As a business owner, you know how critical it is to reach potential customers online. However, managing an effective Google Ads campaign requires significant time, expertise, and resources that you may not have in-house. Hiring an agency to handle your Google Ads management is a strategic investment that can yield substantial returns, but determining a fair price for their services is challenging. Rates vary widely based on factors like your industry, campaign complexity, and agency experience. While DIY Google Ads management is possible, agencies have the skills and tools to optimize your campaigns for maximum results. Understanding typical agency fees will help ensure you find a partner that fits your needs and budget. In this article, we explore the range of costs for Google Ads campaign management and what to expect at different price points. With the right agency relationship, the long-term gains of improved lead quality and revenue growth can far outweigh the initial investment.
Understanding Google Ads Pricing
As a business owner looking to leverage the power of Google Ads, you’ll want to understand how agencies charge for campaign management services. At LAGENCE.CH, our pricing model is based on the complexity and scale of your campaigns.
For small businesses with limited ad budgets and basic campaigns focused on a single product or service, you can expect to pay between $2,000 to $5,000 per month for management fees. This typically includes up to 3 campaigns, weekly optimization, and monthly performance reporting.
Mid-size businesses running 5-10 ad campaigns across multiple products, locations or brands may pay $5,000 to $10,000 per month. This covers more advanced account management, landing page creation, and strategic optimization to improve campaign effectiveness.
Enterprise organizations with extensive Google Ads presences can pay $10,000 per month or more. For large accounts with 15+ campaigns, an agency will provide a dedicated account manager, custom reporting, and recommendations for large-scale changes to maximize your ad spend.
The exact price depends on the scope of work, experience of the agency, and location. Additional fees may apply for services like copywriting, graphic design or marketing consulting. While Google Ads management does require an investment, the potential return on ad spend (ROAS) and growth for your business can make it well worth the cost.
Does this help provide an overview of what to expect when budgeting for Google Ads campaign management services? Let us know if you have any other questions. We’re happy to provide a customized estimate for managing your Google Ads campaigns.
Factors That Influence Google Ads Costs
As a business owner looking to hire an agency to manage your Google Ads campaigns, being aware of the factors that determine costs will help you budget properly and find a provider that suits your needs.
Pricing Models
Agencies typically charge either by the hour, project, or as a percentage of your ad spend. Hourly rates average $100 to $300 per hour depending on the agency and location. Project pricing is quoted upfront based on the scope of work. Percentage of spend, typically 10-20%, means the agency is directly incentivized to optimize your campaigns to achieve the best ROI.
Campaign Complexity
The more complex your campaigns in terms of targeting options, ad types, keywords, and integrations with other tools like Google Analytics, the higher the management fees. Location targeting, demographic segmentation, and remarketing campaigns also increase costs.
Additional Services
Fees are higher if the agency also handles creative services, copywriting, landing page design, or reporting/analytics. Ongoing optimization, testing, training, and consulting also impact rates. Some agencies charge extra for non-Google Ads services like social media marketing, SEO, and content creation.
Location and Experience
Agency rates vary significantly based on location and experience. You can expect to pay more for an established agency in a tech hub like San Francisco versus a smaller shop in a less costly area. More experienced agencies with a proven track record of success also command higher fees.
With an understanding of these key factors, you can determine a budget range, evaluate different agencies, and find a partner that matches your needs and resources. Carefully vetting service providers upfront will help ensure you get the most out of your investment in Google Ads management.
Average Cost of Google Ads Management
The cost to manage a Google Ads campaign can vary depending on the agency and scope of work. On average, small to mid-size businesses can expect to pay between $500 to $5,000 per month for professional Google Ads management.
Agency Fees
Google Ads agencies typically charge either a flat monthly fee or a percentage of the total ad spend. Flat fees are more common and range from $500 to $5,000 per month. The fee depends on the number of campaigns, ad groups, keywords, and overall complexity. Percentage fees are typically 10-20% of the total ad spend per month. For example, if your monthly ad budget is $10,000, you would pay $1,000 to $2,000 in agency fees.
Additional Services
The base fee often includes campaign setup, ongoing optimization, reporting, and account management. However, some agencies charge extra for additional services like:
- Landing page design and development
- Conversion tracking setup
- Extensive keyword research
- Competitor analysis
- Paid search consulting
The rates for these supplemental services range from $100 to $500 per hour depending on the agency and experience level.
Finding an Agency
The best way to find an agency and compare rates is to request proposals from different companies. Provide details about your business, target audience, marketing goals, and budget. Ask each agency to provide:
- Examples of their Google Ads work and client results
- Information about their team, experience, and expertise
- A detailed proposal outlining their recommended services, fees, and projected results
Compare the proposals to find an agency that fits your needs and budget. Negotiating the fees and contract terms is also common, so don’t hesitate to go back to the agency with a counteroffer. With the right agency managing your campaigns, the investment in Google Ads can yield a high ROI for your business.
Ways to Reduce Your Google Ads Spend
There are several ways to reduce your spend on Google Ads campaigns. As an agency, we aim to optimize your campaigns to get the most out of your budget.
Set a daily budget
Rather than spending your full monthly budget quickly, set a daily budget to pace your spend. This allows your ads to run throughout the month, giving more opportunity for impression and click volume. Start with a daily budget of 1/20 to 1/30 of your monthly budget. You can then adjust based on performance.
Adjust bids
With Google Ads automated bidding, your CPC bids are determined for you to optimize for your selected strategy like maximum clicks or conversions. However, you may find you’re spending more than you’d like. You can set bid adjustments in your campaigns to lower or raise bids. Start with a -20% to -30% adjustment and see how it impacts your impressions and clicks. Make incremental changes from there.
Pause underperforming ads
If some of your ads or keywords just aren’t gaining traction, pause them. Focus your budget on the ads and keywords that are driving the most valuable traffic and conversions. Check your campaign reports to see which ads have the highest CPC, lowest CTR and fewest conversions.
Add negative keywords
Adding negative keywords, terms you don’t want to show ads for, helps avoid irrelevant traffic that won’t convert. Look at your search terms report to see what low-performing queries you’re showing up for. Add those as exact match negatives. Broad match negatives can also help reduce unrelated impressions.
Schedule ad pauses
If there are certain days of the week or times of day that see lower conversion rates or higher costs, schedule ad pauses during those periods. For example, pause your ads overnight or on weekends if those times see higher costs and fewer conversions. Your budget will be spent more efficiently during peak hours.
Using a combination of these techniques, you can lower your Google Ads costs without sacrificing results. Our team will work with you to implement the optimal solutions for reducing your spend while still meeting your campaign goals.
Is Google Ads Management Worth the Investment?
Is Google Ads Management Worth the Investment?
As a business owner, determining if the cost of Google Ads campaign management is worthwhile depends on several factors. Professional agencies that specialize in Google Ads, like LAGENCE.CH, can help maximize your return on investment (ROI) and achieve your key performance indicators (KPIs).
Google Ads, previously known as Google AdWords, is Google’s advertising platform. Businesses can promote their website, products, and services by bidding on keywords relevant to their industry. When people search for those keywords, your ads may appear at the top of the search results page.
Managing Google Ads campaigns requires time, expertise, and continuous optimization to be effective. Agencies have experienced account managers, data analysts, and strategists solely focused on Google Ads. They can audit your existing campaigns, restructure ineffective campaigns, perform A/B keyword testing, adjust bids, and make improvements to increase quality scores, click-through rates (CTRs), and conversions.
The investment in an agency may seem high at first but can be well worth the cost. Their experience and best practices allow them to set up and optimize high-performing campaigns that drive measurable ROI. Improved campaign performance, increased traffic, higher conversion rates, and a boost in sales can all significantly impact your bottom line, offsetting management fees.
For small businesses with limited resources, a Google Ads agency may not make financial sense. However, for mid-size and enterprise companies looking to scale their online presence, the expertise of a professional agency can be invaluable. They have the resources and knowledge to maximize your Google Ads investment and achieve your business goals.
Whether Google Ads management is worth the investment comes down to your business’s needs, resources, and goals. For many companies, the rewards of increased exposure, web traffic, and revenue outweigh the costs. But determining if agency management is right for your business is a decision that depends on your unique situation.
What are the downsides of self-managing Google Ads Campaigns?
Self-managing your Google Ads campaigns requires a major time commitment to set up and optimize effectively, which can lead to several downsides for business owners.
Lack of Experience
If you are not highly familiar with Google Ads and online advertising, self-managing campaigns may result in subpar performance. Creating targeted ads, choosing the right keywords, setting appropriate bids, and optimizing the account requires experience in order to drive the best results. Without expertise, campaigns can suffer from low click-through rates, high costs per conversion, and minimal return on ad spend.
Difficulty Scaling
As your business grows, managing larger Google Ads accounts and higher ad spends in-house becomes increasingly difficult. Scaling up campaigns requires ongoing optimization to maintain or improve performance, which demands substantial time and effort. Self-managing accounts may lead to missed opportunities for growth as you struggle to keep up with rising demands.
Opportunity Cost
The time required to properly manage Google Ads campaigns can take away from other important responsibilities. Business owners have to weigh the cost of self-managing campaigns versus focusing their efforts on key priorities like product development, customer service, and strategic planning. For some, the opportunity cost of self-managing ads is too high, making outsourcing to an agency the more practical choice.
While self-managing your Google Ads campaigns may seem appealing in order to save on costs, for most business owners the downsides outweigh the benefits. Lacking expertise, difficulty scaling accounts as your business grows, and the opportunity cost of time are significant factors to consider before taking on the responsibility yourself. For these reasons, many companies choose to partner with a Google Ads agency to handle their online advertising.
Conclusion
It’s clear that Google Ads campaign management requires significant expertise, time, and resources to execute effectively. While DIY options may seem appealing in the short term, they often lead to subpar results and wasted ad spend. Partnering with a reputable agency that specializes in Google Ads can help you achieve a high ROI, gain valuable insights, and scale your campaigns successfully over the long run.Though the initial investment may seem steep, the rewards of increased traffic, conversions, and sales will far outweigh the costs. For serious businesses looking to gain a competitive edge through online advertising, professional Google Ads campaign management is well worth the price.
Sources
How Much Does Google Ads Really Cost? 2024 CPC Analysis
https://www.semrush.com/blog/google-ads-cost/
How Much Do Google Ads Cost in 2024? (It’s Trickier Than You Think)
https://videnglobe.com/blog/how-much-do-google-ads-cost
How Much Does Google Ads Cost? Everything You Need to Know
https://www.linkedin.com/pulse/how-much-does-google-ads-cost-everything-you-need-know-network/
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