85% of PPC firms charge between $50-$200 per hour. 50.97% have a retainer minimum between $1,000-$3,000 per month.
PPC pricing is more straightforward than SEO pricing because it is more concrete and less complicated than SEO pricing.
PPC pricing is most often built as a base management fee based on the number of channels managed.
Many times, pricing models for PPC services include a percentage of ad spend above a certain budget level.
Let’s make this concrete. Say you are running PPC ads on both Google and Bing and spend $15,000 per month.
“The average salary for a PPC Manager is $72,844 per year in the United States” according to Indeed.
On average, that is $6,070 per month before taxes, benefits, and more.
To hire a digital agency, you will likely pay:
This totals out to $33,000 for an agency as compared to $72,844 on average for a full-time PPC manager.
One more important piece to keep in mind?
The amount you pay to someone to manage your PPC ads, whether an agency or in-house, will affect your overall ROI on the channel. It is important to understand ROI vs ROAS in this case.
On an annual spend of $180,000 ($15,000 per month), if you make $500,000 your ROAS is 2.7. That is a pretty average ROAS.
Your ROI though will be 2.34 with a $33,000 per year agency and 1.97 with a full-time PPC manager at $72,844 per year.
While ROI and ROAS are just directional numbers, what matters is if the channel provides break-even (at least) revenue.
From there, the channel should be profitable and then scaled.
It is important to know the difference between them and use them as a proxy for overall channel performance.
This page last updated on June 28, 2022 by John Doherty
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