PPC Management | Saving Time and Money

Have you been using PPC (Pay-per-Click) or want to know more about PPC agencies? If so, this article will show you what PPC management really is, what agencies charge and how Google ads and Microsoft Ads helped a business make 10X its revenue, here is how...

PPC Management

What is PPC Management?

PPC management is where a marketer or marketing agency manages a company’s PPC campaign(s), its strategy and budget. Pay-Per-Click management usually is used by businesses that have a large advertising campaign on Google Ads or Microsoft Ads, and can stem to social media advertising.

A PPC specialist (or agency) usually takes care of the following tasks:

  • Keyword research: Researching, competitor analysis and identifying the keywords that your target audience are searching for.

  • Target channels: Selecting which paid platform to use. These can include Google Ads, Microsoft Ads(formally known as Bing Ads), social media advertising, etc.

  • PPC monitoring: Measuring each Ad group, Ad copy and keyword for effectiveness, ensuring PPC campaigns are returning a positive ROI.

  • Competitor analysis: Researching the competition is vital, which keywords they’re targeting and the ad creative they’re using. This will show you what keywords are working and which have not been found.

  • Campaign optimization: Monitoring campaign(s) and optimizing based on top performing keywords and Ad copy. For example, if 20% of keywords bring in the majority of business, these keywords will then be the focal point of the budget expense.

  • Split testing: Constant A/B testing of new ads and landing pages. Using designated platform's algorithm to see which ad performs the best for your audience.

Not every business has the resources to hire an PPC manager. However, it may make more sense for your budget to hire an agency. If you are new to the advertising on search engines or social media, this route will save you heaps of time and money.

How Much Do PPC Agencies Charge?

PPC management agencies have different pricing models that range from complicated to very simple.

Here’s a overview of the four most common PPC pricing models:

Percentage of ad spend pricing

Under this pricing model, clients pay agencies a pre-determined percentage of their spend on the search engine campaign that the agency is managing.

This is normally good for companies with a larger or growing ad spend, given the percentage reduction that comes with a total budget increase. Be ready to have a certain budget for these types of agencies.

Percentage of ad spend is not very good for smaller companies with 100-200 monthly budgets. Minimum spends are often associated with this model, so if your budget isn’t large enough, you will be charged a large fee.

Management fee + percentage of ad spend pricing

Many large or older marketing agencies will charge a management fee to cover overheads related to the PPC ad campaigns they’re managing for clients. Almost identical to the first model above, these agencies will charge the percentage and a tailored fee for PPC management services. This fee varies, depending on how many campaigns you have.

This is good for customers who want full ownership of their accounts. When you’re paying a management fee in addition to percentage of spend, it’s harder for the agency to justify holding accounts as “proprietary.” 

Not so good for very low-cost accounts. Small businesses are best served with automated platforms or trying to connect with a digital marketing agency that handles low ad spend for a reasonable price.

Flat fee pricing

Some agencies will charge a simple flat, which calculates the costs related to managing the client’s PPC campaigns. Some businesses prefer the straightforward and simplistic approach of this model, due to their being no sneaky costs and having a definitive monthly bill.

This is most often a simplification of the management fee plus percentage model, here at DEGOM Marketing, we use the flat fee model for our clients to save them the headache. We know being a business owner entails many unexpected bills.

This model is good for campaigns that need to lower campaign expenses and want to maintain their goals. Additionally, clients who want fixed expenses each month.

Not so great for dynamic campaigns. Many businesses are seasonal and/or use specials to drive business. There could be an additional set up fee, or these businesses can be charged per campaign layout.

Performance-based pricing

The fourth PPC pricing model, and probably the most rare, is the “performance-based pricing model.” This model is commonly used when a marketing agency is very new or trying to gain business in a new way.

Under this model, most businesses are paying for lower-funnel actions –– think inbound calls, emails, form conversions, trial signups, demo requests, and the like. Some agencies also set up a commission rate with this model and collect a small percentage of revenue from closed sales. This is most commonly seen in e-commerce and affiliate business models.

This price model is good for businesses that are new and have a low monthly budget. You help both you and the agency out and it requires a very low risk.

Not so good for experienced and established businesses. Avoid these types of marketing agencies if you have a large budget. Many agencies using this model do not know how to manage a PPC campaign with a high spend.