Factors That Influence PPC Agency Fees: What to Consider

Finding the right PPC agency that charges reasonable fees and provides a great service can be a challenge. There are many factors that determine these fees including campaign complexity, ad spend budget, geographic location and so on.

So, you need to carefully evaluate your PPC requirements to make sure you partner with the right agency.

In this article, I’ll share the key factors that influence PPC agency fees and what you should consider when looking to hire an agency.

 

1. Campaign Complexity

The more complex your campaigns are, the higher the PPC agency fees will be. That means if you have multiple campaigns with competitive keywords that need updating regularly, then this will require a lot of work.

This will require a lot of testing, landing page review and optimisation, ongoing performance analysis, extensive keyword research which can impact the overall cost.

 

2. Industry Competitiveness

The competitiveness of your industry can be a major factor in how much PPC agency fees you pay. If it’s very competitive like financial sectors and digital marketing sectors, then you’re likely to pay higher fees for Google Ads management.

That’s because it will take more time to strategise and optimise the campaigns, to be more effective than competitors and achieve a good ROI.

 

3. Ad Spend Budget

Some agencies charge a percentage of your ad spend budget to manage your campaigns. So, if your monthly ad spend budget is £5000 for example and they charge 10% of that, then you’ll pay £500 + VAT for the monthly management.

So, the more you spend each month, then the more you’re likely to pay for ongoing management. And some agencies will have a minimum monthly fee which you pay even if you spend very low amounts each month.

 

4. Geographic Location

Location is an important factor to PPC agency fees. Agencies based in high-cost regions or cities like London may have higher overhead fees including wages, which could be reflected in their pricing. And agencies in lower-cost regions may offer more competitive prices.

One of the benefits of working with a PPC agency is that their location is not always important. What is important is that they have experience in your industry and can help you run effective Google Ads campaigns.

 

5. Agency Expertise and Experience

A reputable PPC agency will charge much higher fees than other agencies that aren’t as reputable. They will have a proven track record of successful results and they will charge premium fees due to their expertise and ability to drive optimal outcomes.

So, you should check for certifications, client testimonials, case studies and reviews to gauge the agency’s expertise. And then weigh that against the fees that they’re charging compared to other agencies and then decide if it provides value or not.

 

6. Level of Service

PPC agencies offer various levels of service that help you to advertise effectively in Google Ads. These services include basic campaign setup, Google Ads management, campaign optimisation, training and auditing and more.

A PPC agency that provides an extensive array of these services will charge higher fees. That’s because they’ll be spending more time on your campaigns, working to improve their performance.

 

7. Customisation and Strategy

PPC agency fees are also determined by the level of customisation and strategy that you’ll require for your campaigns. A one-size-fits-all approach rarely works in PPC advertising because every business is different.

So, look for agencies that offer customised strategies tailored to your specific business goals and target audience. And a personalised strategy may involve a lot of additional research and planning, which will impact the overall cost.

 

8. Transparency and Reporting

If a PPC agency is transparent about their fees and pricing, then that is an agency you need to consider hiring. That will ensure you don’t get any hidden charges later as the work is going on.

Also, they should offer regular reporting and performance analysis, which allows you to assess the value of their Google Ads services.

 

Conclusion

So, these are the eight main factors that influence PPC agency fees. So, you should carefully evaluate your PPC needs, budget constraints and desired outcomes when selecting a PPC agency.

Need help setting up effective PPC campaigns? I’m a Google Ads specialist with over 15 years’ experience. Contact me today to discuss your requirements.