How Much Does PPC Management Cost?

Written By hamza siyamwala
ppc management cost

Nowadays, the most affordable way to market your product or service is by using pay-per-click marketing.

It has high reward potential and low risk. Suitable pay-per-click management can boost your sales, increase traffic, and generate leads for your business. 

Success in a PPC campaign can be challenging if you’re new to the game. This is where PPC Management services come in. But how much does pay-per-click management cost? 

In this blog, we will discuss the cost involved in PPC Management that will help you determine your business’s PPC management price.

The PPC management prices depend on various factors in which your budget and marketing campaign size are most influential. 

Some other factors include

  1. Your PPC Strategy
  2. Your Goals
  3. Your Industry
  4. Your Chosen Ad Networks
  5. Your Company Sizes

Even though budgets vary considerably, small and mid-sized businesses typically spend between $15,000 and $20,000 per month on PPC campaigns, with an average of $2.59 cost-per-click (CPC). This corresponds to $108,000 to $120,000 annually. 

Larger companies often pay more overall monthly spending and may have higher CPCs, but the basic plan to manage PPC remains the same.

A reason to choose PPC Management is that they will work with your team to determine the goals and objectives of your campaign and also analyze current data on keyword performance and potential, which will help them to create a strategic action plan for managing your account.

 PPC Management service generally includes 

  1. Keyword research and analysis
  2. Ad copy creation
  3. Negative keyword lists
  4. Setting bid strategies
  5. PPC strategy creation and Remarketing setup
  6. PPC tools and software
  7. Bid types
  8. Optimization objectives

Every PPC management service includes some or all of the above to optimize your campaign and increase your chances of success.

In addition, PPC management services include analytics to help you measure the effectiveness of your campaign, which helps make your PPC management more efficient.

PPC Pricing: Google Ads

One of the most well-known ad networks for PPC marketing is Google Ads. It costs $1 to $2 per click to advertise on the Google search network.

PPC Pricing: Microsoft Advertising

Your company can use Microsoft Advertising (formerly known as Bing Ads) in addition to Google Ads to advertise. The bidding and auction models used by Google Ads and Microsoft Advertising are similar.

However, a benefit is that Microsoft Advertising typically has lower per click cost than Google Ads. Microsoft Advertising charges an average of $1.54 for each click.

PPC Pricing: Retargeting

A retargeting campaign is a great way to reach former customers of your business. In this case, people leave a clickthrough on your website, and you can show them ads on other sites.

Retargeting is effective because it connects your message with the right audience. However, it costs more than $2 per click.

PPC management is a service, not a product. There are no standard price structures for pay-per-click management campaigns. Generally PPC managers charge according to one of the following types of systems:

1) Flat Fee

You only pay a one-time fee each month under the flat fee model. And aside from a possible setup fee in your first month, it provides some budget control. There are no unexpected fees or charges.

Some PPC specialists might employ a tiered flat fee structure. For instance, if your PPC budget is $5,000, your flat fee might be $500.

However, their fee only goes up by $1000 if your PPC budget rises to $6,000 instead. Giving your PPC budget flexibility and predictability can aid in long-term cost control.

2) The Hourly Rate

The hourly rate model means you pay a fee per service hour. The level of service is at the PPC manager’s discretion, based on your campaign’s feedback.

Typically, a PPC manager will charge by the hour for analysis, bid strategy, remarketing optimization, and other PPC management tools and software.

3) The Percentage Of Ad Spend

With the % of ad spend model, you pay a fee for every dollar spent on ads. This expense can’t be controlled, which means it’s only good in short-term situations. It works best if your budget is relatively stable and predictable.

The percentage of ad spend taken as a management fee varies between PPC managers. They take anywhere from roughly 1% to 10% or in  some cases, they may take more, like 15%.

4) Performance-Based Fees

Performance-based fees are another option. You pay higher and lower fees in the beginning as your campaign progresses. It’s also an agency pricing model in which you only pay for performance based on your PPC ROI

Typically, fees range from 15% to 25% for this service. However, some agencies may charge a flat monthly fee between $1000-$2000 for performance-based fees.

5) Hybrid Pricing Model

Certain instances, such as producing PPC reports, that customized demand rates give rise to the hybrid pricing model. Depending on the requirements of their clients, agencies can combine and match the pricing models.

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Like any business, PPC campaigns are successful only if they bring in revenue. And clearly, more revenue means more expenses. This is where the question of how much you should pay your PPC manager comes up.

The budget associated with a PPC campaign may range from less than $300 to $700 per month. PPC management price will depend on the number of clicks your campaign gets and how much you spend on ads and bidding. 

You can expect to pay around 3 dollars per click or less, depending on the ad network you use

When you include extra services, such as the design and creation of landing pages, the PPC management price of your PPC package may also rise. 

A one-time, flat fee for setup work is frequently included in the pricing structure of a PPC agency. In addition to your advertising expenditure, you will pay a monthly premium to manage your campaign.

Like any other aspect of PPC management, its price depends on many factors. At a minimum, most PPC agencies offer a one-time charge to manage your campaign. 

That fee depends on the size of your budget, how complicated your campaign is, and so on.

1) Basic PPC Campaign Cost

Basic PPC packages should include up to 400 keywords in the campaign and cover an ad Spend of up to $2,500. Primary PPC campaigns frequently include basic keyword research, ad creation, demographic targeting, and other related services.

For the initial setup of a basic plan, most agencies will charge a one-time setup fee of about $1,000. Depending on your campaign’s objectives and goals, the advertisement will change. Your ad budget should typically increase as your keyword list grows.

2) Moderate PPC Campaign Cost

A moderate PPC campaign should spend between $2,500 and $12,000 monthly on advertising. The campaign typically includes up to 2,000 keywords. An agency normally charges a setup fee of $1,750 for a good PPC campaign in the first month. Then, it would be a minimum of $500 and about 15% of the monthly ad expenditure.

It’s typically a good idea to run ads in both the Google and Bing Ads networks when developing a larger campaign. 

3) Aggressive PPC Campaign Cost

An aggressive PPC campaign would cost between $12,000 and $50,000 monthly. It is carried out on the Google AdWords and Bing Ads networks and includes up to 10,000 keywords. The campaign also features extensions, remarketing ads, and other complementary tools.

Once again, an agency will typically charge a setup fee in the first month $1,750 for moderate campaigns and excessive PPC management fees after that. You should expect to pay around 12% of your monthly ad spend, with a minimum of $1,800.

Whether new or an experienced advertiser, PPC management is vital for your online marketing success, you’ll need PPC tools and systems to improve your ROI. And if you want to keep costs in check, agencies can be a great option. PPC managers will ensure you get the best performance out of your ad spends with their services.

Most importantly, they will help you manage your campaign more effectively. So, choose the right PPC agency for the job.

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