Agency fee vs ad spend: two different costs
The first thing to separate in any quote is the agency's fee from the media budget. Ad spend is the money paid to Google or Meta for clicks and impressions. The agency fee is what you pay for the people who plan, build, run and report on the campaigns. Mixing the two in one figure makes quotes impossible to compare.
Google requires this separation for anyone who manages Google Ads for clients. Under the Google third-party policy, an agency that charges a management fee on top of Google Ads costs has to tell customers in writing before the first sale and show the fee on invoices. Where monthly reporting applies, it has to show the exact amount Google charged, excluding its own fees.
For budgeting the media side, see our UK guide to Google Ads costs for dentists. The rest of this article is about the agency side.
The five common pricing models
Most dental marketing agencies use one of these models, or a mix of them. None is automatically better; each shifts risk and incentives in a different way.
- Fixed monthly retainer: a set fee for an agreed scope (for example, managing two Google Ads campaigns and one Meta campaign, plus monthly reporting). Easy to budget, but check exactly what the scope includes and what counts as extra.
- Percentage of ad spend: the fee is a share of the media budget. Simple and it scales with the account, but it rewards the agency for spending more, not for spending better. Ask whether there is a minimum fee and how it changes if you cut the budget.
- Retainer plus percentage: a base fee for fixed work plus a smaller percentage above a spend threshold. Common for larger accounts.
- Pay per lead: you pay for each enquiry delivered. It sounds low-risk, but a "lead" can mean a form fill from someone who never answers the phone. Get the definition of a lead in writing and ask who owns the ad account and the data.
- Performance or hybrid: a lower base fee plus a bonus tied to an agreed result, such as booked or attended consultations. This aligns incentives best, but only works when both sides can see the same booking data.
One-off setup costs to expect
Many quotes include a one-off setup fee, or spread setup work across the first month. That is reasonable when real work sits behind it. A typical setup for paid ads can include:
- Conversion tracking: tagging calls, forms, WhatsApp clicks and online bookings so the ad platforms learn from real enquiries, not page views.
- Account structure: new campaigns, ad groups or ad sets per treatment and location, with negative keywords and audience exclusions.
- Landing pages: a treatment-specific page or quiz funnel, if your website does not already have one that matches the ad.
- Ad copy and creative: written and checked against Google, Meta and UK advertising rules. Our dental ad copy rules guide covers what can and cannot be said.
- Reporting: a dashboard or monthly report that shows spend, enquiries and, ideally, bookings and attendance.
If a quote has a large setup fee, ask for the list of deliverables behind it and whether you keep them if you leave.
What a monthly fee should actually buy
When you compare two retainers, compare the work, not the number. Ask each agency to state in writing:
- Which channels are managed (Google Ads, Meta, both) and how many campaigns.
- How often someone works in the account and who that person is.
- What is included in reporting, and how often you meet.
- Whether landing pages, new ad creative and tracking fixes are included or billed separately.
- Whether they follow up leads or help your front desk with speed-to-lead, or only deliver enquiries.
- Notice period, minimum term and what happens to the ad accounts, pages and data when the contract ends.
Our article on dental Google Ads management breaks down the in-house vs agency work in more detail, so you can see which tasks you are paying for.
Compare quotes on cost per kept appointment
The agency fee is only one input. What a practice actually pays for is patients in the chair. A useful way to compare quotes is to estimate the full monthly cost (agency fee plus ad spend) and divide it by the number of attended appointments you can realistically expect.
Cost per kept appointment = (agency fee + ad spend) ÷ attended appointments
A cheaper agency that sends unqualified enquiries can produce a higher cost per kept appointment than a more expensive one that sends fewer, better-qualified patients and helps you book them. Put that number next to the value of a new patient for your practice; our guide on how to calculate dental patient LTV shows how. You can also run your own numbers in the YLD calculator.
For reference, one of our own campaigns for a dental clinic in Larnaca, Cyprus, spent €250 and produced 12 attended appointments in 14 days, about €20.8 per patient who turned up. That is one campaign, not a benchmark, but it shows why we report on attended appointments rather than on clicks or leads.
Red flags in an agency quote
Some warning signs have nothing to do with the price itself:
- Guaranteed rankings, guaranteed number of patients or "unlimited clicks". Google's third-party policy specifically names guaranteed top placement and unlimited clicks as examples of misleading claims.
- The agency wants to run your ads in its own account and will not give you your Google Ads customer ID. Google requires agencies to provide customer IDs when requested.
- No breakdown of fee vs ad spend on the invoice.
- Long minimum terms with no performance review point.
- Reporting that stops at clicks, impressions or "leads" and never reaches bookings.
- Pressure to sign quickly. Google's policy also prohibits putting undue pressure on advertisers to sign up or stay.
A note for practices in Cyprus
The same pricing models apply to clinics in Cyprus, and the Google third-party policy applies wherever the agency manages Google Ads. Media costs differ from the UK because competition and audience size differ, so ask any agency quoting for Cyprus to show local cost assumptions. Our article on dental Facebook ads costs in Cyprus covers the Meta side.
Questions to send with your brief
Before you request quotes, send every agency the same short brief so the answers are comparable:
- What is your fee, and is it fixed, a percentage of spend or tied to results?
- What is the one-off setup cost, and what do we get for it?
- What ad budget do you recommend for our treatments and area, and why?
- Who owns the ad accounts, tracking and landing pages?
- How will you report on booked and attended appointments, not just leads?
- What is the minimum term and notice period?
If you want to see how we would answer these for your practice, book a call and we will walk you through our pricing and the numbers we would track.
Founder, YLD · Paid ads for dental clinics
Savva runs YLD, a Larnaca-based agency that builds paid ads and booking funnels for dental clinics and judges every campaign by cost per kept appointment.