PPC management includes several components, like level of service, tools used, and ad spends, that influence the overall price. In addition, the number of ad campaigns, keyword competition, the ad platform, the quality of your ads, the agency you choose, and other factors determine its pricing. In 2023, the average cost of PPC ranges from $300 to $100+ million per month.
Learn about the ins and outs of PPC management in relation to its pricing in this comprehensive guide.
Average PPC Pricing Costs
- Cost-per-click: $2.59 per click
- Cost per mille: $3.12 per 1,000 impressions
- Service: $350 to $5,000 per month
- Tools: $15 to $800 per month
- Ad spend: $300 to $100+ million per month
Factors Determining PPC Pricing
- Level of the consultant’s expertise
- Keyword competition
- Number of ad campaigns
- Types of ad campaigns
- Number of ad platforms
- Quality of ads
PPC Management Services
- Ad Copywriting
- Ad and Landing Page Design
- Bid Management
- Strategy Creation
- Campaign Planning
- Tracking and Reporting
- PPC Competitor Analysis
- Percentage of ad spend: pricing is based on a percentage of your total ad spend
- Management fee with percentage ad spend: flat monthly fee and a set percentage of ad spend
- Flat fee: fixed monthly fee
- Performance-based: based on specific results
At Clicta Digital, we know there’s only one way to achieve significant website traffic fast — PPC advertising. You can leapfrog over your competition through pay-per-click services, ranking number 1 for competitive keywords. However, given the power of PPC advertising, such services don’t always come cheap.
In this guide, we’ll explore the different factors determining PPC pricing. We’ll answer how much managing your PPC costs and how the PPC price you pay affects the quality of service you receive. We’ve compiled all our knowledge on this subject to guide your future decisions.
What is Pay-Per-Click (PPC) Management?
PPC is a type of online advertising in which an advertiser pays a fee each time a user clicks on one of their ads. PPC management is the process of managing a PPC campaign, which involves a range of activities such as keyword research, ad creation, audience targeting, and bid setting. There are different experts for each aspect of PPC.
PPC includes a wide range of ad formats, such as display, shopping, video, and search ads. Each ad format serves a unique purpose and requires different strategies to succeed. For example, search ads appear on search engine results pages and are triggered by keywords, while display ads are visual banner ads on websites within the Google Display Network.
Effective PPC management requires expertise and experience, which is why many businesses turn to a PPC agency to manage their campaigns. Such an agency has a team of PPC specialists trained to deliver effective PPC campaigns, including competitor analysis, campaign optimization, and ad copywriting. They can help businesses save time and resources while driving high-quality results.
Why is PPC Important?
PPC is important for businesses because it can:
- Increase brand awareness
- Generate leads more effectively than organic search results
- Produce quick results
- Track and analyze results for data-driven decisions
- Provide a positive ROI
- Be cost-effective and accessible to small and medium-sized businesses.
PPC has become an essential part of digital marketing strategies for businesses of all sizes. According to recent statistics, PPC ads can increase brand awareness by up to 80% and generate leads 50% more effectively than organic search results. It’s because PPC services allow businesses to reach thousands of users instantly through their bids, targeting specific keywords or audiences.
Moreover, PPC campaigns can produce quick results. Unlike organic search results, which can take months to achieve higher rankings, PPC ads can start generating traffic and leads within a day or two. This quick result makes it an effective way to generate revenue for new or established businesses.
Another important reason businesses cannot ignore PPC is its ability to track and analyze results. With PPC management, companies can track how many people clicked on their ads, what keywords are getting the most clicks, which ads generate leads and conversions, and how much it costs for each click. This data helps businesses to make data-driven decisions and adjust their strategy to achieve better results.
Google claims that, on average, businesses using Google Ads see a return on investment (ROI) of $2 for every $1 spent. It means that PPC can be an incredibly profitable marketing tool for businesses of all sizes. The cost-effectiveness of PPC pricing packages also makes them accessible to small and medium-sized companies that might not have the budget for traditional advertising methods.
How Much Does PPC Cost?
Now that we understand what PPC management is and why it is important, the question arises – how much does it cost? Well, the answer to that is not straightforward, as its cost varies based on several factors.
To give you an idea of the average cost of PPC management in 2023, let’s take a look at the different types of PPC costs:
Cost Per Click (CPC)
CPC is the amount you pay for every click on your ad. The average CPC for Google Ads in 2023 is around $2.59 per click. However, the CPC can range from as low as $0.10 to as high as $50 or more, depending on the competition in the industry.
Cost Per Mille (CPM)
CPM is the cost per thousand impressions. The average CPM in 2023 is around $3.12 per 1,000 impressions. This cost can vary depending on the target audience, ad type, and platform.
Remarketing is a technique used to target people who have previously visited your website. The average cost per click for remarketing in 2023 is between $0.66 to $1.23.
PPC Management Services
PPC agencies provide these services to help businesses manage their PPC campaigns. The average cost ranges from $350 to $5,000 per month or 12 to 30% of ad spend per month.
PPC Management Tools
These are software programs that help businesses manage their PPC campaigns. The cost can range from $15 to $800 per month.
Ad spend is the amount spent on PPC ads by a business in a month. The cost of PPC ad spend can range from $300 to $100+ million per month, depending on the business size and industry.
How Much Does PPC Cost by Business Size?
As mentioned earlier, the cost of PPC management services can vary significantly depending on various factors. One significant determinant of the price is the size of the business. The larger the company, the higher the costs.
As a proportion of a business, approximately 7% to 10% of revenue goes into marketing. Therefore, companies with higher revenues typically have more budget allocated for marketing, including PPC advertising.
Below are the average PPC management costs by business size:
- Startup: $300 to $1,000 per month
- Small business: $1,000 to $10,000+ per month
- Medium-sized business: $10,000 to $500,000+ per month
- Enterprise: $500,000 to $100,000,000+ per month
It’s important to note that these are just average costs of PPC management pricing, and businesses should expect them to vary based on their specific needs, goals, and ad spend. It’s also important to remember that PPC advertising is a long-term investment. Therefore, businesses must prepare to allocate a significant portion of their marketing budget to it if they want to see significant results.
What Factors Determine PPC Pricing?
The pricing for PPC is determined by several factors, each of which can significantly impact the overall cost of your PPC campaign. Understanding these factors can help you better manage your budget and ensure you get the best possible return on investment (ROI) for your advertising spend.
Level of Expertise
One of the most critical factors determining PPC cost is the level of expertise required for the campaign. The more complex the campaign, the more experienced the PPC specialist you’ll need to hire and the more you’ll need to pay for their services. For instance, those targeting multiple platforms or international markets will require more expertise and will likely cost more than a simple campaign focused on one platform or market.
Another factor that determines PPC pricing is the level of competition for the keywords you’re targeting. Highly competitive keywords will require more resources, time, and money to rank well. It’s because you’ll need to bid more for these keywords to out-compete other advertisers, and you’ll need to put more effort into creating compelling ad copy that stands out from the competition.
Number of Ad Campaigns
The number of ad campaigns you want to run is another factor that affects PPC pricing. The more campaigns you want to run simultaneously, the more time and resources your PPC specialist will need to allocate to your account. This means you’ll likely pay more for their services.
Types of Ad Campaigns
The types of ad campaigns you want to run also affect PPC pricing. For example, running a display ad campaign will require varied expertise and resources than running a search ad campaign. Similarly, a remarketing campaign may require different tactics and strategies than a lead generation campaign. The more complex the campaign, the more you’ll pay for it.
Number of Platforms
The number of platforms you want to advertise on is also a factor that determines PPC pricing. Running a campaign on multiple platforms like Google, Facebook, and LinkedIn will require more expertise and resources than running a campaign on a single platform. It will result in higher costs.
Quality of Ads
Finally, the quality of your ads will also impact pricing. The higher the quality of your ads, the more likely they will be clicked, resulting in higher conversion rates and better ROI. High-quality ads typically require more time and resources to create and test, which can increase the cost of your campaign.
PPC Pricing Models
When it comes to PPC advertising, most PPC agencies have a variety of pricing models to choose from. However, choosing the right pricing model that will maximize your ad spend and provide the most ROI is essential. Below are some of the most popular pricing models for PPC:
Percentage of Ad Spend
This model is the most common type of pricing model used by PPC management services. The pricing is based on a percentage of your ad spend, usually between 10% and 20%. For example, if your monthly ad spend is $10,000, and your agency charges 15%, then your management fee would be $1,500.
- Simple and easy to understand
- The pricing scales as your ad spend increases
- The more you spend, the more you pay
- Agencies may not have an incentive to reduce ad spend because they earn more with higher ad spend
Management Fee with Percentage of Ad Spend
In this PPC management pricing model, the agency charges a flat monthly management fee plus a percentage of your ad spend. For example, if the flat monthly payment is $1,000, the rate of ad spend is 10%, and your monthly ad spend is $10,000, then your management fee would be $2,000.
- Provides more incentive for agencies to reduce ad spend
- A flat fee provides a predictable monthly cost
- Can be more expensive than a percentage of the ad spend pricing model
- The flat fee is often high
In this PPC pricing model, the agency charges a fixed monthly fee, regardless of your ad spend. This pricing model is most suitable for businesses with consistent ad spend or those with a smaller budget.
- Predictable monthly cost
- Suitable for businesses with a smaller budget
- Agencies may have less incentive to optimize campaigns
- It may not be scalable for larger businesses with higher ad spend
This pricing model is based on the agency’s results for your business. This model may include a bonus if the agency achieves specific performance metrics such as a particular conversion rate or CTR.
- Provides incentive for the agency to deliver results
- Reduces risk for businesses
- It can be expensive if the agency achieves good results
- It can be challenging to determine the right metrics for bonuses
- It can be challenging to determine the right metrics for bonuses
Choosing the right PPC pricing model is crucial for the success of your PPC campaign. First, you must evaluate the pricing models’ pros and cons and determine which is best suited for your business. Your pricing model should provide the most value for your ad spend and help you achieve your business goals.
What do PPC Management Services Include?
When you hire an agency to manage your campaigns, you can expect a comprehensive service that includes a wide range of tasks designed to optimize your ad spend and maximize your return on investment (ROI). Here are some of the most common services included in their pricing packages:
- PPC Competitor Analysis: A good agency will thoroughly analyze your competitors to help you understand their strengths and weaknesses. They can use this information to create a more effective ad campaign and target your ideal audience.
- Ad Copywriting: PPC ads must be compelling and attention-grabbing to entice people to click through to your website. A skilled PPC agency will craft an ad copy that is both informative and persuasive to attract potential customers.
- Ad and Landing Page Design: The design of your ads and landing pages can significantly impact their success. The agency will help you create visually appealing ads and landing pages optimized for conversions.
- Bid Management: The cost of PPC ads can vary significantly depending on the competitiveness of your industry and the keywords you are targeting. A good PPC agency will help you manage your bids to ensure you get the best ad spend value.
- Strategy Creation: A well-planned PPC strategy is essential for success. They will help you develop a comprehensive strategy that includes ad targeting, bidding, and other key elements.
- Campaign Planning: Once your strategy is in place, your agency will help you plan your campaigns and set up your ad groups, keywords, and targeting.
- PPC Management Software: A good agency will have access to the latest software and tools to optimize your ad campaigns.
- Tracking and Reporting: PPC campaigns need to be continually monitored and adjusted to maximize ROI. Your agency will provide regular reports that show your campaigns’ performance and identify improvement areas.
Hiring a professional PPC agency can free up your time and allow you to focus on other aspects of your business while a team of experts manages your ad campaigns. Additionally, they will have the knowledge and experience to maximize your ad spend, increase conversions, and generate more revenue for your business.
PPC Management at Clicta Digital
At Clicta Digital, we are a professional and experienced digital marketing agency that provides our clients with a range of PPC services. We can help your business manage its PPC campaigns, drive traffic to your website, increase leads, and boost sales.
Businesses must decide which option makes the most sense for their budget, goals, and business model. Additionally, it’s crucial to select a reputable and experienced agency that can provide excellent PPC management services, including competitor analysis, ad copywriting, ad and landing page design, bid management, strategy creation, campaign planning, tracking, and reporting.
If you’re interested in learning more about our services, we invite you to schedule a consultation with us today. We look forward to working with you and helping you achieve your business goals.