What an advertising agency actually does

An advertising agency takes on marketing tasks that would be too time-consuming or too expensive in-house. This ranges from classic advertising and digital campaigns to brand strategy and creation. The decisive factor is: Not every agency does the same thing. If you google “advertising agency”, you will find a spectrum ranging from small boutique agencies to global network service providers.

Traditional advertising agencies were created for TV, print and outdoor advertising. Today, most are hybrid: they combine traditional creation with digital marketing. The most important distinction for you as a client is not large vs. small, but generalist vs. specialized.

Agency types in comparison

Before you hire an agency, you need to know which type suits your goal. The following table gives you an overview of the most important agency types, their strengths and typical costs.

Agency tip: Specialization beats breadth. If you know that 80% of your customers come via Instagram, a specialized social media agency will bring you more than a full-service provider that does a little bit of everything. Full service is only worthwhile if you really want to cover all channels and have no internal capacity.

Benefits in detail: What do you get for what?

Agencies often sell packages that are difficult to compare. That’s why it’s important to know the individual service modules – and to know what value they have for your business.

Strategy and concept

Every reputable agency starts with an analysis phase: Who is your target group? Which channels does it use? What are your competitors doing? The result is a strategy paper that serves as the basis for all further measures. This part usually costs between 2,000 and 10,000 euros – depending on the depth of the analysis.

Creation and content production

Texts, graphics, videos, photos – everything that appears on channels or in campaigns. Many agencies differentiate between creative services (concept, art direction) and production (implementation). A social media post can cost between 50 and 500 euros, a product video between 1,500 and 20,000 euros, depending on its length and complexity.

Community Management

Answering comments, building a community, moderating interactions – this is time-consuming and often underestimated. Professional community management costs 500 to 2,500 euros per month, depending on the number of platforms and volume.

Paid Advertising

Meta Ads, Google Ads, TikTok Ads: Here, the advertising budget is added to the agency fee. Performance agencies charge either a fixed management fee (€1,000-3,000 / month) or a percentage of the ad spend (10-20%). Find out more on the social media agency prices page.

Reporting and analytics

Monthly reports are standard – for good agencies. You should know which KPIs are measured, how often you receive reports and whether you have access to the raw data. Agencies that only report on “reach” and “likes” are not results-oriented.

Costs and pricing models

How much does an advertising agency cost? The honest answer: It depends. But there are clear patterns that you can use as a guide.

Monthly retainer model

You pay a fixed amount per month for a defined service package. This is the most common billing method for social media and content agencies. Advantage: predictability. Disadvantage: If you deliver little work (briefings, feedback), the budget still runs out.

Hourly rate model

Freelancers and boutique agencies often charge by the hour. Hourly rates are between 80 and 250 euros, depending on specialization and location. More flexible than a retainer for small projects or irregular requirements.

Project-based billing

A fixed price is agreed for defined projects (campaign, rebranding, website relaunch). This provides security – but only if the scope and scope of services are clearly defined. Change requests cost extra.

Performance model

Some agencies work on a performance basis: Commission on leads, revenue share or bonus if KPIs are achieved. Sounds attractive, but only makes sense if attribution is clearly measurable.

For a detailed comparison between an agency and your own team, it’s worth reading the article Social media agency vs. in-house.

What you should look out for when choosing

Choosing the right advertising agency makes the difference between success and a wasted budget. These criteria will help you make the right decision.

Industry experience

Does the agency have experience in your industry? This is not a knock-out criterion, but a plus. Industry knowledge saves time when briefing and reduces the risk of strategic mistakes. Ask specifically for references from your sector.

Transparency in costs and processes

Reputable agencies disclose how they charge, who does the work and which tools they use. Beware of agencies that do not give clear prices or evade questions.

Team and communication

You don’t work with the agency as an abstract entity, but with specific people. Who is your contact person? How quickly do they respond? Is there a direct project management tool? These are not side issues.

Measurability and reporting

Every performance should be linked to figures – target agreement, KPIs, regular reports. You should avoid agencies that do not offer performance measurement or only mention “visibility” as a goal.

Contract term and flexibility

Many agencies require minimum terms of 6 or 12 months. This is understandable – but you should be aware of notice periods and special termination rights. Also ask what happens if the agency loses employees or undergoes a strategic realignment.

The article Content agency: services and costs provides orientation for specialized services.

The right time for an advertising agency

Not every company needs an external agency right away. Sometimes in-house is better – sometimes the agency is the only scalable solution.

Agency makes sense if…

• You have no internal marketing resources
• You need to scale quickly (e.g. launch, season)
• You need expertise in a new channel
• You want an external perspective on your brand
• The internal team is busy with operational tasks

In-house makes sense if…

• You have permanently high demand and justify full-time positions
• In-depth brand knowledge and rapid response are more important than scaling
• You want to keep data and processes internal
• You want to build up independent marketing expertise in the long term

The two models are not mutually exclusive. Many companies combine an internal strategy team with external agency execution.

If you are still undecided about which model suits you better, take a look at the comparison article Agency vs. in-house or contact us directly.

What does an advertising agency cost on average?

The costs vary greatly depending on the type of agency and scope of services. On average, a social media agency costs between 1,500 and 5,000 euros per month, while full-service agencies usually start at 5,000 euros upwards. Freelancer-based boutique agencies can also cost less than 1,000 euros, but then only cover partial services.

Which agency is the right one for my company?

That depends on your primary goal. If you want to build reach and engagement, a specialized social media agency is the best choice. If your goal is direct conversions and sales, you need a performance agency. For brand strategy and creation, a traditional advertising agency or a full-service agency is suitable.

What should be in the agency contract?

A serious agency contract contains: Scope of services (clearly defined), remuneration model (fixed, hourly or percentage), term and notice periods, reporting intervals and KPIs, regulations on copyright and rights of use as well as data protection and confidentiality clauses.

How do I recognize a good advertising agency?

Characteristics of a good agency are: transparent pricing, verifiable references, a clearly named contact person, proactive reporting with real KPIs and an onboarding phase in which the agency actively understands your brand and target group. Mistrust agencies that don’t show references or immediately come up with generic packages.

Can I commission an advertising agency for just one project?

Yes, project-based commissioning is possible and often makes sense for clearly defined tasks (campaign, rebranding, launch). However, many agencies prefer retainer models because of their predictability. Clarify in advance whether the scope is precisely defined – otherwise additional costs will quickly arise due to change requests.

More on the topic: Social media agency prices – Communication agency – Content agency – Google Ads agency – Agency vs. in-house

AI marketing: How do agencies use AI?

KI Erfahrung von Stephan Czaja

AI doesn’t do the job, but it can make certain areas up to 184 times faster. For agencies, this means that they can offer their clients significantly more service in less time. While a traditional editorial team used to take days or weeks to create and coordinate content, modern AI tools do large parts of this in just a few minutes. This also shifts the role of agencies: they become more of a strategist and curator, while repetitive tasks are taken over by the AI.

Increase productivity

Today, texts, images and videos can be created much faster than ever before. In the past, several departments had to work together on a project; today, a well-formulated prompt is often enough. Even transcript corrections of YouTube videos or the creation of social media descriptions can be done virtually in real time. This not only enables agencies to produce more output, but also a higher frequency of tests and optimizations. A blog post is no longer seen as a single project, but as part of a continuous content machine that constantly delivers new data.

• Texts in minutes instead of hours
• Processes become scalable
• Faster optimizations possible

AI Avatare 2022/2023

PS: What sets us apart? We were already active before the AI hype. With content spinning software, the first virtual avatars at fashion shows and early automation. This experience shows that technology changes, but the core remains the same – those who understand how tools work early on are ahead of the game. Today, we are ready for the next evolutionary stage in marketing.

Accelerate creativity

There has also been a paradigm shift in the creative process. Where people used to work with brainstorming sessions and lengthy coordination, campaign ideas can now be visualized directly by AI tools. Storyboards, video plans or content days are created at the touch of a button, including suggestions for titles, keywords and even variations for different target groups. This does not mean that creativity disappears – on the contrary: creativity is accelerated by AI. Instead of spending a long time refining ideas, teams have more time to focus on fine-tuning and emotional appeal.

Minimize costs

One major advantage of AI is the drastic reduction in costs. A few years ago, companies had to employ large teams of copywriters, designers or video producers to publish relevant content at a high frequency. Today, many of these tasks can be automated. This does not mean that human labor is becoming superfluous – rather, the focus is shifting: instead of investing budgets in quantity, money is increasingly flowing into strategy, brand management and the creation of truly unique content. AI takes over the craft, humans control the vision.

• Produce SEO content more cheaply
• Teams are relieved
• Focus shifts to strategy

Create texts with AI

AI doesn’t just write texts – it delivers complete content strategies. For SEO of blogs, product descriptions, Google titles and meta descriptions, AI is a real game changer. While copywriters used to spend hours working on structure, wording and optimization, AI like ChatGPT now creates multiple variants in seconds. This opens up a new dimension of testing: Which title brings more clicks? Which description will keep users on the page longer? AI provides immediate data that teams can use to further refine content.

From blog to store optimization

Whether blog posts, landing pages or product pages – the tools adapt individually. Google Titles and preview texts are created automatically and can be imported directly into the CMS or store via XML import. This puts an end to the tedious copy-paste of individual content. Particularly exciting: AI recognizes patterns in search queries and automatically suggests content that is highly relevant to the target group. If you use this, you can build a data-driven content machine in the background that grows continuously.

• Automated content pipelines
• SEO optimization in real time
• Strategy driven by data

Create images and graphics with AI

Fotos machen? So 2026

Searching for stock photos is a thing of the past. Today, AI can be used to generate realistic images and complex infographics using a text prompt. People used to spend hours on platforms like Shutterstock – and often still couldn’t find a suitable image. It was particularly difficult in niches, for new products or for scenarios that simply didn’t exist yet. AI solves this problem by generating image ideas directly. This not only creates unique visuals, but also a consistent visual language across all channels.

Visual content for every platform

Images and graphics can be used immediately for blog articles, SEO strategies and social media posts. The big advantage: every brand can create its own visual world without being dependent on external providers. This not only makes production cheaper, but also strengthens the brand identity because the visual language and tonality can be controlled directly.

Create videos with AI

Content nach Keyword Plan (AI)

Video production days used to be expensive and inflexible. Today, small content pieces can be created in just a few minutes with AI and changed immediately if necessary. Instead of expensive days of filming in the studio, a short prompt is often enough to create a complete explanatory video or even a promotional film. The comparison is impressive: where several weeks of planning used to be necessary, today several versions for different target groups are created in just a few hours. This not only speeds up campaigns, but also makes them much more flexible.

Realistic avatars and speakers

Videoschnitt der AI Avatare

Modern tools can reproduce real people, right down to their voice, facial expressions and gestures. This allows videos to be produced in series without the voice actors having to go to the studio every time. This is a revolution, especially for brands with high content requirements. At the same time, the question of authenticity arises: do customers prefer to see real people or is a perfect simulation enough? This shows that AI not only changes technology, but also the expectations and perceptions of target groups.

Website and store automation

AI is also changing customer service. Instead of waiting for human responses, companies now offer chatbots that are available around the clock. These systems access databases, answer questions and even speak fluently with customers. The advantage is obvious: no one has to wait for opening hours anymore. But there’s more: AI can also act proactively, give purchase recommendations and make individual product recommendations – an area that was previously only possible with enormous effort in e-commerce.

Automated campaign planning

E-Mail Funnel (Automatisierung)

Not only customer service is automated. Newsletter marketing, funnel strategies and A/B split tests are also faster and more targeted. In the past, marketing teams had to plan test runs over weeks and evaluate them manually. Today, AI immediately generates several variants, tests them in parallel and delivers results in real time. As a result, companies gain speed and can make data-based decisions without long waiting times.

Change through AI

Google setzt auf KI statt Suchergebnisse

The world is changing – and so is marketing. Giants like Google have to rethink their business models because new players like OpenAI are conquering the market and other offspring like Worldcoin. Even giants like Meta are investing billions in AI. And alongside the giants are many small tools such as Gauth AI (from ByteDance). In addition, there is more and more augmented reality (AR) such as VR glasses from Meta or Snapchat.

Creators and influencers are also feeling the change: videos can now be created at the touch of a button. This is having an impact on entire industries – from film production and copywriting agencies to traditional photographers. Where expensive hardware and large teams used to be necessary, today a laptop with the right software is often enough.

New opportunities for all

The advantage: Anyone can realize their ideas without large budgets or networks. The boundaries between professional and amateur are becoming blurred. A person with a good concept can now produce the same level of content as a company with a large team – if they know the right tools. This opens up completely new markets, but also changes expectations: Customers are getting used to fast, high-quality content – and companies have to keep up.

What makes the use of AI difficult for companies?

Many companies fail not because of the technology, but because of how they deal with the flood of new tools. Hundreds of AI applications appear every month, only a few of which are really relevant. If you don’t have a clear overview, you quickly lose time and money. What’s more: Not every team is prepared to use AI effectively. The tools are powerful, but they require knowledge, experience and, above all, a good strategy. Without this, they often remain unused or are used incorrectly.

Integration into the company

AI goes far beyond content: CRM systems, recruiting or data analysis – everything can be automated. But without specialist knowledge, the potential remains untapped. This is why more and more companies are relying on specialized consultants to select and implement the right tools. Those who have this expertise in-house can scale their processes, while others get stuck in the jungle of possibilities. In retrospect, the difference is not whether you use AI, but how you use it.

• Too many tools to choose from
• Lack of expertise in the team
• High demand for integration

Building a successful brand: How To

In today’s digital world, e-commerce has become a central pillar for companies that want to successfuly place their products on the market. However, the road to success is often riddled with challenges that require a sound strategy. In this blog post, we will look at various aspects of product development, e-commerce and brand building to give you a comprehensive perspective.

Product development: fast, high-quality and efficient

A key to successful product development is the combination of speed and quality. Companies should have the experience to understand the needs of their target group and develop products that meet these needs. It is important to use agile methods in order to be able to react quickly to market changes without compromising on quality.

Negotiation and packaging: The art of the deal and the presentation

Negotiation skills are another important aspect of building a successful e-commerce business. Through skillful negotiations with suppliers and partners, companies can achieve competitive prices and maximize their margins. Packaging also plays a crucial role in presenting the product in an appealing way and strengthening the brand identity.

Here is a brief overview:

• Product development: Fast, high-quality, agile
• Negotiation and packaging: skillful deals, appealing presentation
• E-commerce success: efficient negotiation, convincing packaging

E-commerce: design, payments and search engine optimization

An appealing e-commerce design is crucial to attract potential customers and ensure a positive user experience. Otherwise, companies should offer secure and user-friendly payment methods to increase the conversion rate. Last but not least, effective search engine optimization is essential to improve the visibility of products in search results and generate more organic traffic.

Shipping, interfaces and returns: Efficient fulfillment

A smooth shipping process is crucial to ensure customer satisfaction and avoid negative reviews. Companies should have efficient interfaces in place to automate the ordering process and handle returns with ease. Ideally, fulfillment should be handled entirely in-house to maintain control over the entire process.

In short:

• E-commerce optimization: attractive design, secure payments, SEO
• Efficient fulfillment: smooth shipping, automated processes, internal control

Creating success through the right strategy and experience:

Measuring success in reporting:

Own referral marketing and backlinks: Strengthening the brand presence

Through their own referral marketing, companies can reward loyal customers and attract new customers at the same time. In addition, backlinks should be built in relevant media to strengthen the authority of the website and improve search engine rankings.

Own Creator Pool: Investment in the future

A dedicated creator pool offers companies the opportunity to work with influencers and content creators to showcase their brand and expand their reach. This is an investment in the future, as influencer marketing is playing an increasingly important role in e-commerce.

• Backlinks in quality media
• User-generated content
• Collaboration with (micro) influencers

Social ads and internal marketing strategies

The use of social ads enables companies to address their target group in a targeted manner and advertise their products effectively. Through internal marketing strategies, companies can also strengthen customer loyalty and build long-term relationships.

Email marketing and sales funnel: Your direct connection to customers

With our email marketing and sales funnel service, you can build a direct connection with your customers. We help you to create highly effective email campaigns that strengthen your customer loyalty and increase your sales. By implementing an effective sales funnel, we optimize your sales processes and maximize your conversion rates.

• Social ads (advertisements on Instagram, TikTok, etc.)
• Data-based ads and performance marketing
• Email marketing and sales funnel

Brand building and continuous development

Brand building is an ongoing process that requires time and commitment. Companies should focus on building a strong brand identity and continuously developing it in order to stand out from the competition and ensure long-term success.

Launch party, influencer events, roadshow

Launch parties, influencer events and roadshows are other key components of a company’s successful start and long-term growth strategy. An exciting launch party allows you to introduce your brand to a wide audience and build initial customer relationships. Influencer events allow you to collaborate with influential personalities to expand your reach and engage with potential customers. Roadshows offer a unique opportunity to present your products in person and receive direct feedback from customers.

Together, these events form a holistic approach to promoting your brand and building long-term relationships with customers.

Build brand 2026!

Overall, successful e-commerce is a complex business that requires a holistic strategy that encompasses product development, negotiation, marketing and fulfillment. By implementing this strategy, companies can strengthen their brand, increase their sales and achieve long-term success in the digital market. Do you want to develop and scale your brand? Write and without obligation or give us a call:

• Contact us