Understanding the Google Ads management pricing structure is crucial when you're looking to hire a…
To run successful Pay Per Click (PPC) campaigns, you need to choose the right PPC management pricing model. There are a few to choose from of course, so you need to first assess your goals, requirements and your budget.
And then compare these pricing structures to find the one that aligns with your goals, budgets and expectations. And you will then look for a Google Ads specialist that meets your requirements.
In this article I’ll discuss the different PPC management pricing models in the UK that will allow you to make an informed decision for your business.
1. Flat-Fee Pricing
With flat fee PPC management pricing, the agency or freelancer you work with charges you a fixed monthly fee for their services.
This is mostly suitable if you have consistent PPC needs and have a stable advertising budget that changes little from month to month.
One of the benefits is that it offers transparency and means you’re unlikely to get any hidden costs.
But you should ensure that the flat-fee covers all the Google Ads services that you require because you will be charged more later for things like setting up new campaigns.
For monthly Google Ads management, the UK rates start from £300 per month. And this can be a lot higher if you spend more and have many campaigns in a large account.
2. Percentage of Ad Spend
With percentage of ad spend, the PPC management pricing is more flexible and adjusts with your advertising budget.
This is ideal if your ad spend varies each month or throughout the year and when you need to scale. This ensures you’re paying a fair rate for the number of resources that you’re putting into Google Ads.
However, it’s essential to assess the percentage rate and consider its impact on your overall advertising costs. Because you want to avoid paying an excessive amount for very little return.
The percentage varies between 10% to 25% but can go up to 30% with some PPC agencies. So, if they charge 10% of your spend for example, and you have a monthly advertising budget of £10,000, then you’ll pay about £1,000 for the management and VAT will be added to that.
3. Performance-Based Pricing
Performance-based pricing ties the PPC management pricing to the performance of your campaigns. This is usually based on conversions like sales, leads, downloads and so on, but can also be based on click through rates, revenue generated and others.
The main benefit to you is that it aligns the work that the Google Ads expert does with the success of your campaigns. And this keeps them motivated to achieve the best results so they can be paid accordingly.
However, negotiating fair performance and defining targets can be a challenge. And that’s especially true if you have don’t have any historic performance data in your Google Ads account.
But, the Google Ads specialist will have experience working with other businesses here. So, they will provide some insights and you can work together and also do some testing along the way.
4. Hybrid Pricing
A hybrid PPC management pricing model combines other models to create a bespoke pricing structure. So, this allows you to tailor the fee according to your requirements.
An example of hybrid includes a flat monthly fee combined with a performance-based model. And this offers you flexibility to adapt as your business needs change. But it requires careful negotiation and transparency to ensure clarity and fairness.
An example is a Google Ads freelancer that charges you a flat monthly fee of £400 and a performance model that includes £20 per lead from the campaigns.
It can be more expensive but it ensures that the expert gets a monthly fee for their work and a good incentive to keep them motivated to perform.
5. Project-Based Pricing
Project-based PPC management pricing is best if you have specific short-term PPC needs. Instead of a recurring weekly or monthly fee, the agency or freelancer will charge for specific services such as campaign setup, setting up conversion tracking, ad copywriting, campaign optimisation and so on.
However, this will not be suitable for long-term PPC management needs or ongoing optimisation and monitoring.
The pricing for this will either be on an hourly rate or a flat fee. Either way you’ll know what you’ll pay for the service and there are unlikely to be any hidden costs and additional fees.
6. Hourly PPC Management Pricing
Another PPC management pricing model is through an hourly rate. So, any services provided are on a hourly rate and the amount you’re charged each month depends on how many hours of work are done.
The hourly rate depends on a number of factors such as expertise, experience, service required and so on. And it will also depend on whether they are a PPC freelancer or agency, so you should consider this as you do a search.
The average hourly rate with freelancers is £56 per hour and for agencies that’s about £86 per hour. But the rates can differ widely and that usually starts from £30 per hour to about £200 per hour or more.
Based on this, you can expect to pay anything from £300 per hour for management, up to £2,000 per month or more.
Again, this all depends on the factors I’ve mentioned above including their experience.
Choosing the right PPC management pricing model is a crucial step in achieving successful PPC campaigns in the UK. Each pricing model has its own advantages and considerations, and the decision ultimately depends on your business goals, budget, and preferences. Whether you opt for a flat fee, percentage of ad spend, performance-based, hybrid, or project-based pricing, ensure that you have a clear understanding of the terms, services included, and the agency’s track record.
Remember, it’s not solely about finding the cheapest option but rather the model that provides the best value and aligns with your business objectives. Consider consulting with PPC management agencies, discussing your requirements, and comparing proposals to make an informed decision. By choosing the right PPC management pricing model, you can maximise your return on investment and drive growth through effective PPC advertising in the UK.
Contact me to discuss your requirements and for a proposal and quote for my PPC services.