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PPC Management Pricing Packages
In the Google Ads industry, you have to live with the fact that 90% of the money goes straight to Google. That leaves PPC companies and various freelancers competing around the margins for the leftovers. Still, considering that Google Ads generates more than $100 billion a year in revenue for Google, that still leaves major financial opportunities for savvy SEM companies.
How should you price PPC management services?
There are a number of different pricing models for PPC services, and the model you choose will depend on the average size of your clients and the range of services you provide. To help you out, I’ve written a short guide explaining the most popular pricing models in the PPC industry. Most PPC companies will opt for one of the models described below, often in combination with some type of “start-up fee”.
Only Google Ads PPC Management is The Way To Go
However, before we get into these options, there’s one question you’ll need to answer first:When was the last time that anyone has used Yahoo as their search engine in the last 20 years? How many people actually use it as their search engine today? The answer to most of thorse questions is a big huge no. The majority of people do not use any of those search engines. Every day over 100 billion searches are performed on Google, this makes Google the only search engine you should target for your PPC advertisement campaigns. It is the only search engine that the majority of the people use, and because of this it means that you should target it to find your ideal customers.
Deciding to only use Google is a very easy decision. It is not something that is made on opinion, but it is made on statistical fact. If you go and look at the amount of searches that are performed on Google every day for your ideal keywords and then compare them to Yahoo or Bing; What you will find without a doubt is that Yahoo and Bing do not get as much traffic because the majority of people do not use them. As a marketer you have to be where the people are. If you’re not where the people are, then you end up wasting your marketing budget.
For businesses who want to get the most out of their PPC management service, make sure you are using the right search engine to target. If you are attempting to use those other search engines just because it’s a little bit cheaper you will find the opportunity cost is much higher than the actual physical cost of Google. You might save money on the front end, but you simply won’t make enough money on the backend. You will pay a little bit more money for Google PPC advertisement because Google is where the people are, and that will make a lot more money in the long run.
As you can see, when it comes to search engine marketing there’s really only one game in town. Only one game in town is a Google. The rest of the search engines just will not give you the results that you are looking for. If you were looking to reach the most amount of people in the least amount of time, and Google is your only choice. Using any other search engine will not give you the results that you are looking for. Of course you want to get most of your money, and Google is the only way to do that.
Beyond understanding the simple fact that Google is the best choice, you also need to find the right type of management company. Without the right PPC management company, it could be difficult to really get a campaign to work as it should. The right PPC management company will work with you on creating the ideal campaign to reach the most amount of people, bringing the right kind of customer and it will help you reach all the goals that you have for your Internet marketing. Choosing the right company is one of the most important things.
Who’s Going To Pay Google?
Ultimately, no Google Ads campaign can get off the ground until you give Google a credit card or bank account number. There are three options here:
Have the client pay Google directly. This is usually done by adding their credit card number to the “Billing & Payments” section of Google Ads. The client is then sent a separate invoice by their PPC vendor for management. This can be confusing for some clients — “Why am I paying two bills?” However, it’s also the most straightforward option. Rather than act as a middle man for Google, the client pays Google themselves.
- You pay Google on the client’s behalf. Rather than charging a separate management fee, some vendors collect their client’s media spend and management fee in a single payment, usually once per month. The PPC manager then pays Google with their own account.
- Finally, there’s consolidated billing. If you are a PPC reseller, large SEM company, or handle a high volume of clients, you can set up consolidated billing with Google. You will work with Google directly to set up a single invoice for all of your clients’ media spend.
Once you’ve decided how you’re going to pay Google, you still need to decide how much to charge for your PPC management services.
That means it’s time to select a pricing model.
Related: How to Create a Marketing Budget
Charging PPC Management by The Conversion
Although it’s a less common PPC pricing model, some SEM companies charge by the conversion. They work with the client to select a conversion goal, then charge based on the number of conversions the campaign receives per month.
For clients who don’t understand Google Ads very well, this simple approach can be easy to understand. Rather than explaining the nuances of managing Google Ads campaigns, your agreement is based on a simple transaction: the client pays you, you provide an agreed-upon number of leads.
Of course, there are some downsides. If you hit a slow month, you could easily lose money on the labor required to manage the campaign. In addition, when clients pay by the lead (whether that’s phone calls, form fills, sign-ups, or downloads), they may be tempted to split hairs on what counts as a “lead”. Sure, you got them 20 phone calls, but half of those were tire kickers.
Charging PPC Management by a Percentage of Media Spend
I’ve seen more and more PPC vendors charging their client’s a percentage of their media spend. The exact percentage can vary widely depending on the company, but 10% isn’t uncommon. So if a client is spending $5,000 per month on Google Ads, the PPC company will charge $500 to manage that campaign, for a total bill of $5,500.
It’s a simple, straightforward way to charge clients for PPC services, which is why it’s so popular.
PPC Management Pricing Tiers
Finally, there’s the pricing tiers model. As a White Label SEO company, we have to keep our SEM services at a low price point to stay competitive. That’s why we’ve opted for this PPC pricing model.
We charge a flat monthly fee based on the client’s total media spend. Without getting into specifics, that means we charge $500 for clients who spend less than $3,000 per month, $700 for clients who spend $3,000-$7,000, and so on.
PPC Management Start-Up Fee
Many PPC marketing companies also charge a one-time start-up fee. Launching a new Google Ads campaign takes a lot of upfront work. There’s keyword research, writing ad copy, setting up conversion tracking, and more. Even if the client has an existing Google Ads campaign, there’s no guarantee the previous vendor knew what they were doing.
As a result, unless you charge a $500 setup fee, it’s easy to actually lose money in the first month of a PPC campaign. Some companies make that money back in the long run, but most companies now charge a separate set up fee. In fact, this has quickly become the industry standard.
Related: Guide to Digital Marketing Pricing & Packages [2019]
Define Your Pay Per Click Management Services
No matter how you decide to charge for your PPC management services, you should be transparent with the client. That means they need to know exactly what they are — and are not — paying for month-to-month.
This can prevent disasters in the making. If a client is expecting you to make daily updates to their campaign, then a 10% management fee will leave you deep in the red. By being totally upfront about what management services you provide each month, you can manage expectations. Ultimately, that’s how you maintain a high retention rate.
As time goes on, a successful campaign should require less and less active management, which means your profit margin should increase the longer you retain a client.
FAQ on PPC Management Pricing
What is a good PPC management fee?
A good PPC management fee is one that aligns with the services provided, the complexity of the campaigns, the expertise of the management team, and the overall budget of the business. PPC management pricing can vary widely depending on several factors.
1. Services Included: A good PPC management fee should cover all essential aspects of a campaign, including keyword research, ad creation, bid management, conversion tracking, and regular reporting.
2. Agency Expertise: The experience and expertise of the PPC management team play a significant role in determining the fee. Highly skilled professionals may charge more, but they often bring a higher return on investment (ROI).
3. Campaign Complexity: More complex campaigns that target multiple platforms, languages, or products will typically require a higher management fee.
4. Business Goals and Budget: Understanding the business’s goals and budget is crucial in determining a fair PPC management pricing structure. A small business with limited resources may opt for a lower fee with fewer services, while a large corporation may need a comprehensive package.
5. Pricing Models: Different agencies may offer various pricing models, such as a flat monthly fee, a percentage of ad spend, or a performance-based fee. Each as its pros and cons, and the best choice depends on the specific needs and preferences of the business.
6. Transparency: A good PPC management fee should be transparent, with no hidden charges. It should clearly outline what is included and what might incur additional costs.
7. Market Rates: Understanding the market rates for PPC management in your industry and region can help you assess whether a fee is reasonable.
In conclusion, a good PPC management fee is not merely about the lowest price but finding the right balance between cost and value. It should align with the business’s goals, budget, and the complexity of the campaigns, providing a clear return on investment.
How much does PPC management cost?
PPC management pricing can vary widely, depending on several factors. Here’s a breakdown of what might influence the cost:
1. Agency Experience: Experienced agencies with a proven track record may charge higher fees. Their expertise often translates into more effective campaigns and better ROI.
2. Services Included: The range of services included in the management package will significantly impact the cost. Comprehensive packages that include keyword research, ad creation, landing page optimization, and regular reporting will generally be more expensive.
3. Ad Spend: Some agencies charge a percentage of the total ad spend. This means that the more you spend on ads, the higher the management fee.
4. Pricing Models: Different pricing models, such as flat fees, hourly rates, or performance-based pricing, can lead to different costs. Flat fees might range from $300 to $5,000 per month, while percentage-based fees might range from 10% to 30% of ad spend.
5. Campaign Complexity: Managing multiple campaigns across different platforms or targeting various demographics and locations will typically cost more.
6. Contract Length: Some agencies may offer discounts for longer-term contracts, affecting the overall cost.
7. Additional Services: Extra services like creative design, content creation, or advanced analytics might incur additional costs.
8. Industry Competition: Highly competitive industries might require more sophisticated strategies and constant monitoring, leading to higher management fees.
9. Geographical Location: The location of the agency might also influence the cost, with agencies in major cities or high-cost countries generally charging more.
In summary, PPC management pricing can range widely, and there’s no one-size-fits-all answer. It’s essential to understand what’s included in the fee and how it aligns with your specific needs and budget.
How much does PPC cost by company size?
PPC costs can vary significantly based on the company’s size, as different sizes of companies often have different needs, goals, and budgets. Here’s a general breakdown:
Small Businesses: Small businesses typically have limited budgets and may focus on local or niche markets. PPC management pricing for small businesses might range from $300 to $1,500 per month, with ad spends ranging from $1,000 to $10,000 monthly.
Mid-Sized Businesses: Mid-sized businesses often have more resources and may target broader markets. Management fees might range from $1,500 to $5,000 per month, with ad spends of $10,000 to $50,000 monthly.
Large Enterprises: Large corporations may run multiple complex campaigns across various platforms and regions. PPC management pricing for large enterprises can exceed $5,000 per month, with ad spends often reaching hundreds of thousands of dollars.
Industry Factors: The industry’s competitiveness can also influence costs, with highly competitive industries like finance or healthcare often requiring higher ad spends.
Goals and Strategies: The company’s specific goals and strategies will also play a role. A small business aiming for aggressive growth might invest more in PPC, while a large enterprise focusing on brand awareness might have different spending patterns.
In conclusion, company size is a significant factor in determining PPC costs, but it’s not the only one. Goals, strategies, industry competition, and other factors must also be considered.
How much should I pay for PPC?
Determining how much to pay for PPC depends on various factors, including your business goals, budget, industry competition, and the specific services you need. Here’s a guide to help you decide:
1. Understand Your Goals: Are you looking to increase brand awareness, drive sales, or generate leads? Your goals will influence your PPC strategy and, consequently, the costs.
2. Set a Budget: Determine what you can afford to spend on PPC, considering other marketing expenses and overall business finances.
3. Assess the Competition: Understanding what your competitors are doing and spending can help you set a realistic budget.
4. Choose the Right Platforms: Different advertising platforms may have different costs. Google Ads might be more expensive than Bing Ads, for example.
5. Consider the Services Needed: Do you need full-service management, including ad creation, landing page optimization, and regular reporting? Or are you looking for something more basic? The range of services will significantly impact the cost.
6. Evaluate Pricing Models: Consider whether a flat fee, percentage of ad spend, or performance-based pricing model best suits your needs.
7. Think Long-Term: PPC is often not a quick fix but a long-term strategy. Consider how your PPC spending fits into your overall marketing strategy and long-term business goals.
8. Work with a Reputable Agency: A reputable agency will work with you to understand your needs and budget and develop a customized strategy. They should be transparent about their fees and what’s included.
In conclusion, how much you should pay for PPC depends on a complex interplay of factors. There’s no fixed answer, but careful consideration of your goals, budget, competition, and specific needs will help you arrive at a reasonable figure.
What determines PPC costs on Google Ads?
PPC costs on Google Ads are determined by several factors, including:
1. Keyword Competition: Keywords that are highly competitive often cost more per click. Tools like Google’s Keyword Planner can help you understand the average cost per click (CPC) for specific keywords.
2. Quality Score: Google Ads uses a Quality Score to determine how relevant and useful your ad is to users. A higher Quality Score can lead to lower costs and better ad positions.
3. Ad Rank: Your Ad Rank is determined by your bid amount and Quality Score. A higher Ad Rank can lead to better ad placement but might also increase costs.
4. Bidding Strategy: Google Ads offers different bidding strategies, such as cost-per-click (CPC), cost-per-thousand-impressions (CPM), or cost-per-acquisition (CPA). Your choice of strategy will influence costs.
5. Ad Extensions and Formats: Using ad extensions or different ad formats can influence the click-through rate (CTR) and, consequently, the costs.
6. Targeting Options: Targeting specific demographics, locations, or devices can influence costs. More refined targeting might lead to higher costs but also more qualified leads.
7. Seasonal Trends: Certain times of the year, like holidays or back-to-school seasons, might see increased competition and costs.
8. Ad Schedule: Running ads at specific times of the day or days of the week might influence costs.
9. Landing Page Experience: A well-optimized landing page that aligns with the ad can improve the Quality Score and reduce costs.
10. Industry: Some industries have higher average CPCs due to intense competition.
In conclusion, PPC costs on Google Ads are influenced by a complex interplay of factors related to competition, quality, targeting, and more. Understanding these factors and how they align with your specific goals and budget is crucial in managing costs effectively.
How is my Google Ads budget spent?
Your Google Ads budget is spent on various elements that collectively contribute to your PPC campaign’s success. Here’s a breakdown:
1. Click Costs: The most significant portion of your budget is likely spent on the actual clicks on your ads. This is determined by factors like keyword competition, Quality Score, and bidding strategy.
2. Impression Costs: If you’re using a CPM (cost-per-thousand-impressions) bidding strategy, you’ll pay for the number of times your ad is shown, regardless of clicks.
3. Ad Creation and Optimization: If you’re working with an agency or using professional tools, a portion of your budget might go towards creating and optimizing your ads.
4. Landing Page Development: Creating and optimizing landing pages to align with your ads can be a crucial part of your strategy, and a portion of your budget might be allocated here.
5. Keyword Research: Effective keyword research is essential for PPC success, and tools or professional services for this might incur costs.
6. Monitoring and Reporting: Regular monitoring and reporting are vital for understanding your campaign’s performance and making necessary adjustments. This might include costs for tools or professional service’s
7. Ad Extensions and Special Formats: Using special ad formats or extensions might influence costs.
8. Geo-Targeting and Demographic Targeting: Specific targeting options might influence how your budget is allocated.
9. Seasonal Adjustments: During competitive seasons, you might choose to increase your budget to remain competitive.
10. Testing and Experimentation: Running A/B tests or experimenting with different ad variations might be part of your strategy, influencing how your budget is spent.
In conclusion, your Google Ads budget is spent on a combination of click or impression costs, ad creation and optimization, landing page development, keyword research, monitoring, and more. Understanding how these elements align with your goals and continuously monitoring and adjusting is crucial for maximizing ROI.
How can I lower my PPC costs on Google Ads?
Lowering PPC costs on Google Ads without sacrificing performance requires a strategic approach. Here are some strategies:
1. Improve Quality Score: Focus on improving your Quality Score by creating relevant ads, choosing the right keywords, and optimizing landing pages. A higher Quality Score can lead to lower CPCs.
2. Use Negative Keywords: Negative keywords prevent your ads from showing for irrelevant searches, reducing wasted clicks and costs.
3. Refine Targeting: More precise targeting of locations, devices, or demographics can reduce irrelevant clicks and lower costs.
4. Adjust Bids: Regularly review and adjust your bids based on performance. Lowering bids on underperforming keywords or increasing bids on high-performing ones can optimize costs.
5. Use Ad Scheduling: Running ads at specific times when your audience is most active can improve performance and reduce costs.
6. Monitor and Optimize: Regular monitoring and optimization can identify areas for improvement and reduce unnecessary spending.
7. Test Different Ad Variations: Regularly testing different ad variations can help you identify what works best and optimize performance.
8. Consider Different Bidding Strategies: Experimenting with different bidding strategies, like manual CPC or Enhanced CPC, might lead to cost savings.
9. Utilize Extensions: Ad extensions can improve CTR without additional costs, improving overall performance.
10. Work with a Reputable Agency: A reputable agency with expertise in PPC management can help you navigate the complexities of Google Ads and optimize performance and costs.
In conclusion, lowering PPC costs on Google Ads requires a strategic and continuous effort to monitor, test, and optimize various elements of your campaigns. Focus on improving Quality Score, refining targeting, adjusting bids, and regular testing and optimization can lead to significant cost savings.
What do PPC management services include?
PPC management services typically include a comprehensive range of activities to plan, execute, monitor, and optimize PPC campaigns. Here’s a general overview:
1. Strategy Development: Understanding the business goals, target audience, competition, and budget to develop a customized PPC strategy.
2. Keyword Research: Identifying the most relevant and cost-effective keywords to target.
3. Ad Creation: Writing compelling ad copy and designing visual elements to attract clicks.
4. Landing Page Optimization: Creating and optimizing landing pages to align with ads and improve conversion rates.
5. Bid Management: Regularly reviewing and adjusting bids to optimize performance and costs.
6. Targeting Optimization: Refining targeting options, including geo-targeting, demographic targeting, device targeting, etc.
7. Performance Monitoring: Regular monitoring of campaign performance to identify areas for improvement.
8. Reporting: Providing regular reports on key performance indicators (KPIs), including clicks, impressions, CTR, conversion rate, ROI, etc.
9. A/B Testing: Running A/B tests to identify the most effective ad variations.
10. Compliance and Best Practices: Ensuring that ads comply with platform guidelines and follow industry best practices.
11. Integration with Other Marketing Efforts: Coordinating PPC campaigns with other marketing efforts like SEO, content marketing, social media, etc.
12. Ongoing Optimization: Continuous optimization of all aspects of the campaign to improve performance and reduce costs.
In conclusion, PPC management services include a comprehensive range of activities that cover all aspects of a successful PPC campaign. From strategy development to ongoing optimization, these services are designed to maximize performance and ROI.
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