How much do I charge to manage a Google Ads account?

Probably the most popular question I get asked – if it’s the first question you ask me, the chances of us working together are very thin, it’s not a bad question, but it’s not the first thing you should ask for. How about case studies for a change?

Now some agencies earn more money when you spend more money. And if you’re paying your agency/consultant or freelancer a % of ad spend, there’s better alternatives to consider.

Especially if you’re selling a product in high demand, sometimes reducing your spend will help you make more profit. I’ve had a few accounts like that over the years, but if your agency charges a % of ad spend, then guess what they’ll do.

I’ll give you an example with one of my clients. We started working together 2 years ago. He was struggling, but I thought he had a good business and I wanted to help so I asked “How much are you paying for management now?”

He said “£500”. Ok although my base fee was higher at the time, I offered him £700 + 1 % of ROAS, with a cap of £3,000.

How does it work? Here’s an example:

• Ad spend:£10,000
• Google Ads Revenue £100,000
• 1% of ROAS is: £80,000 (Revenue Ex. VAT) – £10,000 (Ad Spend) – £700 (Management Fee) = £693
• Total management fee: £700 (Fixed) + £693 (1% ROAS commission) = £1,393

Now back to our client. The first 2 months weren’t the best, mainly due to stock issues. But with the work I’ve done to get the shopping feed in good condition and the campaigns set up to scale the spend profitable, we soon started seeing better months.

Month 6 the rate doubled to £1,500, month 9 to £2,000 and by month 12 commissions went over £3,000 but the fee was capped.

We’re 2 years into the relationship, sales grew from £70,000 in September 2024 to closing £350,000 in July last month which was a quiet month and at the current pace we’re on track to do £6M this year up from £1M when I took over in 24.

In my experience a business owner wants to pay a flat fee because it’s predictable.

There isn’t a universally accepted pricing model for PPC management. Some agencies charge a fixed monthly retainer, others charge a percentage of ad spend, some work on performance, and a few base their fee on the commercial value they add.

Every PPC management fee creates a different set of incentives. Some reward increasing ad spend. Others encourage long-term growth. And some prioritise predictability.

In this guide, I’ll break down the most common PPC management pricing models, explain the advantages and drawbacks of each, and share the framework I use to determine what I believe is a fair PPC management fee for both the agency and the client.

The 5 Most Common PPC Management Fee Models

There isn’t a single way to price PPC management, which is why you’ll often see agencies charging very different fees for what appears to be the same service.

Over the years, five pricing models have become the most common. Each has its place, and each works well in the right circumstances. The important thing isn’t deciding which one is “best”, but understanding what each model encourages and whether that aligns with your goals.

1. Fixed Monthly Fee

With a fixed monthly fee, the agency charges the same amount every month regardless of your advertising budget.

It’s one of the simplest pricing models. You know exactly what you’ll pay each month, making it easy to budget and forecast marketing costs.

For agencies, it also removes the temptation to recommend higher ad spend simply to increase their fee.

That said, fixed retainers aren’t always perfect. As an account grows, the workload sometimes increases too, but not always. If you’re launching in new markets, adding additional products, and having more frequent strategy sessions, all of these require more time, yet the agency’s fee remains the same unless it’s reviewed, but then again, if not much is happening in the account then it’s tough to justify the fixed fee. You’re mainly paying a retainer to present disasters, that’s what I learned over the years.

Best suited for:
Clients. It’s predictable, and there are no surprises.

Behaviour it encourages:
Long-term account management and predictable budgeting, although agencies need to review pricing periodically as accounts evolve.

2. Percentage of Ad Spend

This is probably the most widely used PPC management pricing model. Unfortunately. A recent poll I ran on LinkedIn tends to disagree, but the reality is different. I feel most are ashamed to admit they charge a % of ad spend, because they know deep inside it’s not the most honest model. Most who answered are PPC experts and I feel they picked the option they’d like to run with not necessarily the one they’re using today.

Instead of charging a fixed fee, the agency takes a percentage of your monthly advertising spend. For example, an agency might charge 10% or 15% of your Google Ads budget.

Or maybe you have tiers from 10% on £20,000 and 7% for £40,000. I still think it’s wrong. Even if you have minimum ROAS targets. I prefer using ROAS as a signal not a target, ROAS sometimes tells a different story to actual profit.

The model is easy to understand and naturally scales as the account grows. If ad spend doubles, so does the management fee.

The question many businesses ask, however, is whether the workload always increases at the same rate.

Sometimes it does. Sometimes it doesn’t. Most often it doesn’t.

An £100,000 a month account isn’t necessarily five times more complex than a £20,000 account. Likewise, a smaller account with multiple brands, poor tracking and constant website changes may require significantly more work than a larger, well-established account.

Best suited for:
Agencies that want to make money. How sad I’m not one of them :(

Behaviour it encourages:
Growing ad spend. It’s just the wrong incentive. Prove me wrong.

3. Fixed Fee + Percentage of Ad Spend

As the name suggests, this model combines the predictability of a fixed retainer with the scalability of a percentage-based fee.

Typically, the agency charges a base monthly fee that covers strategy and account management, alongside a smaller percentage of ad spend.

This is more or less ok, let me explain why. Sometimes agencies have to use management tools that also most often charge a % of ad spend – management tools, automations, click fraud so to make sure we stay profitable that gets worked into the management fee. So it’s not because we want to, sometimes we’re forced to.

Best suited for:
Agencies that offer a rich toolbox that you don’t have to pay for yourself as a client.

Behaviour it encourages:
A balance between long-term account management and account growth, with incentives shared between stability and scale.

4. Fixed Fee + Performance-Based

Performance-based pricing sounds attractive for clients and agencies.

The idea is simple: if the agency delivers results, they earn more. If they don’t, they earn less.

In reality, it’s rarely that straightforward.

Campaign performance depends on far more than Google Ads alone. Pricing, stock availability, website conversion rates, product quality, seasonality and fulfilment all influence the outcome. Many of these factors sit outside the agency’s control.

That’s why agencies using this model usually spend a significant amount of time agreeing on exactly how performance will be measured.

And it works for lead gen accounts too. You set a fixed fee and a bonus in place if the performance is good, got to have a solid tracking system in place and leave no space for doubt or dare you ask are you getting more work/calls/leads. You should have a place to track all those over time.

Best suited for:
Established businesses with reliable tracking, clear commercial objectives and a high level of trust between client and agency.

Behaviour it encourages:
A strong focus on measurable outcomes, provided both parties agree on what success looks like from the outset.

5. Value-Based Pricing

Rather than charging according to ad spend or hours worked, value-based pricing links the fee to the commercial value the agency creates.

The focus shifts from campaign inputs to business outcomes.

Instead of asking, “How much are we spending on Google Ads?”, the conversation becomes, “How much value is this partnership creating for the business?”

It’s the least common pricing model, partly because measuring value isn’t always easy. It requires a deep understanding of margins, profitability and business objectives, not just advertising performance.

When done well, however, it creates one of the strongest alignments between client and the agency. And it’s my favourite model too.

Best suited for:
Businesses looking for a strategic partner rather than someone to simply manage campaigns.

Behaviour it encourages:
Commercial thinking, long-term growth and decisions based on business performance rather than advertising spend alone.

Which PPC Management Fee Model Do I Prefer?

If you’ve made it this far, you’ve probably realised there isn’t a universally “best” PPC management fee.

Each model has its advantages. Each has its drawbacks.

More importantly, each encourages different behaviours. And that’s ultimately what convinced me that the pricing model matters just as much as the price itself.

Over the years, I’ve gradually moved away from thinking about what’s easiest to charge and started thinking more about what’s fair for both the client and the agency.

That’s where value-based pricing comes in.

Why I Prefer Value-Based Pricing

The way I see it, clients don’t hire a PPC consultant because they want campaigns managed.

They hire one because they want to make more money from their ads.

If an agency helps improve profitability, scale internationally, increase customer lifetime value or identify new growth opportunities, should its fee really be tied only to ad spend?

Nope.

Likewise, I don’t think agencies should be rewarded simply because a client doubles their advertising budget. More spend doesn’t always mean more work, and it certainly doesn’t always mean more value has been created.

Instead, I believe the fee should reflect the commercial impact of the partnership.

That doesn’t mean charging a percentage of revenue or profit in every situation. It means starting the conversation with a different question.

Instead of asking: “How much are we spending?”

I’d rather ask: “How can we generate more profit”

Does This Mean Value-Based Pricing Is Always Better?

No.

Like every model we’ve discussed, it has limitations.

It relies on good tracking.

It requires transparency around margins and profitability.

And it only works when both the client and the agency have a genuine understanding of what success looks like.

For some businesses, a fixed monthly fee will still be the right choice.

For others, a hybrid model may provide the best balance.

The point isn’t that every agency should abandon their existing pricing model.

The point is that pricing should encourage the right behaviour.

For me, that means rewarding commercial outcomes rather than simply rewarding advertising spend.

Choosing the Right PPC Management Fee

If you’re looking for a simple answer to the question, “What’s the best PPC management pricing model?”, you’re probably going to be disappointed.

There isn’t one.

I’ve spoken to agency owners who swear by retainers, freelancers who only charge performance fees and businesses that wouldn’t consider anything other than a percentage of ad spend.

The truth is, they can all work.

The right model depends on the client, the agency, the complexity of the account and, most importantly, whether both parties are working towards the same objective.

Personally, I think businesses should ask: “Which pricing model creates the right incentives?”

For example, if your business is entering a rapid growth phase, a model that scales alongside the account may make perfect sense.

If your campaigns are mature and relatively stable, a fixed monthly retainer might provide greater predictability.

If you’re looking for a strategic partner who contributes beyond Google Ads, a value-based approach may be more appropriate.

There isn’t a universal answer because every business is different.

What matters is understanding what you’re paying for, how success will be measured, and whether the pricing model encourages decisions that benefit both the business and the agency.

Final Thoughts

PPC management pricing has evolved significantly over the last decade, yet one thing hasn’t changed: businesses still want to know they’re paying a fair fee, and agencies want to be rewarded fairly for the value they create.

I don’t believe that fairness comes from choosing one pricing model over another.

It comes from choosing a model that aligns incentives, builds trust and encourages both sides to make better long-term decisions.

That’s why I’ve gradually moved towards evaluating fees based on commercial outcomes rather than simply looking at advertising spend.

It’s not because I think every agency should price this way.

It’s because, in my experience, it creates better conversations, healthier partnerships and a stronger focus on growing the business rather than just growing the budget.

If you’re currently reviewing PPC agency fees, comparing Google Ads management prices, or wondering whether your current PPC management fee still makes sense, don’t just ask what you’re paying.

Ask what behaviour that pricing model is encouraging.

The answer to that question is often far more valuable than the price itself.

Frequently Asked Questions

What is a typical PPC management fee?

There’s no industry standard. Some agencies charge a fixed monthly retainer, while others use a percentage of ad spend, performance-based pricing or value-based pricing. The right fee depends on the scope of work, account complexity and the level of strategic involvement.

How much do Google Ads agencies usually charge?

Google Ads management prices vary widely. Small businesses may pay a few hundred pounds per month, while larger ecommerce brands often invest several thousand pounds for ongoing management. Rather than comparing prices alone, compare what’s included in the service.

Is a percentage of ad spend a fair pricing model?

I don’t think it is. Incentivises increasing spend over profitability.

Which PPC management pricing model is best?

The one you can comfortably pay and not worry about. There isn’t a universally “best” model. Fixed retainers, percentage-based pricing, hybrid models, performance pricing and value-based pricing all have advantages. The most suitable approach depends on your business objectives and the type of relationship you’re looking to build with your agency.

Should I choose the cheapest PPC agency?

If you haven’t heard the saying “buy cheap, buy twice” I’m here to remind you that it exists. Do with it what you like.

So there you go, I hope the fee you’re paying reflects the performance and if it doesn’t maybe you have things to reconsider.