4 Factors Affecting Google Ads Agency Pricing

There are many factors that affect Google Ads agency pricing. But in this article, I’ll be sharing the most important that you need to be aware of when you’re looking to hire a Google Ads agency. And I’ll also list some of the fees that you need to know regarding Google Ads management.

Choosing the right agency can be a game changer for your business. This will help you to tap into their expertise to create effective Google Ads campaigns that drive targeted traffic.

In this article, I’ll break down the common pricing structures and factors that influence Google Ads agency pricing – helping you make informed decisions when selecting the right agency for your business.

 

1. Google Ads Agency Pricing Models

a. Percentage of ad spend

A popular Google Ads agency pricing model is based on a percentage of your budget ad spend. This involves charging you a set amount each month between 10 – 25% of your monthly ad spend across your account or campaigns.

For example if your monthly ad spend is £10,000, and the Google Ads specialist or agency charges 15%, you’ll pay £1,500 as management fee per month. And as you adjust your monthly budget this fee will change too.

 

b. Flat monthly fee

Some agencies charge a flat monthly fee each month or year to set up and manage your Google Ads campaigns. The amount will depend on factors such as the number of campaigns you have, their expertise, their experience in your industry, your budget and more.

This Google Ads agency pricing model is beneficial if your ad spend varies significantly from month to month, as it allows you to predict your costs. So, you know what you are paying each month, with no surprises.

On average, monthly agency management fees start from £450 per month. This is usually for small accounts and campaigns with fewer ads, keywords and campaigns and lower budgets. But this can be thousands each month for more complex campaigns with many ads, keywords and so on.

 

c. Performance-based pricing

Performance-based pricing is one of the least used pricing models for Google Ads management services. And that’s because it can be difficult to set a realistic bonus for the agency that keeps them incentivised and performing, while making a good ROI for your business.

With this model, the agency ties their fees to the results they achieve for your campaigns. For example, the agency’s fees may be linked to specific Key Performance Indicators (KPIs) such as the number of leads generated, the cost per conversion, or the return on ad spend. So, this aligns the agency’s interests with your business goals, encouraging them to deliver better results.

 

2. Factors Influencing Google Ads Agency Pricing

 

a. Complexity of work

The complexity of the work to be done is one of the main factors to Google Ads agency pricing. If you have multiple accounts that need setting up and managing, with many campaigns each, you’ll need a lot of help to optimise and manage them.

This will take up a significant amount of time and resources and may need more people on the agency’s team to work on your campaigns.

The work will include extensive keyword research and ad creation and the agency may charge a higher PPC management fee to accommodate the additional effort and time required. And this is true too if you hire a Google Ads freelancer to work on your campaigns.

 

b. Industry and competition

The level of competition in the auction results determines how much you pay per click. And this is the case if you’re in a competitive industry or niche like finance and mortgage industries.

And, if you’re in a competitive industry, this will require more planning, research, and optimisation. So, the Google Ads agency pricing rates will be higher than usual because of aggressive bidding and constant monitoring.

 

c. Campaign objectives and goals

Your campaign goals and objectives will have an impact on Google Ads agency pricing. If you have ambitious targets to drive high sales or leads for your business through Google Ads, then you’ll need a good sized budget and the best expertise to make it a success.

And if your targets are high for conversions, click-through rates, or KPIs, then the agency may need to allocate more resources and time to achieve these goals.

 

d. Ad spend

As discussed earlier, the amount you have to spend in Google Ads is a big factor to how much Google Ads agency pricing will be. This is mainly the case if the agency uses the percentage of ad spend as a pricing model.

This model charges 10 – 25% of your ad spend. However, with other models too, the higher your budget the more you’re likely to pay for management because that usually requires more work.

But agencies may offer discounts or more favourable pricing for larger advertising budgets as they can justify dedicating more resources to managing larger campaigns.

 

e. Experience and expertise

Experience and expertise are two big factors in Google Ads agency pricing. This experience can be seen in reviews, case studies and testimonials that show who they’ve worked with, what results they achieved and if this is for businesses like yours.

Expertise can be seen in Google Ads achievements they have, like partnership status, certifications and so on.

The reputation of the agency will also play a role in determining the pricing. Agencies with a proven track record of delivering successful campaigns and specialised knowledge in certain industries may charge premium rates for their services.

 

3. Transparency and reporting

 

Transparency is important when it comes to Google Ads agency pricing. You should know what you’ll be paying for all the services and what you get for your investment. And you should only hire an agency that’s transparent about their fees and charges.

So, it’s crucial to clarify the level of transparency you expect regarding pricing and reporting.

A reputable agency will provide detailed reports on campaign performance, spending, and results, giving you a clear understanding of how your budget is being utilised and the outcomes achieved.

 

4. Evaluating ROI

 

Ultimately, the reason you hire a Google Ads agency is to achieve the best return on investment for your spend and resources. And you need to evaluate each proposal based on this fact. So, it’s important to know your specific goals and what you get for your spend on your advertising and on an agency.

And it’s important that you don’t search for the cheapest option. But look for the agency that delivers the best ROI by checking their track record, client testimonials and case studies to gauge their ability to generate positive results.

 

Conclusion

Understanding Google Ads agency pricing requires that you understand the factors that contribute to them as described in this article. And assessing your campaign goals will help you select an agency that aligns with your budget and can help drive your online advertising success.

I’m a Google Ads specialist with many years’ experience setting up and managing effective campaigns. Contact me to discuss your requirements.