How much does a digital marketing agency cost?
It depends on the channels, the amount of work and who does it. Pricing research published in the UK puts a small business's agency retainer at roughly one to two thousand pounds a month, with packages covering several channels running into many thousands. Advertising spend is usually paid on top, and any quote should say what hours and work the fee buys.
By Richard Thomas-Pryce, Founder · Updated
Agencies charge in three main ways. A monthly retainer pays for ongoing work across one or more channels. A project fee covers a defined job, such as a website, a campaign set-up or an audit. Day or hourly rates cover advice and smaller pieces of work. Most small businesses end up on a retainer, so that is the number worth understanding.
Published figures give a rough guide, though they come from agencies and comparison sites rather than independent surveys. Expert Market's UK guide, updated in March 2025, puts small businesses at one to two thousand pounds a month for an agency package and the average single-service retainer at around nine hundred and sixty pounds. Whito's UK retainer research, with core ranges updated in May 2026, says small and medium businesses should expect to start at one to two thousand pounds a month for meaningful work, with single-channel retainers at about twelve hundred and fifty to three and a half thousand, and full-service retainers across several channels between three and a half thousand and almost seventeen thousand.
The fee and the advertising budget are separate. If an agency runs Google or Meta ads for you, the money spent on the ads goes to the platform on top of the management fee, and some agencies charge for management as a percentage of that spend. Ask which applies before comparing quotes.
The figure matters less than what it buys. Two quotes at the same price can mean a skilled person spending a day a week on your account, or a software report and a short call. Ask how many hours the fee covers, who does the work, what will be delivered in the first three months and how results will be measured in enquiries.
For a local trade, paying for every channel at once is rarely the best use of money. Start with the channel closest to customers who are ready to book, usually local search and reviews, prove it brings enquiries, then add others. A smaller budget aimed well does more than a full-service package spread thin.
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