Hiring an ads agency feels like a leap of faith. You’re handing over money, access to your ad accounts, and trust that someone will grow your business. Most business owners evaluate agencies based on their pitch deck, a case study or two, and gut feeling.
That’s not enough. The agencies that look the best on paper sometimes deliver the least. And the ones that seem small or unconventional sometimes outperform everyone else.
The difference comes down to asking the right questions. Not the ones on their FAQ page. The ones that make them pause, think, and give you a real answer.
Here are 12 questions that will tell you everything you need to know.
1. “Do you audit my tracking before launching campaigns?”
Why this matters: An agency that launches ads without first verifying your tracking is building on a broken foundation. If your Meta pixel isn’t firing correctly, if your Google Ads conversion tag is miscounted, or if your analytics are missing 30% of transactions, every optimization decision they make will be based on bad data.
What a good answer sounds like: “Yes. We audit your entire tracking setup before we spend a dollar. We check pixel implementation, server-side tracking, consent mode, cross-domain issues, and data layer accuracy. If there are problems, we fix them first.”
What a red flag sounds like: “We’ll set up tracking as part of onboarding.” This usually means they’ll drop a pixel on your site and call it done. That’s installation, not auditing. Installation gets you data. Auditing gets you accurate data.
Most agencies skip this step entirely. It’s not because they don’t care. It’s because tracking auditing is a different skill set than media buying, and most agencies don’t have it in-house. But without accurate data, even a brilliant media buyer is flying blind.
2. “What’s your fee structure?”
Why this matters: Agency pricing models vary wildly, and the structure tells you a lot about alignment of incentives.
Common structures:
- Percentage of ad spend (15-20%): Industry standard. If you spend $10,000/month on ads, you pay $1,500-$2,000 in management fees. The problem: the agency is incentivized to increase your spend, whether or not it’s profitable.
- Flat monthly fee: Predictable, but may not scale with the work required.
- Performance-based: Sounds great. Usually isn’t. “Performance” gets defined in ways that favor the agency.
- Hybrid: Some combination. Can work well if structured fairly.
What to look for: Transparency. Can they explain exactly what you’ll pay and when? Are there hidden fees for creative, reporting, or onboarding? What happens to fees if you scale from $10K to $100K in spend?
For context, the industry average for percentage-of-spend models is 15-20%. Some agencies charge as much as 25-30% for smaller accounts. We charge 5%, because we believe management fees shouldn’t eat your margin. But regardless of who you hire, know what you’re paying and why.
3. “Who owns the ad accounts if we part ways?”
Why this matters: This is the single most important question on this list, and it’s the one most business owners forget to ask.
Some agencies create ad accounts under their own Business Manager. If you leave, they keep all your campaign data, audience data, pixel data, and conversion history. You start over from zero with your next agency.
The correct answer is simple: You own the accounts. Always. The agency should operate within your Business Manager as a partner, not the owner.
Specifically ask:
- Do I own the Meta Business Manager?
- Do I own the Google Ads account?
- Will I retain all historical data and audience lists if we stop working together?
- Do I own the creative assets you produce?
If the answer to any of these is no, walk away. An agency that holds your data hostage is counting on switching costs to keep you, not performance.
4. “How do you report on conversions?”
Why this matters: There’s a meaningful difference between platform-reported conversions and actual revenue. Meta, Google, and TikTok all use their own attribution models, and they all take credit for as many conversions as they can.
If your agency only reports platform numbers, you’ll see overlapping attribution. Meta says it drove 200 sales. Google says it drove 180. Your store actually had 250 total orders. Both platforms are overcounting.
What a good answer sounds like: “We report platform metrics alongside your actual revenue data. We reconcile ad platform conversions against your Shopify, WooCommerce, or CRM numbers monthly. We’ll always tell you the real ROAS, not just the platform ROAS.”
What a red flag sounds like: “We use the numbers in Ads Manager.” That’s not reporting. That’s reading a dashboard.
A good agency knows that platform attribution is directional, not absolute. They use it for optimization decisions within a platform, but they validate against source-of-truth data for strategic decisions.
5. “Do you implement server-side tracking?”
Why this matters: Browser-based pixels miss 20-40% of conversions thanks to ad blockers, iOS privacy changes, consent banners, and accelerated checkout methods like Shop Pay. If your agency doesn’t implement server-side tracking, every metric they report is based on incomplete data.
Server-side tracking sends conversion data directly from your server to the ad platform’s servers, bypassing the browser entirely. It’s the single biggest improvement you can make to data accuracy. For more on this topic, see our guide on what ecommerce stores should look for in an ad agency.
What a good answer sounds like: “Yes. We implement Conversions API for Meta, offline conversion imports for Google, and Events API for TikTok. Server-side tracking is part of our standard setup.”
What a red flag sounds like: “That’s not something we handle.” This means they’ll be optimizing your campaigns using data that’s missing a quarter or more of your actual conversions. Every decision they make will be skewed.
This question alone separates agencies that understand modern tracking from those still operating like it’s 2019.
6. “What happens in month 1 before ads are optimized?”
Why this matters: Paid advertising takes time to optimize. Algorithms need data to learn. Audiences need testing. Creative needs iteration. If an agency promises results in week one, they’re either lying or they don’t understand how machine learning optimization works.
What a good answer sounds like: “Month one is setup, tracking verification, and initial testing. We’ll launch with a testing budget across multiple audiences and creative angles. You should expect to break even or operate at a slight loss while we gather data. By month two or three, we’ll have enough signal to start scaling what works.”
What a red flag sounds like: “We’ll have you profitable in the first week.” No serious agency makes this promise. Platforms need roughly 50 conversions per ad set per week to exit the learning phase. Until that happens, performance will be volatile. An honest agency tells you this upfront.
Also ask what happens if month one doesn’t go well. Do they have a process for diagnosing problems? Do they communicate proactively, or do you have to chase them for updates?
7. “How do you handle attribution across platforms?”
Why this matters: If you’re running ads on Meta, Google, and TikTok simultaneously, attribution becomes complicated quickly. Each platform claims credit using its own model. Without a clear methodology for understanding cross-platform attribution, you won’t know which channel is actually driving growth.
What a good answer sounds like: “We use a combination of platform attribution for in-platform optimization and blended metrics (total revenue / total ad spend) for overall performance evaluation. We also look at incrementality through holdout tests when budgets allow.”
What a red flag sounds like: “We report each platform separately.” This sounds reasonable until you realize it lets every platform look good while your overall profitability might be declining. Blended ROAS (also called MER, or Marketing Efficiency Ratio) is the metric that actually matters at the business level.
A sophisticated agency thinks about the full picture: not just which platform claims the sale, but whether total revenue grew relative to total spend.
8. “What’s your client retention rate?”
Why this matters: This number tells you more than any case study ever will. An agency that retains 90%+ of its clients is delivering consistent results. An agency with high churn is selling better than it’s delivering.
What a good answer sounds like: A specific number. “Our average client stays with us for 14 months” or “Our year-over-year retention rate is 88%.” Specificity signals honesty.
What a red flag sounds like: “We don’t track that” or “Our best clients have been with us for years.” Vague answers usually mean the real number isn’t flattering. Every serious business tracks retention. If they don’t want to share it, ask yourself why.
Follow-up question: “Can I talk to a client who left?” This one really separates the confident from the nervous. An agency that delivers well has nothing to hide from former clients.
9. “Can I see a sample monthly report?”
Why this matters: Reports reveal priorities. If the sample report is 30 slides of vanity metrics (impressions, reach, CPM), the agency is optimizing for looking busy, not driving results.
What a good report includes:
- Actual conversions vs. platform-reported conversions
- Cost per acquisition by campaign
- ROAS by campaign (and blended ROAS across all spend)
- Tracking health status (are pixels firing? Is CAPI connected? What’s the event match quality?)
- Clear action items for the next month
- Honest commentary on what didn’t work and why
What a red flag looks like: A pretty PDF with lots of pie charts showing impressions, reach, and click-through rate. These metrics are inputs, not outcomes. They matter for optimization, but they’re not what you’re paying for.
The best agencies include a tracking health section in every report. If your data collection degrades, they catch it immediately instead of waiting until ROAS drops and nobody knows why.
10. “Do you have a tracking monitoring system?”
Why this matters: Tracking breaks. Constantly. Site updates, theme changes, app installations, checkout modifications, and platform updates can all silently kill your conversion tracking. If nobody is watching, you might run with broken tracking for weeks before anyone notices.
What a good answer sounds like: “We actively monitor your tracking and get alerts when pixels stop firing, when conversion counts drop abnormally, or when data layer events go missing. We catch problems in hours, not weeks.”
What a red flag sounds like: “We check tracking during our monthly reporting.” That means if your pixel breaks on day 2 of the month, it stays broken for 28 days. That’s 28 days of bad data, wasted spend, and missed conversions.
This is an area where most agencies fall short because continuous monitoring requires tooling and infrastructure that most shops don’t build. We built TagFrog specifically to solve this problem: automated tracking verification that catches issues the day they happen, not the month after.
11. “What’s your cancellation policy?”
Why this matters: Lock-in contracts exist for one reason: to protect the agency from clients who would otherwise leave. If an agency requires a 6 or 12-month commitment, they’re betting you’ll stay out of inertia, not results.
What a good answer sounds like: “Month-to-month. We earn your business every month. If we’re not delivering, you shouldn’t be locked in.”
What a red flag sounds like: “We require a 6-month minimum because it takes time to optimize.” There’s a kernel of truth here: optimization does take time. But you can acknowledge that reality without contractual lock-in. A good agency explains the timeline honestly and trusts that results will keep you around.
Also clarify: what’s the actual cancellation process? 30-day notice? Can you pause instead of cancel? Is there a termination fee? Get it in writing before you sign.
12. “What makes you different from the last agency?”
Why this matters: This is an open-ended question, and the answer reveals everything about how they think.
What a good answer sounds like: Something specific and verifiable. “We audit tracking before we launch. We charge 5% instead of 20%. We build server-side tracking infrastructure. We monitor your data 24/7.” Concrete claims you can check.
What a red flag sounds like: “We’re more passionate” or “We treat every client like family” or “We really care about your brand.” These aren’t differentiators. Every agency says them. They’re filler for agencies that don’t have a real answer.
The best response to this question describes a process or capability, not a feeling. It tells you what they do that others don’t, and why that difference leads to better outcomes for your business.
How to Use These Questions
Don’t ask all 12 in a rapid-fire interrogation. Spread them across your evaluation process:
Discovery call: Questions 1, 2, 6, 12 (sets the tone, covers basics)
Follow-up meeting: Questions 3, 4, 5, 7 (gets into technical depth)
Before signing: Questions 8, 9, 10, 11 (validates trust and terms)
Take notes on specificity. Vague answers aren’t necessarily dishonest, but they often indicate that the agency hasn’t thought deeply about that area. Specific, confident answers indicate expertise and experience.
The Uncomfortable Truth About Most Agencies
The ad agency industry has a low barrier to entry. Anyone can take a Meta Blueprint course, spin up an LLC, and start managing ad accounts. Many agencies are essentially reselling platform tools with a markup.
That doesn’t mean good agencies don’t exist. They do. But finding them requires asking harder questions than “Can you show me a case study?” Case studies are curated. Retention rates, fee transparency, tracking capabilities, and cancellation policies are not.
The 12 questions above aren’t designed to trick anyone. They’re designed to surface the truth. A genuinely good agency will welcome every one of these questions because their answers are their competitive advantage.
What We’d Tell You
If you asked us these 12 questions, here’s what you’d hear:
We audit tracking before we launch a single campaign. We charge 5% of ad spend, not 15-20%. You own every account, every asset, every piece of data. We report real revenue alongside platform numbers. We implement server-side tracking as standard practice. We’re month-to-month because we believe lock-in contracts are a sign of low confidence. And we built an entire product (TagFrog) specifically to monitor tracking health in real time so nothing breaks without us knowing.
We’re not the right fit for everyone. But if you value data accuracy, fair pricing, and actually knowing whether your ads are working, we should talk.
Book a call and bring these 12 questions. We’ll answer every one of them.