PPC Management Pricing | How Much You Should Pay in 2024?

After direct and organic search, paid search is the third-biggest digital advertising channel.

Pay-per-click, or PPC, marketing can thereby successfully increase brand awareness and customer conversion.

If you’re new to sponsored search, one simple and quick method to get the most out of your investment is to work with PPC specialists.

Discover PPC management pricing and how it may benefit your company with the help of this comprehensive guide.

What is Pay-Per-Click (PPC) Management?

Pay-per-click, or PPC, is a digital advertising model in which an advertiser has to pay an amount each time their advert is clicked. In essence, you are purchasing targeted traffic (via PPC ads) to your website, landing page, or application. The cost is little when PPC is operating well because the click is worth more than you paid for it. If a $3 click generates a $300 sale, for instance, you have profited handsomely.

PPC advertisements can consist of text, photos, videos, or a mix of these and come in a variety of sizes and forms. They may show up on web pages, social media networks, search engines, and other places.

One of the most often used PPC models is search engine advertising, sometimes referred to as sponsored search or search engine marketing. When a user searches for a product or service connected to their business, it enables advertisers to bid for ad placement in the sponsored links of the search engine.

Read Also:- A Step-By-Step Guide To Evaluating PPC Management Services

Why is PPC Important?

PPC needs to be viewed as a resource rather than a marketing outlay. With an average cost per click (CPC) of $1.16 in 2022, PPC generated an average revenue of $2 for every $1 invested. Even while social media is still a well-liked platform for advertising, 40% of all ad spending in 2020 went toward search, with 73% of that amount going to Google. (source)

PPC provides several advantages over SEO and social media, such as:

Fast Results

While SEO can take some time to provide results, PPC advertising can bring visitors to a website practically instantly. Ads are typically approved by platforms the same day, giving advertisers maximum visibility nearly instantly.

Reach the Correct Audience

Pay-per-click (PPC) advertising enables advertisers to target particular demographics, interests, and geographic areas. Furthermore, social media platforms like Facebook can assist you in getting your advertisement in front of the audience most likely to result in a sale. Additionally, you can even target specific individuals based on their actions and interests.

Measurable

PPC advertising yields quantifiable outcomes. With its help, marketers may monitor key performance indicators (KPIs) such as ROI, conversions, and more.

Cost-Effectiveness

Because PPC advertisers only pay when a user clicks on their advertisement and can select a campaign budget, they may be less expensive than more conventional forms of advertising like print or television commercials.

Branding

Pay-per-click (PPC) advertising can aid in raising brand awareness. Users could still notice the advertisement and recall the brand even if they choose not to click on it.

Maintain a Goal-Tracking System

You can do this with the use of tools like Google Analytics. View the real-time performance of your ads and determine what needs to be done to achieve your objectives more quickly.

Reputation Management

To take control of the story, you may use PPC to bid on keywords that correspond to a reputation event and drive traffic to a landing page that specifically addresses the issue.

How Much Does PPC Management Pricing?

Your PPC strategy’s organizational structure will determine how many or how few line items add up to the total PPC cost. Additionally, the average cost per click (CPC) in your business, the frequency of campaign updates, who oversees the PPC campaigns (in-house, agency, or consultant), and other variables are important considerations.

To get a detailed breakdown of typical PPC management pricing, refer to the table below:

Five PPC Agency Pricing Models

Even if you choose to pay an agency the same amount as you would for an employee’s annual salary, hiring an agency will provide you access to a whole team of experts who can offer a variety of services that an in-house division would be too expensive to deliver. Furthermore, you are not constrained by area; a lot of the best PPC companies serve clients across the country and even abroad.

Five typical price model types that PPC companies employ with their clients are as follows:

1. Hourly Charge

The simplest pricing plan will be our first choice; you will pay for the hours worked by your PPC agency on a monthly or quarterly basis, just like you would for any other service or utility.

2. Share of Ad Spending

This price model bases your PPC agency’s payment on the amount you allocate to advertising for your company. In the PPC industry, this method is significantly more prevalent than billing for services on an hourly basis.

3. All-In Prices

Clients that pay a flat rate or tiered price plan do so regardless of the number of hours worked or performance level month to month. This price model typically functions as a retainer for a variety of services and a team of professionals working towards customer goals, as opposed to charging hourly for specific projects and tasks.

4. Pricing Based on Performance

The term “Performance-Based PPC Pricing” is quite self-explanatory. Clients only pay for results under this approach, where the agency costs for each lead. The monthly lead volume is usually the primary measure that the agency monitors.

5. Pricing Based on Milestones

Another variation on performance-based pricing is milestones, which offer a wider selection of metrics.

Tailored benchmarks for each customer may encompass an enhanced click-through rate, consequently leading to a reduced cost-per-acquisition and successful qualified lead creation, among other factors. Moreover, the effectiveness of the campaigns is decisively determined by the objectives and timeline established collaboratively by the client and the PPC agency.

Read Also:- How to Set PPC Budgets

Average PPC Rates in 2024

PPC advertising on platforms like Google Ads and Microsoft Ads typically costs businesses between $100 and $10,000 per month, or $0.11 to $0.50 per click and $0.51 to $1.00 per 1000 impressions.

Factors That Influence the Cost of PPC

1. The Complexity of the Campaign

The PPC agency prices will increase with the complexity of your campaigns. This implies that it will take a lot of work if you have numerous campaigns with competitive keywords that need to be updated regularly.

2. Competitiveness in the Industry

The amount of PPC agency costs you pay may vary significantly depending on how competitive your sector is. In highly competitive industries like finance and digital marketing, you can expect to pay more for Google AdWords management.

3. Budget for Ad Spending

Certain agencies charge a percentage of your advertising budget for campaign management. Therefore, if, for example, your monthly budget for advertising expenditure is £5000 and they charge 10% of that amount, you will pay $500 + VAT for the monthly management.

4. Geographical Position

One major consideration in PPC agency pricing is location. Pricing from agencies situated in expensive areas or cities, such as London, may reflect increased administrative costs, including wages. Additionally, agencies in less expensive areas could provide more affordable rates.

5. Agency Know-How and Background

Fees from reputed PPC providers are significantly greater than those from less reputable ones.  They will charge premium prices because of their experience and capacity to produce the best results, and they will have a track record of excellent outcomes.

6. Service-level

PPC companies help you promote Google AdWords more successfully by providing different service tiers. Basic campaign setup, Google Ads management, campaign optimization, audits and training, and more are all included in these services.

7. Tailoring and Approach

The degree of customization and strategy you’ll need for your campaigns will also affect PPC agency costs. In PPC advertising, a one-size-fits-all strategy rarely works because every organization is unique.

8. Openness and Documentation

You should think about using a PPC firm if they are open and honest about their costs and rates. By doing this, you can make sure that there are no unforeseen fees while the job is being done. Additionally, they ought to provide you with regular reports and performance analysis so you may evaluate the worth of their Google AdWords services.

How Much Does PPC Cost by Business Size?

The amount that PPC costs can vary greatly depending on the size of your company. Let’s dissect it:

Small Companies

• PPC advertising provides a scalable and adaptable advertising platform for small enterprises. Small firms should budget between $500 and $5,000 a month on PPC advertising, on average.
• Small firms can compete well in their area without going over budget if they concentrate on specific keywords and have a limited budget.

Businesses of a Medium Size

• Medium-sized companies frequently spend between $5,000 and $25,000 a month on PPC advertising, which is a larger budget.
• With this extra cash, a wider internet presence, more sophisticated ad campaigns, and targeted keyword research are all possible, drawing in a bigger audience.

Big Businesses:

• PPC can be a considerable monthly investment for large organizations with huge advertising budgets; it can range from $25,000 to several hundred thousand dollars.
• Aggressive advertising, wide keyword coverage, and ongoing optimization are made possible by this amount of spending, which helps businesses dominate search engine results.

Comparing the Cost of PPC Management by Ad Network

Similar to traditional advertising, PPC ad placement on various platforms will result in varying costs. Moreover, it is essential to compare the estimated costs for PPC management depending on a few well-known ad networks that you may use.

How Much Does Google Ads PPC Management Cost?

Among the most well-known PPC ad networks is Google Ads. Use Google adverts if you want your adverts to show up on the Google search engine results page.

Google Search Network and Google Display Network are the two networks that make up Google Ads.

While Google Display Network offers advertisements that show up on other Google properties like YouTube and Gmail, Google Search Network concentrates on ads that show up in search results.

You place bids on the keywords you want to use to display your advertisements when using Google advertisements. You have the option to specify the maximum amount you wish to pay each time a user clicks on your advertisement.

The real cost of each ad will vary greatly depending on your industry and bidding strategy, even though Google Search Network is generally more expensive than Google Display Network on a CPC basis. Due to differences in service costs and levels of competition, a salon may receive a lower CPC ($15) on Google Ads than a legal firm ($65 on average).

What is the Price of Microsoft Advertising PPC Management?

You may make PPC advertisements using Microsoft Advertising that show up on Bing, Yahoo!, and

For Microsoft Advertising PPC ads, the average cost per click is about $1.54.

Similar to Google adverts, Microsoft Advertising displays your adverts at the top and bottom of search results. With over 80% of businesses concentrating all of their PPC efforts on Google Ads, the Microsoft ad platform can occasionally be a little less competitive than Google Ads.

In a highly competitive market like SaaS software, smaller companies facing off against larger names may have greater success in Microsoft Advertising’s less cutthroat ad network.

What are the Options for PPC Management?

The key to success with Pay-Per-Click (PPC) advertising is effective campaign management. There are a variety of PPC management alternatives available to meet your needs, regardless of whether you operate a little business or work for a huge corporation.

Let’s examine the key differences between each method to determine what route is best for your company.

Internal PPC Administration

Bringing on an in-house PPC manager entails having them work directly for the business, typically for a salary.

The largest expense associated with internal PPC management is usually related to personnel retention.

An individual can be employed for a range of marketing responsibilities or exclusively for PPC management, depending on the demands.

While choosing an internal position, take into account various elements like time.

Given that they will be handling other marketing responsibilities, how much time can/should be devoted to PPC? What effect will this have on the quality or output of the remaining tasks?

PPC Supervisory Firm

Selecting a committed PPC management company is a difficult task. Depending on their preferred models, an agency’s fees will differ significantly when you hire them.

Some agencies have accounts with PPC firms, while others work directly with the PPC firm. The pricing model for PPC management can also vary, with some agencies charging a percentage of ad spend and others charging based on a monthly retainer. Your PPC firm will likely handle most, if not all, of your PPC advertising, so it’s also important to have a primary point of contact within the company to ensure communication is understood and relayed correctly.

Wrapping Up

There is as much practical execution as strategic thinking involved in PPC management, and a company is hard-pressed to succeed in the absence of one or the other. You certainly need PPC management for the former, not to mention the latter.

Part of your success is to keep in mind that PPC management is the cornerstone of any campaign, short- and long-term, because from initial setup to ongoing campaign optimization, the trick is in the details – and those details always need attention.

Ultimately, choosing the right PPC management partner takes time and effort, but it’s an investment in the growth of your business to which we all can at least relate and which, with nothing to lose and everything to gain, pays out major dividends in the end.

This exhaustive PPC management toolkit will be the roadmap to ensure you’re standing up to the competition, bringing new customers into the fold, and ensuring your business’ life cycle has this campaign, if not the next, and your digital success is at its peak. Furthermore, you’ve done your best with your PPC advertising. For PPC Management services, connect with Website Pandas’ team for a quick consultation.