Understanding PPC Costs

by Kym Merrill

Jul 9, 2024 | Pay-Per-Click

At Kite Media, we work with service businesses to provide unparalleled digital marketing services, including pay-per-click and search engine marketing. Many of the business owners we work with are running a small operation and haven’t done a lot of marketing before. Our team of experts loves working with these clients and educating them on all things digital marketing! 

One of the most frequent questions we get is how PPC charges work. While you pay a flat monthly fee for services like SEO, PPC charges work differently and are a little more variable. This is because in addition to paying for PPC ad management, you have to pay Google for the ads themselves. Let’s dive into more of the costs involved in PPC. 

What is PPC?

Before we get into the cost, we need to clarify exactly what PPC is. Pay-per-click (PPC) ads are ads that, exactly as they sound, you pay for every time you get a click on your ad. There are different ad platforms, but the biggest and the one we focus on is Google. Google PPC ads show up when users perform a search on Google and in other places across the web. You are probably used to seeing these ads at the top of Google searches every day and you’ve likely clicked on them yourself. They are a key part of maintaining a strong digital presence. Which ads show up and how much those clicks cost is determined by a variety of factors. Creating and optimizing these ads for the best results is where a PPC team like Kite Media comes in. 

The Three Main Costs in PPC

There are three main costs you will pay for PPC management when you work with Kite Media. The first is the initial fee that you pay when your ads are first set up. Then there are two ongoing costs, the monthly management fees and the payment to Google for clicks. 

  1. One-Time Initial Set-Up Fee. Setting up a PPC campaign for success is a lot of upfront work, which is why we charge an initial set-up fee. The exact set-up process depends on your business and current online presence, but involves things like creating ad copy, creating a landing page for your ads to direct customers to, setting up lead tracking, researching keywords to target, and more. This comprehensive setup service ensures your ads start out on the right foot, and everything can be tweaked as needed down the line. 
  2. Monthly Management Fee. This is the set fee you pay to Kite Media or your PPC management company every month. PPC ads aren’t set it and forget it. They must be maintained to make sure that they are performing optimally, and this monthly fee covers that maintenance. Our PPC experts are always tracking your ad performance, testing variations, and tweaking things to get better results. We also provide a monthly report to help you stay up to date on your ad performance, and, of course, we’re always available to chat with you about your ideas, questions, or concerns. 
  3. Google Click Costs. Google charges you every time your PPC ad is clicked on. This is paid directly to Google, not the PPC management agency.  Usually, you are billed once a month or whenever your payment threshold is reached, whichever comes first. This can mean that charges might not come at the same time every month, which can be confusing. At Kite Media, we work with clients to set a monthly budget and communicate often to make sure you always know where you are at in your budget. We are also always optimizing your ads and settings to make sure that you get the best results and the highest ROI possible from your budget. 

How Google Determines the Cost Per Click

We wish we could tell you exactly how much each click will cost, but it’s not that simple. Google determines the cost per click (CPC) for your ads through a dynamic auction process that occurs every time a user performs a search. Several factors influence the CPC, including the competitiveness of the keyword, the quality score of your ads, and your maximum bid amount. The quality score is a measure of the relevance and quality of your ad and landing page, a factor we can control. Higher quality scores can lead to lower CPCs because Google rewards well-crafted, relevant ads and landing pages. At Kite Media, we leverage our expertise to optimize your ads, landing pages, bidding strategy, and more, ensuring you achieve the best possible results at the lowest cost.

Setting the Right Budget

Setting the right monthly budget for your PPC ads can be tricky. You want to spend enough that you are able to reach your target audience and get as many leads as possible, but not so much that you are wasting money or spending more than you can afford. We have experience with businesses of all types and sizes, and can use our expertise to help you choose an appropriate budget based on your goals, financial constraints, and more. We take into account how many leads you’d like to get, your conversion rate, average cost per lead, and more to choose the right number. Whatever your budget, our PPC experts will make sure your spend doesn’t exceed your budget, and that you’re getting the best results for your spend. 

We’re always happy to work with you to tweak your budget. Many of our customers get great results from PPC and increase their ad spending as time goes on and their business grows. We might recommend that you increase or decrease your budget too, depending on the results. In order to find out what initial budget is best for your business, give one of our PPC account managers a call! We’d be happy to help you figure out what to expect. 

Get Started With PPC Today

We understand that business owners can be confused about the costs involved with PPC, but we hope this quick guide helped! If you’d like to find out more about pay-per-click advertising, how it can help your business, and what it costs, give Kite Media a call at 435-73-7553 today! One of our PPC experts will be glad to discuss our PPC service and how we can help your business thrive online!

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