Contents
Key Takeaways
- PPC has two costs: the ad spend you pay Google and the management fee you pay whoever runs the account.
- Agencies charge a flat monthly fee, a percentage of ad spend, or a mix. A percentage fee rises every time the budget does, whether or not results improve.
- Across 23 US industries the average Google Ads lead cost $66.69 in 2026, from about $30 for auto repair to $131.63 for legal services.
- Judge management by cost per lead and leads per month, not clicks or impressions.
- An account audit is the cheapest way to find wasted spend before you change who manages it.
PPC management costs a monthly fee on top of the money you spend on the ads themselves. Agencies charge that fee as a flat amount, a percentage of your ad spend, or a mix of the two, and the right budget for the ads depends on how many leads you need and what a lead costs in your industry. Below: the fee models, what the ads cost, and what we charge.
The Two Costs of PPC
Every Google Ads account has two separate costs:
- Ad spend: what you pay Google for clicks. You set the budget, and Google charges per click.
- Management fee: what you pay a person or agency to run the account: keyword and search term work, bids, ads, landing pages, tracking and reporting.
Keep them apart when you compare quotes. A low management fee on a badly run account can cost far more in wasted ad spend.
How Agencies Charge for PPC Management
Percentage of ad spend
The fee is a share of what you spend on ads. It is simple and scales with the account, but it has a built-in problem: the agency earns more when your budget goes up, whether or not your leads do.
Flat monthly fee
A fixed fee, often set by the size of the budget. It keeps the focus on results rather than spend, and it is easy to plan for. This is how we charge.
Hybrid or performance-based
A base fee plus a percentage above a threshold, or a fee linked to leads or sales. These can work, but read the terms carefully: how a "lead" is counted decides what you pay.
Setup fees
Many agencies charge a one-off setup fee to audit the account, fix tracking and restructure campaigns. That work matters, because an account with broken conversion tracking cannot be managed well.
What the Ads Cost: Benchmarks for 2026
LocalIQ's 2026 search advertising benchmarks, published in June 2026, put the average across US industries at $5.42 per click, a 6.64% click-through rate, an 8.18% conversion rate and $66.69 per lead. Cost per lead varies a lot by industry:
| Industry | Average cost per lead |
|---|---|
| Attorneys and legal services | $131.63 |
| Home and home improvement | $90.92 |
| Dentists and dental services | $72.97 |
| Physicians and surgeons | $40.04 |
| Beauty and personal care | $39.25 |
| Restaurants and food | $30.57 |
| Automotive repair, service and parts | $29.96 |
These are averages. A well-run account in a niche can do better, and a poorly tracked one much worse. Here is what a well-tracked account did for one of our clients:
How to Set Your Ad Budget
Work backwards from the leads you need:
- Decide how many leads a month you need, from your sales targets and close rate.
- Multiply by a realistic cost per lead for your industry, using the benchmarks above until you have your own data.
- Add the management fee to see the total monthly cost.
- Check it pays: leads × close rate × value of a customer should comfortably exceed the total.
The calculator on our PPC management page does this with your own numbers, and says so plainly if Google Ads would not pay at those numbers.
What We Charge
Our PPC management uses a flat fee by ad spend band, never a percentage of spend:
| Plan | Fee | Ad spend |
|---|---|---|
| Launch | $1,500 a month | Up to $10,000 a month |
| Growth | $2,500 a month | Up to $30,000 a month, with the guarantee |
| Scale | $4,500 a month | Up to $75,000 a month, with the guarantee |
Ad spend is paid directly to Google and the account stays in your name. A Google Ads audit on its own costs $750 once, and shows where the budget is leaking before you commit to anything.
What to Ask Before You Hire a PPC Manager
- Who owns the account? It should be yours, with your billing.
- How is conversion tracking set up? Calls, forms and bookings should all be tracked, and ideally closed sales sent back to Google.
- How often are search terms reviewed and negative keywords added?
- What is reported? Leads and cost per lead, not only clicks and impressions.
- What is the notice period, and what happens to the campaigns if you leave?
If your cost per lead is well above your industry's average, our guide to lowering your cost per lead in Google Ads covers the fixes we make first.
Frequently Asked Questions
What is a typical PPC management fee?
Fees vary with the size of the ad budget and how much work is included. Many agencies charge a percentage of ad spend, others a flat monthly fee by budget band. Whatever the model, ask what is done each month: search term reviews, negative keywords, new ads, landing page tests and reporting in leads.
Is it better to pay a percentage of ad spend or a flat fee?
A flat fee keeps the manager's incentive on results rather than on raising your budget. A percentage fee can suit very large accounts where work grows with spend. Either way, make sure the fee is clear before you raise the budget.
How much should a small business spend on Google Ads?
Start from the leads you need and your industry's cost per lead. If you need 20 leads a month and leads in your industry cost about $70, plan for roughly $1,400 a month of ad spend before management fees, then adjust to your own results.
Do I pay the ad spend to the agency or to Google?
It varies. We recommend paying Google directly, with the account in your name, so you keep the account history and billing if you ever change agency.