How Much Should You Pay For PPC Management In 2021?

3 mn read

Whether you have a small business or a large one, marketing is always necessary and essential. When this marketing is in the form of Google Ads, we enter into the world of the Pay-Per-Click (or PPC) industry- and here, the adage: “As you sow, so shall you reap” holds much water. You have to pay a decent sum of money to get a profitable return. According to a Google report (2018), research shows that for every $1 spent on Google Ads, the businesses got an average revenue return of $2. This 2:1 ratio is not exactly highly profitable, and hence you need the intervention of PPC agencies for PPC services India who can help you get a decent return on investment on your PPC. 

Hiring professionals means you will have to pay for their services. Amidst all the business expenditures, paying another agency to manage your PPC services might seem like an extra burden, and the different rates in the market might confuse you. Therefore it is best to have some prior knowledge about how much you would like to pay for PPC management. 


Standard Pricing Models of PPC Agencies 

PPC management agencies use different PPC management pricing models depending on the purpose and want of the businesses or firms. Familiarizing yourself with the workings of these models will help you finalize the payment. Here are the 4 most commonly used models:

  • The Percentage of Spend Pricing Model

Many PPC management agencies widely use this method while offering PPC services India. Here, you will have to pay the agency a pre-determined percentage of the amount they will spend on ads the company tasked them with. With an increase in the workload, this percentage gradually decreases. This pricing model is a good choice for big companies and businesses that have a growing ad spend. The percentage reduction formula will ultimately bring down their total budget. Small companies that usually work on small and tight budgets won’t find this method profitable, as they will be stuck with hefty payments at the end of each term. 

  • The Percentage of Spend + Management Fee Pricing Model

Many established PPC management agencies charge an additional management fee along with the percentage of ad spend. The combined cost is generally higher than average and can be accessed by companies with higher profit margins. 

Owing to the additional management fees, these agencies do not hold the ultimate ownership of the accounts they handle. Thus clients who prefer keeping the account ownership with themselves can choose such pricing models. 

  • The Flat Fee Pricing Model

If you prefer straightforward business modes that bear no hidden costs and profits, this is perhaps the best option for you. In this pricing model, once you settle on the scope, profile, and other aspects of the work, the agency will calculate the costs and charge a flat fee that will not undergo any changes. 

If your ad campaigns are relatively static and you want fixed end-of-the-month expenses, you should opt for this. But if your company deals with dynamic or seasonal campaigns, this will not be a good choice. 

  • The Performance-Based Pricing Model

Generally used in e-commerce and referral-based businesses, the company pays the agency for every function they perform regarding the ads- starting from emails, calls, signups, form conversions, etc. If the agency can prove its influence in generating leads from closed sales, it will also receive a small revenue percentage from those sales. 

Present Day PPC Rates for PPC services India

The dynamics of the cost associated with the pricing models change every year, depending on demand and other factors. In 2021, the costs might look somewhat like this:

  • 15% – 30% of Ad Spend:

It is unlikely that any PPC management agency will ask for just 15% of the ad spend. They will start from 20% or above. If you opt for this model, ask and clarify every prospect of their service before signing the deal. 

  • 15% – 30% of Ad Spend + $500 – $5000/ Month Management Fee:

If the agency you choose asks for a monthly management fee along with a percentage of ad spend, it will range from $500 to $5000, depending on the nature and versatility of their service. 

Once you know the basics of the various PPC management agencies’ pricing models, it becomes easier to choose and decide on the payment while opting for PPC services India for your business. Do not make such vital decisions in haste instead, give proper time and thought to them! 

 

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