How Much Are Google Ads Management Fees?

Google Ads (AdWords) management pricing and fees can vary quite a bit between management companies.

Before we go over them, it is important you understand the difference between ad spend and management fees. Ad spend is what you will pay directly to Google. When people click on your ads you get charged by Google. That is different than management fees, which is what you pay a company to manage your account.

Here are some common pricing models Google Ads management companies will use.

Percentage of your ad spend

This is simple for agencies to use. They simply charge a percentage of what you spend in Google Ads. For example, let’s say you spend $5,000 a month. The management company you use charges 20%. You will pay them $1,000 in management fees.

This pricing structure usually has a sliding scale where the more you spend, the smaller the percentage you pay is. An example pricing structure might look like this:

Tier 1 – Spend between $500 and $1,999 and the percentage you pay is 20%

Tier 2 – Spend between $2,000 and $4,999 and the percentage you pay is 15%

Tier 3 – Spend between $5,000 and $9,999 and the percentage you pay is 10%

Jumpfly uses a pricing strategy like this. Read more about Jumpfly pricing

There is a downside to this. It does a poor job of factoring in the actual management. It’s purely price driven. Let’s go over an example.

Let’s say you start off the first couple of months spending $1,000 a month. You like the results so you decide to throw another $1,500 a month towards the budget. You are now spending $2,500 a month, which puts you in the next tier (reference tier examples above). Your management fee just went from $200 a month to $375.

Often times, the only thing the management company had to do was increase your daily ad spend. Just because you decided to spend more does not mean there is a ton of extra work the management company needs to do.

This is why this model does not always make sense for you; the client.

Hourly pricing

This is far less common with management agencies. You will find hourly rates are typical with freelancers.

Fixed rate management pricing

This is where companies give you a custom, fixed price based on your feedback and what you want to do with your Google Ads account. It is not simply based on your ad spend. Management companies will factor in your ad spend, but it is not the only factor.

Other considerations with this model can include your business type (lead gen vs eCommerce), the campaign types you want to run (Search, Display, Remarketing, Youtube, etc) and the number of campaigns.

This is the type of Google Ads management pricing we follow. Our average monthly management fees for clients tend to be in the $300 – $500 range. For white label ppc clients, this number is even lower.

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Setup costs

Some management agencies will have setup costs. If you don’t have a Google Ads account already, then you can expect to pay a one-time setup fee. This is common.

What if you already have a good Google Ads account running?

Some agencies will waive a setup fee if they think it is in good enough shape to work with. Many of the larger agencies will charge you a setup fee no matter what. Often times, this is there way of increasing the total management fee they charge you for the first two to three months. They require this setup fee for all new clients.

Our approach with existing accounts is simple. If we think what you have running is good enough to work with, then we waive any setup fees. If we think your campaigns are beyond repair, then we will quote you a setup fee.

Additional Google Ads management fees

I’ve seen a few companies advertise add-on fees. They present a basic monthly fee for Google search ads. Sometimes they limit the number of campaigns or keywords they will give you.

For example, they may give you a management pricing quote of $500 a month for up to 2 search campaigns and 100 keywords. If you want to add a remarketing campaign, then there is an extra fee. If you want to increase the number of keywords you want to target, then there is an extra fee.
If you want to add a display campaign, then there is an extra charge. If you want…. you get the idea!

Just make sure you understand whether or not the company you are in talks with has this type of Google Ads management pricing structure.

In my opinion, this is a very short-sided pricing structure. It starts off with the wrong mindset. It puts costs well above what is best for the client. Ideally, you want a Google ads partner who gives you a solid quote to manage the account and then does whatever it takes to improve it. If that means testing new campaign types and adding new keywords, then so be it.

This pricing structure puts more emphasis on trying to nickel and dime for additional work. The additional work should already be “baked” into the original quote.

Small business PPC management fees can range quite a bit. Hopefully that helps give you an idea of some of the different Google Ads management pricing models and fees.