Insight · StrategyMOFU
How to choose a performance marketing agency (12 questions to ask)
The short answer
Most agency pitches look the same: impressive logos, confident case studies and a promise of growth. The differences show up three months later, in how the account is run and how honestly results are reported. These are the questions we'd ask if we were hiring an agency ourselves — including the ones agencies find uncomfortable.
About targets and economics
- How will you set our ROAS or CAC target? Good answer: from our margins, shipping, returns and payback. Bad answer: "industry benchmarks".
- What's our break-even ROAS? If they can't work it out with you in the first meeting, they're guessing.
- What will you do if our unit economics can't support paid growth? An honest agency will tell you.
About tracking
- What will you check before spending? Look for pixel, Conversions API, deduplication and value accuracy.
- How will you handle lead quality? For lead generation, expect talk of CRM feedback and offline conversions.
About reporting
- What's on the weekly report? Look for blended metrics like MER and new-customer CAC, not just platform ROAS.
- How do you handle Meta and Google both claiming the same sale? A good agency has a clear answer.
- Will you run incrementality tests? At meaningful spend, they should.
About people and ownership
- Who exactly will run our account? Meet them. Ask how many accounts they manage.
- Who owns the ad accounts, pixels and data? You should.
- What's the notice period? Short terms signal confidence.
- Can we speak to a current client? In your category, ideally.
Red flags
- Guaranteed ROAS or lead volume before seeing your data
- Reporting only impressions, clicks and platform ROAS
- Ad accounts created in the agency's name
- A senior pitch team that disappears after signing
- Pure pay-per-lead pricing that rewards volume over quality
- Case studies with suspiciously round numbers and no context
What good looks like
The best agencies ask more questions than they answer in the first meeting — about margins, customers, sales process and data. They'll tell you what they'd fix first, what they don't know yet, and how they'll prove whether it's working. See how we work.
A scoring sheet for agency pitches
| Criterion | Weight | Questions |
|---|---|---|
| Economics | High | Did they ask about margins and LTV? |
| Measurement | High | Did they find tracking issues in your account? |
| People | High | Who runs the account day to day? |
| Creative | Medium | How many concepts a month, and who makes them? |
| Reporting | Medium | Blended metrics, reconciled with sales? |
| Terms | Medium | Ownership, notice period, scope clarity |
| Fit | Medium | Experience in your category or similar economics |
What to do next
- Shortlist three agencies
- Ask each for a sample report and audit
- Score pitches with the same criteria
- Agree a three-month review point
Frequently asked questions
How many agencies should we speak to?
Three to five is usually enough to compare approaches without wasting weeks.
Should we ask for a test project?
A paid audit or a short pilot can be useful. Be wary of agencies that promise results before seeing your data.
What should an agency proposal include?
Goals, channel plan, budget, creative volume, measurement approach, team, reporting cadence, fees and terms.
How long should an agency trial last?
Usually three months is enough to judge an agency's process and early results.
Should we hire an agency with experience in our industry?
It helps, but process, measurement and communication matter as much as sector experience.
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