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Understanding Google Ad Agency Costs in 2024: A Comprehensive Guide

Understanding Google Ad Agency Costs in 2024

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If you’re looking to run Google ad campaigns, one of the most important decisions you’ll need to make is choosing the right agency to manage your ads. With so many options out there, it can be overwhelming.

How much does an agency charge for Google Ads?

Agency fees can vary considerably based on the type of industry and the size of the agency you’re dealing with.  Let’s delve into the diverse pricing models prevalent today.

What are the different types of Google Ad Agency Pricing Models?

  1. Percentage of Ad Spend Model: This approach links the agency’s fee directly to monthly ad spend, fostering alignment between your interests and theirs. As you invest in ads, they earn, ensuring mutual benefit. For instance, with a £10,000 monthly ad budget and a 15% management fee, you’d allocate £1,500 monthly for their services. The downside of this model is that the costs can start the spiral out of control and the agency has an incentive to get you to spend more without necessarily generating more results.
  2. Flat Monthly Management Fee: Irrespective of your ad spend, this model entails a fixed monthly fee. Ideal for small to medium-sized businesses with modest budgets, fees typically range from £500 to £5000 per month. This is our preferred model as it keeps things simple.
  3. Project-Based Pricing: Here, the agency charges a one-time fee for specific projects like Google Ads setup or campaign optimization, offering clarity on costs for distinct tasks.
  4. Hourly Rate: Suited for businesses seeking task-specific assistance or those exploring PPC advertising, this model charges by the hour, varying from £35 to £150 based on agency expertise.

We use a hybrid pricing model of flat management with with a low percentage of ad spend which covers us if the ad budget is suddenly drastically increased.

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