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What A PPC Management Fee Covers

Two separate costs in Google Ads

When you run Google Ads with an agency, there are always two distinct costs: the ad spend (money paid directly to Google) and the management fee (money paid to the agency). These are completely separate.

What the management fee covers

  • Campaign setup: Account structure, ad copy, conversion tracking, audience configuration, bidding strategy.
  • Ongoing optimisation: Keyword performance reviews, bid adjustments, negative keyword additions, ad copy testing, audience refinement.
  • Reporting: Monthly performance reports covering spend, clicks, conversions, and recommendations.
  • Platform management: Keeping up with Google Ads changes and new features.
  • Tooling and software: The platforms used to manage and report on campaigns.

Why the fee doesn't scale linearly with ad spend

The work involved in managing a campaign — optimisations, reviews, reporting, testing — doesn't reduce proportionally with spend. Managing two platforms adds meaningful overhead regardless of individual budget sizes.