The latest figures suggest that PPC has an average ROI of 200%, with £2 generated for every £1 spent according to SmallBizGenius.
With an estimated 90% of all Google users being shown paid ads including pay-per-click campaigns, it’s fair to say that PPC can be incredibly effective at reaching your target customers online.
However, with PPC requiring expertise, time and energy to get right, most businesses enlist the help of a pay per click management agency rather than going it alone.
To understand the cost of working with a PPC agency and what factors influence how much you might pay, we’ve put together the following breakdown to guide you.
How Is PPC Priced?
Before we focus on some of the wider aspects of PPC pricing, one of the main things to know is the types of PPC pricing models you might encounter.
Every PPC agency is different, meaning how each agency chooses to price its services will vary. In general, you will likely come across one of the following options when being quoted for PPC.
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 of costs and is helpful for businesses with steady ad spends.
Performance-Based
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.
Hybrid Models
A pay per click management agency may also combine elements of different pricing models to offer a customised solution. For instance, they might charge a lower percentage of ad spend but include additional fees for strategy development.
PPC management options
A common saying in business is that ‘you have to spend money to make money’. When it comes to PPC management, there are two main options to consider. Crucially, one option may seem like the more expensive option, though is likely to generate better results over the longer term.
PPC management in-house
You could manage your PPC internally within your company. This would involve giving up your own time to plan, manage and monitor the campaigns. Alternatively, you could create a job within your business for a PPC expert. Though, this will likely require a high salary to attract the right talent.
PPC management by Agency
Outsourcing your PPC to an agency will mean your campaigns can hit the ground (and the search engines!) running. Giving you instant access to a team of experts, you can select the best rated PPC agencies near you. This encourages a higher ROI by working with business-minded digital marketing experts.
Influencing Factors
Similar to other types of digital marketing services, PPC agencies will consider how much expertise and effort will be needed to reach your goals when outlining any costs. Depending on the overall scope of the project, your PPC costs will be priced accordingly.
Campaign Complexity
The complexity of your PPC campaign is a primary factor that affects pricing. On the one hand, PPC campaigns can be simple with just a few keywords and a single ad group. In other cases, a PPC campaign may require targeting multiple keywords, demographics and platforms which is more work.
Industry and Competition
The industry you operate in plays a significant role in PPC charges as a whole. 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 to reflect this.
Geographic Scope
Your PPC campaign can target a specific postcode or run on a global scale, depending on where your audience can be found. Targeting a specific area might require less investment than a nationwide campaign. As a result, more localised PPC campaigns tend to be cheaper to implement and monitor.
Ad Platform Selection
PPC campaigns can be run on various platforms, including Google Ads, Bing Ads, Instagram Ads and Facebook Ads. Each platform not only has different nuances to master, but can also boast varying levels of audiences and competition. The greater the opportunity, the higher your PPC costs will likely be.
Campaign Goals
The objectives of your campaign such as brand awareness, lead generation or ecommerce sales will influence the pricing. Certain goals might require more extensive tracking setups and ongoing optimisation efforts. As part of a PPC management service, you can discuss these goals including scaling up or down as needed.
Agency Expertise
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. It’s key to opt for a PPC management service that truly aligns with your business and target customers. The best way to know if you’re getting value is to run a proper audit first. Here’s how to conduct a complete PPC audit before you make any decisions.
Service Inclusions
Different agencies offer varying levels of service. Some might provide a comprehensive package that includes campaign strategy, ad creation, landing page optimisation and ongoing monitoring. Others might focus solely on ad management. As you might expect, the overall scope of the services provided will impact how much PPC costs.
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. A flat fee also makes it easier to manage your total marketing spend.
Contract Length
Agencies may offer different pricing structures based on your contract length. Committing to a longer-term contract might lead to reduced monthly fees compared to a month-to-month arrangement. However, you must take care to avoid being tied into lengthy contracts unless you are working with genuine PPC experts.
Reporting and Analysis
Transparent reporting and in-depth analysis are crucial for optimising your campaigns. A pay per click management agency that provides detailed reports and insights may charge more for their comprehensive services. However, without this information it is challenging to make informed decisions that can also benefit your other marketing efforts.
FAQs:
What is PPC management?
Management of a PPC campaign covers all of the research, implementation and monitoring required to deliver a return on investment from PPC. It involves having a solid strategy unique to the client and their target audience, so that all decisions taken will result in beneficial outcomes.
How much does PPC cost?
PPC is typically priced as a percentage of your monthly ad spend. Usually, this would be between 10% and 20% of the total amount. For instance, if your company spends £10,000 on PPC, the average monthly cost of PPC management would be between £1,000 and £2,000.
What determines the cost of PPC management?
PPC management is usually charged as a percentage of the total ad spend. Since PPC campaigns can be created for a small business through a global brand, charging as a percentage helps to keep PPC charges relative, as well as ensuring that pay-per-click is accessible to all businesses.
How to manage PPC campaigns?
Effective PPC management relies upon having an intrinsic understanding of the nuances of the particular PPC platform. Plus employing all the best tips and techniques for success. Rather than ‘setting and forgetting’, PPC management requires constant research, planning and monitoring. The campaigns should always be laser-focused on the target audience.
What is involved in day to day PPC management?
PPC managers focus on monitoring various metrics so that optimisations can be made to the campaigns where needed. This includes overseeing aspects such as keyword selection, competitor analysis, impressions, click-through rate, quality score and overall conversions. A reactive approach is needed to keep PPC campaigns on track.
Is PPC management worth it?
Absolutely! When a PPC specialist not only sets up your campaigns but also carefully monitors them, this is far more likely to result in a successful outcome. Overall, the right know-how and investment of time are essential for a PPC campaign to reach your target audience effectively.
Maximise your PPC success with Distribute Digital
Ensure every click is optimised for conversions when you enlist the help of our PPC experts here at Distribute Digital.
While PPC can deliver phenomenal returns, this digital marketing technique isn’t always so easy to plan, implement and monitor alone. That’s why many business owners choose to outsource their PPC to a PPC management service instead.
As an award winning pay per click management agency, we can oversee all aspects of your paid advertising campaigns. So whether you are looking to try PPC for the first time, or want to improve on previous results you’re in the right place.
Contact us to learn more or book in for your free PPC consultation.
