There have been lots of really good questions, but this one from Phil of Trumbull stood out:
“What is the average amount companies take for running a PPC campaign?”
Factors That Influence PPC Management Costs
Here are key factors that determine how much you should expect to pay:
- Vendor Experience Level: Seasoned experts often charge more but bring efficiency and strategic insight that can offset higher fees.
- Scope Of Services: Are you asking the vendor to handle creative (ad design, landing pages) or just campaign management?
- Number Of Channels: Managing multiple platforms (Google, Microsoft, Meta, LinkedIn, TikTok, etc.) requires more effort and expertise.
- Strategic Vs. Tactical Execution: Do you want a partner who proactively optimizes and strategizes, or someone who executes based on your direction?
- Bundled Services: Some agencies offer PPC as part of a broader digital marketing package, such as SEO or social media management, which can provide cost efficiencies.
There’s no universal “cheap” or “expensive” option. What matters is that you align expectations with investment.
What also matters is that you set reasonable expectations for your vendor and the campaigns they will be creating/managing for you.
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Common PPC Pricing Models
When engaging a PPC vendor, you pay for expertise and time – whether for technical execution or strategic oversight.
Below are the most common pricing models:
1. Percentage Of Spend + Flat Fee
Historically, the percentage-of-spend model was popular, but it has fallen out of favor because it doesn’t always align the management fee with the client’s well-being.
If an agency makes more money simply because you’re spending more on ads, there’s less incentive for them to optimize your budget efficiently.
Instead, many agencies now structure their fees around effort and results rather than ad spend alone.
- Flat fee component typically ranges from $500 to $2,500 per month.
- Percentage of spend varies between 5% and 15%, though agencies increasingly favor alternative pricing models.
2. Flat Rate Pricing
Some agencies prefer a predictable flat rate. This can either include ad spend or be separated into management fees and media costs.
- Flat-rate management fees generally range from $2,500 to $10,000 per month.
- Pricing increases based on additional services such as:
- Ad creative and landing page design.
- Advanced conversion tracking setup.
- Frequent campaign pivots due to evolving business goals.
3. Performance-Based Pricing
In this model, agencies charge per lead or conversion rather than a fixed fee.
While appealing, it often means the agency retains account ownership, which can be problematic if you ever want to take control of your campaigns.
If you’re comfortable never owning your PPC account, this could work. However, if transparency and long-term flexibility matter, a traditional pricing model is a safer bet.
Choosing The Right PPC Vendor For Your Budget
Beyond cost, choosing the right PPC management partner depends on your budget, goals, and internal capabilities:
- Budgets under $2,500/month: Consider managing PPC in-house or using automation tools, as agency fees may eat up too much of the ad budget.
- Highly seasonal businesses: Flat-rate pricing may make sense to smooth out cost fluctuations.
- Stable spend accounts: Percentage-of-spend pricing often results in lower overall fees, but ensure it aligns with your business goals.
- Looking for strategy and execution? Higher-priced agencies provide strategic insight and proactive management.
- Need a hands-on executor? Lower-cost vendors typically require you to direct the strategy.
- Considering a full digital strategy? Some agencies bundle PPC with SEO and social media management, which can provide better synergy and cost savings.
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Final Takeaways
There’s no fixed rate for PPC management.
What you pay depends on the level of support and expertise you need. The key is balancing cost with expectations to ensure a strong return on investment.
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Featured Image: Paulo Bobita/Search Engine Journal