# What Is a Digital Agency? Services, How It Differs from a Creative Agency, and How to Choose One

> A digital agency builds websites, apps, content and digital marketing for other companies. How it differs from a creative agency, what it costs, how to choose.

- Author: Indra Hermawan, Technical Lead at PopOut (https://popout.id/author/indra-hermawan)
- Published: 2022-12-28
- Updated: 2026-10-28
- URL: https://popout.id/article/content/how-tos-or-tips-on-choosing-a-digital-agency-for-your-business
- Publisher: PopOut Digital Agency, Jakarta (https://popout.id)

## Key takeaways

- A digital agency is a service company that helps other businesses appear and sell on digital channels: websites, apps, content, social media, SEO and online ads.
- A creative agency focuses on ideas, brand identity, design and video; a digital marketing agency focuses on campaigns and ad results. Many agencies now do all three.
- Agency fees are charged per project (website, video), per month (SEO, social media, ads) or per person; ad spend is always paid separately to the platform.
- Choose an agency by your needs, relevant work you can check, who does the work, ownership of assets, and quotes that cover the same scope.
- Be wary of promises of a number-one Google ranking, guaranteed follower counts, or working without a contract and a clear legal entity.

A digital agency is a service company that helps other businesses appear, get known and sell on digital channels: building websites and apps, producing content and video, managing social media, improving SEO and running online ads. In short, it is an outside team that does the digital work your own team cannot, or cannot yet, do in-house.

This guide explains what digital agencies do, how they differ from creative agencies and digital marketing agencies, how agencies charge, and how to choose the right one for your business.

## What does a digital agency do?

- **Websites and apps.** Company profile websites, online stores, web and mobile apps, and their maintenance.
- **Content and video.** Company profile videos, video ads, motion graphics, photography and articles.
- **Design and branding.** Logos, visual identity, presentation material and social media design.
- **Social media.** Content planning, design, posting and performance reports.
- **SEO.** Technical website fixes, keyword research and content so you appear on Google.
- **Digital advertising.** Google Ads, Meta Ads (Instagram and Facebook), TikTok and LinkedIn.
- **Events and activations.** Some agencies also run events, virtual events and live streaming.

No agency has to do all of this. Some focus on one field; others combine several services so the brand's message and look stay the same across every channel.

## Digital agency, creative agency and digital marketing agency: what is the difference?

- **A digital agency** builds and runs digital assets: websites, apps, content and online channels.
- **A creative agency** focuses on ideas and creative execution: campaign concepts, brand identity, design and video. It is where a message takes shape before it is distributed.
- **A digital marketing agency** focuses on marketing results: paid ads, SEO, social media and reports on figures such as leads and sales.

In practice the lines have blurred. Many agencies, PopOut included, do creative and digital work together. What matters more than the label is whether the agency has really done the kind of work you need.

## When does a business need a digital agency?

- You need a result that takes several skills at once, such as a new website with launch video and content.
- Digital work comes in projects, so hiring permanent staff for every skill is not efficient.
- You have an internal team, but it is overloaded during campaigns or product launches.
- You need an outside perspective, for example when changing your brand identity or entering a new market.

## How much does a digital agency cost?

Agencies usually charge in one of three ways:

- **Per project** for work with a clear deliverable, such as a website or a video.
- **Per month (retainer)** for ongoing work, such as SEO, social media and ad management.
- **Per person per month** when the agency places designers or developers as an extension of your team.

As a reference, at PopOut a company profile website starts from Rp5,000,000 per project, a company profile video from Rp10,000,000 per video, and SEO and social media management from Rp3,000,000 a month each. Ad spend is always paid separately to Google, Meta or TikTok, on top of the agency fee. Full breakdowns are in our [website cost guide](https://popout.id/article/content/website-development-service) and [video production price guide](https://popout.id/article/content/prices-for-cinematic-video-production-services).

## How to choose a digital agency

1. **Start from your needs, not from a list of services.** Write down the goal, the expected result, the deadline and the budget before you contact agencies.
2. **Check work you can verify.** Websites that are actually live, videos you can watch, and clients of a similar industry or size to yours.
3. **Ask who does the work.** Whether it is done by their own team or passed on to others, and who your main contact will be.
4. **Compare quotes with the same scope.** Number of pages or video length, rounds of revision, guarantees, and what is excluded.
5. **Make sure you own the assets.** Domains, ad accounts, social media accounts and source files should be in your company's name.
6. **Check how they work and report.** How often you hear from them, in what form, and how revisions are requested.
7. **Check the legal side.** Large companies and state-owned enterprises usually need vendors with a registered legal entity, a contract and tax invoices. Ask early.

For video projects, a more specific list of questions is in our article on [how to choose a video production agency](https://popout.id/article/content/how-to-choose-a-video-production-service-agency).

## Red flags when choosing an agency

- Guaranteeing a number-one Google ranking or a set number of followers in a short time.
- Prices far below the market with no explanation of scope.
- Refusing to show work you can verify, or showing only designs with no live results.
- Ad accounts, domains or social media accounts registered in the agency's name rather than yours.
- Working without a written contract.

## Frequently asked questions

### What is the difference between a digital agency and a software house?

A software house focuses on building software, such as apps and internal systems. A digital agency usually also handles the content, design and marketing around those digital products.

### Does a small business need a digital agency?

Not always. A small business is often fine with one initial project, such as a website and some content, and then runs its social media itself. An agency is most useful when the work goes beyond your team's skills and time.

### Does the agency need to be in the same city?

For websites, design and ads, no. For video and events, an agency in the same city makes location scouting, filming and coordination on the day easier.

PopOut is a [digital agency in Jakarta](https://popout.id/), based in South Jakarta, producing [video](https://popout.id/services/video-production-services), [websites and apps](https://popout.id/services/website-application-development-services), [graphic design](https://popout.id/services/graphic-design-services) and [events](https://popout.id/services/event-organizer-services) since 2015. See all our services on our [creative agency services](https://popout.id/services) page, or tell us what you need through our [contact page](https://popout.id/contact-us).
