Question

Topic: Student Questions

How Much Should An Ad Agency Charge X Campaign?

Posted by Anonymous on 8/12/2013 at 5:23 PM ET 250 Points
How much advertising boutique agencies charge for a full campaign incl. web design, logo design, brochure, print advertising, and business cards?
Is there an average charged in the state of Florida?
How can you define your prices?
Are there any websites with the mean and median prices of ad prices?
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted on 8/12/2013 at 5:31 PM Accepted
    How much does dinner cost?

    Like the answer to your first question, the answer to this one is "It depends." You can spend a lot (e.g., dinner at a 5-star restaurant with an expensive bottle of wine = $150+ per person), or you can buy a box of macaroni and cheese and eat at home for less than $1.00.

    The cost of an agency can range from not-much to a-whole-lot.
  • Posted by Gary Bloomer on 8/12/2013 at 10:21 PM Accepted
    It's probably less about what an agency "should" charge and more to do with the results they bring in, per client. I know of shops and one person outfits charging sky high retainers BUT, who also deliver the goods. I gree with Michael: it depends. And in Florida, there's no state average I know if. Likewise mean prices because there are fees to buy the space for an ad AND fees on top of that for the creative. However, an expensive spot in a fancy magazine with an expensively designed ad won't pull for snot if the ad sucks.
  • Posted on 8/18/2013 at 5:53 PM Moderator
    Gary's right. A campaign that generates $100,000 in business for a client is worth a lot more than one that only generates $20,000, assuming the media and production costs are the same. And a client would be foolish to hire a cheap agency whose work sucks when it can hire an expensive agency that really delivers great results for them.

    The average you're looking for -- even if it were available (which it's not) -- would, by definition, include at least 50% of agencies that are below the median.

    The way to price your services is based on the value of what you deliver for the client. Get that right instead of focusing on meaningless pricing averages.
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Student Questions)