Contents
Key Takeaways
- A digital marketing agency's cost is the sum of the channels it runs: SEO, paid ads, local SEO, web design, AI search, plus ad spend paid to the platforms.
- SEO retainers commonly run from a few hundred to several thousand dollars a month; agencies averaged $3,209 in Ahrefs' survey.
- Ad spend is separate from management fees, and a Google Ads lead cost $66.69 on average across US industries in 2026.
- Bundles cost less than buying each channel separately and are easier to measure as one plan.
- Start with the channel closest to revenue, usually search, and add others once tracking shows what works.
A digital marketing agency costs the sum of the channels it runs for you, usually a monthly fee for each of SEO, paid ads, local SEO, AI search and content, plus the ad spend you pay to Google or other platforms. Small businesses typically start with one or two channels; a full plan across search, ads and local costs more but is easier to measure as a whole. Below: what each channel costs, how bundles work, and our own prices.
What Each Channel Costs
| Channel | How it is usually priced | Where to read more |
|---|---|---|
| SEO | Monthly retainer; agencies averaged $3,209 a month in Ahrefs' survey | How much SEO costs |
| Local SEO | Monthly fee for set deliverables, often per location | How much local SEO costs |
| Google Ads management | Flat fee or percentage of ad spend, plus the ad spend itself | How much PPC management costs |
| Web design | One-off project, plus running costs | How much a website costs |
| Ecommerce SEO | Monthly fee, often with a setup fee | How much ecommerce SEO costs |
On top of the fees, paid channels need ad spend. LocalIQ's 2026 benchmarks put the average Google Ads lead at $66.69 across US industries, from about $30 in auto repair to $131.63 in legal services.
Bundles Versus Single Channels
Buying channels separately lets you start small and add as you go. A bundle from one agency usually costs less than the same channels bought one by one, and it has two practical advantages: one lead definition and one report across every channel, so you can see which one brings customers, and one plan, so SEO, ads and local work support each other instead of competing for the same searches.
What We Charge
Our digital marketing services combine our own service plans at 10% less than buying them separately:
| Bundle | Includes | Price |
|---|---|---|
| Local Growth | Local SEO and Google Ads, for one area | $3,600 a month |
| Full Funnel | SEO, Google Ads and local SEO, with the guarantee | $9,450 a month |
| Full Funnel + AI Search | Everything, plus being named in AI answers | $12,600 a month |
Setup is waived on quarterly prepay, the minimum term is three months, and ad spend is paid directly to Google. If your budget is too small for a bundle, a single service or an audit is the better start.
How to Set a Budget
- Start with the customers you need each month, and what one is worth to you.
- Work back to leads using your close rate.
- Estimate the cost of those leads in each channel, using benchmarks until you have your own data.
- Fund the channel closest to revenue first, usually search: Google Ads for leads now, SEO and local SEO for lower costs over time.
- Add channels when tracking shows the first one working.
Here is what running SEO and Google Ads together did for one of our clients:
What to Expect in the First 90 Days
A new agency should spend the first weeks on foundations, not on reporting:
- Weeks 1 to 2: access, tracking fixed across every channel, one agreed definition of a lead, and a baseline.
- Weeks 3 to 6: quick wins: wasted ad spend cut, pages close to page one improved, Business Profile fixed.
- Weeks 7 to 12: new content, landing page tests, reviews and links building up, and the first comparison with the baseline.
If you are 90 days in and still cannot see leads by channel, the tracking has not been done, and every budget decision after that is a guess.
Signs You Are Paying for the Wrong Mix
- Ad spend rises every month but leads do not. The problem is usually tracking, targeting or the landing page, not the budget.
- Traffic grows but calls do not. The content is attracting the wrong searches, or the pages do not convert.
- Every channel reports success, but revenue is flat. Different channels are claiming the same customers. One lead definition and one report fixes this.
- You cannot say what you would lose by cutting a channel. Test it: pause the least proven channel for a month and watch leads.
Questions to Ask Any Agency
- What exactly is done each month in each channel?
- How is a lead defined, and how is it tracked?
- Who owns the ad accounts, the website and the data?
- What is the minimum term and the notice period?
- What happens if results do not move, and how is that measured?
The planner on our digital marketing page suggests a channel mix for your budget and goal, and shows the costs before you speak to anyone.
Frequently Asked Questions
How much should a small business spend on digital marketing?
Start from the customers you need and what each one is worth. Work out the leads required at your close rate, then the cost of those leads in each channel. Many small businesses start with one or two channels, such as local SEO and Google Ads, and add more once tracking shows what brings customers.
Do agency fees include ad spend?
Usually not. Management fees pay for the agency's work; ad spend is paid to Google, Meta or other platforms, ideally directly from your own account.
Is it cheaper to hire an agency or an in-house marketer?
One in-house marketer costs a salary plus tools and rarely covers SEO, ads, content and design equally well. An agency gives access to several specialists for a monthly fee. Many businesses combine a small in-house team with an agency for specialist work.
What should a digital marketing agency report on?
Leads, customers and revenue by channel, and the cost of each, alongside supporting numbers such as traffic, rankings and ad performance. If a report only shows clicks and impressions, ask for the leads.