PPC Management Pricing

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PPC Managment Prices

PPC management is the process of implementing a pay per click strategy and budgeting for it. This can be done by an in-house team or an outsourced PPC management agency agency.

According to a recent study, the average business turns $3 for every $1.6 spent on Google Ads. And, while this seems like an “okay” investment, typically clients see exponentially higher results when they partner with an established PPC management agency. Why?

Data-driven marketers usually do much better than average Joe’s with campaign management. Specialists, if you will. If you’re sick, you go to the doctor. If your ‘check engine light’ shows, you take your car to a mechanic. Why would the thought process for running a PPC campaign for your business be any different?

Achieving an excellent ROI (well above $3 to $1.60) on your PPC budget is completely manageable if you’ve partnered with a PPC expert and you both have an understanding of the long term goals.

ppc management pricing

Google Ads Cost

The PPC (pay per click) rates of a Google Ads campaign depend on a number of factors. We can control certain aspects-like your max bid and ad quality. But, there are also aspects that we cannot control-like your competitor’s max bids or ad quality. Some industries have more competitive marketing, such as the legal and medical fields. The competition over certain key words drives the overall Google Ads price up. This is something we cannot control, only something we can look for ways around.

One positive aspect of PPC advertising, is that you can control your budget. You can determine and set daily spending amounts, as well as assign value to each campaign. However, you should understand not only your Google Ads budget, but also how your Google Ads budget is spent. This gives you the best chance of maximum return on your advertising investment.

PPC Management Pricing Models

For every statement, we believe there should be context. And, this post is no exception. Before we dive into answering How much is a good PPC management price?, we need to explain common PPC management pricing models. These fall into three basic categories:

Percent of Ad Spend

Under this model, the client pays the PPC management agency a predetermined percentage of their spend on Google ads or AdWords. This pricing model is:

Good for: Businesses that have a larger ad spend or ad spend that’s rapidly growing. Many agencies that use this model will require a minimum spend.

Bad for: Small companies with small budgets. If your budget isn’t big enough, you’ll be stuck with hefty fees to make it worthwhile for the agency to take you on as a client.

Management Fee + Percent of Ad Spend

Most professional marketing agencies will charge a management fee to cover overhead related to the PPC campaigns they’re managing. This model resembles the previous, except with an additional, baseline fee. This model will be less visible among legacy type media companies. Complex campaigns are seldom static-even small businesses must consider seasonality. This pricing model is:

Good for: Businesses who want transparent billing. When the client pays a management fee in addition to a percentage of PPC campaign spend, the agency has difficultly holding the AdWords account as something proprietary. So, this model will also be better for those who ultimately want complete ownership of their accounts, as well.

This model ensures there will be budget set aside for A/B tests and conversion tracking, as well.

Bad for: Low-cost accounts. Very small companies will best be served with an automated platform with a pure percentage of spend.

Flat Fee

Some PPC agencies charge a pre-determined, flat rate fee. Some businesses prefer the method of this model, as long as the expectations are clearly defined upfront. Typically, this is an oversimplification of the management fee plus percentage model, taking into account the value that would accrue per the percentage of ad spend factored in. This pricing model is:

Good for: Companies with minimal seasonality and relatively static campaigns and those who prefer fixed expenses each month.

Bad for: Companies with seasonality and dynamic campaigns. Most businesses are seasonal and use specials and incentives to drive business. With these types, management and ad-spend budget will need to be flexible for maximum profitability.

Performance-Based

For performance-based pricing models, companies pay for the lower-funnel actions, such as:

  • inbound calls,
  • emails,
  • trial sign-ups,
  • form conversions,
  • demo requests

And, so on and so forth. The agency sets up a commission rate and collects a smaller percentage of revenue from actual sales, if they can prove they’re responsible for the lead origination. This is more commonly seen in e-commerce and referral-based business models. Some call this the “CTA or Call to Action Pricing Model”.

Pay Per Click Agency Pricing

If you’re considering the percentage of ad spend pricing model, you’ll want to ask “what’s included?”.

This is probably the biggest and most important factor in determining if this method will work for your business.

Will the PPC agency update your ad copy? Will they build the landing pages associated with those ads? How often, if at all, do they rotate out ads?

Some PPC management agencies bundle everything into one lump sum. While, other companies will provide services on more of a ‘pay as you go’ style basis. For the latter, you’ll see each item listed individually on your monthly invoice.

The PPC management pricing plan that includes the additional monthly fee, you’ll find to be most common. PPC agencies charge this monthly fee to cover activities, such as tracking forms and calls, creating new ads and landing pages, etc.

Monthly management fees are fixed, but may be assessed  with ad copy updates, landing page creation and ad rotation. The flat rate fee will span depending on the workload associated with the ad campaign. This normally baselines at $500 and goes up to 5-7k a month, or more.

PPC Management Pricing That Adds Up

If you’re looking for PPC management pricing that makes sense, Digital Logic believes in being transparent with all of our PPC management prices. We have some of the best prices, as well as, some of the best service! We’re always 100% transparent and respond to requests honestly.

When you’re evaluating PPC management prices, you’ll want to make sure you know exactly how much of your budget is actually going to Google Ads.

In your initial interview, asking the following will help you determine if the PPC agency is a good fit for your business:

  1. How much of my bill is going towards the ads and how much am I paying the agency? If they won’t tell you the amount you’re spending on clicks, then how do they plan on providing reports? How much are you paying for each keyword. How do you know if they’ve under-spent? If they do under-spend, do you get a refund?
  2. If you want to increase or decrease your budget, what’s their cut? Are you even allowed to change your budget, and if you do, do they take a percentage of the increase?
  3. How can you see data from your Google Ads Account? Keep in mind that the data belongs to you. You paid for it. If you can’t get access to your Google Ads account, ask why.
  4. What happens if you want to change PPC management agencies? If they won’t give you access to your Google Ads account, will they transfer your data to the new agency? Or, will your new agency need to start from scratch, which costs time and money.

How to Find a PPC Management Agency

Choosing a PPC agent or PPC agency for your business can be challenging. Many business owners have minimal experience with PPC ads and are bombarded with telemarketers and spam emails telling them that they aren’t on page one of Google. (Would you believe the do the same to us?)

Before you choose an online marketing agency or PPC management firm, do the following:

  1. Check the company’s website for a Google Partner Badge. Make sure the badge is actually linked to the Google Partner database.
  2. Google the agency’s name with the city and state. Check out the agency’s online reviews on Google, as well.
  3. Look for a physical address on the agency’s site. A physical address is critical for Google Business information, so if they aren’t doing this for their own business, how well will they manage yours?

If you’re interested in starting PPC advertising for your business and need a PPC agency to work with, Digital Logic provides free proposals! Just click the button, below, or call us at 318-678-5020.

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