Google Ads Agency Pricing – How Much Should You Pay?
Keen to take your Google Ads game to the next level, but completely in the dark when it comes to how much a Google Ads agency actually costs?
We got you.
The good news? You could hire the perfect Google Ads agency for much less than you think – for basic campaigns, this could be as little as $750 per month.
Obviously, this will increase with the scale and complexity of your project. However for businesses spending big sums on ads, even a jump to $6,000 per month still comes out cheaper than hiring an experienced PPC manager in-house – and you get to access an entire team of experts with millions of dollars of campaign spend behind them.
With the right Google Ads agency, this investment can yield significant returns, quickly. To help you make the decision, here’s everything you need to know about Google Ads agency pricing, plus a few baseline figures to get your budget started.
What type of Google Ads agency should I opt for, and how will that affect the cost?
Not all Google Ads agencies are created equal.
For some, Google Ads (and perhaps PPC more broadly) is their unique focus. For other agencies, it is a service offered alongside many different types of marketing activity.
- Specialist PPC agencies are all about end-to-end paid Google Ads expertise – they offer support on everything from the bidding process to landing page creation and integration
- Broader marketing and SEO agencies that offer PPC as a primary service – where Google Ads is one of the PPC channels on offer at the agency, but can also include platforms like Facebook ads, Microsoft ads etc.
- Broader marketing and SEO agencies that offer PPC as a value add – they won’t take on an exclusively PPC campaign, but will offer some paid search services as a value add for clients
Each type of agency has its benefits. For example, if you’re looking at Google Ads as a short-term strategy whilst your organic traffic picks up speed, you might find a broader SEO agency has everything you need. If you’re using their organic services, they might offer a sweet deal on basic PPC management too. (Deciding between SEO and Google Ads? Here’s our guide)
Specialist agencies often charge more for Google Ads management, but it’s worth looking at all the extra benefits this gets you. If you’re keen to really drill down into the benefits of PPC – such as its testability, excellent targeting capabilities and lighting ROI – and only a specialist agency’s depth of expertise can make this happen.
How much will I spend on a Google Ad agency per month?
Getting down to basics:
Your ad spend for the month + agency management fee = your total PPC investment
Note that your costs should include how much you spend on the ads themselves – this isn’t included in the amount you pay for your agency each month. You pay the agency for their time and expertise in running, tracking, and optimizing your PPC campaigns for maximum ROI.
There are a few ways of calculating the PPC agency management fee, which will affect how much you pay month on month. Each has their pros and cons – here’s a quick overview with baseline figures.
1. Percentage of ad spend
Your costs are calculated based on how much money you spend on ads. The pros? Essentially, you’re paying based on usage so you’ll see some savings in quieter months – but it can make it harder to budget, and if you really want to ramp up your campaign you’ll need to pay proportionally.
Some agencies will charge a baseline fee plus a percentage of ad spend.
- Best for: a good all-round model, with a particular draw for businesses running seasonal campaigns
- Estimated cost: 10-25% of your paid ad spend each month (though some agencies will charge a base retainer fee on top of this, or require a minimum spend of >$500)
2. Flat monthly retainer
You and your Google Ads agency agree on a flat monthly fee based on your campaign requirements and scope. This is the simplest and easiest to budget of the payment models if you anticipate consistent volume – though you’ll need to renegotiate pricing if you want to step it up.
- Best for: consistent volume campaigns, smaller businesses looking for consistency in their budget
- Estimated cost: starting rates can be from $500-$2,000 per month for smaller campaigns, or over $10,000 a month for large-scale campaigns with complex requirements
3. Performance-based payment
You pay based on results – for example, a flat fee per lead generated. This is sometimes used in addition to the payment models above as an extra incentive.
Whilst performance-based payment will make successful campaigns more expensive and difficult to budget, some clients swear by the extra incentive it gives their agency to perform. For a well-run campaign, it offers an ROI above and beyond what the agency is charging for its services.
- Best for: businesses that like to use targets to incentivize performance
- Estimated cost: dependent on your agreement with the agency
Why are some PPC agencies more expensive than others?
As you start getting in touch with Google Ads agencies, you’ll notice some variation in your quotes.
There are a few reasons for this – it’s mostly about the experience and knowledge each agency feels they can bring to your campaign, and the resulting demand for their services.
- Agencies that have built regional and national (or even international) reputations through their work are in greater demand, so charge more to reflect this
- Some agencies offer a wider range of PPC and account management services than others – for example, CRM integrations, landing page design and advanced reporting – which can come at an added cost
- Well-regarded agencies attract more experienced teams, who have successfully managed millions of dollars worth of campaigns
- If you’re advertising in a highly competitive industry, the extra expertise and effort your campaign needs may increase costs
What return can you expect on your Google Ads agency spend?
To get the best possible return on the money you spend, look for Google Ads agency with:
- Genuine PPC expertise, with years’ of campaign experience across their team
- Glowing reviews, case studies and testimonials – especially from clients in your industry
- End-to-end services, with real-time reporting and a data-first approach
Google officially estimates an ROI of 100% on its ad platform. That’s a return of $2 for every $1 spent on the platform.
Doubling your money is a solid place to start from – and in our experience, this is a pretty conservative estimate for some clients. High traffic industries like e-commerce could see ROIs around 300%, for example.
Learn more about calculating your Google Ads ROI
How do Google Ads agencies improve your ROI?
An agency can pour time, expertise and experience into your PPC campaign that you likely won’t have access to in-house. With a full team of specialists on hand, your Google Ads agency can assist with:
- Keyword optimization: thorough research into high-performance, high-intent, highly-targeted keywords that put your ads in front of ready-to-buy audiences
- Performance copywriting: highly optimized ad copy and headlines that emphasize your relevance to potential buyers
- Ad extensions: using tools like site links, callouts, and structured snippets to highlight important info and improve visibility
- Landing page optimization: structuring landing pages to maximize conversion, with compelling sales copy, targeted keywords, and strong calls to action
- Automated bidding: using automated tools to target high-return ad space, and monitor, split test, and adjust bids to maximize success and return on ad spend
- Real-time reporting: constantly monitoring ad performance to identify opportunities for optimization
- Utilizing Cost Estimation Calculators: Agencies use advanced calculators to forecast potential ad spend returns, analyzing industry benchmarks and historical data to set realistic expectations and optimize ROI.
Get an accurate quote for Google Ads agency services
We can give you some solid baseline figures, but without knowing a little more about you, your campaign and your overall business requirements, we can’t offer an exact quote.
If you want to find out more about our Google Ads services and how much they cost, get in touch today for a quick chat – we love meeting people, and there’s no pressure to commit to anything after the conversation.