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Unlocking the Value of Pay-Per-Click Advertising: What to Expect from a PPC Agency

You've built an exquisite website, you've crafted the perfect messaging, and now you're ready to draw in viewers, leads, and sales.

But what next? Pay-per-click advertising is, by far, one of the most efficient ways to reach and target your desired audience. And, when done correctly, it can revolutionize your bottom line.

So, how do you unlock the full potential of a PPC strategy? Working alongside a highly-experienced PPC agency is the key.

But understanding the full value of their expertise and just what to expect is a vital part of this process.

In this blog post, let's dive deep into unlocking the true value of PPC advertising by exploring exactly what to expect from a PPC agency.

You'll learn how PPC can propel your business forward, the stages of meaningfully preparing for success, and just why having the right PPC agency by your side is essential.

So, let's get started! Here's everything you need to know about unlocking the value of Pay-Per-Click advertising, what to expect from a PPC agency, and why it could be the perfect solution for your business's needs.

Quick Clarification of Key Points

The cost of working with a PPC agency will depend on the size of your business and the scope of work.

Generally speaking, businesses typically pay monthly retainers of anywhere from $2,500-$20,000+, depending on their needs.

Analyzing the Cost of Working with an Agency

When considering the costs of working with an agency for pay-per-click (PPC) advertising, it’s important to take several factors into consideration.

First and foremost, there is the cost associated with setting up and managing the campaigns, as well as any additional research or strategy work that may be needed.

Depending on the type of campaigns and their complexity, this cost could range anywhere from a few hundred dollars per month to several thousand.

It can also be helpful to consider the value that an experienced digital marketing agency can bring versus what would need to be spent on in-house staff or resources.

On one hand, larger organizations may find they benefit more from working with an agency than attempting to manage campaigns with internal staff.

The cost of finding, hiring and managing skilled employees can sometimes exceed the amount that would have been spent on an agency.

Additionally, agencies have access to specialized tools and resources that are typically not accessible to individuals; so partnering with outside experts can help increase ROI more quickly due to their streamlined process and advanced approaches.

On the other hand, smaller companies or those starting out might find that hiring a PPC agency is too costly without seeing significant returns on investment.

In these cases, it can be beneficial to start off by managing campaigns manually before gradually transitioning over to more sophisticated services provided by an agency.

However, for many companies understanding how well their campaigns are performing and making adjustments as needed is critical for success - something that might be beyond the capability of internal staff members – which makes paying for third party expertise worth while in terms of long-term performance outcomes.

Overall analyzing cost when deliberating whether or not to use an agency for PPC advertising is not just a matter of tabulating expenses but rather a calculation of potential return-on-investment when taking into account all available data instead.

Understanding the specific industry trends, target audience preferences and metrics used to measure success will help inform strategic decisions and enable companies of any size find value in working with a PPC expert.

Now you may be wondering what services does an agency offer? Let's move forward then to explore what kind of expertise you can expect from a qualified PPC agency...

Main Takeaways

When determining whether to use an agency for PPC advertising, it is important to consider the costs versus potential return on investment.

Investing in outside expertise can be beneficial for larger organizations, however smaller companies may opt to start out managing campaigns manually before transitioning to more sophisticated services provided by an agency.

There are different industry trends and target audience preferences to keep in mind when understanding success metrics. Utilizing the expertise of a qualified PPC agency can help companies of all sizes find value in their investment.

Business Analyzing

What Services Does an Agency Offer?

Analyzing the cost of working with a PPC agency may lead one to wonder what services they offer.

Generally, a PPC agency will offer services such as keyword/audience research, bid management, creative and content optimization, website usability testing and analysis and performance reporting.

The value of each service is relative to each business' goals. For larger businesses that are operating at scale or in competitive markets, it could be argued that using a PPC agency is necessary due to the specialized knowledge and technical skill they possess.

Conversely, some smaller businesses may deem their budget better spent elsewhere due to more general needs and limited resources.

The key takeaway here is that there are many services that a PPC agency can provide, so understanding where you stand in terms of goals and budget may help you make the best decision for your business.

Ultimately, whether you decide to work with an agency or manage your own campaigns, it's essential for success that you allocate the necessary resources for your campaigns in order to achieve your goals and get the most out of your marketing budget.

Looking ahead to budgeting for pay-per-click marketing (PPC) can give clarity around what kind of resources are needed for success.

Budgeting for Pay-Per-Click Marketing (PPC)

Setting up a budget for pay-per-click (PPC) marketing can be a daunting task. On the one hand, businesses have to weigh the costs of paid campaigns against the potential gains.

On the other hand, they don't want to invest too much and stretch their advertising budget too thin. To determine an effective budget for PPC, it's important to assess current performance and future business goals.

For example, if an online retailer wants to increase sales by 20% with PPC campaigns, their budget will factor in existing CPC rates and its associated CTR, as well as estimated CPA/CVR goals.

This approach helps ensure that PPC spending aligns with business objectives and helps generate positive ROI. Additionally, businesses should also consider efficiency by running tests and tracking data over time to help refine their campaigns.

Of course, there’s no set formula when it comes to budgeting for PPC because every business is different. While smaller companies might benefit from small but more frequent campaigns, larger organizations may require more expansive campaigns.

That said, regardless of size or industry, all businesses need to carefully evaluate their budget to ensure that they are getting the most out of their PPC investments.

This means understanding how different types of ads—keywords-based search campaigns versus display ads—can meet short-term and long-term goals.

While these considerations are key in developing your initial PPC budget, it will also require regular monitoring and occasional tweaking in order to optimize expenses and maximize conversions.

As such, establishing a monthly budget for PPC is just the beginning — you'll also need to review your existing campaigns regularly in order to adjust spending accordingly and reach your desired objectives.

Monthly Budget

Setting Your Monthly Budget

When setting a budget for pay-per-click marketing, there is an ongoing debate with regards to whether or not it is best to set a fixed budget or have your PPC agency allocate funds towards different campaigns as they see fit.

Those advocating for the former argument argue that setting a predetermined budget ensures that you are always conscious of the amount of money you are spending and, more importantly, actively reminders you to evaluate the effectiveness of your campaigns.

Those supporting the latter point out that having a flexible budget allows for more accurate campaign tracking and optimization according to your desired goal. Proponents of both sides are overlooking some important factors when building their cases.

While having a predetermined budget has the advantage of keeping you aware of your spending limits, a flexible budget enables you to better spend on campaigns that are working towards your desired goal and stop spending on those that do not perform as expected.

However, this does not necessarily mean one approach is completely superior. In fact, research suggests that combining predetermined budgets with targeted optimization is the most effective method for attaining the best value from your PPC campaigns.

Overall, it’s important to find the right balance between having a predetermined budget and allowing your PPC agency to adjust campaign costs as necessary while still staying within reasonable financial constraints.

Having realistic expectations of cost versus desired outcome will enable you to plan and track performance effectively while making sure you stay within your allocated budget.

From there, understanding how changes in campaign costs and bids can further optimize campaigns is the key to unlocking all the benefits PPC has to offer.

Understanding Campaign Costs and Bids

After determining an appropriate amount to set aside each month for a pay-per-click (PPC) advertising campaign, it is important to understand campaign costs and bids.

There are two primary kinds of online advertising: cost per mile (CPM) and cost per click (CPC). In CPM campaigns, advertisers are charged for each thousand impressions or viewers the advertisement reaches.

CPC campaigns, on the other hand, charge advertisers each time their advertisement is clicked on. It is possible to use both types of campaigns together in order to maximize returns.

Deciding how much to bid on keywords can be difficult. Generally, the more relevant a keyword is to your company and its services or products, the higher you should bid for it as it is more likely to convert into sales or leads.

On the other hand, deciding how much to bid on a keyword can become expensive if there are many competitors bidding on it as well.

Many PPC agencies provide keyword analysis tools that allow advertisers to view how much they should bid on particular keywords in order to compete with other companies.

Having a good understanding of campaign costs and bids will help ensure that your PPC campaigns are efficient and effective while still being able to keep within your budget.

When done properly, PPC can be an extremely powerful marketing tool and provides businesses with the opportunity to generate substantial returns on investment.

As such, in order to make sure that you're getting the best return from your money, it's essential that you evaluate the success of your campaigns and make necessary adjustments in order for them to remain effective over time.

  • The average cost for a single keyword through a PPC agency tactic can range from $1-$10.
  • According to an Accuracast study, the monthly management fee for an agency providing search engine marketing services ranges from $250-$4,000 per month.
  • A survey conducted by the Digital Marketing Institute in 2020 found that the average hourly rate for a PPC agency or professional was $150 with 18% of respondents claiming it could be even higher at around $250 per hour.
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Evaluation: How to Measure Results


The key to successful implementation of pay-per-click (PPC) campaigns is understanding how to measure the results.

It's important to evaluate progress and make ongoing adjustments in order to maximize success.

Once you understand campaign costs and bids, it will be easier to determine how much your efforts provide in terms of return on investment (ROI).

To understand how effective a PPC campaign has been, both cost and revenue must be taken into consideration.

Companies should review the return received on each click versus what was paid for setting up the campaign and any additional costs associated with it.

Typically, this involves running analytics reports which track key performance indicators (KPIs) such as cost per click (CPC), click-through rate (CTR), conversion rate, cost per acquisition (CPA), etc.

While focusing on these KPIs can help identify changes in performance over time, comparisons between different campaigns should also be made.

This will enable a company to understand which campaigns are performing better than others, so that optimization efforts can be targeted accordingly.

Another way to evaluate the success of a PPC campaign is by closely examining any changes in brand awareness and customer loyalty.

Customer feedback or surveys can provide insight into whether users are satisfied with their experience, which could help identify potential problems or areas where further optimization is needed.

Furthermore, tracking visits to landing pages and downloads of content provides valuable data that can be used to make decisions and focus strategies accordingly.

Measuring the success of pay-per-click campaigns allows businesses to adjust their strategies and get better ROI from their advertising efforts.

Moving forward, companies should continually monitor results from their campaigns, analyze patterns emerging from data gathered, and adjust their approaches whenever necessary to ensure maximum effectiveness in terms of ROI and brand awareness.

Doing so increases the likelihood of creating meaningful improvements in strategy and results.

Measuring Improvements in Strategy and Results

Measuring Improvements in Strategy and Results is a crucial step in assessing the effectiveness of working with a PPC agency.

Following an initial evaluation of results, there are two main approaches to fine-tuning and optimizing an agency’s campaigns: evaluating challenges posed by the market or competitive landscape and monitoring the progression of strategies already in place.

To measure improvements, you must set key performance indicators (KPIs) by deciding what is important to measure.

This typically involves increasing click-through-rate (CTR), reducing cost per click (CPC), improving the quality score of your ads, or increasing conversion rates for ads.

Any changes should be tracked over time to identify if your campaigns become more efficient at reaching key targets. KPIs serve as great tools for providing data points which can then be used as a blueprint for future campaigns or as diagnostics that inform decisions about redirecting resources.

Ultimately, there are two sides to the argument when it comes to measuring improvements in strategy and results.

Those who prefer a market-based approach argue that research on market trends provides better insights into their customers’ needs and wants, allowing them to create an ‘outside-in’ marketing strategy tailored to specific audiences.

On the other hand, those who measure improvements through tracking existing strategies believe this helps develop a ‘closed loop’ marketing system where successes can be quickly identified and replicated.

Though both sides have valid arguments, many experts find that taking a combination of both approaches is best when measuring improvements in strategy and results.

A good PPC agency should monitor market trends while also tracking existing strategies and constantly making adjustments based on the data gathered.

Research has shown that this type of approach yields positive outcomes such as increased ROI, improved brand awareness, better customer acquisition and retention, and overall higher conversion rates.

Ultimately, leveraging both methods facilitates a thorough understanding of what works best for clients in terms of PPC advertising growth—both financially and creatively—and that knowledge remains valuable long after a campaign ends.

Answers to Commonly Asked Questions

What additional benefits do PPC agencies provide for the extra cost?

PPC agencies provide a range of benefits that ultimately justify the extra cost.

Not only do they manage the entire PPC campaigns from research and keyword selection to content, ad design, and optimization, but they can also provide valuable insights about the target audience, competitive landscape, and best practices for success.

They can track data to determine ROI and offer more sophisticated reporting options than an in-house team.

Additionally, many PPC agency professionals have specialized expertise across various search engines, such as Google Ads or Microsoft Advertising, as well as insight into emerging trends and technologies.

Their presence can help business owners maximize their campaigns and make sure they’re getting the most out of their investment.

What are the average costs associated with hiring a PPC agency?

The average costs associated with hiring a PPC agency vary widely and depend on the scope of work they will be doing, as well as their experience level.

Most PPC agencies charge on a "cost-per-click" (CPC) basis, meaning that the client pays for each click to their website or ad (likely on Google AdWords, but other options exist).

The cost per click can range anywhere from pennies up to $50+ depending on the keyword and industry. Additionally, many agencies will charge a setup fee to get started and/or management fees for ongoing support and maintenance.

These may be charged monthly, quarterly, or annually and can range from hundreds to thousands of dollars, depending upon the scope of services provided.

In most cases, however, you can expect to pay at least several hundred dollars per month in PPC-related fees.

Are there any potential drawbacks to working with a PPC agency?

Yes, there are potential drawbacks to working with a PPC agency. The biggest drawback is cost—agencies often charge higher fees than managing a PPC campaign internally.

Additionally, it can be difficult to find an experienced PPC agency that’s right for your specific business objectives and budget.

If you do choose to work with an agency, make sure they have experience in your industry and are well-versed in the PPC approaches used by your competitors.

Lastly, agencies generally provide limited support when changes need to be made to campaigns, which could impact results if not done correctly.

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