How to audit a PPC agency: an 8-point checklist for UK advertisers

What to take away

Audit the commercial terms firstwho owns the Google Ads account, what the management fee covers, and how VAT is shown on invoices.
Ask for a 12-month performance review covering spend, conversions, cost per acquisition and wasted search terms.
Check data protection and advertising compliance against ICO guidance and the CAP Code.
Use an eight-point checklist and agree a 30-day remediation plan before renewing.

Check the fee, VAT and what you actually pay for

Management fees are usually quoted as a percentage of ad spend or a flat monthly fee. Ask whether the figure excludes VAT and whether VAT is added at 20%. A £3,000 monthly fee becomes £3,600 once VAT is included, so the cash cost matters.

VAT on management fees

£3,000monthly fee before VAT
20%VAT rate added
£3,600monthly fee including VAT

Check that media spend is passed through at cost. Some agencies bundle fees into one invoice, which hides the true split. Request a sample invoice and a reconciliation for the last quarter.

The Companies Act 2006 sets the framework for the accounts an agency files, so you can review its latest accounts for signs of financial stress.

Request the Google Ads account review

You need admin access, not a report. Ask the agency to walk you through the account structure, conversion tracking and change history. If they resist, that is a warning sign.

Google Ads account review

Admin access, not a report
Account structure and conversion tracking
Change history review
Search terms for waste
Negative keyword lists
Brand terms doing heavy lifting
Last 12 months, not 30 days

Difficulty getting read-only access is one of the common PPC agency red flags.

Check search terms for waste, negative keyword lists, and whether brand terms are doing the heavy lifting. Look at the last 12 months, not a hand-picked 30 days.

Ask how they measure conversions. A lead form, a phone call and a purchase need different tracking. If conversions are counted twice, your cost per acquisition is wrong.

Test data protection and advertising compliance

If the agency handles lead data, you remain the controller in most cases. Ask for the data processing agreement and check retention, security and sub-processors against the ICO guide.

Ads must comply with the CAP Code. That covers misleading claims, prices and availability. Ask who signs off ad copy and landing pages, and keep a record.

Use an eight-point audit checklist

Work through these steps in order and score each one red, amber or green.

Eight-point audit checklist

Confirm account ownership and admin access for your business, not the agency.
Reconcile ad spend, management fees and VAT for the last 12 months.
Review conversion tracking for duplicate and missing events.
Check search term reports for wasted spend and irrelevant queries.
Inspect negative keyword lists and brand bidding rules.
Confirm the data processing agreement, retention period and breach process.
Check ad copy and landing pages against the CAP Code.
Agree a 30-day remediation plan with owners and dates.

Score the findings and agree dates

Give each of the eight points a red, amber or green score. Red means the issue affects money, compliance or access. Amber means it needs fixing within the quarter. Green means evidence is in place.

Put the red items in a 30-day plan with named owners. Ask for weekly updates and a written sign-off when each item closes. If the agency misses two dates, treat that as evidence for your renewal decision.

Decide whether to renegotiate or switch

If the issues are mostly reporting and access, a 30-day fix may be enough. If fees are opaque or tracking is broken, plan an exit. Give notice in writing and ask for a full account export.

Keep the Google Ads account and billing in your name. If you decide to move, use the guide to switch PPC agencies without losing performance so campaigns keep running.

Run a parallel period where the new agency builds campaigns before the old one loses access. Do not pause ads on a Friday and hope for the best.

Common questions

How long should a PPC agency audit take?

Most audits take two to four weeks if the agency cooperates. A smaller account with clean tracking can be reviewed in a few days, while a complex account needs longer.

What documents should I request?

Ask for the account access, last 12 months of invoices, a data processing agreement, conversion tracking notes and a list of sub-processors.

What if the agency refuses access?

That is a serious problem. Account ownership should sit with you, and refusal may be a breach of the contract. Take legal advice before withholding payment.

Can I audit the agency without warning them?

You can review invoices and reports quietly at first. For account access, you usually need their cooperation, so a formal request is safer.