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Hiring a Search Engine Marketing Agency? Here’s What You Need to Know Before Signing a Contract
August 29, 2025

Hiring a Search Engine Marketing Agency? Here’s What You Need to Know Before Signing a Contract

Hiring a search engine marketing agency is a major decision. SEM (Search Engine Marketing) plays a pivotal role in driving qualified traffic and maximizing return on ad spend—but only if managed strategically.

Hiring a Search Engine Marketing Agency? Here’s What You Need to Know Before Signing a Contract

Hiring a Search Engine Marketing Agency? Here’s What You Need to Know Before Signing a Contract

Hiring a search engine marketing agency is a major decision. SEM (Search Engine Marketing) plays a pivotal role in driving qualified traffic and maximizing return on ad spend—but only if managed strategically. When you choose an agency, you’re trusting them with your digital investments and revenue engine. That makes it critical to know exactly what to expect before signing a contract. In this guide, we dig into the essential criteria, questions, and evaluation steps to help you secure the right SEM partner for long-term gains.



1. Define Clear Goals & Budget Alignment


Before you even start speaking with agencies, clarify your objectives: Are you aiming for more leads, sales, app installs, or brand awareness? Do you need regional or international reach? What’s your budget range and acceptable CPA (Cost per Acquisition) or ppc services benchmark?


Outline your desired results and budget framework clearly:


  • “Generate 50 sales-qualified leads at PHP 3,000 CPA.”
  • “Reach a 5:1 revenue-to-ad-spend ratio within six months.”


When you provide these KPIs to agencies, you can assess—and compare—their proposed strategies realistically. Vague or overly generic pitches (e.g. “we’ll improve your SEM”) should raise red flags. A reputable search engine marketing agency will customize your plan and forecast based on your goals, showing credible paths to ROI.


Example: A D2C brand might say: “We want 200 sales/week and target a 4:1 return. Our monthly ad budget is PHP 200,000.” An agency would then offer a strategy detailing keyword targeting, projected CPC, expected conversion rate, estimated monthly conversions, and projected spend—all tied back to your objective.


2. Look for Experience & Specialized Competency


Not all SEM firms are created equal. Some specialize in e-commerce pay-per-click, others focus on B2B lead generation, geo-targeted campaigns, or niche verticals like real estate or healthcare. Look for:


  • Case studies or client references that match your industry and goals.
  • Certifications and official credentials—like Google Ads Partner status or Facebook Ads accreditation.
  • Tools and processes they use for optimization, reporting, and automation.


Ask them to walk you through a case study: What was the initial challenge? How did they structure the campaign (keywords, ad copy, landing pages)? What results did they achieve—and how long did it take?


Example: An agency shows you they managed SEM for a Philippine-based B2B software company. They built campaigns around long-tail prospects like “enterprise SEM audit services,” lowered CPC by 20%, and drove a 30% increase in conversion volume within 3 months. That shows they understand your market’s context.


3. Transparency in Reporting & Communication Channels


One of the biggest pain points with agencies is lack of clarity or responsiveness. Before signing on:


  • Clarify how often you’ll receive reports (weekly? bi-weekly? monthly?).
  • Ask for the actual format or a template—don’t settle for vague “performance dashboards.” The best agencies provide granular, actionable dashboards that include spend, clicks, conversions, CPA, and keyword-level performance.
  • Confirm who your primary point of contact will be, and when/how you can reach them (email, chat, phone). Request the expected turnaround time for inquiries.


Example: Agency A sends monthly PDFs with high-level metrics. Agency B grants access to a live dashboard (e.g. Google Data Studio) and delivers bi-weekly check- ins. Agency B also offers a Slack channel for urgent matters and commits to 4‑hour reply windows on weekdays. That level of communication demonstrates commitment and accountability.


4. Contract Terms, Scope & Flexibility


SEM contracts vary widely in terms of commitment length, scope, and cancellation terms. Here’s what to watch for:


  • Length: Is it monthly or starts with a three‑ or six‑month minimum? If you’re just testing waters, an open monthly plan—or a short initial term—offers flexibility.


  • Scope of work: Confirm which services are included and which are extra:


  • Keyword research and expansion
  • Ad copy and creative development
  • Landing page optimization
  • A/B tests and ongoing incremental improvements
  • Reporting and strategy reviews


  • Additional fees: Clarify if you’ll incur surcharges for new campaigns, ad copy refreshes, or extra bi‑weekly calls.


  • Cancellation or penalty clauses: Can you cancel or pause at any time? Is there a transaction or admin fee? Make sure these are reasonable.


Example: Agency C offers SEM management for 10% of ad spend with a three‑month commitment and charges PHP 5,000 per campaign setup. Agency D offers flat-rate management (PHP 25,000 per month), campaign setups included, with just one-month notice to cancel. A flat‑rate agency might be more predictable in cost; an ad‑spend‑based agency may align better when spend fluctuates.


5. Learn Their Strategy & Optimization Approach


Agencies can differ widely in strategy approach and optimization maturity. Ask them to outline their core growth formula:


1. Initial setup: How do they conduct keyword research, ad structure, and landing page alignment?


2. Testing methodology: Do they run controlled A/B tests (headlines, landing pages, extensions)? How do they interpret results operationally?


3. Bid management: Start manual CPC? Switch to automated methods—target CPA or ROAS?


4. Scaling tactics: Once campaigns are profitable, do they expand into remarketing, YouTube, Display, or new geographies?


5. Continuous improvement: Do they audit performance manually? Do they apply fresh copy or rotate ads every few weeks?


Example: Agency E begins with manual bidding to home in on optimal CPCs, runs A/B tests weekly on top-performing ad groups, then automates bidding using target CPA once conversion history is solid (50–100 conversions per month). From there they deploy remarketing across Display for abandoned visitors—yielding an extra 15% conversions at 50% lower CPA.


6. Ask About Data Ownership & Account Accessibility


Your ad accounts and data are yours. Ensure:


  • You and your company retain ownership of Google Ads (or any platform) accounts.
  • You receive admin or at least view access to all accounts and tools (Analytics, Tag Manager, Data Studio, etc.).
  • You can export historical data at any time—even if the relationship ends.


Agencies sometimes run everything through their master account, which can lead to headaches if you outgrow them. Your data and audience signals should always be accessible and portable.


Example: Agency F insists on managing campaigns only through their Ads manager account, and you don’t get direct access. Agency G creates accounts under your name and grants you view-download access from day one—as well as direct Analytics and reporting access. Agency G protects you if you part ways.


Final Thoughts


Securing the right search engine marketing agency partner requires more than a brief conversation or a flashy proposal. To avoid surprises—and to ensure long-term ROI—be sure to:


  • Define your goals, targets, and budget clearly
  • Vet their experience, track record, and specialization
  • Confirm transparent reporting and clear communication channels
  • Understand contract terms, scope, and flexibility
  • Gauge their optimization strategy, testing rigor, and scale readiness
  • Protect your data access and ownership


When these pieces are in place, your SEM partnership can act as a reliable growth engine—delivering predictable traffic, leads, and revenue. If you’d like help evaluating specific agencies in your vertical or geography, I’d be happy to help.


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