If you’re a business owner looking to expand your online presence and drive targeted traffic to your website, Pay-Per-Click (PPC) advertising is a powerful tool in your digital marketing arsenal. However, the cost of running successful PPC campaigns can vary widely, and it’s important to understand how PPC agencies charge for their services in the UK. In this guide, we’ll break down the factors that influence PPC agency charges and provide you with valuable insights into what you can expect.
We’ve written a great in-depth resource of frequently asked questions related to all things PPC. However, while not a definitive guide, if you want to learn a bit more about how much a PPC agency charges in the UK and some factors that influence these charges, continue reading this article.
The complexity of your PPC campaign is a primary factor that affects pricing. A simple campaign with a few keywords and a single ad group will generally cost less than a multifaceted campaign targeting multiple keywords, demographics, and platforms.
Industry and Competition
The industry you operate in plays a significant role. Highly competitive industries often require more sophisticated strategies and a larger budget to stand out among the competition. Agencies may charge more for campaigns in industries where the CPC is high.
If your PPC campaign targets a local audience or a broader national/international audience, the pricing can differ. Targeting a specific region might require less investment than a nationwide campaign.
Ad Platform Selection
PPC campaigns can be run on various platforms, including Google Ads, Bing Ads, Facebook Ads, and more. Each platform has its nuances and varying levels of competition, which can impact pricing.
The objectives of your campaign—whether it’s brand awareness, lead generation, e-commerce sales, or something else—can influence the pricing. Certain goals might require more extensive tracking setups and ongoing optimization efforts.
The experience and reputation of the PPC agency also play a role in determining costs. Well-established agencies with a track record of delivering results might charge higher fees due to their expertise.
Different agencies offer varying levels of service. Some might provide a comprehensive package that includes campaign strategy, ad creation, landing page optimization, and ongoing monitoring. Others might focus solely on ad management. The extent of services provided will impact pricing.
Monthly Ad Spend
Some agencies charge a percentage of your monthly ad spend as their fee. This can be beneficial for larger businesses with bigger budgets, as it aligns the agency’s fee with the campaign’s scale.
Agencies may offer different pricing structures based on contract length. Committing to a longer-term contract might lead to reduced monthly fees compared to a month-to-month arrangement.
Reporting and Analysis
Transparent reporting and in-depth analysis are crucial for optimising your campaigns. Agencies that provide detailed reports and insights may charge more for their comprehensive services.
Understanding Pricing Models
Percentage of Ad Spend
Many agencies charge a percentage of your monthly ad spend, typically ranging from 10% to 20%. This model is suitable for businesses with flexible budgets and allows the agency’s fee to scale alongside your advertising investment.
Fixed Monthly Fee
Some agencies offer fixed monthly fees based on the services included in the package. This model provides predictability in costs and is helpful for businesses with steady ad spends.
In certain cases, agencies might tie their fees to specific performance metrics, such as cost per conversion or return on ad spend (ROAS). This model aligns the agency’s success with your campaign’s success.
Some agencies combine elements of different pricing models to offer a customised solution that fits your needs. For instance, they might charge a lower percentage of ad spend but include additional fees for strategy development.
So what’s the key takeaway?
Navigating the landscape of PPC agency charges in the UK requires a clear understanding of your business goals, campaign complexity, and the range of services offered by different agencies. By considering factors such as industry competition, geographic scope, and pricing models, you can make an informed decision that aligns with your budget and objectives.
Remember that while cost is a significant factor, the expertise and track record of the agency is equally important in ensuring the success of your PPC campaigns. We have a team of experts at Distribute Digital ready to give your business the helping hand it needs in the PPC world. Get in touch with us today or book a free consultation!