The three fee models
Agencies almost always use one of these to price PPC management:
- Percentage of ad spend: commonly around 10–20% of what you spend on ads. Scales with budget — simple, but the agency earns more when you spend more.
- Flat monthly retainer: a fixed fee regardless of spend. Predictable, and doesn't reward higher spend.
- Performance-based: a base fee plus a share tied to results. Aligns incentives but needs clear, agreed metrics.
This is separate from your ad spend
A key point people miss: the management fee is what you pay the agency to run the ads; the ad spend is what goes to Google or Meta. A "$1,500/month" quote might mean the fee, the spend, or both — always confirm which. See our guide on how much Google Ads costs for the spend side.
What good management actually buys
Cheap management that sets up campaigns and walks away usually costs more than it saves. Real management is ongoing: testing creative and audiences, cutting what doesn't work, improving landing pages, and reporting against cost per customer — not just sending a dashboard. Webly Studio prices management to the work and reports against CAC and payback; see our paid ads service.