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How Much Does PPC Management Cost?

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PPC Management Cost

If you want to run a successful online business, then PPC campaigns and programs like Google Adwords need to be in your plans. It’s a necessary evil we all must go through to bring in that new traffic.

The problem here is, business people aren’t necessarily marketing people. Especially when small businesses are involved. Pay per click advertising? Campaign structures? Bidding on keywords? If that all sounds like gibberish to you, then you’re going to need to need some serious AdWords help.

Even if you stumble through setting up a great PPC campaign, you can’t get the most out of it without managing it properly. That takes more time and knowledge than most assume. It’s about time to turn the nitty gritty details over to a passionate PPC pro who actually enjoys dealing with them.

Hiring a PPC manager is a great way to prevent accidental wasted money in your account. But how much will you actually be paying them to handle your budget? Here’s an idea of how your PPC management pricing could go.

Percentage of Ad Spend

Percentage of Ad Spend

This is a bit traditional - the standard baseline for most PPC agencies is 10% with a monthly minimum. The percentage almost always goes down for accounts that spend over certain thresholds. The intent of this model is to increase your budget as our work brings in more revenue. This PPC management option is great when you think about the extra work often needed when things get competitive. Plus, it allows your PPC manager to reward their hard work as your account grows. An increase in spend must mean an increase in revenue, so they must be doing something right...right?

Unfortunately that's not always the case with other agencies. Just be wary and keep your eye on a slowly increasing budget. Make sure the numbers aren’t being inflated a bit just to increase the amount your PPC agency is putting in their pocket.

Flat, Monthly Fees

Monthly PPC Fees

This option is a simple, straightforward payment plan that’s based off of the amount you're spending, the size of the account(s), and work involved for management. These types of arrangements are typically done on a longer-term contract basis. You get to pay the same amount each month, and the agency gets a longer term commitment from you. An increase in rate is typically negotiated at the expiration of each contract.

When you have so much to deal with as is, it’s nice to always know exactly how much you’ll be paying for PPC each month. It’s a great option for larger businesses who need to forecast budgets very accurately, especially those that need to report to executive stakeholders.

Pay by the Hour

Hourly PPC Charges

You’ll be hard pressed to find an agency that charges you hourly, but it’s worth a mention if you’re looking at smaller agencies or a PPC contractor. The biggest financial risk here is trust. As with most by-the-hour payment plans, you want to make sure the 15 hours of AdWords management you’re paying for isn’t actually 5 hours. You could remedy this by making your goals clear and asking for a detailed hourly report at the end of each month.

The huge benefit to an hourly PPC management arrangement is that you have the choice to pick and choose what is done. If you’re planning on being really involved in the account, but need some help setting up a new campaign or coming up with a strategy, you can turn to your hourly PPC professional to lessen the workload.



So how do WE charge here at Digital Position? Actually, we currently utilize all three of these methods. We custom build a package for each client - this way you can choose a payment plan that best suits your needs. It's better that way!


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Roger Parent Image

Roger Parent

Owner

Roger Parent is the Owner and Founder of Digital Position. He's been a developer, designer, and online marketer for almost 10 years spanning a variety of markets. He's also a very "passionate" (overly competitive) volleyball player.

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