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Digital Advertising

How to Choose an Advertising Agency: 10 Questions

By Spotlight StaffPublished Updated 7 min read

In short

Ask how the agency defines success, explains costs, handles accounts and checks lead quality. Compare evidence and responsibilities using the same brief, then resolve weak answers before signing.

Part of our Digital Advertising series. Start with the guide: Streaming TV Advertising: A Local Business Guide
On this page (6)
  1. What should an advertising agency do?
  2. Ten questions to ask before signing
  3. Compare proposals with evidence
  4. Use the scorecard as a conversation guide
  5. Choose a fit for the way your business works
  6. Frequently asked questions

Choose an advertising agency by how clearly it connects the work to your business goal, explains costs and gives you a reliable way to evaluate progress. The right questions reveal more than a platform list or a polished sales presentation.

Bring these questions to any agency conversation, including one with Spotlight. Use the same brief for each partner so you can compare the reasoning, responsibilities and complete cost. This is a decision aid, not an independent ranking of agencies.

What should an advertising agency do?

An agency helps define the audience and offer, choose suitable media, create or coordinate the ads, manage delivery and explain what the results mean. The exact scope varies. Some partners handle strategy and creative; others specialize in buying or production.

Before evaluating proposals, decide what you need help with. If the website cannot explain the service or the team cannot respond to inquiries, buying more traffic may be premature. Our advertising playbook helps turn that decision into a useful brief.

Ten questions to ask before signing

1. What outcome will we judge this by?

A useful answer connects the campaign to qualified inquiries, attended appointments, profitable sales or a defined awareness objective. Ask how success will be assessed and what information is still missing. Reach and clicks can support the picture; they should not be casually presented as customers.

2. Who controls the accounts and data?

Ask how your business will access, recover and retain its advertising and analytics accounts. Clarify what stays with you at the end of the relationship, including creative licenses, tracking numbers, campaign history and reports. Some media arrangements differ, so get the specifics in writing.

3. Who does the work and who answers questions?

Meet the person accountable for the campaign, understand any specialist or subcontractor roles, and agree on communication. A named contact and a clear review schedule are more useful than an impressive team slide with no explanation of who is assigned.

4. What are the complete fees?

Separate media spend, strategy, management, production, tracking and other charges. Google’s third-party transparency policy requires management-fee disclosure and access to relevant account information. Ask how billing works, which charges can change and who approves an increase.

5. What would you leave out?

A thoughtful proposal explains why a channel fits and why another can wait. The answer should reflect your buyers, geography, budget and capacity. Be cautious if every conversation ends with the same bundle regardless of the business problem.

6. How will completed inquiries and quality be measured?

Ask to see the path from a real form, call or booking to the receiving business record. Clarify spam, duplicate inquiries, attribution windows and any unobservable handoffs. A button click or video view should not quietly become a qualified lead in the report.

7. What happens before launch and at the first review?

Look for a practical sequence: research, account access, destination and tracking checks, approved creative, launch monitoring and a scheduled review. Ask what evidence would trigger a change and how the plan handles a slow buying cycle.

8. Can you show relevant work with context?

A credible example names the problem, work, timeframe and outcome where the client has permitted disclosure. Ask what was measured and what other factors may have contributed. A dramatic percentage without a baseline is difficult to evaluate.

9. What are the commitments and exit terms?

Read the scope, notice period, minimum spend, cancellation conditions, asset ownership and handover process. A short agreement can still contain a poor handoff; a longer agreement can be reasonable for substantial production. Compare the actual terms rather than the sales label.

10. Who makes and improves the creative?

Understand who writes, designs, films and approves the work, whether they are in-house or specialist partners. Ask how the team will test and refresh the message, what production is included and which usage rights your business receives.

Compare proposals with evidence

Ask each agency to provide the same basic evidenceSwipe sideways to see all columns
AreaUseful evidence
PlanAudience, objective, channel roles and explanation of tradeoffs
CostsMedia and fees separated, with approval and billing rules
MeasurementDefinitions, sample report and a tested completion path
PeopleNamed accountable contact and specialist responsibilities
OwnershipAccess, licenses, account recovery and handover terms

Do not reject an agency solely because it uses a specialist partner or proposes an awareness campaign. Ask whether the arrangement fits the job and whether it is explained honestly. Warning signs include guaranteed results, unexplained fees, no account access, vague responsibility or reluctance to discuss limitations.

Ask for one report walkthrough, not just a sample PDF

A useful follow-up request is: “Please show how one completed inquiry appears in your report, where qualification is recorded, which costs are included and what happens after the sales team follows up.” A sample or anonymized demonstration is enough for this conversation; you do not need another client’s private records.

Then compare the proposal with that example. Does the quoted scope include the measurement and review work you just saw? Are production revisions, licensing, third-party subscriptions and handover covered or separate? Write unresolved items into the scope discussion rather than assuming the presentation includes them.

Our lead-quality example shows why a report’s definition of a lead changes the conversation.

Use the scorecard as a conversation guide

Score each answer 0 if it is unclear, 1 if it is partly answered and 2 if the explanation is clear and supported. The total helps compare your notes; it is not a validated predictor of campaign performance. An unresolved ownership or billing issue deserves attention even when the total looks strong.

1. What one number will we judge this by?2 points: A useful outcome tied to the business goal
2. Who owns the ad accounts?2 points: Account access, control and handoff are clear in writing.
3. Who works on my account?2 points: A name and a regular check-in
4. How do you get paid?2 points: Fees and ad spend split out in writing
5. What would you skip for us?2 points: Specific channels, with reasons
6. How will you count calls and leads?2 points: Completed inquiries with a documented attribution method
7. What happens before the first review?2 points: Milestones and a review date
8. Results for a business like mine?2 points: Relevant work with context, evidence and appropriate permission.
9. What if it isn’t working?2 points: Review, notice, cancellation and handover terms are clear.
10. Do you make the ads too?2 points: Clear creative ownership and a testing plan
Score: – / 20

Answered 0 of 10.

Follow up on the weakest answers before choosing. If two proposals look similar, ask each team to explain its most important tradeoff and what would make it change the plan. You are buying judgment and delivery, not a particular report format.

Choose a fit for the way your business works

A local team may offer market familiarity and easier in-person collaboration. A specialist elsewhere may have relevant category experience. Look at the actual people assigned, their ability to explain the work and how they will coordinate with your staff.

For channel-specific preparation, read our streaming TV guide and digital-versus-traditional comparison. For reporting, use the advertising tools guide. To put the questions to Spotlight, explore our advertising services or book a 15-minute team conversation.

Frequently asked questions

How much should a business spend on advertising?

Use your goal, margins, capacity and buying cycle to build a realistic budget. Ask for media, production and management costs separately. A budget from another business is not a dependable benchmark.

How long should an advertising test run?

Agree on a review plan based on the buying cycle, budget and expected number of meaningful outcomes. A fixed number of weeks cannot guarantee enough evidence, especially for a small local audience.

Should I hire a local advertising agency?

Local knowledge and access can help, but compare the actual team, process, relevant work, transparency and accountability. Use the same questions for local and national partners.

Written by

Spotlight Staff, Spotlight Media.

Written and edited by the team at Spotlight Media, a full-service marketing agency in Fargo, North Dakota. Strategy, advertising, websites, SEO and creative for businesses across the region since 2010.

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spotlight. Digital Advertising

How to Choose an Advertising Agency: 10 Questions.

Spotlight Staff
October 2026 · 7 min read

spotlightmediafargo.com
How to Choose an Advertising Agency: 10 Questions

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