PPC advertisements might feature text, graphics, or videos and can actually come in a variety of sizes. Search engines, websites, and social media platforms all contain these advertisements.
One of the most common forms of PPC is search engine advertising, also known as paid search marketing" or search engine optimization." This allows advertisers to bid to place ads in sponsored links on search engines when people search for their products or services.
If we bid on the relevant keyword in the Google Ads Audit, our ad for the Google Ads campaign Performance Grader free of charge may appear in the SERP for this or another related search.
How Google Adwords Works
Let's talk about advertising with Google, the tech giant. Google is not the only search engine that exists, but it makes up almost 87% of all global search traffic and has 246 million users in the United States.
To understand the true cost of a PPC advertising campaign, it is important to first understand how Google Ads works.
Google will prompt an auction if someone searches for something online using Google. Google will then calculate the Ad Rank of the bidding advertisers, which determines whether or not an ad is placed in the paid results section.
Your Ad Rank = CPC (Cost Per Click) Bid you specify for Keywords X Quality Score
The paid section's position in the paid section is determined by the rank of the ad. Google is paid by the company for each click on its ads.
This is how much Google pays per click.
Your Maximum CPC = The Ad Rank of the Advertiser below You / Your Quality Score + $0.01
Google's quality score is one of many aspects of advertising. It evaluates the relevance of an ad to keywords and how it adds to the user's search experience.
This system allows advertisers with low budgets to advertise as well as high-quality companies.
Five signs that it is time to hire a new PPC expert
How can you tell when it's time for paid search investments? While expertise in this area is important, there are times when it's particularly beneficial to hire a new dedicated PPC team, best ppc experts or your first one.
Our panel of experts shared some indications that it's the right time.
Your paid search strategy is ineffective, and your performance on other paid channels has slowed down.
Armstrong suggested that you look at your other paid channels if you haven't yet explored paid search.
Armstrong suggested that you ask yourself if you feel like you are reaching a plateau or decreasing returns on your primary channels.
Armstrong suggested asking yourself: "Do you need other channels?"
"Do you feel as though your income is beginning to decline?"
Paid search is a good channel to try out.
Your budget has changed dramatically.
You should ensure that your current PPC manager is able to manage a spike in paid search spending.
Yang states, "If it went from $5K up to $5M, then you need to verify that your marketer has done this [level of spending] before or has a plan [to spend the budget]," Yang explains.
They might not be able to do so, and their approach may be too cautious.
Armstrong said that someone spending $1 million per month for the first time "can be intimidated," - especially if they don't have a senior PPC management expert to guide them.
A growing budget could also indicate that you should leave an agency. An agency's cost will increase if you spend more on PPC channels.
Is it worth it
Armstrong stated that agencies could be very useful because they see many different accounts. They can then take the lessons learned and apply them to other companies.
They don't often get as far into the funnel or the data weeds as your team.
Your PPC marketer simply keeps the course.
It can take time to switch marketing strategies, but there are many opportunities for change. It's a problem if your ads expert doesn't want to experiment and change gears.
Yang states, "If you have to encourage someone to test or explore a new strategy or to investigate it further, it is probably time to hire somebody new."
PPC Ad Performance is Declining
There are two common causes for why it seems that nothing is working. Perhaps you are optimizing for conversions instead of leads or spending too much on broad-match keywords.
Or maybe your ad copy just seems a little boring.
Even if you are just looking to hire someone to audit your campaign bid strategy, a fresh set of eyes can help you identify the core issue.
PPC ads are bought, but there is no overall strategy.
You might discover that your current offshore PPC expert is not providing enough value to meet your business goals.
While they might be good at execution, they are not great at thinking about the larger picture.
They might be great at execution, but they are not good at big-picture thinking.
This doesn't mean that you should cut ties. Lally stated that if someone isn't able to scale with your vision, it may be a good idea to hire another, more senior freelancer to help manage your PPC experts and to innovate on strategy.
Explore Our Premium Services - Give Your Business Makeover!
Tips to Hire the Right PPC Experts
Before you make the final decision to use PPC services, here are some things you should keep in mind to hire PPC expert
Make sure they are data- and analytics-oriented
An expert in PPC will help you increase your ROI by understanding your target audience and creating high-yield campaign ideas.
They will have the tools necessary to measure PPC campaigns and Google Ads metrics. They will also be able to share data with you.
Local search is the focus.
Local search is a great way to reach your local community. It targets location-specific queries and especially for businesses that have physical stores but do not ship to other states or countries.
A local search strategy is a great way to get your business noticed, especially if it's an online or brick-and-mortar business.
72% of the 82% of smartphone users who use their smartphones to locate businesses nearby lead to in-store visits on the same day.
They take mobile optimization very seriously
It is becoming increasingly important to design PPC ads that are compatible with all devices, as half of the paid media clicks come from smartphones.
You should hire PPC professionals who can provide mobile-optimized copy and display ads.
You can also ask them questions about how to create mobile-optimized paid searches and other search engine marketing campaigns.
Unmatched keyword research
The best PPC professionals use keywords that have commercial intent.
Keywords such as 'Buy fridge' and 'hire web developer' indicate the user's intention to buy.
Ask them about their keyword research tools and metrics to determine the keyword's performance.
What Other Factors Affect Costs?
Let's find out more about Google's PPC cost factors. The most important is the industry in which a company operates.
The Industry
The keywords that are used in paid ads on a Google search is one of Google's revenue streams. These keywords' costs are largely determined by how many Google users search for them.
These are the ten most expensive keywords, according to Reach.
- Business Services (Average cost: $58.64).
- Bail Bonds (Average cost: $58.48).
- Casino: (Average Cost: $55.48)
- Lawyer.
: (Average Cost: $54.86)
- Asset Management: Average Cost $49.86
- Insurance: (Average Cost: $48.41)
- Cash Services & Payday Loans : (Average Cost: $48.18)
- Cleaning & Restoration Services: Average Cost: $47.61
- Degree: (Average Cost: $47.36)
- Medical Coding Services (Average cost: $46.84
This list shows how expensive it can be to run a PPC campaign type for criminal lawyers. Bail bonds and lawyers are the most expensive keywords, with an average cost of $58.48 and $54.86 each.
Although search and display costs are relatively low at $0.69 and $0.63, respectively, there are some industries that have much more expensive keywords.
PPC campaigns for travel and nutrition companies, as well as pet care businesses, would be cheaper than those in insurance or law.
Spending Option
Google Ads offers companies the ability to set their campaign budgets in-house. Businesses can set up extensive control parameters for each campaign to ensure that they meet their daily needs.
They can target 100 clicks for $0.65 per click. This sets their daily budget at $65. Companies can set their maximum budget at $0.65 per Click. They won't be required to pay more.
Ad Scheduling
A campaign may allow companies to indicate when they would like their ads displayed. This is useful for business growth that aren't open 24 hours a day, such as restaurants.
A restaurant that is open from 12 to 9 pm may choose to have its ads run from 12 to 6 pm. This may be based on the day's preferences.
It might also choose a longer duration if it desires increased visibility.
Geotargeting
Businesses can use geo targeting to target specific geographic areas. You have the option to select an entire state or a small area.
This is a great technique for brands that have physical locations such as restaurants, hotels, or grocery stores.
Geotargeting is a way for grocery owners to market their products and services to a wider audience than just a four-block radius of their location.
Device Targeting
We aren't limited to searching on desktop computers anymore. Advertisers can target clients using the devices they use today, thanks to Google.
Companies can specify how they want to divide their budget between tablets, mobile phones, and computers.
A company can tailor its campaigns to best suit its clients' needs if it knows the location of its target audience online.
To maximize your PPC budget, it is important to understand the targeting options.
Take Your Business to New Heights With Our Services!
Common PPC agency pricing models
Before answering the question "How much?" It is important to familiarize yourself with the various pricing models used by PPC management agencies for billing.
Here is a quick overview of the most popular PPC pricing models.
Pricing percentage for ad campaigns
A lot of agencies will use a percentage-of-spending pricing model if you are looking for PPC help. This model allows clients to pay agencies a percentage of the spend they make on the ads they want managed by the agency.
The agency's percentage tends to shrink with increasing workload, but this is not always true.
This is a good option for companies that have a higher or growing ad spending due to the reduction in budget. This model is used by many agencies.
Not for smaller businesses with small budgets. This model often requires minimum spends. If your budget is not sufficient, you will likely have to pay hefty fees in order to make it worthwhile to the agency to work for you.
Management fee + a percentage of advertising spend pricing.
To cover overheads for managing PPC ads campaigns for clients, many mature marketing agencies charge a management fee.
This pricing model, like the first, uses the percentage spent on ad campaigns as the baseline. However, it also charges an additional fee.
This model will be less common among legacy media houses and commodity PPC companies. Complex campaigns are rarely static because small businesses must consider seasonal marketing needs and promotions.
For Customers that want transparency and complete ownership of their accounts. It's difficult for agencies to justify keeping accounts "proprietary" if they charge a management fee and a percentage of spend.
Not for Very low-cost accounts. Automated platforms that only allow a percentage of spend make sense for small businesses.
Flat-fee pricing
After settling on the scope and calculating the static costs associated with managing PPC campaigns for the client, some agencies will charge a flat fee.
This model is preferred by some businesses, provided that the activities and services are clearly defined.
This is a simplification for the management fee plus percentage model. The flat fee includes the value per cent spent.
Useful for: clients who require fixed monthly expenses and campaigns that are relatively static.
Not for the dynamic campaign. Many businesses use seasonal or specials to drive sales. These cases will require more flexibility in terms of both the management burden as well as the ad spend.
Pricing based on performance
Aside from the three PPC pricing models, there may be a "performance-based" pricing model.
This model allows businesses to pay for lower-funnel activities, such as inbound calls, emails and form conversion rates.
If they are able to claim lead origination, some agencies may also establish a commission rate. This is most common in e-commerce, referral-based business models and is also known by the "CTA pricing" model.
Discover our Unique Services - A Game Changer for Your Business!
Take a look at the current PPC rates
Let's look at the associated costs of each using the pricing framework. These rates represent the middle-of-the-road pricing in PPC.
Ad spend percentage: 15-30%
Although it's not common for agencies to charge rates below 15% of total ad spend, media conglomerates such as Media One can offer such terms to clients by offering kickbacks or performance incentives.
PPC management can be expensive. Most agencies charge more than 20 percent.
If you are considering a proposal using this pricing model, it is important to know what's included. Will the agency update the ad copy? How to build landing pages Rotating ads
While some agencies offer PPC services in a buffet format, others offer them as a pay-as-you-go or a la carte. Each activity is listed on a monthly invoice.
A setup fee is another variation of the PPC pricing model that accounts for a percentage of ad spending. This is quite common.
This fee is charged by agencies to cover key activities such as landing page implementation, lead tracking using forms, calls, and creative for native and display advertising.
Percentage for ad spend + management fees: 15-30%, 500-$5,000/month
Management fees are flat and set monthly and can be associated with activities such as ad copy updates and ad rotation.
A management fee will vary depending on how much work is involved in managing PPC campaigns for a company. It can range from $500 to as high as $5,000 per month.
Five Ways to Manage Your PCP Workflows
We've covered the different payment models and other considerations that should be made when determining the price of a service.
Now let's discuss how to improve your agency's PPC workflows.
PPC campaigns for each of your clients on a single platform
Client reporting is an essential part of managing PPC campaigns. No matter how skilled you may be at PPC management, it is vital to report on your results in an easy-to-understand manner.
This will help build long-lasting relationships with clients.
Reporting is not a revenue-generating activity. However, it can be argued that agencies should charge for reports.
This means you are not improving client results or prospecting for new customers.
PPC management can involve dealing with multiple data sources and platforms. It can take a lot of time to combine and present data if you do it manually.
PPC reporting should therefore be as automated as possible.
The eight sections in our PPC Report Template will give you an idea about how to report well.
Summary of the Report
Google Ads - Campaigns
Google Ads - Ads
Facebook Ads - Campaigns
Facebook Ads - Advertisement
Bing Ads - Campaigns
Instagram Ads - Campaigns
Google Analytics - PPC Landing Page
Reports can be enhanced with a PPC Markup
The Coders PPC Markup tool is another way to help manage your agency's PPC workflows.
This feature lets you add your agency's margins to each PPC integration if your agency chooses the PPC markup pricing method.
You can choose whether to show the PPC markup only to clients or exclude it from your reports to only show the total cost.
You should specify a different markup for each client's PPC integrations. Once configured, the PPC markup will be applied to all client reports.
Create an account-wide PPC markup
In the top right corner of your account, click "Edit Profile."
The "Advanced Tab" will show the PPC Markup feature, where you can set the margin percentage for each Integration.
Click on the Settings slider in the top right corner of the PPC dashboard to choose whether or not you want your PPC markup displayed.
Choose "Show PPC Markup" or "Exclude" from the drop-down menu.
This article is from our Help Center. It explains how to set up different PPC markups to suit individual campaigns.
Manage Your Agency
Coders provides a range of tools for managing clients and staff to make your agency's PPC process as efficient as possible.
Unlimited user controls allow for easy collaboration and ensure everyone is on the same page, whether you are looking to hire freelancers or communicate with your house team.
To ensure that everything runs smoothly, create tasks and assign them to your dedicated team members.
Agency Tip To show the value your agency adds to clients' businesses, add completed tasks to their monthly reports.
Create Instant Reports
PPC reports can be used to show your clients that you are delivering a return for ad spend. As your agency grows, it will be too time-consuming to send out reports that show your agency is always on top of trends.
Easy scheduling allows you to send out your PPC reports. It features your logo, brand colors, and URL. You can also decide whether you wish to approve every report before it is sent out, if you need to address or review any issues.
Make sure your tools are as flexible as your agency.
Coders offers 16 PPC integrations, so your agency can test different platforms for clients. When it comes to creating their reports, you don't have to hop from one platform to the other to pull their data.
Summary:
Successful businesses know that they need to spend money in order to make money. They also understand that a well-run PPC program can help them make more money.
If you know what you're doing, people will pay to have it done. Do you?
If you are firmly nodding your head, don't be afraid of asking for what you want. PPC management does not come as a gift.
It is a modern business necessity. Google Ads can bring in $2 for every $1 spent by a business owner.
Providers of top-flight management services can charge high-flight fees. The top digital marketing agencies offer a solid service that includes Google Ads and Bing Ads as well as Facebook Ads (or any other social media marketing platform).
The best people can do everything, but they don't always have to. The best people ask the right questions, and they have the right answers.
They are prepared to handle any challenge presented by the industry. Are you one of them?
Are you able to deliver more traffic? higher cost per conversion CPC Increased conversions and a solid ROI? You should then be compensated accordingly.
Paul is a highly skilled Full Stack Developer with a solid educational background that includes a Bachelor's degree in Computer Science and a Master's degree in Software Engineering, as well as a decade of hands-on experience. Certifications such as AWS Certified Solutions Architect, and Agile Scrum Master bolster his knowledge. Paul's excellent contributions to the software development industry have garnered him a slew of prizes and accolades, cementing his status as a top-tier professional. Aside from coding, he finds relief in her interests, which include hiking through beautiful landscapes, finding creative outlets through painting, and giving back to the community by participating in local tech education programmer.
Related articles
Coder.Dev is your one-stop solution for your all IT staff augmentation need.