10 questions you should ask yourself before choosing a digital marketing agency

Choosing the right digital marketing agency can be the difference between an investment that delivers a solid return and money thrown down the drain. We’ve seen companies spend hundreds of thousands on agencies that delivered fancy reports and empty promises, whilst others have found partners who actually made a difference. The difference rarely lies in the agency’s size or glossy presentations. It lies in the questions you ask before signing the contract.

Most people make the mistake of focusing on what the agency says they can do, rather than digging into how they actually work and whether they’re a good fit for your specific situation. An agency that is perfect for a large e-commerce player may be completely wrong for a B2B company with a long sales cycle. That is why this is not about finding the ‘best’ agency, but the right agency for you.

Here are ten questions you should ask yourself before choosing a digital marketing agency. These aren’t questions you ask the agency in a sales meeting, but questions you need clear answers to internally before you even start the process. Without this clarification, you’ll end up comparing apples and oranges, and the choice will be more random than strategic.

Define your own goals and expectations

Before you contact a single agency, you must have a crystal-clear understanding of what you actually want to achieve. This sounds obvious, but we have sat in countless meetings where companies say they want “more visibility” or “a better digital presence” without being able to specify what that means in practice. A good agency will challenge you on this, but a less reputable agency will happily take your money and deliver vague results that you cannot measure.

Your goals should be so specific that you can know with certainty in six months’ time whether they have been achieved or not. «Increase traffic» is not a goal. «Increase organic traffic by 40 per cent by Q3» is a goal. This precision forces you to think through what actually drives your business, and it makes it much easier to assess whether an agency can help you get there.

What are the specific KPIs we want to achieve?

KPIs must be linked to actual business results. Many people are impressed by agencies that promise thousands of new followers or high view counts, but these figures are worthless if they don’t convert into something that matters to the bottom line. Start at the end: what is it you ultimately want to achieve? More sales? More qualified leads? Higher customer loyalty?

Work backwards from there. If the goal is more sales, what is the conversion rate from lead to customer? How many leads do you need then? How many visitors are required to generate that number of leads? Suddenly, you have concrete figures to work towards. This also allows you to hold the agency accountable for results that actually matter, not just activity targets that look good in reports.

Be honest with yourself about how mature your marketing efforts are today. If you don’t have basic tracking in place, the first phase should be about establishing metrics. Without baseline data, it’s impossible to know if anything is working.

What budget do we realistically have available?

Your budget determines not only which agencies you can afford, but also which strategies are realistic. An SEO campaign typically takes six to twelve months before you see significant results, whilst paid advertising can drive traffic from day one but requires continuous investment. Do you have the patience and capital for long-term building, or do you need quick results?

Be realistic about what you can expect for your budget. If you have 15,000 kroner a month, you cannot expect an agency to work on SEO, advertising, social media and content production all at the same time. You will either get superficial work on everything or proper work on one thing. A good agency will be honest about this. A bad agency will promise everything and underdeliver on most things.

Also remember that agency fees are only one part of the cost. Advertising costs are on top of that. The same goes for any production of content, images or video. Make sure the total budget is agreed internally before you start discussions.

Assess the agency’s expertise and experience

All agencies claim to be experts. The challenge is to distinguish those who can actually deliver from those who are good at selling. This requires you to dig deeper than the website and sales pitch. You must ask specific questions and request evidence.

Does the marketing agency have experience in our specific industry?

Industry experience isn’t always crucial, but it can save you a lot of time and money. An agency that has worked with similar businesses already understands the customer journey, the competitive landscape and which channels work. They’ve made the mistakes at someone else’s expense and know what actually drives results in your type of market.

At the same time, an agency without direct industry experience can bring fresh perspectives. Sometimes the best ideas come from completely different industries. The key is to understand whether the agency has the ability to quickly get to grips with your reality. Ask them to explain how they intend to learn about your industry. If the answer is vague, that’s a warning sign.

For regulated sectors such as finance, healthcare or law, industry experience is often critical. These sectors have strict marketing regulations, and an agency unfamiliar with the rules may produce content that has to be withdrawn or, in the worst case, creates legal problems.

Can they provide concrete references and case studies?

Case studies should contain concrete figures, not just vague claims of “increased visibility” or “improved engagement”. Ask for specific results: by how much did traffic increase? What was the conversion rate before and after? How long did it take? If the agency cannot or will not share such details, you should ask yourself why.

References are worth their weight in gold, but use them wisely. Don’t just ask if the client was satisfied. Ask about concrete results, how the collaboration worked in practice, and what could have been improved. Most people will give honest answers if you ask open-ended questions.

Be aware that some agencies showcase their best work whilst, in practice, assigning junior staff to most projects. Ask who will actually be working on your account, and ask to meet them before you sign.

What tools and technologies do they use?

The tools an agency uses say a lot about how professional they are. Professional agencies invest in proper analytics tools, automation platforms and reporting systems. If they’re still doing everything manually in spreadsheets, it’s a sign that they might not be keeping up with developments.

Also ask if they use AI tools and, if so, how. AI can streamline a lot of work, but it requires expertise to use it correctly. An agency that uses AI to mass-produce generic content delivers something completely different from one that uses AI to analyse data and optimise campaigns whilst retaining human creativity and quality control.

Technological expertise is also about integrations. Can the agency connect to your existing systems, such as CRM, email marketing or analytics? Seamless data flow between systems is crucial for measuring actual ROI.

Transparency and reporting procedures

A lack of transparency is one of the most common complaints businesses have about their agencies. You pay for results, and you have the right to know exactly what is being done and how it works. An agency that is vague about its methods or reluctant to share data probably has something to hide.

How and how often will we receive performance reports?

The frequency of reporting should be tailored to the nature of the project. For paid campaigns with daily optimisations, weekly updates may be sensible. For SEO work where changes take time, monthly reports are often sufficient. The most important thing is not the frequency, but the content.

Good reports focus on the KPIs you have agreed upon, not on vanity metrics that look impressive but mean nothing. They explain not only what happened, but why, and what needs to be done next. If the reports are just figures without analysis and recommendations, you won’t get the value you’re paying for.

Also agree on how you’ll communicate outside of the regular reports. What happens if something is urgent? How quickly can you expect answers to questions? Clear expectations here prevent frustration later on.

Do we own the data and accounts ourselves?

This is critically important and is often overlooked. All advertising accounts, analytics set-ups and other digital assets should be held in your company’s accounts, not the agency’s. The agency may have access to work on them, but you must own them. If the relationship ends, you should be able to move on without losing historical data or having to start from scratch.

Some agencies set up accounts in their own name, which makes you dependent on them. Others withhold data or reports if you choose to end the collaboration. Clarify this in writing before you start. You don’t want to discover the problem only when you try to switch agencies.

Also ask about the content produced. Who owns the rights to texts, images and videos? This should be clearly stated in the contract.

Communication and working methods

Technical expertise means little if communication doesn’t work. You will be working closely with these people over time, and poor communication is one of the main reasons why agency relationships break down. Consider this carefully before committing.

Who will be our main point of contact?

Many agencies send their best people to sales meetings, only to hand things over to junior staff once the contract is signed. Ask directly who will have day-to-day responsibility for your account, and ask to meet them. Assess their experience, communication skills and whether you have good chemistry.

A dedicated contact person who knows your business and your goals is worth a great deal. If you have to explain the situation all over again every time you call because you’re speaking to different people, you lose time and continuity. Also clarify what happens if the contact person leaves or is off sick. Who takes over, and how is knowledge transfer ensured?

Availability is also important. Can you call the contact person directly, or does everything have to go through a support system? How quickly can you expect a response? Expectations that aren’t clarified in advance lead to conflict later on.

Does the agency’s culture match our own?

Cultural fit is often underestimated, but it significantly affects collaboration. An agency with an informal, creative culture may struggle to communicate effectively with a conservative company that expects formal processes. Conversely, a bureaucratic agency may frustrate a start-up that wants quick decisions and flexibility.

Think through how you work internally and what you expect from partners. Do you prefer long strategy meetings or short, efficient updates? Do you want to be involved in the details or just see the results? Are you comfortable with your ideas being challenged, or do you prefer an agency that does exactly what you ask?

Feel free to visit the agency’s office if possible. How do they work? How do they talk about their clients? First impressions often say a lot about what you can expect from a long-term partnership.

Pricing models and contract terms

The financials must be crystal clear. Unclear pricing models and unfavourable contract terms are among the most common sources of conflict between companies and agencies. Take the time to understand exactly what you’re paying for and what happens if things don’t work out.

Is the pricing structure transparent, or are there hidden costs?

Agencies operate with various pricing models: fixed monthly fee, hourly rate, commission based on results, or combinations of these. Each model has its pros and cons. A fixed price offers predictability but may mean the agency does the bare minimum. An hourly rate offers flexibility but can get out of hand. Commission models align interests but can lead the agency to prioritise short-term gains.

Whichever model you choose, you must understand exactly what is included and what is charged separately. Is strategy work included or billed separately? What about meetings and reporting? Content production? Advertising costs? Ask for a detailed breakdown of all potential costs, not just the base fee.

Pay particular attention to set-up costs. Some agencies charge significant one-off fees for onboarding and strategy development. This may be legitimate, but make sure you understand what you’re getting for your money.

What is the notice period in the contract?

Long lock-in periods and notice periods are common in the industry, but they primarily protect the agency, not you. A twelve-month lock-in period means you’re stuck even if the partnership isn’t working out. Some agencies argue that they need time to show results, and that makes sense for long-term strategies such as SEO. But you should still have the option to walk away if the agency isn’t delivering.

Look for contracts with reasonable notice periods, ideally one to three months. Be wary of agencies that insist on long lock-in periods without good reasons. If they are confident that they deliver value, they shouldn’t need to lock you in.

Also check what happens upon termination. Will you have access to all data and accounts? Are there any costs associated with termination? What about ongoing campaigns? The clearer this is defined, the easier any transition will be.

The way forward after the decision

Once you have asked yourself these questions and obtained clear answers, you are in a much better position to evaluate agencies. You know what you need, what you can afford, and what you expect. This makes discussions with potential partners more productive and reduces the risk of making the wrong choice.

Remember that choosing a marketing agency is not a one-off decision. The best partnerships develop over time. Feel free to start with a limited pilot project to test the partnership before committing to larger engagements. This gives both parties the opportunity to assess whether it works without too much risk.

The best agency relationships are those where the agency acts as an extension of your team, not just an external supplier. They understand your business, challenge you when necessary, and celebrate your successes with you. This requires both parties to invest in the relationship.

If you’re looking for a partner who works closely with you to achieve measurable results, it might be worth having a no-obligation chat with someone who understands this approach. Book a meeting to discuss what such a partnership could look like for your business.