How to Compare Ad Agency Proposals: Checklist with a Worked Example
Daniel Huber, MBAFounder of Plaith

Several proposals, several formats, several pricing logics: one quotes a retainer, another a percentage, a third a package with videos. At first glance, it's hard to tell which is cheaper. With a fixed order and a simple calculation, it becomes clear.
Comparing Ad Agency Proposals: Six Cost Blocks
1. Setup
What does setup cost as a one-time fee? Is tracking included? In the expert report, documented setup terms range from "free" to waivable fees to "from" prices such as "€795, from €695." Some providers charge separately for tracking; in the sample, for example, €999 net for the pixel implementation. At Plaith, setup costs €1,999, or €1,499 for the first ten customers.
2. Monthly Retainer
What's included: number of campaigns, check-ins, reports? The four German Meta packages in the expert report cost an average of €1,086.25 per month.
3. Videos and Creatives
Are new videos included, and how many per month? In the sample, a video with a real person on camera costs an average of €199.93. If videos are missing from the proposal, add them.
4. Fees on the Ad Budget
Is there a percentage? Above what threshold? Does it also apply to additional budget?
5. Term and Cancellation
How long are you locked in? What happens to the setup, accounts and creatives if you cancel?
6. Reporting
How often do you get numbers, and which ones? A weekly report with concrete inquiries is something different from a monthly PDF showing reach.
The Calculation: The Same Total Spend
Once you've collected all the costs, here's how to calculate:
- Set a total spend over a fixed period.
- Subtract all service provider costs for each proposal.
- The rest is your ad budget.
- Multiply by the same ROAS for all proposals.
- Compare revenue per euro spent and what you keep.
That way you only compare the cost structure, not promises about results.
Worked Example S8
Growth package, €5,000 own budget per month, Booster with a one-time payment of €5,000, 24 months, conservative assumption of ROAS 3.
How We Run the Comparison
Both sides invest exactly the same total spend. On the Plaith side, it consists of your own ad budget, the setup fee, the package price, the budget fee and, if selected, the Booster. On the classic side, we subtract the cost of management and videos from the same amount. The basis is the benchmark from the expert report (Start €1,885.96, Growth €3,485.39, Scale €9,083.40 per month). The rest goes into ads. We don't include an agency setup fee there. Agency surcharges on the ad budget (for example 5% on everything or 10% on the portion above €1,000 per month, expert report section 4.1) are deliberately not included, so Plaith's lead is, if anything, larger.
| S8 · Growth · €5,000 own budget/month · Booster €5,000 · 24 months · ROAS 3 (assumption) | Plaith | Classic (same total spend) |
|---|---|---|
| Total spend (everything you pay) | €173,755 | €173,755 |
| of which to the service provider | €53,755 (incl. Booster €5,000) | €83,649.36 |
| of which own ad budget to the platform | €120,000 | €90,105.64 |
| Booster credit during the period | €12,000 | no leverage |
| Total ad budget | €132,000 | €90,105.64 |
| Revenue at ROAS 3 (assumption) | €396,000 | €270,316.92 |
| ROPS (revenue ÷ service provider costs) | 7.37 | 3.23 |
| Revenue per euro spent | €2.28 | €1.56 |
| What you keep (revenue minus spend, not profit) | €222,245 | €96,561.92 |
All Calculation Variants Side by Side
| Classic model, S8 | Ad budget | Service provider costs | Total spend | Revenue | What you keep |
|---|---|---|---|---|---|
| Plaith (for comparison) | €132,000 | €53,755 | €173,755 | €396,000 | €222,245 |
| C: same total spend (main comparison) | €90,105.64 | €83,649.36 | €173,755 | €270,316.92 | €96,561.92 |
| C with percentage surcharges | €85,370.01 | €88,384.99 | €173,755 | €256,110.03 | €82,355.03 |
| A: same budget, one-time amount 1:1 into ads | €125,000 | €83,649.36 | €208,649.36 | €375,000 | €166,350.64 |
| B: like A plus percentage surcharges | €125,000 | €90,861.86 | €215,861.86 | €375,000 | €159,138.14 |
How to read the table:
- C is our main comparison: same total spend, without surcharges and without agency setup.
- C with percentage surcharges factors in the average surcharges from the sample. "What you keep" in the classic model drops to €82,355.03.
- A gives the classic side the same own budget as Plaith and puts the Booster amount into ads 1:1. Then the classic spend is higher: €208,649.36.
- B is A plus surcharges.
Whichever variant you use: the comparison is only fair if you state it openly.
Cross-Check Without the Booster
| S8 with and without Booster | Plaith with Booster | Plaith without Booster | Classic (same spend) with | Classic without |
|---|---|---|---|---|
| Total spend | €173,755 | €168,035 | €173,755 | €168,035 |
| Total ad budget | €132,000 | €120,000 | €90,105.64 | €84,385.64 |
| Revenue | €396,000 | €360,000 | €270,316.92 | €253,156.92 |
| What you keep (not profit) | €222,245 | €191,965 | €96,561.92 | €85,121.92 |
| Extra left over thanks to the Booster | €30,280 | €11,440 |
Without a Booster, you spend less, but you also get less ad budget. At ROAS 3, you keep €30,280 more with the Booster.
Questions You Should Ask Every Provider
- How much of my total spend goes into ads?
- What costs come up that aren't in the proposal?
- Who creates the videos, and who owns the usage rights?
- How quickly will I see whether inquiries are coming in?
- What happens to accounts, data and creatives if I cancel?
Common Mistakes When Comparing Proposals
- Only comparing retainers: Videos and surcharges are missing.
- Different periods: Setup weighs more heavily over a short term.
- Different assumptions: If a provider promises a higher ROAS, that's not a cost question. Calculate with the same value.
- Mixing gross and net: Agency prices and Plaith prices are net, excluding VAT.
What the Booster Is
The Booster is an add-on module. Your ad budget then runs through Plaith instead of going directly to Meta. We pass our purchasing terms on to you as an ad budget package: for a one-time payment, you get one tenth of it as additional ad credit every month for 24 months, on top of your own budget. That turns €10,000 into €1,000 per month and €24,000 over the term. The credit is only valid with an active Plaith contract, is non-transferable, is not paid out in cash and is only used for ad delivery. If you cancel, you get the one-time payment back minus the credit already delivered, with a minimum of €0. If the platform's purchasing terms change, Plaith can end running packages with 30 days' notice; the same refund rule then applies. You'll clarify the exact terms in a call.
What You Gain When You Calculate Proposals the Same Way
You have several proposals in front of you with different pricing logics. You want to make a decision you won't regret in a year.
With a fixed order and the same spend, you choose based on numbers instead of the best sales pitch.
What you concretely gain:
- Less decision stress. Six cost blocks, one calculation. You don't have to see through each pricing logic separately.
- More advertising for your money. In S8, at the same spend, €132,000 goes into ads with Plaith, versus €90,105.64 with the classic model.
- A stronger negotiating position. You know the questions that bring hidden costs to light, and you ask every provider the same ones.
You set ROAS equal on both sides. It remains an assumption.
Objections, Answered Honestly
There are three typical objections when comparing proposals. Here's how to deal with them:
"The agency is showing me a higher ROAS."
Ask for proof. In the comparison, you set ROAS equal on both sides. Otherwise you're comparing promises instead of costs. The article Agency Charging a Percentage of Your Ad Spend shows how surcharges on the budget shift the comparison.
"I only pay the setup fee once, so it doesn't matter."
Over 12 months, it does matter. A one-time amount weighs on the result, especially at the beginning. So always include it in total spend.
"A proposal without videos is cheaper."
Only on paper. Without new videos, Meta ads rarely perform well for long. Plan the videos in, or you'll pay for them separately later.
Frequently Asked Questions
How do I compare ad agency proposals correctly?
Add up all costs over the same period: setup, retainer, videos, fees. Use the same total spend and the same ROAS for every proposal and compare what's left.
What does setup cost at an ad agency?
In the expert report's sample, terms range from "free" to "from" prices such as "€795, from €695." Tracking is sometimes charged separately.
Why should I calculate with the same total spend?
Because that way you see what becomes of the same money. Different spend levels make results incomparable.
Which ROAS belongs in the comparison?
The same one for all proposals. Calculate with a conservative and a medium assumption, for example ROAS 3 and 4. A provider who promises you a higher ROAS doesn't change their costs.
Further Reading
These articles go deeper on individual points:
- Facebook Ad Agency Costs 2026: What Management and Videos Cost per Month
- Agency Charging a Percentage of Your Ad Spend? Here's What It Costs You
- UGC Video Costs 2026: What an Ad Video with a Real Person Costs
Run Your Own Scenario
Put two proposals side by side and calculate both with the same total spend. Then open the **Plaith calculator on plaith.ai**. Enter your package, your own ad budget per month and, if you like, a Booster. Then choose a conservative ROAS assumption, for example 3. You'll instantly see the ad budget, the cost paid to Plaith and the ROPS for your case. The same applies there: worked example, no guarantee.
Sources
- Expert report on the costs of Meta management and videos with real people, version of October 5, 2026: sample of documented offers, not a market study. Benchmark = average of the four Meta management packages (€1,086.25) plus videos at the average price of 224.42 US dollars, converted at 1.1225 USD per euro (sections 4.1 on p. 4, 5.4 on p. 11, 6.3 and 6.4 on pp. 14 to 17).
- Plaith's own calculations (as of October 6, 2026): package prices, budget fee, Booster and all scenario numbers in this article, recalculated exactly.
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