How Much Does PPC Cost?

How Much Does Paid Promotion Cost?

Every time a new client approaches us, they ask the same question - "How much does paid promotion cost?" The answer to this question depends on various factors, and therefore there isn't a single, definitive answer. However, in this article, we will reveal all the main parameters and also indicate the prices that we at Alt charge for our different services.

Factors That Influence Paid Promotion Costs

The cost of Pay Per Click promotion (PPC) varies according to several key parameters. Below are the factors that will influence the price you'll pay for promoting your business:

• Experience Level of the Promoter

  Promoters with rich professional experience typically charge a higher rate than those who have just completed their studies, but they bring knowledge and insights that are difficult to quantify. As a rule of thumb – the more experienced the promoter you choose to work with and the more markets they operate in, the higher their price will generally be.
  
  

• Workload

  Does the promoter need to deal with creating the content for advertisements? Designing them? Creating dedicated landing pages? Or is it just about managing the campaign?
  
  

• Number of Channels

  Managing campaigns across multiple channels and platforms (Omnichannel) requires more time, more investment, and more experience.
  
  

• Strategic or Tactical Implementation

  Are you looking for a partner who will perform tasks you assign? Or are you looking for a partner who will propose ideas and actively optimise?
  
  

• Types of Promotion

  Beyond paid promotion, there are digital marketing agencies that offer additional services such as Search Engine Optimisation (SEO), social media marketing (SMM), and other additional services. Sometimes agencies offer worthwhile package deals for several services together.

It's important to understand that there is no universal option for a low or high price for paid promotion services. What's important is that you find a promoter who meets your objectives and knows how to deliver the best results within your available budget. Remember that one of the most basic things you should do to find a good promoter is to set realistic expectations and goals.

Common Pricing Methods for Paid Promotion

So that you can still leave this article with some figures to help you understand the common price ranges for paid promotion, we've compiled some of the most common pricing methods:

1. Percentage of Expenditure + Base Payment

   Historically, the most common payment model in paid promotion is one where you pay the promoter a fixed monthly retainer, and additionally pay a certain pre-defined percentage of advertising expenditure. In recent years, this pricing method has been disappearing, mainly because it isn't results-based, creating a situation where the promoter doesn't really have an interest in promoting your business because they will receive their salary regardless.
   
   
   • Base payment component: typically ranges from £100 to £500 per month
   • Percentage of expenditure: ranges between 5% and 15%
     
     

2. Monthly Retainer

   There are digital marketing agencies that prefer to work for a monthly and fixed retainer that doesn't change based on campaign results. Note that there are agencies that include the expenses for the campaign itself in the price, and there are companies that separate the payment for them and for the platform where the advertising is placed.
   
   
   • Base payment component: typically ranges between £500 and £2,000 per month
   • The price may increase according to additional services:
     • • Design and content writing for advertisements and/or landing pages
       • Setting up advanced conversion tracking
       • Frequent changes to the campaign following developments and changes in business objectives
         
         

3. Payment for Results

   In this payment model, the agency charges the business according to the leads or conversions received, rather than a fixed base payment. While this model appeals to many business owners, it's important to understand that in practice, the marketing company is a kind of owner of the advertising account, which could create complications if you choose to leave and move to another company, or if you want to conduct paid promotion yourself.

Choosing a Digital Promotion Agency for PPC According to Budget

Beyond considering expenditures and payment to the promotion company, the choice of who will perform our paid advertising depends on our budget, the goals we've set, and the company's capabilities.

• If your marketing budget is less than £500 per month – consider conducting paid promotion yourself, or using automation tools, as agency prices may be beyond your marketing budget.
  
  
• For businesses with a distinctly seasonal character (such as those that operate strongly during the holiday season or summer), it's recommended to look for an agency that charges a fixed monthly retainer so that extreme fluctuations will be more subdued.
  
  
• For promotion accounts working on a fixed and stable budget, it's worth choosing a company that charges a percentage of marketing expenses because this way you maintain reasonable expenses, but incentivise the company to bring real achievements.
  
  
• Businesses looking for a strategic and active partner will prefer to choose an experienced marketing agency that also specialises in international marketing.
  
  
• If you're just looking for someone to follow instructions, it's recommended to find a beginner promoter who will simply perform the technical tasks for you.
  
  
• Need comprehensive promotion services? Prefer to work with a marketing agency that offers more than just paid promotion. Choose a company that can handle all aspects of digital promotion relevant to your business.

In conclusion, you can understand from this article that there is no rule of thumb for the costs of paid promotion. The goal is not to choose someone just because they charge a lower or higher price; the goal is to match the nature of the promoter and their capabilities to our goals and objectives, and to do all this while staying within the existing budget.

At Alt, we offer our clients diverse packages that combine different types of promotion, and we do it all with the help of our experienced team of experts. With decades of experience in the Israeli market and international market, our team knows how to tailor an action plan and the platforms especially suitable for your business.

For more details – contact us and we'll arrange a conversation.

Asaf Shimoni
Founder of Alt Digital Marketing, with nearly 20 years of experience in digital marketing. An expert in SEO and paid campaigns, helping tech companies, eCommerce, and B2B businesses achieve steady growth through tailored marketing strategies.