There are different PPC management pricing models, how PPC Agencies charge their clients.
This blog will help you to know about the various pricing models, their workings, and benefits. We help you to look for the right thing when you are in the market looking for a PPC agency to hire.
How much should you pay an agency for PPC services?
To answer this question, first, you need to tell us how hands-on you wanna be regarding your PPC management for your Google Ads?
As per studies, most of the small and midsize businesses simply need to see a rise in their inbound leads as a result of PPC. If that’s all you want, the pricing model on the percentage of ad spend will make the most sense. But before jumping onto any conclusion and getting hands-on with PPC ad spends, you need to look for agencies that will itemize their PPC services for careful management of your budget.
While you are evaluating the PPC pricing of various agencies, make sure to keep a note and find how much of the click costs are actually going to Google Ads. Most of the bigger agencies tend to charge a monthly flat rate to their clients.
5 Types of PPC Agency Pricing Models
When you choose to hire a PPC agency you can get an entire team of PPC specialists providing a range of expert services and that would be much more cost-effective in comparison to an in-house division. And you can get all this by spending the same amount as your employee’s yearly salary and also you have no geographical limitations as most of the top PPC companies work with international clients across the globe.
When an agency sounds like a better choice for your company, read on to see the types of pricing models that will fit your advertising budget.
We’ve identified 5 common types of pricing models that PPC agencies use with clients:
Flat Rate Pricing
Some agencies charge a flat fee depending on the scope of work of the client and accordingly calculate their costs for their clients’ PPC management. Many businessmen prefer a straightforward way so they opt for this model as the tasks and services are clearly defined in this model.
This pricing model is a simplified form of the management fee + percentage model.
Flat rate pricing is good for clients who prefer fixed expenses per month with relatively static campaigns with a range of $300-$1500 based on your monthly ads spend.
However, this is not for dynamic campaigns. Seasonal businesses using specials for driving business and therefore both the management burden as well as ad spends need to be more flexible.
As far as pricing models are concerned, nothing can be more straightforward compared to hourly pricing. You sign with an agency for a certain number of hours on a monthly basis and their dedicated account managers will work upon your account. Hourlies are the best for the start as you exactly know what you are getting in lieu of what you are paying the agency. You can know that your agency is accountable for billable hours, so they cannot leave you on the back burner.
While you opt for hourlies, you ensure that your agency works on your account every week throughout every payment cycle. By keeping your PPC agency pricing model at hourly rates you can keep your campaigns under control with a range of $20-$100 depending on your ad spends. With effective PPC efforts, your campaigns will modify and gain growth and your ad spends or budget will require the following suit. The PPC agency you have hired for hourlies can help to stop your campaigns from getting ahead of you.
Percentage of Ad Spend
While you are seeking help for PPC, you can find a lot of agencies that use a “percentage of ad spend” pricing models. Clients pay a predetermined percentage of their ad spends to the agencies that work for your PPC management.
The agency’s percentage tends to shrink as the workload increases but this is not the case all the time.
Companies with a larger or a growing ad spend from a range of 5%-15% of ad spend with the percentage reduction that is accompanied by a total increase in the budget. Many of the agencies using this model require a minimum ad spend.
But with smaller businesses that have very few budgets, minimum spending is associated with this model. So if your budget is not so big, you can be stuck with giving hefty fees to the agency to make them work for you.
Management Fee + Percentage of Ad Spend
Many of the mature marketing agencies charge a PPC management fee for covering their overheads related to the ad campaigns of their clients. This pricing model uses the percentage of ad spend along with an additional fee. This model is however less prevalent among businesses.
This model is for those who demand transparency and ultimate ownership of their Google Ads accounts. If you are paying management fees along with a percentage of ad spend, it gets tough to justify holding accounts for the agency as ‘proprietary’. However, this model keeps a certain budget available for A/B testing and conversion tracking for online and offline (phone or texts).
For the accounts with tiny budgets including a range of $300/Mo (Flat) + 5% of ad spends, this model is not too great. They will rather be good with automated platforms with a small percentage of ad spend.
Apart from the above PPC pricing models, the performance-based pricing model is also equally worth mentioning. Under this model, businesses pay for lower-funnel actions including calls, emails, form conversions, demo requests, trial sign-ups, etc. Some of the agencies set up a commission rate with this pricing model and gather a small percentage of revenue.
Here is a small instance of how this model works:
$15 for every signup
$25 for every lead form submission
$20 for every phone call.
$40 for every $1000 in sales.
Flat Fee + Milestone-Based Pricing
The milestone-based pricing model has a sole focus on lead volumes. Agencies use this pricing model for establishing custom goals for every client while they are on board. For example, if their conversion rate becomes more than 6%, the pricing model will be like $300 + $100. These goals might be for the number of leads, lower cost per conversion, increased ROAS (return on ads spend), etc. This pricing model closely aligns the client goals with the goals of the agency. Milestone based pricing helps to keep the agency’s focus on genuine growth as well as keep your account optimized.
Choosing an Agency vs. In-house PPC Team
Agencies have all the expertise needed to build conversion-optimized PPC campaigns starting from Creative designer, PPC Manager, CRO Expert, Landing page developer, Tracking & Analytics expert- all under one roof.
- 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.
PPC agencies can work really well as a stand-like for they have the power to be the social part of your business.
- Most of the Agencies are Google and Facebook Partner and have access to people at Google and Facebook which in-house teams cannot have.
Some important factors to be considered before selecting a PPC agency for you
- Experience level
- Accreditation from Google, Microsoft & Facebook.
- Number of accredited staff
- Other services offered by them
- Level of experience of your account manager
- Minimum contract period
- Pricing 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
What Should You Look Out For PPC Management Prices?
Ask a few questions to yourself before you go for a PPC agency:
- How much of your money actually goes to PPC ads and how much the agency is charging for their services?
- If they fail to tell you the actual amount that is spent on clicks, then there is little hope that they can possibly report you the right results. Know your cost per click, how much money is spent on each keyword you bid? What will happen if your budget is not fully spent? Will you get a refund?
- What will happen if you increase or lower your budget? How much will the agency get on an increase/decrease in your budget? Do they charge a flat fee or do they charge a percentage of ad spend?
- Can you change the monthly budget with the agency?
- In case they don’t agree to give you the breakdown of their management fees and the actual cost of PPC clicks, will they show you all data related to your Google Ads account? The data is yours; you pay them so it’s your right?. They must give you access to your Google Ads account or else you can never know what they are hiding from you!
- If you are willing to change your PPC agency and your previous agency cannot show you the actual Google Ads account, then you will not be able to transfer your account data to your new agency. As a result, the new agency hired will have to start from scratch and that means it will consume both your time and money. Hence don’t go with the agency that refuses to provide you with your Google Ads data.
Regardless of the PPC agency you choose to hire, make sure that you get detailed reports, costs and clicks by keywords, ad groups and campaigns on a monthly basis.
At Oxedent, our Google Ads management fees are the only source of income. We let you add your credit card details so that you know exactly the amount you are paying for PPC to Google and how much you pay us. We have 100% transparency in terms of pricing and data reports to make sure that you understand our pricing structure. We conduct comprehensive reporting and even the small size accounts get detailed reporting every month or regular intervals. Our reports include clicks, impressions, conversions, costs, CPCs (cost per click) for ads, keywords, ad groups, campaigns, geographic location, time of day, day of the week, etc.
Even if you require a customized reporting dashboard, we’ll create one for you. You can check the campaign data simply by selecting the date range.
Looking for PPC Management Pricing that Makes Sense?
At Oxedent, we believe in being transparent regarding all of our PPC Management prices. If you have been to other websites, it’s hard to find their pricing. That’s why we put our pricing calculator on every page of our website to make it easy to find.
Not only do we bet to give you the best prices, but we offer the best services too. We are 100% transparent with your PPC account, never bind you with a contract, respond to your requests as quickly as possible and all of your account work is completed in our office. We work on a noncontract basis; if you want us to roll onto the next month, go ahead, if not, you are free!
Why are Oxedent’s PPC Management Fees so Low?
You should know the reason behind agencies charging high fees from their clients. Efficiency is the key. Well designed ad campaigns with good performance demand less work but poor performing campaigns require much hard work. Oxedent is a Google Ads Management company from the ground up. We are not a web designing company who woke up one day to run Google ads. PPC is all we do, we focus solely on it. We build our processes on the purpose to keep our costs as low as possible. We try to keep our Google Ads management as efficient and affordable as possible.
There are a lot of agencies that even if you pay them five times more, you cannot get your money’s worth from these companies. They are busy probably in building websites or writing Facebook posts instead of working on your ad account. If the agency doesn’t focus on one thing such as PPC, it becomes difficult to manage your account.
Why do agencies charge more?
- They might not know efficiency so you need to pay more than you should.
- They are too much overhead and that is why you have to pay them more.
- The agencies do not keep their clients for a long period of time as on-boarding costs and advertising costs are more valuable than keeping a client and so you have to pay them more.
- They don’t have the knowledge about Google Ads delivering results and how to meet client goals hence you have to pay more.
But with Oxedent, the main goal lies in delivering the best results at a fair price. We conduct efficient engineering of Google Ads campaigns.
Questions you should ask your PPC agency To Avoid Getting Burned
- a) How Long Have You Been Doing PPC?
There are a few certifications available through Google Ads but these Google partner badges or stickers cannot tell you the right way how effective your campaigns will be. We recommend you to ask your agency some questions such as their average client lifetime and their client retention techniques. The agency should be able to provide answers if they have a good market in the industry.
- b) Who Will Manage My Account?
When you are investing your hard-earned money on digital marketing, you would not prefer to work with an agency that is still a learner in the industry. Ask the agency who will be your account manager and know their years of experience in the PPC field to rest assured that your campaigns are in the right hands.
- c) How Many Other Accounts Does My Manager Have?
Agencies that focus more on client acquisition than on quality work tend to overload their PPC managers with numerous clients. And if your business account is one of the 50 other accounts in the account managers’ spreadsheets, then it is likely that your odds of success drop each time when someone else’s account is in trouble. Know how many clients are handled by the account managers of the agency within a single period of time. The lesser will be the number of accounts, the more they will be able to dedicate to your account and conduct various tests and experiments to make your campaigns perform better. If the account manager works on a rough number of 5-7 client accounts, it would work best to create opportunities for your success.
- d) Do You Provide Other Advertising/Marketing Services?
If an agency does all, it may seem a good fit for clients that they have found someone who does PPC as well as SEO and social media too!
But it is not! Beware of these one-stop digital marketing agencies.
Agencies that try to provide each and every digital marketing service on earth are not the ones that will be great for your Google ads. Try to stick to specialists particularly when it comes to PPC for you need an effective agency that would be able to produce measurable results within a proper timeline according to your conveniences.
- e) What are your PPC management fees?
If your agency doesn’t give you the breakup of their fees from the click costs, you will never know how much of your money actually goes to the agency and the costs go for the clicks.
- f) Which ads are included in your PPC management fees?
Know whether search engine ads, display ads, or remarketing ads or video ads are included in your PPC management fees.
- g) What platforms are included?
Google Ads, Bing Ads, Facebook Ads, LinkedIn Ads- what are the social platforms included in your PPC management.
- h) Are there any additional fees for changing my PPC ads?
Ask if you have to pay any other fees after the setup in case you want to change your PPC ads or create new ads or make other modifications in your Google Ads account.
- i) Can I pause anytime?
If you need to pause your ads for a few weeks or months, ask your agency if you can do so or if you need to pay any extra charges for that.
- j) Can I change my budget anytime?
If at any point in time, you wish to change your budget, increase or decrease your PPC budget, ask your agency if they will allow you to do that.
- k) How often will you provide reports and want data do I get?
Agencies need to report once in a month to their clients along with data related to their clicks, impressions and costs paid to Google without mark-ups and commissions. You can expect weekly, bi-monthly or monthly reporting from professional PPC agencies. If your agency doesn’t do that, it’s quite surprising!
- l) Are your account managers employees or outsourced?
Ask your agency about the PPC managers handling your Google ads account whether they are permanent employees of the agency or the agency hires all PPC Management work from another agency or get it done by freelancers or outsourcing.
- n) Will you transfer my PPC account to them if I switch to another?
Ask your agency if they would transfer your Google Ads account or Bing Ads account data to another agency in the future in case you choose to switch to another agency. That means they will give you access to your account. A professional and trustworthy agency would give you account access as it is your data and money at the end of the day. If it doesn’t, that simply implies that they are hiding something from you or they don’t want the other agency to audit the work they have done to your account.
- o) Can I keep my business’s phone number in call tracking, if included?
Ask your agency about call tracking whether they will provide you and if yes, will you be able to set your business contact number in the call tracking. If no, then what will happen to the tracking number if you part ways with your agency? Can you change them afterward?
- p) Can you create landing pages or an entire website?
Be sure before getting this done by any random agency. Many agencies agree to make you a website or landing page for your online business but what they do is create a copy of the website and create duplicate content on the internet that might hamper your organic rankings on the SERP (search engine results page). If you hire them to develop a website for you, ask them who will be the owner of the website domain, you or them?
- q) Can you make changes to my landing pages?
Ask your agency if they can make alterations to your website pages. If an agency can change any of your online properties or get your tracking phone numbers and put it all on the internet. So when anyone searches your company name, they will get your contact number and can easily call you directly. The agency brings all the calls coming to you!
- r) Can I terminate your services anytime?
Be sure to ask and clarify one thing while hiring an agency – ask them if there are any contract basis services, terms and conditions. Can you walk out of the PPC management service at any time without paying any charges?
How does Oxedent determine your PPC pricing?
Oxedent offers different pay-per-click management plans and our pricing is based on the campaign management budget and our different plans surely fit any advertising needs of the clients. Our PPC management pricing varies depending on the additional services (if any) included in the plan such as landing page design. Our clients get a free audit from our expert PPC strategists.
Enjoy our PPC Pricing with 100% transparency and our PPC management starts from $300/Month.
Want to know more about PPC marketing? Wanna know how much to pay for a custom made PPC campaign?
Oxedent is a Google partner PPC management company. We know what it would take to create ad campaigns that would drive in the best possible results for you.
Contact us today to speak with a specialist strategist and you will receive a custom quote. We look forward to helping your business grow with expert PPC advertising.