PPC Pricing: What Does It Cost In 2024?

PPC pricing typically costs between $100-10,000 per month in 2024.

This is influenced by a huge range of factors including advertising budget, management fees, company size, industry & geographical location.

We're going to dive into PPC pricing in some very specific detail in this article, taking into account all the average costs of PPC along with some specific examples of what various leading PPC agencies charge.

Here's a chart displaying the key statistics.

Now it's time to dive into the different pricing structures, and what you can expect to pay given your current situation and monthly PPC budget. 

What Does PPC Management Cost?

Let's address the burning question on everyone's mind—what's the price tag for PPC management? There are a few fee structures that PPC agencies use:

1. Fixed Monthly Fee: Ranges from $1,500 to $10,000, varies with campaign size and scope.
2. Percentage of Ad Spend: Typically falls between 10-30%, decreasing as ad spend increases.
3. Performance-Based Pricing: Payment based on leads or conversions generated.
4. Project-Based Pricing: One-time fees for specific projects, unaffected by ad spend.
5. Hourly Rate: Charges based on time spent, with averages around $100 to $150 per hour.

Real Life Examples - PPC Agency Pricing

We did our own manual research (accurate as of March 2024) to investigate the prices that leading PPC agencies advertise on their website for their cost of services.

WebFX

• Between $1200 - $5800 setup fee
• Then between 12-20% of monthly ad spend

WordStream

• 12-20% of monthly ad spend

SimpleTiger

• Starts at $3,000 per month
• Scales up based on % of ad spend

PPC.io 

• Fixed price of $2,000 per month for Google Ads (regardless of ad spend)
• Fixed price of $4,000 per month for all platforms + landing page design

Lyfe Marketing

• 10-16% of monthly ad spend
• Lower % as you scale ad spend up

Interactually 

• 15% of monthly ad spend (Enterprise)

Straight North

• $1,000 or 15% of your monthly media budget, whichever is greater.

Asset Digital

• 15-17% of monthly ad spend. 

White Label Agency Pricing

In addition, here's what some of the leading Google white label agencies charge. 

Keep in mind these agencies will typically be handling smaller budget accounts

AgencyElevation (White Label)

• $200-$500 per month 

Invisible PPC (White Label)

• $500-$700 per month 

PPC Ninja (White Label)

• $600-$1000 per month

If you're wondering what the preferred pricing model for agencies is, we've put together a chart below.

Factors Influencing Cost

There's a number of different factors that can influence the cost of PPC management.

Factors Influencing Costs:

1. Company Size: Larger companies tend to have higher PPC management costs due to more extensive campaigns, and generally higher demands for things like reporting, meetings, detailed attribution modeling, creative refreshes etc. Obviously this costs more for the agency serving them.
2. Industry Competition: More competitive industries see higher PPC costs just because the expertise level required to execute them well is significantly higher. 
3. Campaign Complexity: More intricate strategies entail higher fees - So for example if an agency is also doing landing page design, lead nurturing, SMS flows and more, they're going to charge more.
4. Geographical Location: Agency location can affect pricing. North America and Western Europe will charge more than other geographical locations. 

Additional Considerations:

1. Local vs. Global Campaigns: Costs differ based on the campaign's geographic target.
2. Landing Page Creation: May incur additional fees if handled by the agency.
3. Ad Creatives: Some agencies will be working across multiple PPC platforms (not just Google) and they'll have to generate ad creative for their client. This is much more expensive.
4. PPC Tools: Some enterprise clients will demand the best-in-class tools from their agency, which can become incredibly expensive.
5. Multiple Platforms: Different platforms have a whole new set of different demands in terms of ad creative, copywriting, optimization etc. Obviously if an agency is working across 10+ platforms for an Enterprise client, that's an incredibly demanding job to keep on top of! The agency should therefore be compensated accordingly.

PPC Agency Pricing by Location:

1. United States, Canada, Australia: $100 - $150 per hour.
2. United Kingdom: $150 - $199 per hour.
3. India, Philippines: Under $25 per hour.
4. Eastern Europe (e.g., Ukraine, Poland): $25 - $99 per hour.
5. Western Europe (excluding the UK), Mexico, Spain: Similar to Eastern Europe rates.

What Do Most People Spend on PPC Services?

WebFX ran a comprehensive survey on 350 participants, to ask them exactly what they spend on PPC agencies or PPC freelancers each month.

The results are shown below.

Monthly Spend on PPC Agency (Not including ad spend)

• Less than $100: 3.0%
• $100 – $500: 12.1%
• $501 – $1,000: 15.2%
• $1,001 – $3,000: 21.2%
• $3,001 – $5,000: 12.1%
• $5,001 – $8,000: 15.2%
• $8,001 – $11,000: 9.1%
• $11,001 – $15,000: 7.6%
• More than $15,000: 4.5%

Monthly Spend on PPC Freelancer(s) (Not including ad spend)

• Less than $100: 2.3%
• $100 – $500: 13.9%
• $501 – $1,000: 21.0%
• $1,001 – $3,000: 25.6%
• $3,001 – $5,000: 9.3%
• $5,001 – $8,000: 7.0%
• $8,001 – $11,000: 13.9%
• $11,001 – $15,000: 4.7%
• More than $15,000: 2.3%

Average PPC Advertising Budgets

Let's contrast that with monthly PPC advertising budgets. 

Monthly Advertising Budget based on 350+ survey participants:

• $0-$749: 10%
• $750-$2,499: 29%
• $2,500-$4,999: 20%
• $5,000-$9,999: 11%
• $10,000-$19,999: 12%
• $20,000-$49,999: 7%
• $50,000-$99,999: 5%
• More than $100,000: 4%
• Prefer not to say: 2%

👉 As you can see, businesses spend a significant amount on PPC advertising! 

Keep in mind that many people from the survey above will manage their own advertising spend in-house as well, rather than outsourcing to an agency.

Read more about the cost of Google Ads.

PPC Management Pricing Models

Let's get into the different pricing models for PPC now and weigh up the pros and cons for each. 

➡️ Percentage of ad spend pricing model

The percentage of ad spend model is a pricing structure where the agency or consultant's fee is directly tied to a client’s advertising budget.

✅ Pros

• Easy to scale: As your ad spend increases, the agency's fee increases proportionally, aligning the agency's incentives with your success.
• Simplicity: Easy to understand and calculate fees based on ad spend.
• Flexible: You can adjust your ad spend based on performance and budget.

❌ Cons

• Misalignment: An agency might prioritize increasing ad spend over optimizing for the client's best possible return on investment (ROI).
• Cost: Can become expensive as ad spend grows, without necessarily delivering a return on investment (ROI).

➡️ Hourly charge pricing model

In this model, PPC agencies charge based on the amount of time spent managing PPC campaigns.

✅ Pros

• Transparency: Clients can see how much time is spent on their campaigns, providing a clear view of where their money is going.
• Flexibility: Easy to scale up or down based on needs and budget constraints.
• Good ROI: Billable hours motivate agencies to regularly optimize and update campaigns to achieve the best possible results.

❌ Cons

• Unpredictability: Total cost can vary month to month based on the hours worked.
• Potential for inefficiency: Incentivizes longer working hours rather than efficiency or performance.

➡️ Flat monthly fee pricing model

With a flat-fee pricing model, an agency or consultant charges a set amount for managing a client's PPC campaigns over a specific period, typically monthly. 

This fee is agreed upon in advance and does not change based on the client's ad spend or the performance of the campaigns.

Some PPC professionals use a tiered approach to determine flat fees. For instance, a $5,000 PPC budget might incur a $1,000 monthly management fee. 

In contrast, a larger budget, say $30,000, could lead to a $3,000 monthly fee.

✅ Pros

• Predictability: Easy to budget for as costs remain consistent regardless of ad spend.
• Simplicity: Straightforward pricing structure with no variable costs.
• Alignment: The agency is incentivized to optimize for performance rather than increase ad spend.

❌ Cons

• Long term: This type of pricing model requires a long-term commitment
• Expensive to start: Most agencies will require a setup fee to get your campaigns up and running. 

➡️ Performance-based pricing model

The performance-based pricing model is where the agency or consultant's fees are directly tied to achieving specific performance goals or results from PPC campaigns. 

This model aligns the agency's compensation with the client's advertising objectives, such as generating leads and sales or achieving a certain return on ad spending (ROAS).

✅ Pros

• Alignment of interests: Directly aligns the agency's incentives with the client's goals, focusing on results.
• Motivation: Encourages the agency to continuously optimize and improve campaign performance.
• Risk reduction: Clients pay for results, reducing the risk of paying for underperforming campaigns.

❌ Cons

• Complexity: It can be challenging to define and agree on performance metrics, tracking, and attribution.
• Unpredictability: Costs can vary significantly based on performance, making budgeting difficult.
• Limitations: May incentivize short-term gains over long-term strategy and brand building.

➡️ Hybrid pricing model

The hybrid pricing model is a flexible approach that combines elements from different pricing models to create a customized solution, tailored to the specific needs of both the agency and the client. 

This model can integrate aspects of hourly rates, percentage of ad spend, flat fees, and performance-based pricing to address a PPC campaign’s unique objectives, budget considerations, and performance goals.

✅ Pros

• Flexibility: Can be customized to suit specific goals, budgets, and preferences.
• Balance: Offers a balance between predictable costs and performance incentives.

❌ Cons

•  Complexity: More complex to understand and manage, requiring clear agreements and understanding from both parties.

To Summarize Models

Each model caters to different needs. The percentage-of-spend model works well for businesses seeking scalability, while the fixed-rate model suits those seeking budget predictability. 

Hourly rates are good for targeted projects, and performance-based pricing aligns agency compensation with business outcomes. 

When choosing, consider your campaign complexity, budget flexibility, and desired level of involvement.

Expert Opinions on PPC Pricing

We wanted to get insights from agency owners and experts to get their opinion on how and why they price their PPC management fees a certain way.

👉 Here's some of the best insights on PPC pricing models from the experts:

1. From AgencyAnalytics:
   • Justin Hoffman, Founder and CEO of Web Solutions Firm: "Instead of pricing your services solely based on the number of hours you'll spend on a campaign or the amount you'll spend on advertising, consider the potential ROI your clients can achieve through your PPC services." 
2. From HigherVisibility:
   • Adam Heitzman, Managing Partner at HigherVisibility: "When choosing a PPC agency for business, prioritize those specializing in your industry." 
3. From DesignRush's Ultimate Guide on PPC Agency Pricing:
   • Samantha McCanless Dettmer, President at Steel Advertising: "Our pricing varies by client & media buy because it depends on their ad spend level. If the spend is lower, we charge a flat fee. If the spend is higher, we use a percentage of our commission." 
4. From AgencyAnalytics - How Much To Charge for PPC Management?:
   • Christopher Ryan, CEO at SIX Marketing: "We implemented an hourly charge model as it helps us serve our clients based on their needs and budget." 
5. Additional Individual Quotes:
   • Adam Huycke, Owner at Peritive Digital: “Clients want to be able to trust you with their money, make it easy for them to do so by eliminating fluff data points and focusing on what really moves the needle.” 
   • Gail Snow Moraski, Principal at Results Communications & Research: "For existing campaigns, your PPC manager may be called in to take over, in which case they'll start with a PPC audit." 

Community Opinions on PPC Pricing

What better place to get crowdsourced opinions on PPC pricing than Reddit?

Percentage of Ad Spend Model

Opinions on the % ad spend model...

1. Sea_Ad9833:
   • Pricing Model: 20% of the ad spend with a $1500 setup fee.
   • Context: Common rate observed by the user.
2. PPC_king23:
   • Model: 20% of ad spend with a setup fee of £200-500, and a minimum spend of £1000/month.
   • Experience: Prefers working with higher spend clients as they usually require less contact.
3. Sunshine_dmg:
   • Model: $2000 base + percentage of ad spend.
   • Strategy: Targets higher spend clients, leading to fewer, more profitable engagements.
4. Fifty7ven:
   • Opinion: Critiques the ad spend model, questioning why the incentive is not aligned with driving revenue instead.
5. Sea_Ad9833:
   1. Supports the 20% of ad spend model with a $1500 setup fee. This reflects a common approach among PPC specialists who align their earnings with the client's ad budget.
6. Lets_market1:
   1. Operates on a 20% ad spend model with a £200-500 setup fee and insists on a minimum spend of £1000/month. The user has found success scaling this model with the right clients, indicating a preference for clients with higher ad budgets.
7. Sunshine_dmg:
   1. Implements a model that includes a $2000 base fee plus a percentage of ad spend. This method focuses on eliminating low-budget clients and working with those who can afford more substantial investments in PPC, suggesting a belief in the scalability and profitability of the percentage model for both the specialist and the client.

😡 Counter-Arguments against % ad spend model:

1. fr3ezereddit:
   • Expresses concern over the model, especially if the client is operating on thin margins.
   • His opinion challenged the % model, questioning fairness and sustainability. 
   • Doesn't like that with increased ad spend comes a flat increase in PPC management costs, especially when the agency's income might disproportionately benefit them compared to the client's profit from increased ad spend.
2. Whopping_Coconut:
   • Reflects on their own pricing strategy (flat fee) acknowledging potential undercharging but also recognizes the challenge of convincing small businesses of the value of PPC. 
   • Suggests a more critical view of the percentage model.
3. Fifty7ven:
   • Critiques the model for not aligning agency incentives with client goals.
   • Points out that the focus on ad spend could lead to increased spending  and expansion without necessarily focusing on increased profitability.
   • There is a fundamental flaw in the model: it might encourage higher spending rather than greater efficiency. 
4. MarcoRod:
   • Prefers not to charge based on ad spend.
   • Says this approach does not account for other factors like campaign complexity and niche familiarity. 
   • Prefers to charge based on work complexity and expertise vs. just the client's advertising budget.

Flat Rate Model

User generated opinions from Reddit...

1. ivapelocal:
   • Rate: Charges $1500/month for up to $10k ad spend on Google Ads.
   • Context: Aligns with what most agencies are charging according to the user's observation.
2. MarcoRod:
   • Rate: Typically charges between $2k and $6k, focusing on factors beyond ad spend like complexity and niche familiarity.
   • Context: Prefers not to charge based on ad spend, especially for higher budgets where it can become unfair.
3. mahesh_ppc:
   • Rate: $1000/month.
   • Context: Simple flat rate model regardless of ad spend.

Hourly Rate Model

Opinions from Reddit on the hourly rate model:

1. tsukihi3:
   • Rate: Suggests nothing under $80/hour in the US is worth it, depending on skills and experience.
   • Opinion: Rates should reflect living standards and professional experience. 
2. VaninSEM:
   • Suggestion: Extra work should cost more than the hourly rate of the user’s day job. They propose using salary as a base for hourly rate calculation.
   • Context: Ensures the rate makes the additional work worthwhile.
3. Ok_General_6940:
   • Rate: Suggests not going below $80-$85 an hour.
   • Advice: Includes a markup for taxes, expenses, and client communication time.
4. Street-Dependent-314:
   • Rate: Mentions a friend charging $56/hour for strategy and execution.
   • Context: Believes this is possibly on the lower side, although location and living expenses are important to consider.

Benefits of Hiring a PPC Agency

By now you should have a good idea of which pricing model best suits your company.But what services does that money buy you?

When you hire a PPC Agency, you're not just paying for ad management; it involves receiving a complete service package that aligns with your business objectives, effectively targets your audience, and spends your budget wisely. 

This partnership can transform your advertising efforts from basic campaigns to a strategic, results-driven approach.

Here's what you get by partnering with a professional agency:

🏆 Expert strategy development

Access seasoned marketing experts who understand how to craft and implement effective PPC marketing strategies tailored to your business goals and target audience.

✔️ Benefit: This means your campaigns are more likely to succeed because they are designed with industry best practices and innovative approaches in mind, ensuring your advertising dollars are spent wisely.

🏆 Continuous optimization

Agencies have access to sophisticated tools and software for keyword research, competitor analysis, ad testing, and performance tracking.

✔️Benefit: You benefit from high-level insights and technologies that might be too costly or complex to manage in-house, enhancing your campaigns' efficiency and effectiveness.

🏆 Advanced tools and technologies

Agencies have access to sophisticated tools and software for keyword research, competitor analysis, ad testing, and performance tracking.

✔️Benefit: You benefit from high-level insights and technologies that might be too costly or complex to manage in-house, enhancing your campaigns' efficiency and effectiveness.

🏆 Time and resource savings

Outsourcing your PPC management frees up internal resources and time that can be reallocated to other areas of your business.

✔️Benefit: This not only reduces the workload on your team but also allows you to focus on your core business operations, knowing your PPC campaigns are in expert hands.

🏆 Comprehensive reporting and analytics

The ability to easily scale your ad spend and campaigns up or down based on performance and business objectives.

✔️Benefit: An agency can dynamically adjust your strategy to capitalize on opportunities or address challenges, ensuring your advertising efforts align with your business growth.

🏆 Scalability

Professional management of your Google Ads account helps avoid common pitfalls and mistakes that can waste your budget.

✔️Benefit: Reducing the risk of errors or compliance issues protects your investment and can improve the overall performance of your campaigns.

🏆 Market insights

Agencies often manage accounts across various industries and have a wealth of knowledge about market trends and consumer behavior.

✔️ Benefit: You gain insights to inform your PPC campaigns and your broader marketing strategy and business decisions.

🏆 Risk mitigation

Professional management of your Google Ads account helps avoid common pitfalls and mistakes that can waste your budget.

✔️Benefit: Reducing the risk of errors or compliance issues protects your investment and can improve the overall performance of your campaigns.

What Are the Hidden Costs of PPC Management?

After seeing the advantages of working with a PPC management agency, it's important to look at what might happen if you handle PPC campaigns yourself. 

Saving money by not paying agency fees might sound good, but managing your own PPC campaigns can bring its own challenges and lead to unforeseen extra costs. 

Here's a straightforward look at what taking on PPC management on your own could result in:

Learning curve costs

PPC platforms like Google Ads are complex and constantly evolving. 

Gaining the expertise required to manage campaigns effectively involves a significant investment in time and resources.

🙁 Impact: The time spent learning the ins and outs of PPC platforms could have been invested in other areas of your business. Furthermore, you must stay up-to-date with the latest PPC developments, which results in continuous learning costs.

Costs of mistakes

Professional PPC management often requires additional software tools for keyword research, ad testing, performance tracking, and competitive analysis.

🙁 Impact: While some of these tools offer free versions, the most comprehensive features usually come with a price tag. Investing in these tools can be costly for businesses, especially when you're also investing time in learning and using them effectively.

Cost of Software

Professional PPC management often requires additional software tools for keyword research, ad testing, performance tracking, and competitive analysis.

🙁 Impact: While some of these tools offer free versions, the most comprehensive features usually come with a price tag. Investing in these tools can be costly for businesses, especially when you're also investing time in learning and using them effectively.