A company starting a campaign SEA wants to get an idea of how much it costs to manage its Google Ads campaigns. It is difficult to answer this question simply. The answer depends, of course, on the advertiser's competitive environment and business objectives. Nevertheless, this article gives an idea of the average budgets spent on Google Ads.
As for the ancillary expenses, due to the management of Google Ads campaigns by an agency, the costs to be expected vary according to the billing method. There are three main types of billing, which lead to different Google Ads investment budgets. In all cases, it is still possible to anticipate a credible amount of global expenses.
How much do other companies spend on Google Ads?
The cost of managing Google Ads campaigns depends not only on the size of the company and its business objectives, but also on its competition and industry. Research suggests that some industries consume more Google Ads campaigns than others. For example, this is the case for finance, insurance retail or tourism. These sectors are reputed to invest millions of dollars a year in Google Ads. That's what Expedia is doing by the way. Its Google Ads spending is actually estimated to be around 70 million dollars for the year 2015 alone.
For small to medium businesses, the cost of Google Ads campaigns generally varies between 1,000 and 12,000 euros per year. This is, however, a range that ignores more extreme budgets. Some web agency clients need to invest €30,000 to achieve their business goals on Google Ads.
To find out more: How much does Paid Listing Service (PARS) cost?
Anticipate the budget dedicated to the web agency
Forecasting your Google Ads budget often also consists of budget the cost of the web agency that manages the advertising campaigns. Entrust the management of its Google Ads campaigns to an agency is often the best way to ensure a satisfactory result within a reasonable time frame. However, web agencies use different billing methods, which should be mastered in order to plan your Google Ads budget:
- Some web agencies take a percentage on Google Ads spending, which often varies between 10 and 15% ;
- Other providers prefer flat-rate monthly billing. It allows each stakeholder to have long-term visibility on their budget;
- there are web agencies that charge by performance. This invoicing method implies to define in advance what is considered as "performance".
Regardless of the invoicing method proposed, it is common practice to add start-up and management fees. Start-up, or "setup" costs, as the jargon goes, refers to the act of creating the Google Ads account and its campaigns. The management fee is the minimum fee required by the web agency to take care of your Google Ads account on a daily basis. These fees vary from one agency to another, but rarely go below 250€/month.
For plan the budget to devote to its Google Ads campaignsit is estimated that web agencies take credit for at least 10% of the company's investment in the SEA platform. Overall, this percentage varies from 10% to 25% depending on the structure. If, therefore, you invest 5000€/month on Google Ads, your web agency may ask you between 500 and 1750€ in Google Ads campaign management fees.
FAQ about the cost of managing Google Ads campaigns?
Google Ads is a system that operates under several pricing modes. The most common is the cost per click: the advertiser pays for each click on his ad.
The question deserves a longer explanation, but in any case it should be noted that there is no minimum budget. However, Google Ads asks to establish a maximum daily budget.