If you’re looking to hire a Google advertising agency to manage your Google Ads campaigns, it’s important to know that the costs can vary based on factors such as pricing model, level of service, agency reputation, location and so on.
So, you’ll need to thoroughly assess your advertising needs, budget constraints, and desired outcomes before selecting an agency. However, some businesses choose to manage their Google Ads campaigns in-house, rather than enlisting a Google Ads agency.
In this article, I’ll explore the typical charges associated with hiring a Google advertising agency and the factors that influence these costs.
1. Understanding Google Advertising Agency Charges
A Google advertising agency offers a wide range of Google Ads services such as campaign setup, keyword research, ad creation, monthly management, and optimization and more. And they charge a fee for these services and the cost structure can differ based on various factors which I’ve listed below.
2. Pricing Models for Google Advertising Agencies
a. Flat-Fee
If you find a Google advertising agency that charges a flat fee for their services, first you need to assess if that is right for you. Although you’ll know what you’ll pay each month, you still need to know you’re getting value for money.
The agency will quote you a fixed monthly or one-time fee, in line with what they believe is suitable to manage your campaigns.
Flat fee agency management rates start from $450 per month for small Google Ads accounts and over $1500 per month for large accounts. What you’re charged will depend on many factors which you’ll need to discuss with the agency.
b. Percentage of Ad Spend
Some Google advertising agency charges are based on what you’re spending in your campaigns. And this usually ranges between 10-25% of your monthly advertising spend.
For instance, if you’re spending $5000 per month on ads, and the agency charges 10% of that, then you’ll pay $500 per month for Google Ads management.
And this fee will be adjusted up or down as you increase or reduce your advertising spend.
c. Performance-Based Fee
A performance-based fee is when you pay a Google advertising agency when they reach predefined sales or leads targets or when they achieve a certain return on ad spend (ROAS).
So, the agency’s performance is tied to a specific performance metric or goal as described or any other one that is relevant for your business.
3. Factors Influencing Google Advertising Agency Charges
a. Level of Service
The level of service provided by your Google advertising agency determines the fees you’ll pay. Some agencies offer a complete Google Ads service besides the usual setting up and managing of campaigns.
They may also offer landing page optimization, Google Analytics set up and tracking, Google Ads training, Remarketing setup and more. And the more services they provide, the more you’re likely to pay.
So, find out what’s included so you can avoid any hidden costs and pay what you’re comfortable paying.
b. Agency Reputation and Experience
A reputable Google advertising agency with a lot of experience, will charge a premium rate for its services like Google Ads management and optimization.
But it can be a challenge to assess how experienced an agency is. However, you can check how reputable they are online and look for reviews on sites like Trustpilot and also check case studies and testimonials.
c. Campaign Complexity
Some campaigns are difficult to set up and manage. That’s because the industries are competitive and unique strategies need to be employed to set up the campaigns effectively and optimize them. And they may require many ads and keywords and additional customizations that wouldn’t be needed for other industry types.
So, the complexity of your campaigns can influence the charges that you pay.
d. Geographic Location
A Google advertising agency will charge a certain rate depending on where they are located. So, their location will likely play a significant role in their pricing, and you can expect this to be higher if they are based in major cities like New York and Los Angeles.
And usually the higher they charge for their services, the more experienced they will be.
e. Client Industry
If you are in a competitive industry, it will require a lot of work to achieve good ad positions and positive return on ad spend (ROAS). So, this will affect the agency’s pricing and will be in line with the amount of time spent setting up and managing campaigns.
Some competitive industries include finance, mortgages, health, mortgages, marketing, and many others. So, if you’re in one of these, expect to get higher quotes from agencies you reach out to.
4. Customization and Strategy
Besides offering optimization, management and set up services, find out what else you can get help with from a Google advertising agency. It’s important that you focus on your goals with Google Ads and that will help you know how the services can be customized to your requirements.
And the agency may also help with creating an effective strategy and not just focus on the execution.
This will of course come with a cost and the agency will send you a quote for that. But it’s important to see it as an investment and as an opportunity to really scale your business.
Conclusion
Hiring a Google advertising agency is important if you want to achieve great success with Google Ads. However, it can be expensive and sometimes doesn’t work out. So, you need to search carefully to find the right agency for your needs at a good price.
I hope this article has been helpful. My name is Mike Ncube and I’m a Google Ads specialist. Contact me today to discuss your requirements.
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