Google Ads PPC Management Fees in 2024: Different Agency Pricing Models in the UK
Updated on 18/12/2023 at 09:40 am
Google Ads PPC Management Fees in 2024: If you’re looking to launch a successful PPC advertising campaign, one of the most important decisions you’ll need to make is choosing the right agency to manage your ads. With so many options out there, it can be overwhelming to determine which agency is best for you. But with the right information, you can make an informed decision about which agency and pricing model is right for you.
One of the key considerations when choosing a PPC management agency is the cost. PPC management pricing can vary widely depending on the agency, the services they offer, and the pricing model they use. In this blog, we’ll take a look at the different types of PPC management fees you can expect to pay in 2024, so you can understand how much you can budget for your PPC advertising.
Percentage of Ad Spend Model
Under this model, the PPC management agency takes a percentage of your monthly ad spend as their fee. This model is popular because it aligns the interests of the agency and the advertiser, as the agency only gets paid when the advertiser is spending money on ads.
For example, if you have a monthly ad budget of £5,000 and the agency charges a 15% management fee, you can expect to pay £750 per month for their services.
Flat Monthly Management Fee
Under this model, the PPC management agency charges a flat monthly fee for their services, regardless of how much you’re spending on ads. This model is often used for small to medium-sized businesses with lower advertising budgets, and the fee can range from £500 to £5000 per month.
Project-Based Pricing
Under this model, the PPC management agency charges a one-time fee for a specific project, such as setting up your Google Ads account, creating your first set of ads, and optimising your campaigns for better performance.
Hourly Rate
Under this model, the PPC management agency charges an hourly rate for their services. This model is good for businesses that need help with specific tasks or for businesses that are just starting out with PPC advertising and want to test the waters before committing to a long-term contract. The hourly rate can range from £35 to £150, depending on the agency’s level of experience and expertise.
Pros and cons of each PPC management pricing model:
Let’s take a look at the pros and cons of each PPC management pricing model, so you can make an informed decision about which model is right for your business.
Percentage of Ad Spend:
Pros:
- This model is a good fit for businesses with larger advertising budgets, as the agency is incentivized to maximize your ad spend and generate the best possible results.
- The cost of the PPC management services is directly tied to your ad spend, which can be useful for budgeting purposes.
Cons:
- This model can be more expensive for businesses with higher ad spend, as the agency’s fees will increase as your ad spend increases.
- The agency may be less focused on delivering the best possible results, and more focused on maximizing their own fees by increasing your ad spend.
Flat Fee:
Pros:
- This model provides predictable and stable monthly costs for your PPC management services.
- This model is a good fit for businesses with lower advertising budgets, as it allows you to receive PPC management services at a set monthly cost.
Cons:
- This model may not be a good fit for businesses with larger advertising budgets, as the cost of the PPC management services will not increase as your ad spend increases.
- The agency may be less focused on delivering the best possible results, as their fee does not change regardless of the success of your PPC campaign.
Hourly Rate:
Pros:
- This model is a good fit for businesses with specific, short-term advertising needs, as you only pay for the time the agency spends working on your PPC campaign.
- This model allows you to have more control over the cost of your PPC management services, as you can choose to allocate more or less time to the agency as needed.
Cons:
- This model can be more expensive for businesses with larger advertising needs, as the cost of the PPC management services will increase as the amount of time the agency spends working on your campaign increases.
- The agency may not be as focused on delivering the best possible results, as their fee is not tied to the success of your PPC campaign.
eCommerce vs Lead Generation: Picking the Perfect PPC Pricing Model
For eCommerce businesses, the Percentage of Ad Spend model is often the best option. This is because the success of an eCommerce PPC campaign is directly tied to the amount of revenue generated from the campaign. In other words, the more successful the campaign, the more money the business makes. When the PPC management agency is paid a percentage of the ad spend, they are incentivised to maximise the campaign’s success and generate the highest possible return on investment (ROI) for the business.
In contrast, lead generation campaigns are typically focused on generating leads rather than generating revenue directly. For these types of campaigns, a Flat Fee or Hourly Rate model may be more appropriate. This is because the campaign’s success is not directly tied to the amount of revenue generated but rather to the number of leads generated. In these cases, the agency may not need to be as focused on maximising the ROI of the campaign, and a flat fee or hourly rate may be more appropriate.
So, which model is right for you? The answer will depend on your specific needs and budget. If you have a large ad budget and want the agency to be incentivised to drive as much traffic and sales to your business as possible, the Percentage of Ad Spend model might be right for you. If you have a smaller ad budget and prefer a predictable cost each month, the Flat Monthly Management Fee model might be right for you. If you just need help setting up your Google Ads account, the Project-Based Pricing model might be right for you. And if you’re just starting out with PPC advertising and want to test the waters, the Hourly Rate model might be right for you.
At Oxedent, we understand that every business is different, so we offer a range of PPC management services to suit your specific needs and budget. Our PPC pricing calculator on the homepage can help you see how much our service will cost you per month based on your monthly ad budget, so you can make an informed decision about which of our services is right for you.
In conclusion, PPC advertising can be a great way to drive traffic and sales to your business, but choosing the right PPC management agency and pricing model can be challenging. By understanding the different PPC management fees, you’ll be able to make an informed decision about which agency and pricing model is right for you.
Find us on Google, visit our Homepage or Contact us.
Few FAQ’s on Google Ads PPC Management Fees
What is PPC management?
How much do Google Ads PPC management fees cost in 2023 in the UK?
What are the different pricing models used by PPC management agencies in the UK?
1. Percentage of ad spend: the agency charges a percentage of the total ad spend as their fee.
2. Flat fee: the agency charges a fixed amount per month, regardless of ad spend.
3. Project-based: the agency charges a one-time fee for a specific project or campaign and many more.
Which pricing model is best for my business?
Can I negotiate the PPC management fees with the agency?
This article was written by Biplab Poddar
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