The cost of hiring a Google Ads management agency is important to know if you’re considering hiring an agency. There are many benefits to hiring an agency like saving you a lot of time and utilizing the experience and expertise that you may not have in-house.
But it can be unprofitable if not handled properly and could cost your business a lot of money.
In this article, we’ll explore the factors that determine the cost of hiring a Google Ads management agency and provide you with insights to make an informed decision.
1. Management fee structure
The Google Ads management agency fee structure varies and depends on several factors. This depends on the amount you’re spending each month, a flat fee, performance-based pricing, hourly rate, or others.
The percentage of ad spend varies and depends on the agency and the specific services offered. On average, the management fees range from 10% to 30% of your ad spend. For example, if your monthly spend is $10,000 and the agency charges 15%, you would pay $1,500 as the fee.
With flat fee, this also depends on the agency and what they’re offering. And the fees for this start from $450 per month for smaller accounts and can go into thousands for larger accounts and campaigns. So, it’s important that you check what you get for the amount you’re spending.
For more information, read the Google Ads management cost article to find out more about the different pricing models and what you can expect.
2. Ad spend and budget
The amount of budget you set in your campaign and the actual amount you spend, impacts the cost of hiring a Google Ads management agency. And the higher you spend, the higher the PPC management fee is likely to be.
That’s because managing larger campaigns takes up more time and requires more expertise. So, whether you’re charged by the hour, or a percentage of your ad spend, the fee will reflect the amount of work required on the campaigns.
Google Ads agencies charge on average $150 per hour. And as mentioned, the actual amount you’re charged for management depends on various factors, and this can start from $450 per hour for less complex accounts.
3. Complexity of the campaign
The complexity of your campaign will influence the cost of a Google Ads management agency service. For example, a small-scale localized campaign with a limited number of keywords will require less effort and resources to manage compared to a large campaign with an international reach.
The more extensive and complex your campaigns, the more time and expertise it will require from a Google Ads management agency, resulting in higher costs.
4. Additional services and expertise
Besides management, a Google Ads agency offers other services such as setting up new campaigns, audits, conversion tracking setup, training, consultancy, and others. So, when you reach out to an agency, find out what other services they offer to see if they’ll be relevant to you.
Some of these services may be included with the management, but often they will be separate even if they are offered to you for free.
These services may come at an extra cost which may be higher than management costs, but can significantly enhance the effectiveness of your campaigns. And the level of expertise of the Google Ads management agency can impact the cost, and agencies with a proven track record may charge higher fees due to their expertise and reputation.
5. Industry competitiveness
The competitiveness of your industry can affect the cost of hiring a Google Ads management agency. And highly competitive industries and niches require more effort and resources to achieve results due to the fierce competition for keywords and ad placements.
So, agencies may charge higher fees to cover the additional time and expertise needed to outperform competitors and deliver optimal results.
Conclusion
As described in this article, the cost of hiring a Google Ads management agency depends on various factors. These include your ad spend, fee structure, the complexity of campaigns and so on.
By considering these factors and evaluating the agency’s capabilities, you can make an informed decision that aligns with your goals and budget.
Contact me to discuss your requirements and for a proposal and quote.
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