Google Ads make up an important part of many marketing campaigns. Highly-scalable and quick to take effect, it’s no wonder businesses are choosing to utilise this platform. But how much should you be paying a PPC agency if you’re not sure how to set things up yourself? Great question. While it’s important to spend a reasonable amount, you don’t have to drop an arm and leg to get things right. In fact, with an experienced team of experts by your side, you can achieve a lot from not-so-much.
Getting our head around some common pricing structures will help us when it comes to figuring out how much we should be spending on PPC support services. We’ve provided a quick breakdown below:
Flat fee pricing is exactly how it sounds. An agency charges a predetermined fee for their services. This will usually be agreed upon after the scope of the project and a calculation of overall costs has been completed.
Some agencies charge based on a ‘percentage of spend’ model. This means the client pays the agency a percentage of the ad spend that they will be responsible for overseeing.
Similar to the above, this model sees an agency charge based on the amount of ad spend that the client is spending. However, it includes a management fee to account for any extra expenses or overheads relating to the PPC ad campaign.
A performance-based pricing model refers to a commission type payment structure. For instance, if the agency hits a certain number of inbound calls, trial signups, demo requests and emails etc, a certain fee is charged.
Now that we understand the basic pay structures for PPC agencies, we can look at how much you should actually be paying. And the answer to this question is that it very much depends on how much support you want with your campaign.
For small to mid-sized businesses that want to boost inbound leads from PPC, a price model based on the percentage of ad spend may be the best bet. If you want to get up close and personal with things, and play with your PPC ad spend as needed, then the smart call is choosing an agency that itemises their services so you can confidently manage your budget.
Regardless of how much you decide to spend and what approach you choose, always be sure to sit down with the other party so you can agree on your objectives from the outset. This way, you’ll all be on the same page when it comes to tracking results and ensuring the best returns for your efforts.
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