When brands invest in marketing, one of the most common misconceptions is that the monthly agency fee itself should directly generate ROI. But in reality, agency costs are the “vehicle” that makes your campaigns possible, not the fuel that powers them.

Think of it like owning a car: You can have the most advanced, finely tuned vehicle on the road, but without petrol in the tank, you’re not going anywhere.

1. Agency Costs = The Car

Your agency fee covers the people, tools, and expertise that make your campaigns work. In the performance side of things, this can include- 

  • Strategic planning and audience targeting
  • Campaign setup across Google Ads and Meta
  • Creative production and ad copywriting
  • Data tracking, analytics, and optimisation
  • Platform compliance and troubleshooting

These costs are fixed, like buying and maintaining the car,  and they don’t fluctuate based on how much you drive. They ensure your campaigns are set up for success, but they aren’t the ad spend itself.

2. Media Spend = The Petrol

Petrol is your Google, Meta, or other paid media budget. This is the money that actually gets spent on clicks, impressions, and conversions. Without it:

  • Your ads don’t reach anyone.
  • Your campaigns can’t gather data to optimise.
  • There’s no opportunity to generate sales or leads.

Even the best “car” won’t move a cm without fuel.

3. The ROI Misunderstanding

Some clients look at the agency fee and expect ROI purely from that cost alone. But in performance marketing:

Agency fees = building, running, and maintaining the machine.

Media spend = funding the journey to your business goals.

ROI comes from the combination of both. If you underinvest in petrol (media spend), the car can’t complete the trip — no matter how good the driver (agency) is.

4. Other “Hidden” Costs You Might Not See

Just like car ownership involves insurance, licensing, and maintenance, effective performance marketing has additional elements:

  • Creative refreshes to avoid ad fatigue
  • A/B testing to improve conversion rates
  • Third-party tools for tracking and optimisation

These are part of making sure your “vehicle” runs smoothly and safely – but don’t actually generate results on their own.

5. The Takeaway for Your Marketing Investment

When budgeting for marketing, separate your agency costs from your media spend in your mind and on paper.

The agency ensures the engine is tuned, the wheels aligned, and the navigation set.

The media spend then fuels the trip and determines how far and fast you can go.

One without the other simply doesn’t work. Expecting ROI from agency fees alone is like buying a car and never filling the tank.

At Coffee Creative, we help you balance the investment between the car and the petrol, ensuring your campaigns are both well-built and well-fuelled for real, measurable results.