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How Much Does a Digital Marketing Agency Cost in Melbourne?

·By Andy Nguyen
How Much Does a Digital Marketing Agency Cost in Melbourne?

If you have been researching digital marketing agencies in Melbourne, you have probably noticed that pricing is rarely straightforward. Some agencies publish rates on their website. Most do not. And the range of what you might pay varies enormously — from a few hundred dollars a month to tens of thousands.

This guide breaks down what digital marketing actually costs in Melbourne, what drives those costs, and how to work out what represents genuine value for your business.

Why Digital Marketing Pricing Varies So Much

There is no standard pricing in this industry. A boutique Melbourne agency with senior specialists charges differently to a large national firm running templated campaigns. A freelancer working from home has very different overheads to an agency with a dedicated strategy, creative, and analytics team.

The price you pay reflects a combination of factors: the scope of work, the experience of the people doing it, the tools and technology used, and the results the agency is able to deliver. Understanding these variables helps you evaluate proposals with confidence rather than just comparing dollar figures.

Typical Pricing Ranges for Melbourne Agencies

Here is a realistic breakdown of what Melbourne businesses typically invest across the main digital marketing services. These are indicative ranges based on the current market — your actual quote will depend on the specifics of your business and the agency you choose.

Google Ads management fees in Melbourne typically range from $800 to $3,000+ per month, not including your ad spend budget. The management fee covers campaign setup, ongoing optimisation, bid management, reporting, and strategy.

Most reputable agencies also charge a setup fee for new accounts, typically between $500 and $1,500. This covers keyword research, campaign architecture, ad copywriting, and conversion tracking implementation.

Your ad spend — the money that goes directly to Google — is separate. A reasonable starting budget for most Melbourne businesses is $1,500 to $3,000 per month, though competitive industries like legal, finance, and real estate often require significantly more to achieve meaningful results.

Learn more about what professional Google Ads management involves and how it can drive qualified leads to your business.

Meta Ads Management

Facebook and Instagram advertising management follows a similar model. Management fees typically run from $800 to $2,500 per month, with ad spend on top. Creative production — the design of your ad imagery and video — may be included or charged separately depending on the agency.

Search Engine Optimisation (SEO)

SEO is usually priced on a monthly retainer. Melbourne businesses typically invest $1,500 to $5,000+ per month for a meaningful SEO engagement. Cheaper SEO packages — particularly those under $800 per month — tend to deliver minimal activity and questionable tactics that can harm your site in the long run.

A proper SEO retainer includes technical auditing, on-page optimisation, content creation, link building, and monthly reporting. The more competitive your industry and target keywords, the more investment is required to see meaningful ranking gains.

Full-Service Digital Marketing

For businesses wanting a comprehensive strategy covering multiple channels, full-service digital marketing retainers in Melbourne typically range from $3,500 to $10,000+ per month. This level of investment usually includes strategy, paid advertising management across Google and Meta, SEO, content creation, and analytics.

Larger businesses or those in highly competitive industries may invest considerably more — six-figure annual marketing budgets are not unusual for established Melbourne companies looking to dominate their category.

Web Design and Development

Web design is often a separate project cost rather than an ongoing retainer. A professionally designed and developed website from a Melbourne agency typically costs between $5,000 and $30,000+, depending on complexity, the number of pages, e-commerce functionality, and the level of custom development required.

Factors That Affect What You Will Pay

Understanding these variables helps you assess whether a quote represents fair value.

Scope of Work

The more channels you are running and the more active the campaign management required, the higher the cost. A single Google Ads campaign targeting one product line costs less to manage than a multi-channel strategy covering search, display, shopping, and Meta Ads simultaneously.

Industry Competitiveness

Highly competitive industries require more sophisticated strategies, more intensive ongoing optimisation, and often higher ad spend to achieve results. A law firm competing for personal injury keywords in Melbourne will spend considerably more than a local café promoting weekend brunch specials.

Agency Size and Experience

A senior specialist with ten years of experience managing campaigns in your industry commands a higher rate than a junior account manager fresh from university. The premium for experience is usually worth paying — a highly experienced team will make better decisions, avoid costly mistakes, and identify opportunities that less experienced practitioners miss.

Reporting Depth and Strategic Input

Some agencies offer basic monthly reports. Others provide detailed analytics, regular strategy sessions, and proactive recommendations that go beyond the campaign itself. The latter costs more and typically delivers more value.

Tools and Technology

Professional digital marketing requires investment in tools for keyword research, competitive analysis, rank tracking, attribution modelling, and reporting. Agencies that invest in premium tools pass some of that cost on, but they also do better work because of it.

Contract Structure

Month-to-month arrangements typically cost more than fixed-term contracts because the agency takes on more risk. If you are confident in the agency you are working with, committing to a 6 or 12-month term can often reduce your monthly rate and gives the team enough time to deliver meaningful results.

What You Get at Each Pricing Level

It helps to understand roughly what to expect at different investment levels. These are broad generalisations, but they provide a useful framework.

Entry Level: $500–$1,500/month

At the lower end of the market, you are typically looking at freelancers or small agencies running templated, low-touch campaigns. There is limited strategic input, reporting tends to be basic, and account management is minimal. This level can work for very simple campaigns with clear goals, but it is not suitable for businesses looking to grow aggressively or compete in crowded markets.

Mid-Market: $1,500–$5,000/month

This is where most established Melbourne SMEs operate. At this level, you should expect a dedicated account manager, a genuine strategy built around your business goals, regular reporting with actionable insights, and ongoing optimisation. You will typically be working with an experienced team, though not necessarily the agency's most senior strategists.

Premium: $5,000+/month

Premium agencies invest heavily in your account. You get senior-level strategists, sophisticated testing frameworks, integrated multi-channel campaigns, detailed attribution modelling, and a genuinely consultative relationship. At this level, the agency is a genuine growth partner, not just a vendor executing tasks. The results tend to justify the investment for businesses with the scale to benefit from them.

Hidden Costs to Watch For

Not everything is included in the headline management fee. Before signing any contract, make sure you understand the following.

Ad Spend vs Management Fees

Management fees and ad spend are always separate. The money you pay the agency covers their time; your ad spend goes directly to Google or Meta. Make sure you have a clear picture of total monthly investment including both components.

Setup and Onboarding Fees

Initial setup, account builds, and onboarding are often charged separately from the ongoing retainer. This is legitimate — setting up campaigns properly takes significant time — but make sure it is disclosed upfront.

Creative and Content Costs

Ad creative (images, videos, copywriting), landing page builds, and content production may or may not be included in your retainer. Clarify this before you start to avoid unexpected costs mid-campaign.

Percentage of Ad Spend Models

Some agencies charge a percentage of your ad spend (typically 10–20%) rather than a flat management fee. This model can create a misaligned incentive — the agency earns more if you spend more, regardless of whether that spending is delivering results. Be thoughtful about this structure and ensure performance milestones are clearly defined.

Is It Worth the Investment?

The honest answer is: it depends on the agency and how well the work is executed. Digital marketing, done well, typically delivers a strong return on investment. Done poorly, it is an expensive exercise in generating impressions that never convert to customers.

The best way to assess whether it is worth it for your business is to look at real outcomes. Ask agencies you are considering to show you case studies with specific numbers. What was the client's cost per lead before and after? What did their revenue do over the engagement? What was the return on ad spend?

A confident agency with strong results will share this information readily. One that cannot or will not provide it should give you pause.

The True Cost of Doing Nothing

Many Melbourne business owners hesitate to invest in digital marketing because of the upfront cost. But there is a cost to inaction as well. While you are evaluating options, your competitors are appearing above you in search results, capturing your potential customers, and building brand recognition that is increasingly difficult to claw back.

Digital marketing investment compounds over time. SEO rankings built this year generate traffic and leads for years into the future. A well-optimised Google Ads account improves in efficiency the longer it runs. The sooner you start, the sooner the compounding begins.

Questions to Ask About Pricing Before You Sign

Pricing conversations with agencies can feel uncomfortable if you are not sure what to ask. Here are the key questions that will help you get clarity and avoid unpleasant surprises.

What exactly is included in the monthly fee?

Get a written breakdown of what the retainer covers. How many hours of account management per month? How often will the campaigns be reviewed and updated? What reporting will you receive and how frequently? Who is your primary point of contact? These details matter enormously for understanding what you are actually buying.

Is ad spend included or additional?

Always clarify whether quoted prices include ad spend or whether that is on top. Most agencies quote management fees separately from ad spend, but not all are upfront about this. A quote of $1,500 per month sounds very different if it means your total investment is $1,500 versus $1,500 in fees plus $2,000 in ad spend.

How do you measure and report on performance?

Ask to see a sample report. Good reporting ties marketing activity to business outcomes — leads generated, cost per lead, revenue influenced — not just vanity metrics like impressions and clicks. If their sample report is light on actionable data, that is a signal.

What are the contract terms and exit conditions?

Understand exactly what you are committing to. Is there a minimum term? What happens if you want to exit early? Are there any lock-in clauses around account ownership or data access? A reputable agency will be transparent about this upfront and comfortable having the conversation before you sign.

Can you provide benchmarks for my industry?

A good agency will be able to tell you what typical costs per lead or cost per acquisition look like in your industry, based on their experience managing similar campaigns. This context is invaluable for setting realistic expectations and evaluating their proposed strategy.

How to Choose the Right Agency for Your Budget

Cost is important, but it should not be the primary factor in your decision. The cheapest agency in Melbourne is almost never the best value. What you are looking for is the highest-quality work within your budget.

When evaluating proposals, focus on these factors:

  • Transparency: Are they clear about what you are paying for? Do they explain their process honestly?
  • Results: Can they demonstrate genuine outcomes for businesses similar to yours?
  • Communication: Do they listen carefully and ask good questions? Will they be accessible and responsive?
  • Fit: Does their approach match your business values and goals?
  • Ownership: Will you own all your accounts and assets if you ever decide to leave?

Explore Ven Agency's digital marketing services to understand our approach and how we structure our engagements for Melbourne businesses.

Getting Started

If you are ready to have a straightforward conversation about what digital marketing could cost for your specific business — and what returns you could realistically expect — we are happy to talk it through with no obligation.

We work with Melbourne businesses across a wide range of industries and budgets. Our job in a first conversation is to understand your goals and give you an honest assessment of what is possible, not to sell you a package that does not fit.

Get in touch with Ven Agency and let's talk about what makes sense for your business and your budget.

Andy Nguyen

The Ven Agency team specialises in web design, SEO, and digital marketing for Australian businesses.