How Agencies Set Google Ads Fees (And What You Should Know)

Let’s get one thing straight. 

Google Ads isn’t optional if you’re serious about getting your business in front of the right people, at the right time, with their wallets half open.

But here’s the catch:

You can’t run Google Ads without someone managing it. 

And unless you're a Google Ads wizard with time on your hands, that means you’re hiring an agency.

And boy, are there a lot of 'em.

Some good. 

Some dodgy.

Some charging thousands. 

Others promising the world for $200 a month and a smile.

Confusing? 

Hell yeah!

Tempting to go with the cheapest quote? 

Absolutely!

Smart move? 

Not always.

Here’s the thing most business owners never get told:

👉 The price you pay for Google Ads management varies wildly because the workload, responsibility, and impact vary just as much.

Let’s break down the pricing models that agencies use and why it’s worth knowing what actually drives the fees.

Google Ads Pricing Models (And the Catch with Each One)

1. % of Ad spend: 

This is the most common model. 

The agency charges a percentage of what you spend on ads, usually between 10% to 20%.

💸 Example: You spend $10K a month on Google Ads. The agency charges 15%. 

That’s $1,500 on top of your ad spend.

Pros:

  • Simple and scalable: As your budget increases, so does the management fee. No need to renegotiate.

  • Aligned incentives (kind of): The more you spend, the more they earn, so they should want to help you grow.

Cons:

  • More spend ≠ better performance: Some agencies are tempted to push you to increase your budget just so they make more, even if the returns aren’t there. That’s dangerous.

  • Small fish problems: If you’ve got a modest ad budget, you might get bumped down the priority list while they chase bigger accounts with juicier margins.

2. Price Per Lead

In this model, you pay the agency a set amount for each lead they generate. 

It could be $100 per lead. 

$30 per phone call. 

Whatever you both agree on, just get clear on what a lead really is.

Pros:

  • You pay for results: If no leads come in, you don’t pay. Feels fair, right?

  • Easier to predict ROI: Knowing what each lead costs, say, $50 makes it simpler to do the maths on profit.

Cons:

  • Quantity over quality: Agencies might chase cheap, low-quality leads to hit their numbers. That means you then end up with junk leads that waste your time.

  • Misaligned incentives: You want qualified buyers. They want anyone who fills in a form. That mismatch leads to frustration and wasted money. Fast.

  • Hard to track: Unless your funnel is airtight (think eComm or tracked demos), disputes over what counts as a ‘lead’ are inevitable.

3. All-Inclusive Pricing

This is the “set it and forget it” model. 

You pay one flat monthly fee (which includes both your ad spend and management fees), and the agency covers everything. 

Ad spend, setup, reporting, and sometimes even landing pages.

Pros:

  • No guesswork: One predictable invoice each month. No hidden charges.

  • Great for time-poor business owners: You don’t have to think about what’s included. It’s all bundled.

Cons:

  • Zero transparency: You won’t know how much of your money is actually being spent on ads versus agency services.

  • Hard to compare value: If it’s all lumped together, you can’t tell if the agency is slacking or smashing it.

  • Often padded: Agencies can hide fat margins in bundled pricing, so you think you’re getting a good deal, but 50%+ of your budget never reaches Google.

4. Custom Pricing (ATD’s model)

Instead of flat fees or arbitrary percentages, the price is based on 

Your situation. 

Your competition.

Your goals.



No fluff. 

Pros:

  • Tailored to your needs: No two businesses are the same. A custom quote means you’re paying for exactly what your campaigns require. No more, no less.

  • Full transparency: We show you exactly what you're paying for and where the effort’s going. No black boxes.

  • Scalable and fair: Whether you’re a startup or scaling up fast, your pricing evolves with your campaigns, not against them.

Cons:

  • Takes a bit more upfront work: We actually look into your niche, your competition, your campaign setup. That takes time, but we believe it’s in your own best interest.  

  • Not the cheapest model: If you're hunting for a $99/mo "Google Ads wizard," this isn’t it. You get real strategy, not shortcuts.

The custom pricing model might be a bit confusing… so here is what influences the fees/

The 5 Real Factors That Impact Custom Google Ads Management Fees 

1. Industry Competition

More competition = more fight to get seen.

If your SERP (Search Engine Results Page on Google) looks like a Vegas billboard of sponsored links, every brand and their dog vying for attention, guess what?

You’re gonna pay more.

In high-stakes markets like finance, insurance, or travel, CPCs (cost per clicks) can be brutal. 

Why? 

Because the value of a single customer is massive. 

One client could be worth thousands, so businesses are willing to pay top dollar per click just to get seen.

That means you need a sharper strategy, tighter bidding, and more experienced eyes on the wheel.

That leads onto the next factor… 

2. Cost Per Click (CPC)

CPC is an auction. And when the market’s hot, it gets spicy fast.

Right now, running Google Ads for something like "hiking trails near Boise" might only cost you $0.80 a click. No biggie.

But try running a campaign for "Grand Canyon rafting tours" or "Alaska heli-ski packages" during peak season? 

You’re easily looking at $8, $12, even $20+ per click.

Why? 

Because you're not just competing with other tour operators anymore. You're up against big-budget players like GetYourGuide, Expedia, and national tourism boards.

And when those heavyweights step into the ring, the cost to stay visible goes up.

3. Number of Campaigns

Running a simple campaign for “kayak rentals in Austin”?

Pretty easy.

But now let’s say you’ve got:

5 different adventure packages (ziplining, whitewater rafting, hiking, off-road tours, and wildlife safaris)

Across 4 states (Utah, Colorado, Arizona, and California)

Each with their own audiences, landing pages, and seasonal offers.

Now you’re talking serious campaign volume.

Every single one of those campaigns needs to be built, tested, tracked, and constantly optimised.

We’re talking A/B testing headlines and ad copy assets, split-testing callouts, refining geo-targeting, adjusting bids, week after week.

So yeah, when the campaign count goes up, the management workload explodes. And that workload? 

It’s what drives your fee.

You’re not paying for guesswork. 

You’re paying for someone to juggle a dozen moving pieces and make sure none of ‘em drop.

4. Service Scope

Some clients want setup and management.

Others want:

Landing page design

Conversion tracking

CRO audits

Weekly calls

Hourly hand-holding

The more work done, the more hours burnt. The more hours burnt, the higher the fee. 

Makes sense, right?

The goal here is not to slap a few keywords in and wish you luck. 

It’s to build profit-generating machines. 

That takes work.

5. Targeting Complexity

Are you targeting “USA-wide”? Or splitting audiences across cities, interests, buyer stages, device types, and remarketing segments?

More segmentation = more strategy = more management = more moolah.

And if you want to chase clicks in highly competitive locations (hello, New York real estate)? 

That’s gonna push up the fee.

So, What’s the Takeaway?

Agency pricing isn’t random. It’s not a dartboard.

It’s a reflection of the time, tools, and thinking needed to get results in your market, for your business, with your budget.

Sure, you could hire the $200-a-month “we’ll-run-your-ads” crew. 

But don’t act surprised when your inbox stays dry and your CPCs make you cry.

Here’s the truth:

🧠 Cheaper doesn’t mean better.

💸 Expensive doesn’t mean smarter.

✅ The right pricing reflects the right plan.

Wanna know if your current agency is pulling their weight, or just pulling your wallet?

Give us a shout. 

We’ll tell you straight.

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