With a B2C PPC agency, you can better target your customers with effective ad strategies and have more control over your paid ad budgets. PPC firms offer various services for B2C businesses, with PPC campaign management setup and audits as the most popular.
PPC services mainly vary along with an agency’s pricing. Let’s discuss the various PPC agency pricing models and determine which paid ads pricing will work best for your growing B2C company.
Rates Based on Percentage of Ad Spend
According to Digitalauthority.me, PPC is a cost-effective digital marketing strategy to promote your products or services on top of search rankings. You’ll experience better ranks on SERPs without the long wait that comes with search engine optimization.
PPC agencies can help you promote your B2C company, and the most common pricing model used is based on the percentage of ads spent. Depending on your ad spend, this pricing model will pay the agency a pre-determined price.
This PPC pricing model is best for businesses with a large ad budget. Usually, the percentage of the ad budget will decrease as the workload increases. You may also find that most agencies that use this pricing method will ask for a minimum ad spend.
This pricing model is suitable for large businesses but not smaller companies with limited budgets. If you don’t have a huge budget, you might be forced to pay expensive fees just for an agency to help you with PPC marketing.
- Transparent pricing model with no hidden charges
- Include anything to the campaign scope and quickly see the costs
- Ideal for all clients, big or small
- A PPC agency may become less efficient
- A PPC agency may ask for an increase in budget to increase their fee.
Management Fee + Percentage of Ad Spend
Most experienced PPC agencies will include a management fee with a percentage of the ad spend budget model. The fee is for the overhead costs of managing a client’s account. This model is simply the first one with an additional management fee.
This pricing model is not as popular as old PPC companies. Complex PPC campaigns are ever-changing, with marketers considering promotional and seasonal marketing costs. This model is for B2C businesses who want ownership of their paid ads accounts and transparency from PPC agencies.
This pricing model ensures you have enough budget for PPC campaign testing and conversion tracking. Whether you’re monitoring conversion online, by text, or by phone, this model can ensure you can complete advanced monitoring.
However, this pricing model is not suitable for low-cost paid ad campaigns. Small businesses can do better with a pure percentage of ad spend pricing strategy.
- All the advantages of the percentage of ads spending pricing model
- Allows PPC agencies to focus on the ROI of the campaigns
- It is more expensive and can become costlier if you’re not careful
- The PPC agency may ask you to increase ad spending to improve conversions and to make more money
Flat Fee Pricing
Other B2C PPC agencies prefer flat fee pricing, which is decided or determined right after developing the paid ads scope of work and the costs of PPC campaign maintenance. This pricing model is straightforward as long as all the tasks are clearly defined in the campaign’s scope of work.
In most cases, the flat fee combines the management fee and the percentage model. The resulting value from the ad spending percentage is included in the flat price. This pricing model is great for straightforward campaigns. B2C clients who want a fixed monthly spend for paid ads prefer this model.
Meanwhile, complex B2C paid ad campaigns may not do well with flat fee pricing. For these cases, ad spending must be more flexible. The same goes for seasonal businesses and those that offer specials or promotions.
- Simple and easy to use
- Easier to budget
- You know how much you need to put into your campaigns.
- Anything that gets in the way of productivity can reduce your income
- This pricing can lead to poor quality of work as this model emphasizes performing work quickly
Performance-Based PPC Pricing
Performance-based pricing is available in various shapes and sizes, but overall, it’s all about charging per lead. Many agencies that use this pricing model may continue to charge a monthly maintenance fee. Some may cover the ad spending budget and increase the dollar amount of the charge for every lead.
You’re paying for the results in performance-based pricing, so PPC agencies will likely use various techniques to get more leads. They may use affiliate marketing, email marketing, SEO, social media marketing, etc. So, if you’re not concerned about where your leads are from then, this pricing platform could be the best for you.
Using search engine optimization strategies is one way to boost lead generation. However, it can take months to find results with SEO, while it can only take a few hours for PPC campaigns to produce results.
- Encourages PPC agency’s excellent performance
- They will be more focused on your goals
- Easier to increase monthly fees
- Hard to control the quality of the leads generated
- You could end up wasting time and money on crappy leads
With milestone-based pricing, a PPC agency is not just focused on lead volume. This pricing model is established after the campaign goals are created.
Therefore, whether you want to increase CTR or click-through-rate or reduce CPC or cost-per-conversion, a timeframe is set. As the agency hit these milestones, its payments increase.
- Your goals are closely aligned with the agency.
- Keeps a PPC agency focused on the development and growth of the account
- Easy for an agency to ask for an increase in their fees
- Marketing milestones are linked to your agreed-upon KPIs
- Complex and time-consuming onboarding process
These are just the most common B2C PPC agency models available for you to run a successful PPC campaign. PPC agencies may customize their pricing offers to accommodate different clients. Thus, you must discuss pricing with your PPC agency as you map out your paid ads campaigns.
Remember, the true success of your PPC campaigns is not about how much you’re spending but how well you spend your budget. When you’re deciding whether to sign up with a PPC agency or not, always consider your paid ads needs, your budgets, and your marketing goals.