How PPC Management Is Priced: Fees, Models and What to Ask

Two separate costs

When you hire a PPC agency you pay two things: your ad spend, which goes to Google, Microsoft or Meta, and the management fee, which pays for strategy, setup, optimisation and reporting. Keep them separate in your head and in your contract.

The four common pricing models

Percentage of ad spend

The agency charges a percentage of what you spend on ads each month, usually with a minimum fee.

• Pros: simple, scales with account size.
• Cons: the agency earns more when you spend more, even if results do not improve.

Flat monthly fee

A fixed fee agreed in advance, often based on the number of campaigns and channels.

• Pros: predictable, no incentive to raise spend.
• Cons: needs reviewing if the account grows a lot.

Hybrid

A base fee plus a smaller percentage of spend above a threshold.

• Pros: balances predictability and scale.
• Cons: slightly harder to compare between agencies.

Performance-based

Fees tied to leads, sales or revenue.

• Pros: aligns incentives on results.
• Cons: needs reliable tracking and a clear definition of a qualified lead, or disputes follow.

Model	Best for	Watch out for
Percentage of spend	Growing accounts with clear ROAS targets	Pressure to increase spend
Flat fee	Stable budgets and local businesses	Scope creep
Hybrid	Mid-size and multi-channel accounts	Complex invoices
Performance	Strong tracking and short sales cycles	Lead quality disputes

What is usually included, and what is often extra

Included in most management fees: campaign build and structure, keyword and bid management, ad copy testing, negative keywords and monthly reporting.

Often charged separately: account setup, landing page design, conversion tracking setup, creative production for display or social, and call tracking software.

Questions to ask before you sign

1. Will the ad account be created in my name, and will I keep it if we part ways?
2. How often will you review search terms and change the account?
3. Who will actually manage my account, and how experienced are they?
4. How do you define and track a lead or sale?
5. What is the notice period, and is there a long lock-in?
6. Can I see an example report?

Be wary of any agency that will not give you admin access to your own ad account. Your data and history should always belong to you.

How we handle it

We do not publish set prices, because the right scope depends on your channels, markets and goals. We quote a fixed monthly management fee after a free audit, you own every account, and there is no long lock-in. See our PPC management services or request a quote.

Related reading

• How much do Google Ads cost?
• Facebook ads agency
• White-label PPC for agencies

Frequently asked questions

Is ad spend included in PPC management fees?

Usually not. Ad spend is paid to the ad platform; the management fee is paid to the agency.

Should I choose a percentage or flat fee?

Flat fees suit stable budgets; percentage models suit fast-growing accounts. Ask which incentives each creates.

Do I own my Google Ads account with an agency?

You should. Insist that the account is created in your name with you as admin.