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Google Ads Agency Pricing Across 10 Different Niches

November 4, 2024

by Ippei Kanehara

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How I make $52K per month

Google ad agency services typically cost:

$5,000 to $20,000 monthly in the legal services sector

$3,000 to $15,000 monthly for insurance agents

$1,000 and $5,000 monthly for real estate agencies

$500 to $3,000 in the home services sector

$1,000 to $10,000 in the education industry

Google ads hold about 28.6% of the global digital advertising market share. They have an unparalleled reach, as 80% of businesses use it for marketing. eCommerce and retail use Google Ads to increase sales. They leverage the PPC model through keyword targeting. The tourism industry invests in Google Ads to address its fluctuating demand trend. They create targeted seasonal campaigns and use location-based targeting to appear in cities with high concentrations of potential travelers.

The rise of Google ads in digital marketing piqued the interest of many aspiring online entrepreneurs. There’s a promising business opportunity here. Businesses earn $2 for every $1 they spend on Google ads. However, with its success and dominance in paid advertising comes increased competition. The Google advertiser's population has grown to over 2 million. They spend from $100 to as high as $10,000 monthly. Those who aim for top positions in high-value niches like dental and legal services pay 30% to 50% more.

I used Google ads before, but I realized it can get pretty expensive in competitive industries. I found a better way to continuously generate leads for my high-value clients using organic traffic. Users perceive organic search results as more credible and trustworthy compared to paid ads. Ranking organically tells customers that you are the authority in your niche. This article explores Google agency pricing across 10 different niches. It explains how much Google Ads typically cost in these industries, the pricing models, and how agency owners price them.

1. Google Ads Pricing for Legal Services Sector

The legal services sector typically spends $5,000 to $20,000 monthly on Google ads. The rate could go higher depending on the practice area, location, and level of competition. Legal service has the highest Google Ads cost because of the intense competition and high-value clients. Law firms that specialize in personal injury and divorce could pay $50 to $100 per click. Large firms in major metropolitan areas invest more in Google Ads to maintain visibility.

Those who have lower Google Ads budget could DIY. However, the results may not be as optimal as hiring agencies. This Reddit commenter suggests starting with a $1,500 to $2,500 monthly budget. The ramp-up period is around three months.

Standard pricing for Google Ads agency services in the legal services sector

Agency Service	Price Range	Inclusions
Account setup and campaign creation	$500 - $5,000 onetime fee	Account set-up, keyword research, ad group creation, ad copywriting, landing page recommendations
Campaign management	$500 - $5,000+ per month or 10% to 20% of ad spend	Key metrics reporting, insights, and recommendations
Advanced keyword search	$1,000 - $5,000 onetime fee	In-depth keyword research, competitor analysis, long-tail keywords, and keyword mapping
Ad creation and copywriting	$50 - $200 per ad group	Responsive search ad creation and Ad extension setup
Landing page optimization	$500 - $3,000 per page	Landing page review, conversion rate optimization recommendations, A/B testing
Campaign remarketing	$500 - $2,000 for the initial setup, plus $200 - $1,000 monthly	Remarketing list creation, display ad design, campaign setup, and management
Google shopping campaigns	$1,000 to $5,000 for setting up the account, plus $500 to $3,000 for monthly management	Product feed optimization, shopping campaign setup, ongoing bid management, and product group optimization
Reporting and analytics	from $200	Monthly performance reports, custom dashboard setup, competitor analysis, insights and recommendations
Local SEO and Google My Business Optimization	$300 - $1,500 per month	Local keyword optimization, GMB profile management, and review management
Ad creative design	$50 - $500 per ad set	Banner ad design and responsive ad creation
Account audits	$500 - $5,000 onetime fee	Comprehensive review of account structure, settings, and performance

2. Google Ads Pricing for Insurance Agents

Insurance companies allocate $3,000 to $15,000 monthly on Google Ads. The insurance industry is very competitive, so Google Ad costs are higher. Average CPCs in this niche typically fall between $20 and $50. The exact spend can vary based on insurance type, geographic location, and demand trends.

5 key areas insurance agents invest in using Google ads:

Search ads allow agents to target users actively searching for insurance services. It is the most recommended and widely used type of Google Ads for insurance agents.

Local services ads are useful for insurance agents who want to attract clients in their area. They appear at the top of search results with contact information and reviews.

Display ads, while less common than search ads, help build brand awareness by appearing on websites across the Google Display Network.

Remarketing ads target users who have previously visited the agent's website. It re-engages potential leads.

Video ads on YouTube explain complex insurance products or showcase testimonials.

3. Google Ads Pricing for Real Estate Agencies

Real estate agencies and property managers spend $1,000 and $5,000 monthly on Google ads. However, these figures fluctuate based on location, property types, and local market competition. High-end or luxury real estate markets pay higher. Real estate agencies spend moderately on Google Ads costs compared to legal or insurance sectors. CPCs in this niche usually range from $2 to $5.

Top 5 states where real estate agents spend most on advertising:

California: Advertising costs are higher in California because of its vast and diverse housing market. Real estate agencies invest heavily in advertising, especially on PPC campaigns.

New York: High property values and competitive market drive advertising costs here. Real estate agencies spend more to get high-value clients.

Texas: Rapid urban growth in cities like Austin, Dallas, and Houston has increased ad budgets. Real estate agencies compete to attract homebuyers and investors.

Florida: With strong migration trends among retirees and remote workers, Florida agencies invest in digital outreach to get more relocating clients.

Arizona: Phoenix and surrounding areas have seen a surge in real estate activity. This has led to agencies increasing their ad spend to reach both investors and buyers.

4. Google Ads Pricing for Home Services Providers

Home service providers spend from $500 to $3,000 on Google ads. This includes plumbers, HVAC technicians, pest control specialists, and roofers. They rely on Google ads for local visibility. CPCs in this sector range from $5 to $20. The actual cost varies depending on the specific service type, location, and seasonality. Advertising cost for HVAC services peak in summer and winter seasons.

Cleaning Services: This business constantly needs new clients because of the high turnover rate. Advertising helps attract both onetime and long-term contracts. Small to medium cleaning companies spend between $500 and $2,500 monthly on digital ads.
Landscaping Services: Landscaping is seasonal and competitive. They need advertising to maintain a steady flow of jobs year-round. Monthly advertising budgets for landscaping services range from $1,000 to $3,000.
Pest Control Services: Pest infestation is a home emergency. Strong local search and Google presence helps pest control companies capture these urgent leads. They invest around $1,500 to $4,000 monthly in online ads.
Plumbing Services: Plumbing is often an urgent need. Businesses rely on online visibility to capture high-intent leads. They allocate $2,000 to $5,000 a month on Google Ads and local SEO.
Electrical Services: Ads help electricians compete for high-value projects. They spend about $1,500 to $3,500 monthly on ads. The focus of their advertising is on Google Ads and local directories.
HVAC Services: They need advertising, especially in summer and winter. During peak seasons, businesses that rank higher on search engines get high-converting service calls. They spend $2,000 to $7,000 monthly on Google Ads and social media.

5. Education and Online Courses

Educational institutions and online course creators spend from $1,000 to $10,000 on Google Ads. Universities, online certification programs, and course providers invest in Google ads to get more enrollments. CPC in the education sector range from $2 to $40. The actual cost depends on the program and level of competition.

Conversion tracking and optimization in the education sector:

Institutions closely monitor ad performance metrics, like CPL and cost per enrollment. Keeping track of these metrics helps optimize on ad spend. Google Ads offers educational advertisers advanced options like Smart Bidding. This process automatically adjusts bids to increase conversions.

Strategies used by the education sector to maximize Google ads:

Target Broad Keywords: Universities and large online programs bid on broad keywords like "online courses" or "university programs". General keywords reach a broader audience.
Dynamic Search Ads: It helps institutions capture search traffic that aligns with a user's specific search query. For instance, a coding boot camp might have DSAs set up to show relevant information for searches like "learn Python programming online."
Remarketing Lists for Search Ads: RLSAs let advertisers re-target users who previously visited their website but didn't convert. It is an effective strategy because students often browse multiple programs before deciding.
Location-Based Targeting: Google Ads offers radius targeting, which allows ads to reach audiences within a specific distance.
Ad Extensions: These allow advertisers to showcase additional links below the main ad. Most common ad extensions are "Request Information," "Apply Now," or "View Courses". These extensions direct users to specific program pages with fewer conversion steps.

6. Finance and Investment Businesses

Financial services like banks, lenders, credit repair companies, and investment firms spend from $3,000 and $15,000 on Google ads. These are competitive niches that pay higher Google fees. Advertising in the finance sector has high regulatory requirements. Finance institutions need to continuously build their name to get ahead of competitors.

How are Google Ads priced in the finance and investment sector?

Bidding: Advertisers bid on keywords relevant to their ads. They set a maximum bid they're willing to pay when someone clicks their ad for a given keyword.
Quality Score: Google determines the quality score of each ad based on CTR and ad relevance.
Ad Rank: This determines the ad’s position in the search engine. It is calculated by multiplying the maximum bid by the quality score.
Actual Cost Per Click: The actual amount charged per click is often less than the maximum bid. It is then re-calculated by dividing the ad rank by the quality score plus 0.01. You only need to pay the minimum fee to maintain your ad’s position.
Industry, Competition, and Location: CPC increases in competitive industries. The cost fluctuates based on location and the time of day/year.

7. Medical and Dental Companies

Medical and dental companies spend from $500 and $5,000 on Google ads. They use Google’s location targeting to reach nearby patients. Searches like “dentist near me” or “urgent care Los Angeles” are common among people looking for immediate services. Targeting specific areas ensures that ads only show to people within a feasible distance. This optimizes the budget for local reach.

Factors that affect Google Ads pricing in the medical and dental industry:

Complexity of the Campaign: Projects with 1 to 3 campaigns are cheaper. Complex ones with more than a hundred campaigns running are more expensive. Automated bidding and custom scripts also increase the cost.
Geographic Targeting: Local campaigns are cheaper because they’re easier to manage. National campaigns are more complicated to manage and monitor. As a result, they charge higher.
Tools and Software Used: The tools and software used also affect Google ad agency pricing. Projects that use proprietary tools add the cost to the campaign budget. Agencies who optimize with AI charge at least 5% more.
Historical Performance: Ad agencies charge more for accounts that have poor historical performance. Restructuring old campaigns is typically more expensive. Some agencies even give discounts to high-performing accounts.

8. eCommerce and Retail Businesses

eCommerce and retail businesses use Google Ads to target potential customers at various stages of their buying journey. Their Google advertising budget every month range from $1,000 to $10,000. Effective Google Ads use helps them appear at the top of search results. Ecom businesses use the PPC model by targeting specific keywords. They use tailored ad copy and calls-to-action to appeal directly to buyers’ needs.

Cost to manage CPC for an eCommerce and retail business

PPC management for ecom businesses costs from $250 to $5,000 per month. Some agencies use the percentage model and charge from 10% to 20% of the total ad spend. The actual PPC management cost varies based on several factors. This includes the complexity of the campaign and the competitiveness of the industry. The number of campaigns to be managed and how often the campaign is optimized also affects PPC fees.

Aaron Young's Best Google Ads eCommerce Strategies

aaron young ecommerce google ads strategy

Focus on long-term strategies. Ecom businesses should aim to build a sustainable Google Ads strategy rather than quick-win tactics.
Implement quarterly cycles to either scale ad spend and sales volume or optimize conversion rates and ROAS.
Plan early for peak seasons. Businesses with specific high-sales seasons should start planning and optimizing at least 6 months ahead. Last-minute campaign boosts are risky and less effective.
Use campaign segmentation to target high-profit areas. Split high-performing and low-spend product categories into separate campaigns. This strategy lets you focus your resources on converting campaigns.
Follow who campaign types: "always on" and seasonal/promotional campaigns. "Always on" are continuous campaigns that build brand visibility. Its goal is to build brand awareness and get ahead of competitors.

9. SaaS Companies

Software-as-a-Service (SaaS) companies typically see moderate Google Ads costs, with CPCs ranging from $2 to $15. Monthly spending for these businesses often falls between $2,000 and $10,000 or more. Costs can vary significantly based on the type of software, target market (B2B or B2C), and level of competition in the software category. Enterprise-level SaaS solutions may see higher costs because of higher customer lifetime values.

Ways SaaS Companies Leverage Google Ads

Lead Generation: SaaS companies use Google Ads to capture potential customers who are actively searching for solutions their software provides.
Brand Awareness: SaaS companies increase their visibility and brand recognition among their target audience. They achieve this by bidding on branded keywords and competitor terms.
Product Launches: Google Ads allows SaaS companies to quickly reach potential customers and generate buzz. This is essential when launching new features or products.
Competitive Positioning: SaaS companies bid on competitor brand names and related terms to capture market share.
Content Promotion: Google Ads promotes content like whitepapers, webinars, or case studies to generate leads and establish authority.

10. Travel and Tourism

Monthly ad spend for hotels, travel agencies, and airlines cost from $1,000 to $5,000. The popularity of the destination and peak travel seasons affects the actual Google ads cost. CPCs in this sector typically range from $1 to $5. Google ads drive bookings to hotels, transportation, and tour services. They connect travelers with local service providers.

Google Ads lets agencies to create targeted seasonal campaigns that align with peak travel times.
Google's location-based targeting lets travel agencies focus their advertising on specific regions or cities with a large concentration of travelers.
Google Ads help businesses cater last-minute bookings by promoting last-minute deals and flash sales. They create time-sensitive ads that capitalize on this urgency, driving quick decisions and immediate bookings.
Travel agencies acquire high-value customers by targeting keywords and demographics related to luxury travel or unique experiences.

Top 8 Ad Agency Pricing Models

Percentage of Ad-Spend Model: This model charges a percentage of the client's total ad spend. Agencies typically charge 10%-20% of the total ad spend budget. For example, if a company spends $10,000 on ads, the agency could charge between $1,000 and $2,000. It is ideal for clients who have moderate to large budgets. This pricing model offers additional services like backlink-building. You can also purchase high-DA backlinks for faster results.
Flat Fee Model: Agencies charge a fixed monthly fee regardless of ad spend or performance. This could range from $500 to $5,000, depending on the complexity and scope of the campaigns. 34% of agencies use this model. It’s preferred by clients who want predictable and consistent billing. Agencies that offer standardized services use the flat fee model.
Hourly Rates Model: These can range from $30 to $150 per hour. New agencies charge from $30. Established agencies with niche specialization may charge as much as $150 per hour. According to a survey by Credo, PPC specialists charge $136 per hour. Agencies bill for the time spent managing campaigns. The rates range from $75 to $200 per hour. This model is uncommon for account management services. It’s widely used for account setup and consulting.
Performance-Based Pricing Model: The agency charges based on the actual performance of the ads. This model is often combined with a base retainer. Clients usually give incentives for achieving targets based on actual conversions. Compensation is tied to metrics like Cost Per Acquisition (CPA) or Return on Ad Spend (ROAS). For instance, an agency might charge $50 per qualified lead or 5% of revenue generated from ads.
Project-Based Pricing Model: A fixed fee is charged for a specific project or campaign. This model is often used for onetime projects or campaign launches. In this model, the price varies depending on the project’s scope and complexity.
Tiered Pricing Model: Agencies offer different service levels at set price points. The basic tier starts at $1,000 per month for campaign management and reporting. A median tier typically starts at $2,500. This price covers basic services plus weekly optimizations and strategy calls. Premium tiers typically range from $5,000 per month. This includes comprehensive account management, strategy, and creative services.
Value-Based Pricing Model: It is based on the estimated value the agency is expected to provide to the client's business. It’s a less common model, but is gaining traction now in the advertising industry.
Hybrid Pricing Model: A combination of two or more pricing models. For example, the flat fee model can be combined with tiered pricing. Hybrid pricing is a practical approach for many businesses.

Ad Agency Owners Share How Much They Charge For Services

This agency owner offers three service packages. The basic package costs $499 per month and an ad spend of up to $2,000. Standard package is offered at $899 and $7,500 maximum ad spend. He uses the percentage model for this enterprise package. It is 15% of the total ad spend.

However, these packages don't include copywriting. You can use my free content writer to create high-converting content. It is far better than GPT-4. Its best features is its agentic workflow that leverages multiple AI agents. Each "agent" focuses on a specified task to provide factual and updated answers.

This small business owner shares how much he typically pays ad agencies. He pays 12% with a minimum of $750 ad spend monthly. He also shared that he doesn't trust agencies who charge $500 upfront. Agencies who charge from 10% to 15% (max) are pricing their services right.

This Reddit commenter explained that 20% is the highest agency owners should ask for. Only big and established agencies could charge this much. He suggests charging a flat fee if you're a new agency. $800 for projects between $1,000 to $10,000 is a good starting rate. He also suggests adding another 5% of the total ad spend for projects between $10K to $50K.

SF Digital Studios, which has been in the business for over 21 years, recommends the percentage ad spend model for beginners. They suggest starting at around 25% with a minimum fee. Gradually lower the percentage you charge as the client’s budget increases. This creates a win-win opportunity wherein both parties benefit from increased ad spend. New agencies are warned against using the fixed pricing model, as it limits scalability. This model leads to burnout as the client’s needs grow.

Should Small Businesses Use Google Ads?

Google ads can work for small businesses. However, the advertiser (owner or agency) should have a deep digital marketing knowledge to succeed. Small businesses typically have smaller advertising budgets. The advertiser should be able to allocate it correctly to get the best results. Choosing the right keywords for the campaign is essential to small businesses. Advertisers should focus on specific, long-tail keywords relevant to their niche. Use negative keywords. This reduces ad wastage on irrelevant ads.

My Online Biz Leverages Free Traffic, Not Paid Ads

My online biz leverages free traffic because it’s more sustainable long-term. I generate consistent free traffic through a business model called local lead generation. This biz builds simple websites for local service providers and ranks them on Google. It is ideal for businesses with small budgets because it does not need a big upfront investment. Organic SEO efforts can sustain traffic over time, unlike paid ads that stop when you stop paying.

Once you rank yourself in Google with local lead gen, traffic continues to flow. What’s even better is organic traffic has a higher conversion rate. This is because customers trust organic searches more than paid ads. Businesses that appear organically in search results are perceived as more credible and established. As your online presence grows, you discover more expansion opportunities. Without the limitations of a physical presence, local lead gen lets you target multiple local areas without increasing your ad spend.

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Ippei Kanehara

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