Managing PPC campaigns or multiple ad campaigns across different skews can be time-consuming, frustrating, and costly. That’s why paying a PPC management agency is a good idea. Overpaying is not, however.
Determining what you should pay and the type of agency or services you want will require many different considerations about your business, your willingness to spend on PPC advertising, and how much effort you want to have to put in yourself.
Most PPC agencies have different pricing model’s based on different needs and the scale of pricing can vary wildly, it’s only one of the reasons clients have issues with their PPC agency. The upside is that a good agency can get you much more of an ROI than a typical marketer is capable of.
It’s a given that you’ll have to spend money on advertising in order to draw in customers, but much of that money can be wasted with ineffective PPC campaigns. The right PPC management will keep your Google ads fresh, well-targeted, and ever-evolving to consistently engage your market.
The core of figuring out how much to pay will be determined by the type of strategy that works for you and how much you can afford to spend in return for managing your ad campaign.
There are three standard pricing model’s that each work differently and are best suited for different types of businesses as well as additional fees and services that you may want to consider.
We’ll detail each model and then discuss the optimal situation where that pricing model would work to give you an idea of what’s best for your business and campaign strategy.
The way these models of pricing work, is that companies pay an agency a set percentage of whatever their base ad spending is. The company then manages the ad campaigns based on regular ad spend percentages.
In many cases, the more campaigns the agency manages, the lower the percent paid gets. This means by volume the agency makes more money but the business pays less. This is not the case for every agency but is standard practice for many of them.
This is generally the most common pricing model used and does not include additional fees and services provided by the agency. One caveat that comes with these pricing model’s is that they typically require a minimum amount of ad spend to operate regardless of the overall budget.
The percentage is also set by the agency and once locked in, can be difficult to renegotiate, especially mid-campaign. This means that fees are locked for a period of time regardless of return or tracked performance unless otherwise stipulated. Knowing the conditional stipulations that apply to your PPC management contract will help to avoid unnecessary costs.
These types of pricing contracts are best reserved for big businesses with big PPC advertising or ppc ads budgets. This is mainly due to the minimum required spending that accompanies these pricing plans.
Small to medium-sized businesses may not be able to afford the price point of these plans and the required minimums.
Additionally, larger businesses that run more campaigns or that have large ad portfolios will benefit more from the decreased fees associated with higher workloads on these price plans.
Larger businesses also have the ability to absorb the cost over the term of a contract if the ROI is not as high as it may have been forecast. Businesses with minimal budgets or that cannot absorb extra costs would not be well suited to these models due to the lack of control overpricing.
This is a fixed fee model that is determined by the associated costs and scope of managing a client’s static ad campaign. The fees and assessments for managing a business’s ad campaigns are all built into one payment.
This provides a set range of PPC management services for static campaigns and covers all associated monthly fees. This provides businesses with a set cost for a set run of ad campaigns.
The one typical downside to this type of payment model is that it is not easily modified and the scope of services may be less than other pricing models. Performance is also not guaranteed. The PPC management fee’s are paid regardless of how the Google ads campaign perform unless otherwise stipulated in the contract.
This type of setup can be a double-edged sword for businesses as the simplistic structure and flat fees are beneficial, but the range of services and performance may be limited. It’s best to discuss exact details before deciding on this type of payment model to ensure the services are what you need.
Though this type of pricing model is not as common as the percentage of ads spend model, it can be beneficial for businesses that run a set of standard, static ad campaigns on a regular basis and simply need them managed in some capacity.
Smaller businesses that prefer to pay a flat fee may also choose this model over others so that they have more control over the exact price they pay. The simplified pricing and limited PPC management services also serve smaller less complex ad campaigns better.
Larger businesses or businesses that run constantly changing ad campaigns, seasonal Google ads, and other promotions would not benefit from this type of pricing. The fee structure is based on static ad campaign costs and the PPC management and oversight level is less than that of other plans.
This means essentially that complex ad campaigns will not receive the PPC management and attention to detail that they need to capitalize on their potential and will therefore have diminished ROI. Even if the cost is lower, in these cases the loss of potential revenue may cost even more. It’s like buying a cheaper product to save money and then having it break two days later.
These models are much less prevalent than the previous two and are tailored to less traditional campaigns that rely on leads generation to close sales. In general, this model is used for campaigns such as e-mail marketing, cold calling, B2B sales marketing, and other types of direct sell campaigns.
Agencies typically manage these campaigns and collect a fee-based either on overall performance or per lead that closes in a sale. Though the niche for these types of campaigns is smaller, the costs associated are also much more mitigated than other options.
This option works exceedingly well for eCommerce, direct sales, and referral models.
As we’ve discussed, this model is rarer than others due to the niche nature of the campaigns that use it. However, businesses that market directly or use conventional sales tactics can make great use of this as a leads-generation service to drum up sales.
The basic idea is that you only pay when they bring you a client. This makes the cost relative to client acquisition a worthy exchange in most cases. Linkedin campaigns, B2B campaigns, and direct-to-consumer sales would benefit greatly from this model.
Traditional marketing tactics, ad campaigns, and site-driven sales would not benefit from this model as the overall benefit would be lower compared to the cost per customer.
The plans we’ve listed are the top 3 that are most common, agencies may include other plan options as well as PPC management fee.
Typically, PPC management services fees are flat, static, and applied on top of standard pricing plan rates. The benefit of agencies that offer these fees is that the level of service is usually higher. In particular, services offer more control over ad campaigns, including automatically rotating or updating ads, managing dynamic ad campaigns, updating copy and other elements, and monitoring performance.
The fees for these services aren’t cheap, typically ranging from $500 to $5000, but the benefits are great for businesses with large campaigns who can afford the added cost and want more precise control of their PPC campaigns.
Before you decide on a plan, having a full understanding of your needs will help you determine what you need and what you should pay in terms of required services, changes, and other issues. It’s not enough to say “well, I can afford this much, so that’s what I’ll pay.”
First of all, take a look at your business’s PPC advertising or ppc adsstructure. Look at your base performance, decide what you want to improve. If you don’t have a dedicated PPC advertising/ppc ads program or budget, try to get an idea of what you want so that you don’t go into negotiating with an agency blind.
This is why larger businesses can afford to pay large premiums, they already have the ad budget and the return on ad spend usually covers any costs associated with using an agency.
Once you have a budget in mind, you can begin to decide on what plan would work best. This includes considering whether you want to pay for additional PPC management services.
The fees on percent ad spend plans are fairly standard and don’t leave much room for negotiation, but performance-based models and flat fee structures usually leave room for negotiation in terms of service and price. The larger and more complex your ad campaigns, the more you’ll spend overall, but you can also expect a higher ROI in these cases, with a good agency.
Before you sign the contract, make sure you have a PPC audit performed and go over any and all particulars so that you know where you stand. Having stipulations in your contract that cover you in case of downturns in business, poorly performing Google ads, or dynamic ad campaigns will allow you more control over your campaigns and protect you from the unexpected.
To help you figure out how much you’ll be spending, we’ll break down some of the standard industry fee structures.
Estimating is key to success in Google Ads.
Startup Fees are essentially assessment fees that are paid at the start of the contract. These are usually paid regardless of whether you start a long-term contract or are month to month. They can range from a couple of hundred dollars to several thousand depending on the agency and the scope of the PPC management services needed.
You’re paying these fees up-front for the agency to put together a plan for your ad campaigns and the PPC management services requirements. What you get for these fees, however, depends on the agency, so don’t expect a guaranteed level of service just because the startup fees are higher.
Contracts typically come in three types when you sign with an agency. Depending on your situation or budget, choosing one type over another may have more benefits.
Some agencies offer month-to-month contracts that allow you to change or alter services on a monthly base or quit the contract after the next 30 day period if you so desire. If you’re uncertain about your need or want to test out the agency before committing to a long-term contract this is a good option.
Though rare, some agencies offer a no-contract option. This allows you to end service at any time. Fees may be applied, but this may be a good option if you face financial difficulties or find that the service you are using isn’t working out. Those who don’t like commitment may prefer this option as well.
The standard option for most agencies is a term contract. These typically range from 3 to 12 months. These contracts can include performance minimums and expected services as well as all minimums and fees associated with payment. Payment is typically made on a monthly basis and can include the contract fee as well as PPC management fee’s.
There are three components to PPC management agency fees: Monthly click budget minimums, the standard monthly base fee, and the percentage of ad spend fee.
The first component and one that you should be aware of before signing is the monthly click budget minimums. These are the minimum ad spend budgets that an agency will work with. This is especially important if the agency takes a percentage of ad spend as part of their fee. If you don’t meet these minimums, you may need to change agencies or renegotiate the terms of your contract. This can determine a lot of the expense. Smaller businesses with tighter ad budgets may want to shy away from agencies with high minimums.
The second component is the base fee. This can be structured in a number of ways, but the base fee can be considered the minimum you will pay the agency for their work each month. Some agencies charge this as a flat rate or have flat-rate plans that don’t add additional charges.
Some require a base fee, plus hourly expenses based on workload. Others have a base fee based on keyword count, tiered fee structures, or fees associated with each service, as an a la carte service.
The normal practice is to charge a base fee, plus a percentage of either ad spend, or a percentage of the total PPC advertising budget, both of which can become quite hefty and can range from a low of 15% and a high of 50% of ad spend.
You should assess your financial health and your overall marketing budget when deciding on the type of payment structure and agency to choose.
Understanding the benefits and costs of a PPC marketing agency allows you to make more educated decisions on what to pay. What that number is for you will be dependent on a lot of factors.
The best answer we can give you is to do a hard inventory of your business’s finances and marketing budget and determine what you can afford to spend, even if things don’t go your way.
In general, you can expect a great return on your investment, and using a PPC management agency is a fantastic resource, but you shouldn’t over-leverage your advertising budget in case your conversion rate drops or your business suffers a downturn.
The rule is: pay what you can afford for the services you need most. Even a big business needs to be smart about where it puts ad dollars in order to maximize profits. Paying for things you don’t need is never a good idea.
Hopefully, this post has given you everything you need to know about PPC management agencies, how they work, their fees, and what you can expect to spend.
If you’re thinking of hiring a PPC agency or firing your existing PPC agency, get in touch!
Now you’ll have a better idea of what it’ll cost you and what you should and shouldn’t pay the agency you choose.
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When you want to use paid search marketing platforms, Google Ads often leads the list. Because of its versatility, simplicity, and popularity, it’s obvious why it’s a popular choice. But when you drop all of your PPC advertising money into one marketing strategy, you could lose some leads.
That’s why some businesses explore paid advertising marketing outside of Google, with many turning to Linkedin Ads.
Google Ads and Linkedin Ads are highly efficient ways to market your products and services to businesses and consumers. But each marketing channel has its advantages and disadvantages. Whatever you choose, make sure you discuss the matter with your web development company.
Below is a closer look at each option.
We think it’s reasonable to conclude that Google reaches a vast audience worldwide – its ad reach is a stunning 4 billion people. Google search handles about 70% of desktop searches, and many companies report that they get about 90% of their organic traffic from the search engines. Also, up to 95% of the mobile search market comes from Google.
People use Google’s search a lot, and having the ability to target search terms with specific search ads is a massive benefit of Adwords. People tend to search for very specific things in Google, so if you can customize your Google advertising for your targeted audience, you’ll receive plenty of leads.
So, we can assume that most people’s targeted audience uses Google to some degree. That’s a massive advantage for companies when they want to target an audience.
However, businesses that want to narrow down their search may have issues getting their Google ads settings right with both Google Ads. And if you blunder when segmenting your audiences, your digital ad campaign could suffer.
LinkedIn features a narrower audience – 500 million users – namely businesses and business professionals. But this more limited audience makes it the perfect place for effective B2B marketing. LinkedIn lets marketers serve online ads to decision-makers and vital audience members in several ways.
Summary: For B2B firms that want to reach decision-makers, Linkedin is a terrific advertising platforms. If your B2C company intends to increase its reach, Google Ads could be the best fit.
When you target your audience with Google Ads, you have a few options: location, affinity, technology, buyer behavior, demographics, and interactions with your app or website.
No matter how much you know about your buyer, you may struggle to avoid clicks from worthless leads that cost too much.
In some cases on Google, people may not even know what they’re looking for. You can try to advertise to your desired targeted audience on Google Ads, but it can be challenging to get to the precise people who will most likely buy what you sell.
When people sign up for LinkedIn, they usually provide many details, such as their occupation, title/job title, experience, industry, education, interests, and more. All of this information can be leveraged for great advantage when you start your marketing campaigns.
Also, LinkedIn users can join many groups, start conversations, and obtain followers. The data is priceless when you want to target a specific audience and market to them. LinkedIn also has a Matched Audience that helps advertisers match their email marketing lists and website visitors with users on LinkedIn.
Many marketing experts think that LinkedIn Ads offer more value. LinkedIn has refined targeting, and you can make your product known to them so that you can tell them about something they didn’t know existed.
Summary: For B2B and B2C companies looking for a broad audience, Google Ads has enough targeting features. But for B2B firms that want to target specific groups, LinkedIn Ads has about 100 segmentation methods for micro targeting.
When you want lead generation, Google Ads has a broader reach and is the most effective. First, you can bring in a lot of prospects to your site without breaking the bank. The audience you’re after on Google visits the search giant with the idea to find the best product or service. This makes generating leads easier.
Getting leads from LinkedIn can be more challenging. Users of the platform may sign in to read industry news or talk to group members. No matter how perfect your ad is, viewers may not be in the mood to buy anything.
That said, Linkedin has a way to target ad leads through in-site messaging, which can generate plenty of leads.
When it comes down to dollars and cents, LinkedIn Ads usually are more pricey than Google Ads. As in Google, you can select cost-per-click or cost-per-impression.
LinkedIn also features a cost-per-send for InMail advertising. Typically, you’ll pay about $5 for each click, $6 for 1,000 impressions, and .80 for each send.
With Google Ads, the average CPC is $1. But to leverage that low cost, you need to work on your audience segmentation. If you don’t your ROI may be below what you want.
Summary: Advertising budgets for each platform depends on several factors. On average, Google Ads cost less than LinkedIn Ads. If your B2B company has a tight budget, you may want to focus on a limited variety of LinkedIn ads instead of a broad range of Google Ads.
So should you advertise with Google Ads vs LinkedIn Ads? Yes!
What we mean is, it depends. The correct choice depends on your budget, product or service offered, marketing goals, and target audience. You should not assume that when you need a digital marketing campaign, Google Analytics Adwords is the only choice.
It’s critical to evaluate the market, understand who your buyer is, and make a data-driven decision about the best marketing platform to reach your well-defined goals. One type of company might do better with Google Ads, and another may find LinkedIn Ads preferable.
The great news is you don’t need to choose between the two platforms. Many businesses use both, as well as Facebook, Instagram, and others. If you have the budget, it may pay off to diversify your paid search advertising to get the best ROI.
Pay-Per-Click (PPC) Digital marketing is a classic marketing strategy that’s commonly used to supplement organic web traffic, but it’s hardly the most straightforward way to increase your site’s audience. In fact, from a technological perspective, it’s a rather fussy practice. That’s why brands that want to include a PPC marketing strategy in their overall strategic decisions need to work with an experienced agency. Agencies facilitate ad distribution, track clicks, and calculate fees – and the best ones can help their clients thrive. Unfortunately, there are a lot of subpar agencies and bad actors out there, and you need to know how to spot them.
So, how do you know if it’s time to fire your PPC agencies? Keep an eye out for these 9 red flags. They could indicate you’re working with the wrong agency and that it’s time to make a move.
Companies leave their PPC agencies behind for all sorts of reasons, but according to a 2015 report by the Society for Digital Agencies (SoDA), the most common reasons include outgrowing the agency’s capabilities, cost overruns, and dissatisfaction with their strategy. These are all valid reasons, and ultimately many of them can be reduced to an agency’s failure to generate any or enough growth. After all, disliking the agency’s strategy isn’t likely to be much of a problem if that strategy is generating major growth. Similarly, a brand is unlikely to view itself as having outgrown the agency is their accounts continue to grow.
Ultimately, what these different reasons for firing PPC agencies demonstrate is that, any way you slice it, no one wants to work with an agency that isn’t making them money. So, while it might take a little while for your PPC ads to gain traction, if you’re not seeing growth based on the launch of or changes to your PPC campaign, it’s time to move on to a different agency.
While most brands work with a PPC advertising agency to run their campaigns, it’s not only possible but advisable for you to set up your own accounts with the major PPC advertising platforms, which include sites like Google AdWords, Yahoo, and Facebook. Still, if you’re not the most technologically savvy, it can be tempting to let your agency do it for you. Don’t give in to the impulse. Instead, ask them to guide you through it so that you can ensure that you’re the one with owner access rights.
Unless you have the owner access rights to your company’s PPC accounts, you can’t be sure you have unmediated access to your campaign metrics or feel good/ confident that you’ll be able to transfer your accounts to another agency or bring them in-house if needed. In other words, your agency could be misrepresenting best results to you or could refuse to relinquish control if you end your contract. You need to retain those rights and then give your PPC agent the appropriate permissions to manage your campaigns. If they balk at this arrangement, show them the door.
Typically, when you look at your company’s profile on a site like Google AdWords, you’ll see that your PPC agency has set up specific goals to help your business grow. These commonly include such metrics as Cost Per Acquisition, Return On Advertising Spend, and Cost Per Lead, though there are plenty of other valuable metrics that are worth tracking. Such measurements assure you that you’re spending your Digital marketing money in the right place, help you budget for ad spending, and offer insights into what’s working and what isn’t.
Unfortunately, you’ll occasionally encounter PPC advertising agencies that fail to set up these metric reports, and they’re not to be trusted. Even if they claim to be using an in-house system, it’s your right to demand they use the standard reporting system for each PPC platform and to fire them if they refuse to. Dashboard-based metrics exist to provide consistent measurements regarding the success of PPC campaigns ad those are the numbers you want to reference.
In a similar vein, some PPC advertising agencies skip the core metrics noted above in favor of less valuable but more appealing “vanity metrics.” Vanity metrics don’t help your business make money and they offer limited insight into your operations. Examples of vanity metrics include any campaign value based on impressions, engagement metrics that don’t drive conversions, and even many of the behavior-based metrics that used to be considered the gold standard in website evaluation, such as bounce rate or time on site.
Ultimately, vanity metrics don’t serve your company because they can be created artificially. An untrustworthy PPC agency might drive up engagement numbers by sharing a great meme on your brand’s landing pages, which will drive likes and other reactions, but won’t actually funnel clients to your site or create sales. Similarly, you can get a huge number of impressions by getting your PPC new ads onto a very popular site, but if no one is clicking on it, all you’ve got is a tally of how many people visited/ web traffic to someone else’s website.
Having the right metrics is important, but if you’re going to meet your goals then your Good PPC agency needs to be adjusting your account settings regularly to refine your campaigns. At a minimum, that means accessing your account to regularly monitoring and fine-tune the settings at least once a week. Such regular check-ins allow your agency to quickly adjust your social media campaigns based on updates to the search engines algorithm, catch any conversion mistakes that could cost your company money, and even react to competitors campaigns.
Be sure that you not only ask your PPC agency how often they access and update your accounts, but that you’re also checking your accounts regularly for updates. The reality is that, although many companies run PPC campaigns, only 10% of AdWords accounts are updated weekly. If your PPC agency can’t meet that standard, ditch them for one that will stay on top of your campaigns.
Just as your PPC agency needs to be fine tuning your accounts regularly, they should also be reporting back on your campaigns at least monthly. While seeing week-to-week progress would be great, as with many kinds of growth, this can be hard to evaluate. Comprehensive, monthly reports, on the other hand, can help you see what your agency has been doing on your behalf, how your accounts are growing, and allow you to be an active participant in your Digital marketing strategy.
Never settle for a company that doesn’t offer substantive reporting. While great reports may offer added insights from your account manager or more labor intensive explanatory work, the majority of PPC reporting is automated – any company that doesn’t provide it is just lazy.
It’s unrealistic to expect that you’ll speak to the same person every time you contact your PPC agency; that doesn’t even happen at your bank or your doctor’s office. That being said, there should be one person who acts as the lead on your account because that allows them to master your brand’s voice, develop a big picture strategy, and generally build up a knowledge base around your brand’s needs and preferences. They might be busy or out of the office occasionally, but anyone whose experienced both approaches – a core account manager and a rotating cast of agents – can tell you that having a point person makes a difference.
If your PPC agency doesn’t have you working with a single, core agent, you may want to ask a few questions to get a better sense of what’s happening. Do they have an unusual in-house strategy, or are they having trouble with employee retention? Do they think it doesn’t make a difference? You can also request that they place you with a single representative, but if that’s not their standard practice already, you’re probably better off going elsewhere. It just doesn’t bode well.
Google AdWords isn’t a new program and there are plenty of other PPC programs out there, but if an agency is committed to this work, then they should have complete Google’s AdWords certification program. You can check on this by asking them to show you their Premier Partner page – it really is that simple. Not having one isn’t necessarily the worst offense a company can commit, but it’s a good indicator that you can do better and should commit your ads spend elsewhere.
Did you pick your PPC agency based on their portfolio of appealing PPC ads/ads or optimized images? That’s a great starting point – it certainly indicates that they can do high-quality work – but it’s not enough if they’re not actually showing you your brand’s own ads before they launch them. Obvious, right? It should be, but many entrepreneurs have been duped by PPC agencies who tell them that their ad is similar to another ad product, which is called ad copy; the client, not wanting to be pushy, walks away with their own notion of their brand’s ad, and meanwhile the agency may not have done any work at all.
Your PPC agency should be giving you the final say on all your paid ads, so if you’ve supposedly got a campaign running and you haven’t seen your ads, ask to see them right away. Odds are good that if your agency isn’t showing you your PPC ads before launching them that they either don’t exist or they’re extremely low quality for online visibility. Great PPC agencies are proud of their work and they want you to see it. Anything less should raise concerns.
Hiring an agency to manage your PPC campaigns will obviously cost more than just the fees for the campaign itself, but the costs involved in running ads with your agency shouldn’t be confusing. That’s because, ultimately, your money should only be going two different places – to the agency and to the ad platform – and everyone at the company should be clear on the split. So, when we say you should be wary about confusing fees, we’re not talking about total cost (that’s a matter for you and your budget), but rather about how the money is split up. For any payment there should be the fee to the agency and the ads spend and it should always be obvious what the division is there.
As popular as PPC marketing is with businesses today, many of the agencies that execute these campaigns don’t do a very good job. They’re wasting your ad spend and your time, and you deserve better. That’s why you should switch to PPC.co’s PPC Management Service.
At PPC.co, we’re committed to ensuring that your ads are reaching the right audience and we know that most agencies just don’t deliver that. Starting from our understanding that website conversions often top out at 2%, we emphasize PPC marketing that pairs first contacts with retargeting efforts to ensure that your brand remains a top-of-mind solution for past visitors. A non-converting visitor is often just someone who hasn’t seen the right content yet, and we want to help you make those connections.
What else makes our PPC Management program stand out? With dual Google Ads and Google Analytics certifications, we have a deep understanding of the systems & AdWords account that get your ads seen and can use tracking data to its fullest potential of web traffic. In fact, that’s why we start every client engagement with a full PPC audit, because even when we’re not leading the campaigns, our skilled professionals can quickly see what’s working and what’s falling short in your current campaigns. From the start, we put our expertise to work for you.
If your PPC agency has exhibited any of the above warning signs, you can’t afford to wait around for progress. It’s time for the protection of business and moves on – to PPC.co. Contact us today to learn more about our PPC Management Services and say goodbye to wasted ad spend and rock bottom conversions. Once you’ve seen the difference a top PPC agency can make in your campaigns, you’ll never believe you let anyone else handle your PPC needs.
