What Are the Fees for Managing  Google AdWords PPC?Posted by on

Google AdWords and PPC (pay per click) have grown up to be the most essential tools for any business that are willing to increase traffic towards their websites and thereby generate new leads and increase their sale. However, the small business houses do not actually understand the technology and therefore find the PPC jargon and AdWords set up very complicated. These small firms do not have any interest for investing in PPC training and therefore they should consider hiring a specialised PPC agency for setting up as well as managing the account in a professional manner.

Most of the agencies work for finding a solution that will benefit both the client company and the agency.

Why should you opt for PPC services through agencies?

Google aims to make money too so if you are not smart enough to understand certain techniques and principles, for instance, remarketing, quality score, targeting, bid management, conversion optimisation, etc. Or else you will find yourselves paying twice the price than the number of clicks you are getting. Also, for each conversion, lead or sales, you could be incurring more expenses than the actual work.

Google Ads PPC Management Fees Structures: 

How much percentage is to be spent :

This is a very important form of billing and most commonly the percentage remains 10%-20% of the ad spend but there can be fluctuations in this percentage. For instance, if the advertiser spends $500 in a month and if the agency charges only 10% of it, then it comes round to about $50 per month for the PPC management fees. But this is way too lower for the fees and the agency then will be unable to make any profit.  Therefore, the advertisers should pay higher percentage for the management fees whereas for the larger spends, the percentage might decrease.

PPC management fees effect on an agency:-

If an advertiser spends a set amount of money every month, it can become a predictable amount of income for the agency. In case, one has a fully automated system, the agencies can make more profits in comparison to the other forms of billing. On the manual system, you need to track the duration spent by each analyst on a company managed by them.

Effect of PPC management fees on the advertisers:-

If the advertiser is spending more, the bills for the PPC management agencies also increase. But the most important thing is trust between the advertiser and the agency. At the initial stages, the advertiser should give upper limits on the amount he is willing to pay on a monthly basis and then he can have predictable bills by the agencies. Most importantly, being an advertiser, you should be able to trust on the PPC agency with whom you are working. The incentives of the agencies lie in several factors, one of them being to get the advertisers’ spent increased by each month thereby making more profits. If the agency increases your spend and your profits also continue to rise, nothing can be better than this. This usually happens with the agencies that test various keywords and ad copies to get the advertisers the results and therefore they would be willing to spend more and more. But in case, if the spend of the advertiser is increasing but he is not seeing enough conversions, then he must check out the issue as the agency might be bidding on the untargeted keywords and thereby increase your spend by dubious means.

Which is the best type of PPC management agency for your company?

One needs to properly identify an effective PPC agency which will provide a proper and suitable service to a business. PPC agencies vary depending upon their size and expertise scale and usually gain specialization with a certain number of ad spends.

         1. Small scale agencies and freelancers

These agencies target business houses and operate ad spend of lesser than £1000 on a monthly basis. These agencies tend to offer fixed fees of 350 pounds or even less than that on a monthly basis. They spent only a few hours on an account per month. Also, the size, as well as complexity, might be limited and they may also lack the expertise to use several features within Google AdWords and all the other alternative platforms. These companies only focus on the generation of clicks and put less focus on the conversion tracking or linking the accounts of the investors to Google Analytics. These small agencies may not get accredited by the Google partner due to its smaller ad spend.

         2. Medium sized agencies

These types of agencies have a tendency to target business houses with ad spend of £3000-10,000 pounds on a monthly basis. They provide a fixed amount for the fees. The management fees here are more affordable when compared to the large scale agencies. They offer a wide range of services and use a complex setup of accounts. They link with other platforms like LinkedIn, Facebook and Bing Ads and use with various tools and software. These agencies spend more time compared to the small scale ones in the optimization of the clients’ accounts. They also try to maximize the rate of conversion of the accounts and thereby improve the ROI. These agencies may be probable to Premier Google partners. But they use third party tools and do not always have their own bid management or reporting tools.

       3. Large PPC agencies

These are specialized ones and tend to gain a large number of customers and they have a minimum of ad spend on a monthly basis as high as £10000. Large scale PPC agencies include at least 10 managers for handling the different accounts and some of them may handle multiple numbers of accounts or singly. They have their own bid management or at times hire third parties and other tools for handling the complex accounts.

PPC pricing structure:

PPC agencies offer their services based on various pricing modes:

  1. Set up fee
  2. Monthly fee (fixed amount)
  3. 10%-15% of the total ad spend
  4. Per hour rate that depends on the work
  5. Monthly fee depending upon the size and expertise of the agency
  6. Small scale charges around £350 whereas large scale PPC agencies cost £1000 on a monthly basis

Important factors to be considered before selecting a PPC agency for you

  • Experience level
  • Accreditation from Google or Bing
  • Number of accredited staff
  • Other services offered by them
  • Level of experience of your account manager
  • Minimum contract period
  • Charging structure
  • Transparency level
  • Technologies used for the work
  • Extra charges need to be figured out, if any, for bid management tools
  • Type of reports you will be provided
  • Ownership of your account at the end of the contract

Agency Vs in house PPC team:                  

Advantages of in house PPC team:-

  • 24/7 access to the staff
  • Team members always around your content
  • Well versed in your products and services, competitors, industry topics
  • In-house team knows where your industry is heading to
  • Members are aware of your customers’ searches
  • In-house team knows the brand hence it is easy to produce content
  • Business owners can leverage the in-house staff for other tasks in the company
  • The team members have an intimate knowledge of your business and about your industry

Disadvantages of in-house PPC team:-

  • In-house teams lack experience and specialisation in manpower
  • Members perform numerous tasks leading to work overload resulting in a decrease in quality of work.
  • Each team member performs a variety of tasks even though they lack training and expertise in all areas
  • No access to the caliber and amount of tools that an agency has

Advantages of PPC agency:

  • One of the biggest plus points of PPC management agencies is that they have a lot more team members. It means that each member is able to focus on a specific task with proper schooling on their particular job functions. They are also likely to have certifications and training for the tools used as well as the specific field of marketing.
  • Agency has access to numerous task specific tools to aid them in their work which an in-house team cannot have. Marketing agencies have access to lots of tools for they spent thousands of dollars for tools.

Agencies have tools for promotions, viral growth hacking or landing page building or tools which can build thousands of ads in just an hour and tools for monitoring and reporting the ads. Your in-house management team can buy the tools but they probably will not buy as these tools might be necessary for one or two clients and not all of them. Agencies can spend millions on advertisements but you definitely do not want to spend your entire budget only on ads. Agencies have numerous and expensive tools for it is marketing that all they do so that they can use the tools for all clients.

  • PPC agencies can work really well as a stand-like for they have the power to be the social part of your business.
  • Agencies have access to people at Google and Facebook which in-house team cannot have.

For instance, if your Google ads go down, you call the helpline, go on hold and then get someone who doesn’t really know how to help you. Whereas agencies have Google partner or we have a Facebook associate for them, people whom they can call and ask questions. Agencies can find solutions to the problems and resolve them to get progressive ad not get frustrated and avoid getting those issues in future that may stop them from work. The agencies are likely to have more established contacts that can help them to more effective, get better deals and complete the tasks more quickly.

You can learn a thing or two while working with so many different industries and you can learn thing or two when you have multiple businesses in a single industry only. You will be able to see what’s driving sales to your business, what’s working best for your business and where the sales are coming from – you are able to gather all the data and gain a lot of expertise. An in-house team cannot have the access to all these and nor they have the expertise like the PPC agencies.

  • PPC agencies work in conjunctions as they work with the clients who have specific teams such as five members in the marketing team or eight members in the social media management team. These people might be better in terms of content in comparison to us. They might also know the plans as well as marketing strategies required for the business. But when it comes to advertising, all power goes to the PPC agencies. The entire strategy-how to turn ads into sales, how to look at re-targeting, designing and split of different ads. An agency has so much power that works better than an in-house team of a business.  

In an agency, each employee deals with multiple clients on multiple campaigns which means they have the opportunity to test out different techniques, ideas and strategies and determine which will be effective and which will not work out. This can give them immense knowledge and a pre-qualified process which can help them to make more efficient in their tasks. In addition to this, a agency would be able to adapt these methods to individual campaigns to get the best possible returns.

Google AdWordsPPC

Biplab PoddarView all posts

Biplab Poddar

Biplab Poddar is the Founder & CEO of Oxedent. He is a Google Ads Lover and CRO Strategist. He Helped 250 plus businesses to launch their first PPC campaigns as well as optimize the campaigns to get maximum out of their ad spend.

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