Google Ads agency costs

"Cost-per-click", often abbreviated as CPC, refers to the click price that an advertiser has to pay when a user clicks on their search engine advertisement in the course of a search query. The click price is a decisive measure, as it represents the direct cost of reaching a potential customer.

The CPC is influenced by various factors, including the quality of the advertising campaign, the relevance of the keyword used and the search volume of the keyword. Click prices can vary greatly due to these many factors. In most cases, click prices range from €0.40 to €4.00, with no upper limit.

A higher bid for a certain keyword can increase the probability that the advertising campaign will receive a better ad position, but also leads to higher click prices. It should be noted that the account holder does not usually determine the bid themselves, but that this is automatically allocated by Google based on the daily budget. It is crucial for advertisers to find a balance between the costs and the quality of the traffic generated. A well-optimized click price not only aims to keep costs low, but also to ensure that clicks come from users who are most likely to become new customers - wastage should be avoided. A successful CPC is not about achieving the lowest click price. Rather, it's about finding the best value for your advertising budget by getting relevant clicks that lead to conversions. Google Ads agency costs are made up of the click prices of your campaigns and the fixed costs of support.

The bottom line: Comprehensive expertise and sensitivity to the factors influencing the click price are required in order to adapt bidding strategies efficiently and cost-effectively.

The daily budget is the average amount that the advertiser is prepared to spend per day on a particular campaign. The daily budget is only a guideline. The actual expenditure can be higher or lower, depending on the bids of competitors and the respective search volume. This means that the daily budget can be exceeded or undercut by up to 20%. However, the monthly budget (daily budget x 30.4) is never exceeded.

Estimating the costs of Google Ads and setting an appropriate, target-oriented daily budget can be very difficult without the necessary expertise. A daily budget that is too low can result in your ad copy not being served as often as intended, causing you to miss out on potential clicks and conversions. In contrast, an excessive budget can lead to unnecessary spending, especially if the ads are not optimized. By adjusting the daily budget to the actual performance of the campaign, account holders can ensure they get the most out of their budget. If the daily budget is used up before the end of the day, the ads will no longer be shown - potentially missing out on important business opportunities. Minimum budgets are required for many campaigns in line with the auction principle. Google Ads agency costs include the monitoring and optimization of the daily budget. In this way, such failures can be avoided, expenditure controlled and sales increases achieved.

The correct handling of search engine advertising is very complex and requires experience, expertise and, above all, the desire and time to deal with the constantly changing conditions of the search engine and ad placement. From setting a realistic daily budget, defining a target-oriented bidding strategy and understanding the auction principle of the search engine through to ad placement and the best possible targeting - Google Ads agency costs must cover all of this.

The costs for a Google Ads agency are worthwhile because you can continue to devote yourself fully to your core business and your sales growth. Search engine advertising requires continuous optimization: We constantly monitor and refine campaigns to achieve the best results. If implemented and targeted correctly, the campaigns save more budget than you have to spend on support.

The amount of Google Ads agency costs depends, among other things, on the respective billing model. Here are the five most common ones:

Monthly flat rate

With this billing model, the advertising agency and client agree on a fixed flat rate that is paid monthly for the services provided. This amount remains constant regardless of the work involved or the results achieved. A fixed monthly flat rate offers planning security and clear budget targets.

Commissioning on the AdSpend

Here, the service provider's remuneration is calculated as a percentage of the advertising budget used. If the advertising budget increases or decreases, the Google Ads agency costs change accordingly.

Billing on an hourly rate basis

With the billing model on an hourly rate basis, every hour of work invested by the advertising agency is billed directly. This model offers flexibility as it reflects the actual workload, but can lead to variable costs that fluctuate from month to month.

Performance-based billing

With the performance-based billing model, Google Ads agency costs are based on specific results, such as leads generated, click numbers or sales. This billing model can strongly motivate the service provider, as higher performance leads to higher income or remuneration. For the client, the performance-based billing model can mean a lower financial risk if the desired results are not achieved.

Mixed billing

Mixed billing combines elements of the above billing models. For example, a fixed flat rate could be agreed, supplemented by a variable part based on the services provided or an hourly rate. Mixed billing attempts to combine the advantages of different billing models for Google Ads agency costs in order to set up a balanced remuneration model that is advantageous for both parties.

Commissioning on the AdSpend

Many providers demand a percentage share of your advertising budget. This increases the risk that agencies will only want to increase their advertising budget to increase their own sales. The focus of such providers is often not on the success and efficiency of their campaigns, but on maximizing their own profits and increasing sales by increasing Google Ads agency costs.

No access to the account

Some providers set up the account in their own name and thus have sole control once the account has been set up. This keeps the customer in a state of dependency. If there is a separation, the customer is left without access!

Long-term contracts

The longer the fixed term, the less flexible and therefore more risky your actions as an entrepreneur. Long-term contracts are often associated with very low Google Ads agency costs. Dubious agencies want to bind their existing and new customers to them by offering extremely favorable luring offers with long contract terms. This poses a high risk for the customer: if they are dissatisfied with the services, they cannot simply cancel them.

No detailed reporting

Comprehensive reports give customers an insight into the agency's work, earnings and expertise. Dubious providers provide no, incomplete or embellished reports that present them in a good light.

No personal contact person

If you do not know anyone personally, this is a bad sign. Impersonal, almost anonymous business relationships often indicate mass processing instead of creative and individual support and close agreements.

We tailor our services and therefore also the Google Ads agency costs precisely to the needs and requirements of each client. In practice, the scope of support varies from client to client depending on the effort involved. The setup is adapted accordingly. For example, we have clients who require anywhere from two hours to 40 hours of monthly support. A decisive factor for the scope of support is, for example, whether the customer already has an account. But the type of company - whether a store or service provider - also plays a decisive role in determining the individual support and cost framework. Our aim is always to offer customized Google Ads agency costs that are both efficient and cost-effective.

The costs for a Google Ads agency are made up of the running costs of your campaigns and the fixed costs of support. Investing in a professional agency can be a valuable decision for companies to optimize their online presence and generate targeted landing page traffic. Google Ads agency costs vary depending on experience, expertise and the services offered. A knowledgeable service provider can not only place effective ads, but also ensure that the budget is used optimally to achieve the desired results.