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Google Ads Agency Pricing: Hourly Rates vs. Monthly Retainers

When it comes to Google Ads agency pricing models, there are two primary ones that many agencies provide: hourly rate and monthly retainer. Each model has its pros and cons and understanding the differences can help you make an informed decision based on your specific needs and budget.

In this article, we’ll explore the characteristics of hourly rates and monthly retainers for Google Ads agency pricing.



1. Hourly rates

Hourly rate is a common Google Ads agency pricing model. This involves paying the agency a fee based on the number of hours they spend working on your campaigns.

Google Ads hourly rates start from $30 per hour from less experienced freelancers. And this can go up to $150+ for more experienced freelancers and agencies.


a. Flexibility

One of the main benefits that the hourly rates provide you and the agency is flexibility. This is because you only pay for the actual time spent in your campaigns.

This can be great if you have a small or fluctuating ad spend and want more control over your budget. But it can be a challenge to track the amount of time spent on your campaigns.


b. Transparency

Hourly rate pricing can be one of the most transparent models because you only pay for the hours that have been worked. However, the agency will have to provide detailed timesheets or reports showing a breakdown of work done and associated costs. And this allows you to track the time spent on your campaigns.


c. Pricing variations

The agency’s rates will depend on their expertise, location, and the complexity of the tasks to be completed. So, when you reach out to an agency or two, find out where they are based and what expertise they have in Google Ads. And you’ll be able to see a lot of this on their website.

The complexity of the task will depend on what goals you have and how many campaigns you need help with.



d. Potential cost concerns

While hourly rates offer flexibility, they can also lead to cost uncertainty. That’s especially the case if the agency spends more time than anticipated on your campaigns. So, the Google Ads agency pricing costs can quickly add up, potentially exceeding your budget.

It’s important to check this if you want to avoid high costs that exceed your budget limits and discuss the best approach with your agency.



2. Monthly retainers

Monthly retainer is a popular Google Ads agency pricing model. It involves paying the agency a fixed fee each month for managing your Google Ads campaigns.

The monthly fee varies and depends on many factors such as experience, expertise, and skills. And this usually starts from $300 per month for small and less complex accounts to thousands for larger accounts with many campaigns.



a. Cost predictability

A monthly retainer provides you with cost predictability as you know what you’re paying each month for Google Ads management services. This is great for budgeting purposes and provides stability as you spend money on your campaigns to drive sales or leads for your business.

And of all the Google Ads agency pricing models, monthly retainer is the most predictable.



b. Campaign focus

Another key benefit of a monthly retainer, is that the agency is incentivized to focus on a long-term relationship rather than maximizing billable hours. So, they’ll focus on making the campaigns effective because your success is their success too.

They have a vested interest in optimizing your campaigns for better performance and ROI.



c. Comprehensive service

With a monthly retainer, some agencies will include a wide range of services as part of the management of your Google Ads campaigns. So, this will include such services as campaign optimization, conversion tracking setup, Google Analytics setup and tracking and more.

This comprehensive approach ensures that all aspects of your campaigns are managed effectively.

However, some services like campaign setup and training will likely be separate and not be included in the monthly management retainer fee.



d. Value for money

A monthly retainer can provide great value for money because of the many services you’ll get as part of the Google Ads management services. And most times you won’t have to pay any extra charges, or you may pay less than you normally would, if you needed help with those services only.

So, this could allow you to budget and plan effectively because you’ll  know what you’re paying each month. And this is especially important if you have larger campaigns or require ongoing management.



3. Choosing the Right Model

Now, you’ll need to choose between one of these Google Ads agency pricing models. The information above will guide you as you make a choice and the following four factors too:


a. Budget and campaign size

If you have a small budget, under $3,000 per month, then an hourly rate may be the better option for you. This allows you to limit the number of hours you hire an agency for, and control your costs

But, if you have a medium or large budget then a monthly retainer fee could prove more cost-effective, especially if you want ongoing Google Ads management.



b. Scope of work

One of the first things to do is evaluate the complexity of your campaigns to decide which Google Ads agency pricing model is best for your business. Hourly rates may be more appropriate if you have specific, one-time tasks, while monthly retainers are preferable for ongoing campaign management.



c. Long-term goals

Considering your long-term goals is important when looking for the right agency. This will help you get the right guidance and ensure that you achieve great success with your campaigns, at an affordable rate.

A monthly retainer will provide you with more strategic support that includes full updates and changes to your campaigns each month ongoing. And this will be ideal for long-term Google Ads advertising as you reach for higher and more ambitious targets.



d. Agency expertise

The expertise of the agency is a factor you should look for, right from the start. This will often tell you what they will charge for their services and what to expect.

If you’re working with a highly skilled agency, then the efficiency of their work may make hourly rates more cost-effective.

On the other hand, if you need a full-service agency with comprehensive support, a monthly retainer might be the better option.



Conclusion

Both hourly rate and monthly retainer provide benefits and drawbacks as outlined in this article. And the Google Ads agency pricing you choose will depend on your goals, budgets, and plans.

I’m a Google Ads specialist and I help small to medium-sized businesses set up and manage effective PPC campaigns. Contact me to discuss your requirements and for a quote.

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    Hi, Mike Ncube is a leading digital marketing consultant who blogs about the best and latest digital insights. He writes about topics such as Google Ads, digital strategy, LinkedIn Ads, Email, SEO, Google Analytics and more. Reach out to him if you have any questions and subscribe to his blog to start learning.

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Hi, Mike Ncube is a leading digital marketing consultant who blogs about the best and latest digital insights. He writes about topics such as Google Ads, digital strategy, LinkedIn Ads, Email, SEO, Google Analytics and more. Reach out to him if you have any questions and subscribe to his blog to start learning.

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