Rates at advertising agencies can vary significantly. Most agencies price their services at rates that match client size and revenue. Agencies working with Fortune 500 companies are going to charge a lot more per hour than an agency that works with small to mid-size companies. Rates are also based on the quality of the work being produced. High-end television commercials that air nationally will naturally cost a lot more than a regional or local spot.
That’s not to say you can’t get great quality work from a small agency. You can (and we’d like to think we’re proof). But just like any specialized service, you can expect to pay at least $100/hour for most ad agency services. That’s about the same rate you pay to get your car repaired or hire a plumber. So the notion that advertising agencies are expensive is a bit of a myth. Especially if an agency produces video in-house, which can require tens of thousands of dollars worth of professional equipment and software.