By: Jeff Hirz
If you’re looking for an agency to manage your paid search or Google Ads campaign, then you’re probably wondering what costs and fees are associated with management.
Deciding to hire paid search experts is a step in the right direction—it allows specialists to optimize your campaigns for stronger ROI. Without a dedicated ads management agency, you may be overspending or missing out on valuable conversions.
The costs associated with the paid search management should pay for itself—our team will lower your cost-per-click and boost conversions. Let’s discuss the different types of PPC management pricing models you’ll encounter in your search for professional Google Ads management services.
PPC Management Pricing Models
Whether you’re looking to hire a low-cost overseas agency or a professional paid search management company, there are different pricing models that you’ll expect to see:
Flat Fee + % of Spend
The most common PPC management pricing model you’ll encounter—many agencies charge a flat monthly fee in addition to a percentage of your monthly ad spend. This model has become the industry standard because it allows the agency to block out sufficient time each month for campaign maintenance tasks.
If you have an extensive paid search campaign, fees based on a percentage of spend allow for additional time to manage the more complicated account. Remember, the more you’re spending, the more attention you want your agency to be giving you! Base fees can range from $250 to $3000 a month, and the percentage of spend is usually between 10% and 20%.
The market for paid search has grown more complex, with more platforms (not just Google Ads but also Meta, Microsoft, and Amazon), AI features, greater competition, and higher CPCs in some verticals. That drives higher management effort.
Hourly Rate
Typically, individuals or contractors charge an hourly rate for their work. This PPC management pricing model can be worthwhile if you have a smaller campaign.
Hourly rates, depending on the country the individual works in, can range from $30 to $250 per hour. The average US-based agency bills around $150 to $200 per hour, while overseas agencies may charge a much lower fee. Remember, if you’re working with a foreign agency, expect language barriers and phone calls at unconventional times of the day.
No Fee (watch out!)
A relatively popular pricing model some agencies are now trying to sell is the “free” management plan. With this type of pricing model, the company will often run the campaign through a 3rd party software and earn commission on every dollar you spend, sometimes without your knowledge. Usually, the keywords they bid on have low search volume and have been discounted significantly in cost.
“No fee” or “free management” models are still risky and often come with caveats like hidden costs and poor transparency.
Overall, how much does PPC cost?
The cost of paid search comes down to ad spend, not management fees. While management fees can run you a few thousand per month (depending on your budget), your actual ad spends with Google Ads or another provider can range from $500 to $500,000 a month. Decide how many visits you feel you need to reach your business goals, and use Google Ad’s Keyword Planner tool to research keywords you would want to purchase.
After entering your keywords, you’ll end up with a screen like this:
While it isn’t 100% accurate until you get your campaign up and running, it’ll give you an idea of cost-per-click—from lower bids that deliver modest visibility to higher bids that can help you appear at the top of the results. These estimates are helpful for building a realistic PPC budget.
Remember, there are two ways to drive search traffic to your website: paid search and organic search using SEO. An integrated strategy—investing in both PPC and SEO— typically provides the best long-term ROI and traffic stability.
Which PPC Management Pricing Models Does OuterBox Offer?
One of the main advantages of working with OuterBox is that we don’t believe in turnkey solutions or “packages”. If you contact us for a quote, we will audit your existing website, PPC campaign, and competitiveness of your industry to determine a mutually beneficial pricing model. If it doesn’t make sense to work with your company, we’ll refer you to one of our partner agencies.
The majority of our PPC clients are on the flat fee + percentage of ad spend model we described above. However, each project is unique, and we are open to discussing a pricing model that suits the uniqueness of your PPC campaign(s).
Local PPC Campaign Pricing
There are significant differences between. local PPC campaigns and national paid search campaigns. Not only will management fees be lower on a local campaign, but the cost-per-click is usually significantly lower. The cost you pay-per-click is based on a bidding model, and since fewer people bid on local keywords like “SEO Company Cleveland” than the phrase “SEO Company”. Even if you’re a national player, it may make sense to find some local keywords in key markets to drive traffic and leads at a lower cost.
Paid Search Management Services Pricing vs. ROI
As we begin to talk about the fees associated with paid search campaign management pricing, it can feel expensive, but it all comes down to the ROI. Look at it this way: if you spend $1 and make $5, it’s worth it every time. Of course, to get this type of return, you’ll need a well-managed and optimized PPC campaign. Remember, there is no need to jump in with massive spend right away. As your campaign performance improves and you establish a proven ROI, you can confidently scale your ad spend month over month to drive greater results.
PPC Retargeting Costs
As with traditional PPC, you can retarget searchers who have been exposed to your ads or demonstrated interest in your website. The advantage of retargeting is that these ads can “follow” your audience around the web, drastically increasing exposure and credibility.
While the cost-per-click for retargeting is usually significantly less than normal PPC ads in the SERPs, the price still depends on your industry— a key component of a holistic PPC campaign. On average, companies tend to spend from 5% to 20% of their ad budgets on remarketing.
PPC Management Pricing Breakdown:
Generally speaking, most PPC management pricing will be proportional to your ad budget. Typical management pricing for PPC will fall into these distinct categories:
- Flat monthly fee, plus a percentage of your monthly spend
- Hourly Rate: Pay a standard or pro-rated hourly rate based on actual hours spent on your account.
- No Fee, Commission-Based: Avoid this pricing model.
Advantages of Choosing OuterBox to Manage Your PPC Campaign
- Free personalized estimates—talk with our Google Ads campaign experts today!
- Google Partner team certified in Google Ads (formerly Adwords), Display Advertising, and Shopping Campaigns.
- Get detailed, monthly performance reports and 1-on-1 meetings.
- Ecommerce experts with 20+ years of experience as a leading eCommerce agency.
- From lead generation and B2B PPC to branding and promotional campaigns, we deliver tailored solutions for every business model.
Still Have Questions About PPC Pricing?
We hope this guide has helped you feel more confident about choosing the right PPC management agency to make your campaigns a success!
If you have additional questions or want to discuss a custom Google Ads management quote, talk with our certified team of paid search experts today. Fill out the form below to connect with one of our Google Ads specialists.
