PPC Advertising Cost: What Comprises the Cost of Pay-per-Click Advertising?

PPC Advertising Cost: What Comprises the Cost of Pay-per-Click Advertising?
Article by DesignRush DesignRush
Last Updated: November 25, 2022

The average pay-per-click or PPC advertising cost depends on several factors, like management, preferred network and company size.

Your business can make a $2 profit for every $1 spent on Google, which is the leading search engine with an 83% market share.

The cost for pay-per-click advertising is one of the challenging questions when businesses outsource marketing services to professional firms. Budget allocation is also a consideration.

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Pay-per-Click Advertising Pricing Models

While Google is the most widely used pay-per-click platform, PPC advertising firms typically combines varied marketing activities besides Google Ads. And their pricing models differ.

These are the most common payment schemes to help you cover pay-per-click advertising costs more conveniently:

Percentage of Ad Spend Pricing

In this pricing model, you will be charged a pre-determined fee according to your spending. It is usually a base price, a minimum amount for your agency’s services.

This is most suitable for medium to large-sized companies with a bigger budget allocated to PPC advertising costs.

Management Fee + a Percentage of Ad Spends

In this pricing scheme, there will be a management fee on top of the baseline price or percentage of ad spends.

The management fees include the overhead PPC campaign costs your agency is running for your brand. The overhead can cover trials for various content and A/B testing for pay-per-click initiatives.

This pricing scheme provides you with more authority over your PPC platform accounts and more freedom to experiment.

Flat Rate

A flat rate is a straightforward calculation of a fixed fee for ad spent budget plus the advertising management fee. This is most fitting for smaller brands and startups for limited expenses.

Unlike the former entries, this does not have much room for experimentation. Also, the payment method for the cost for pay-per-click advertising is better for more static marketing.

Performance-Based

Performance-based payment methods put a price tag on specific actions taken by site visitors. These actions can be any of the following:

  • Inbound calls
  • Email inquiries
  • Demo signups
  • Form submissions
  • Items sold
  • Services rendered

PPC firms that utilize this pricing model take a percentage or commissions from closed deals’ revenues. This is prevalent in eCommerce or referral-based business ventures.

If you decide to employ PPC management and reporting, you need to work with an agency that specializes in these areas of pay-per-click advertising. The PPC advertising cost will then depend on how much funds you allocate on it per month.

Budget for PPC Management

The PPC advertising cost for lead generation and successful orders depends on the amount you are willing to spend. This will determine the following:

  • Your budget
  • Choice of advertising company
  • Required expenditure

Advertising agencies will be willing to take care of accounts in the long term if you use pricing models that pay by commission from ad campaign management expenses.

They will narrow down the most effective ads with the highest return on investment (ROI). This is beneficial because you will have more space for experimenting with your pay-per-click initiatives. But note that this may apply better to larger enterprises.

For smaller businesses and startups, a fixed monthly cost for pay-per-click advertising will suffice. While it is not as permissive for A/B testing and other creative marketing programs, it will still take visitors to your landing pages. And consumer flow will become more consistent with time and the right PPC management campaign.

If you are running an eCommerce business, you should invest in the most popular products. Concentrate on ads with higher volume and select PPC management services specializing in your industry.

In addition, consider spending on a commission-based project if your brand depends on lead generation and referrals. This way, you will pay only for performance and expend when there is a direct investment in the product or service offers.

Best PPC Agencies to Hire

1. Brandefy

  • Location: 2633 Lincoln Blvd #406, Santa Monica, California 90405, United States
  • Average Hourly Rate: $100/hr
  • Expertise: Video Production and Video Marketing.

Meet Brandefy, an award-winning, full-service video production agency based in Los Angeles, CA.

First founded in 2011, Brandefy has an undeniable well of knowledge when it comes to all things video production and marketing. By creating attention-grabbing videos for both TV and website marketing, Bradefy takes a customer-focused approach to ensure that your needs are wholly met in terms of budget, requirements, and deadlines.

Brandefy prides itself on its ability to stay one step ahead of its competition by expertly integrating proven strategies and responsible practices into its video production process. Showcasing itself as a one-stop-shop for all your video production needs, Bradefy offers services such as:

TV Production: Commercials, DRTV, documercials, and infomercials;

Web Videos: Corporate videos, explainer videos, animated logos, and sizzle reels;

Distribution: Media buying, internet distribution, video search engine, and optimization (VSEO).

2. QCKBOT

  • Location: 4102 Jetty Terrace Cir, Missouri City, Texas 77459, United States
  • Average Hourly Rate: $200/hr
  • Expertise: 360° Digital Services, Web Design, Digital Marketing for Startups, Inbound Marketing, SEO, Small Business SEO, SEO Consultants, Enterprise SEO, eCommerce SEO, Local SEO, Artificial Intelligence, and Market Research.

QCKBOT is a Texas-based agency that was founded in 2021 and offers a wide range of digital services.

QCKBOT stands out due to its 360° Digital Services – from web design to inbound marketing and SEO for small businesses, enterprises, and eCommerce stores. QCKBOT also provides AI-driven market research services so clients can get the insights they need to make informed decisions.

QCKBOT helps businesses create a strong online presence with a focus on search engine optimization (SEO) and digital marketing for startups. By offering a comprehensive package of services, QCKBOT ensures its clients have all they need to succeed in the digital world. With expertise spanning multiple disciplines, QCKBOT is the perfect choice for businesses looking to reach their full potential. QCKBOT – connecting you with your customers!

Some of QCKBOT’s most notable clients include Ovy, RA, and Nashville Security.

3. WebInnovators

  • Location: Rajarhat, 2A, 6th Floor, Ecospace Business Park Premises, AA II, Kolkata, West Bengal 700156
  • Average Hourly Rate: Inquire.
  • Expertise: Web Development, Online Marketing, Sales Optimization.

WebInnovators, based in Kolkata, is your go-to digital agency for all of your Web Development, Online Marketing and Sales Optimization needs.

Its team of innovators is passionate about what they do and loves to find creative solutions to challenging problems. WebInnovators has been a leader in the industry since its founding, providing solutions that get results. They believe in the power of data-driven decision-making and are committed to helping you reach your goals quickly and effectively.

WebInnovators offers services such as Web Design & Development, SEO, Paid Advertising, Web Analytics, and more. The agency specializes in creating online experiences that are tailored to the needs of its clients and their customers.

Some of WebInnovators’ most notable clients include Gym Edge, Cinnamon Restaurant, and Medicare.

4. StandOut Design

  • Location: 4194 Fulton Dr., Canton, Ohio 44718, United States
  • Average Hourly Rate: $60/hr
  • Expertise: Digital Strategy, Food and Beverage Branding, Product Design, Graphic Design, Reputation Management, Web Design, Restaurant Website Design, Small Business Website Design, eCommerce Web Design, Digital Marketing, Small Business Digital Marketing, SEO, Social Media Marketing.

StandOut Design is a creative agency based in Ohio. Founded in 2015, StandOut Design has grown to become one of the top digital marketing and web design companies in the region.

StandOut Design specializes in Digital Strategy, Food and Beverage Branding, Product Design, Graphic Design, Reputation Management, Web Design, Restaurant Website Design, Small Business Website Design, eCommerce Web Design, Digital Marketing, Small Business Digital Marketing, SEO, and Social Media Marketing.

The StandOut Design team is dedicated to helping businesses make the most of their digital presence. Its experts understand what it takes to bring your brand to life in a powerful yet creative way that resonates with customers and helps you reach your goals.

Some of StandOut Design’s most notable clients include Gionino's Pizzeri, Selinksky Force, and Impact Landscaping.

5. Five Star Commerce

  • Location: 280 West Center Street, Orem, Utah 84057, United States
  • Average Hourly Rate: $80/hr
  • Expertise: eCommerce Development, Amazon Marketing, SEO, Amazon SEO, PPC, Amazon PPC.

Five Star Commerce is a Utah-based, full-service digital marketing agency that has been in the business of helping bands reach their goals since 2018. Five Star Commerce provides specialized eCommerce development, Amazon marketing, SEO, and PPC services to help brands grow online.

With its expert team of eCommerce specialists, brands can trust Five Star Commerce to develop and customize the perfect online store for their needs. Five Star Commerce’s Amazon Marketing services help brands increase visibility on Amazon, driving more traffic and sales.

Five Star Commerce is also well-versed in optimizing Amazon product pages and pushing them higher up in search engine rankings with its Amazon SEO offerings. Five Star Commerce also takes care of paid search campaigns for brands with its PPC services, allowing them to reach their target audiences quickly and efficiently.

Whether it’s eCommerce development, Amazon marketing, or SEO, Five Star Commerce has got you covered! Some of the agency’s most notable clients include Motorola, Brumate, BioMatrix, and FitTrack.

6. MarginBusiness

  • Location: A-5901-15 Flamingo Villas, Ajman City, 20550, United Arab Emirates
  • Average Hourly Rate: $100/hr
  • Expertise: Digital Marketing, Amazon Marketing, SEO Consultants, and Content Marketing.

MarginBusiness is a full-service Amazon Marketing agency based in the United Arab Emirates. Founded in 2014, MarginBusiness provides comprehensive services for businesses looking to make the most out of their Amazon product listing page.

From Digital Marketing and SEO Consultants to content marketing and much more, MarginBusiness is well-equipped to help businesses drive sales and reach new customers. MarginBusiness is passionate about helping its clients achieve their online sales goals and works hard to ensure that all of its projects are completed on time and to the highest standard.

With a team of experienced professionals, MarginBusiness has the skills and expertise necessary to help businesses increase their Amazon product ranking. Some of their clients include Budding Bear, Tropicana Oil, and Supplements YOU.

7. Sitruna - Amazon Experts

  • Location: 120 37 Cremer Street, London, E2 8HD, United Kingdom
  • Average Hourly Rate: $60/hr
  • Expertise: Amazon Marketing.

Introducing Sitruna, a London-based Amazon Marketing agency first founded in 2018 - here to help you reach a whopping 200 million Amazon customers and skyrocket your sales!

Sitruna’s team consists of Amazon marketing experts with decades of experience in eCommerce, PPC, Graphic Design, FBA, ex-Seller Support, and much more.

When you hire Sitruna, they don't just provide Amazon Marketing services - they assign a team of three experts in Brand Management, PPC, and Technical Support to ensure your brand grows on Amazon. Through careful keyword research, creative advertisement designs, and optimized product listings, Amazon marketing specialists are the key to unlocking their clients’ Amazon product ranking potential.

Sitruna understands that success on Amazon requires a combination of the right strategy and creative execution. That’s why, when you partner with them, they provide Amazon marketing solutions tailored to your business goals and budgets.

Some of Sitruna’s most notable clients include BBC Maestro, CoComelon, EcoEgg, Snuggy, and Mooncup.

8. Social Ktchn

  • Location: 1213 W. Morehead Street, Charlotte, North Carolina 28208, United States
  • Average Hourly Rate: $60/hr
  • Expertise: Advertising, Social Media Marketing, Facebook Marketing

Social Ktchn's team has a combined 15+ years of advertising and marketing experience, ranging from high-end fashion brands to global ad agencies.

Their blend of branding and creative experience and skill, combined with analytical approach and expert knowledge of Facebook Business Manager's tools, gives them a unique ability to deliver campaigns and experiences that drive revenue and boost businesses.

Tailored and hyper-targeted Facebook and Instagram ad campaign strategies produce huge ROAS, and their methodologies have been carefully designed and rigorously tested to ensure custom solutions and sky-rocketed growth.

Clients include Ironman, Pure Fiji, Blindster...

Takeaway on PPC Advertising Cost

The PPC advertising cost you shell out can deliver significant ROI. The cost for pay-per-click advertising will be worthwhile if you build your campaigns in a way that optimizes keyword relevance, web pages, and the ads themselves.

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