmark as a gut check, and if your planned budget is far below this range, your results may fall short of expectations.
   
4. Pressure-test your budget
   Don’t just set a number. Make sure it aligns with your growth goals. A practical way to do this is to run an ROI model (see next section) so you know if projected revenue gains justify the spend.
   
5. Request tiered proposals
   Ask agencies to provide “good/better/best” packages. This lets you see how outcomes scale at different spend levels and makes it easier to get leadership buy-in.
   

Budget tip: Don’t chase the cheapest quote. The best digital marketing agency will prove how your investment ties to leads, sales, and ROI, and not just clicks or impressions.

The ROI model: Forecast returns before you sign

Budgeting is only half the equation. The other half is proving whether an investment makes sense. The simplest way to compare agency proposals is to run an ROI model.

ROI Formula

ROI = (Projected revenue gain – Total investment) ÷ Total investment
(Total investment = agency fees + media spend)

Example:
If you project an additional $100,000 in revenue per quarter, and the agency’s plan requires about $45,000 in fees + media, that works out to a revenue-to-investment ratio of ~2.2x, or about a 122% ROI. Seeing both the multiple and the percentage gives you a clear sense of whether the spend justifies itself.

ROI tip: Always model conservative scenarios. Reduce projected traffic or conversion lift by 20–25% and see if ROI stays positive. If it does, the proposal is likely sound.

Weighted selection scorecard for comparing agencies

Once you’ve narrowed your list down to a few agencies, the hardest part is deciding who to hire. A weighted selection scorecard helps you compare options side by side, using data instead of gut feel. Assign weights to each factor, score agencies on a 1–5 scale, and calculate totals to see who comes out ahead.

How to use it:

• Start with the weights above, or adjust them to fit your priorities.
• Score each agency from 1–5 under every criterion.
• Multiply the score by the weight and add it up for a total.
• Share the matrix with stakeholders to align on the best choice.

A scorecard makes the decision process transparent, defensible, and less likely to get derailed by subjective preferences.

Interview checklist for hiring a digital marketing agency

Once you’ve shortlisted a few firms, the interview is your chance to separate the agencies that talk a good game from those that can actually deliver. Use this checklist to guide your conversations:

Take notes in a consistent format (like a simple scorecard or doc template). This makes it easier to compare responses across agencies and spot red flags or strengths at a glance.

Red flags to avoid when choosing a marketing agency

A slick pitch doesn’t guarantee a solid partnership. Keep an eye out for these warning signs:

• “Guaranteed” results: No agency can promise fixed SEO rankings or return on ad spend (ROAS). Overpromising usually signals risky or outdated tactics.
• Vague scope or pricing: Proposals without clear deliverables, reporting cadence, or fee breakdowns often hide extra costs.
• Weak presence of their own: If they don’t rank for their own services or keep their site and content fresh, they may lack real expertise.
• Cookie-cutter proposals: Agencies that send generic plans before learning your goals won’t deliver a tailored strategy.
• Short-term mentality: Firms unwilling to talk beyond quick wins often chase vanity metrics instead of sustainable ROI.

The best digital marketing agency will be transparent, data-driven, and strategic. If you see these red flags, treat them as deal-breakers.

How to start working with a digital marketing agency

Congrats! You’ve learned how to pick a digital marketing agency. Now, finish with some tips on how to start working with a digital marketing service provider and making the partnership a success for your organization:

1. Inform internal stakeholders: Alert stakeholders about the selection and expected start date. Your stakeholders can complete additional steps, like arranging payment, providing tools access (like Google Analytics 4), and anything else needed.
2. Share brand guidelines: Make getting started easy for your digital marketing provider by sharing brand guidelines, company standards, wikis, and any other relevant documentation. In some cases, agencies will provide a questionnaire to complete.
3. Block time: Set aside time for onboarding. This time can include compiling resources, completing questionnaires, setting up access, or meeting with the agency to discuss recommendations.

FAQs about choosing a digital marketing agency

Get answers to the most common questions on choosing a digital marketing agency now:

Choose the digital marketing agency with a 93% client satisfaction rate

With decades of experience, plus award-winning talent and tech, WebFX is a trusted digital marketing service provider. Discover how our digital marketing services deliver bottom-line growth (and a 93% satisfaction rate) by contacting us online today for a custom proposal!