On the one hand it seems transparent

Subscription + percentage of supported campaign budget. Success fee and payment for the effect Hourly model or permanent subscription Percentage of PPC campaign budget The principle is simple: as the spend on Google Ads/Social Ads increases, so does the campaign service fee. For this reason, it is a billing model often chosen by PPC agencies that really want to help their clients by engaging resources adequate to their needs. Typically, the % ranges from 5% to 20% depending on your campaign budget, ad type, campaign strategy and goals. and ensures easy planning of advertising expenditure.

On the other hand the advertiser pays

Proportionally from the budget of the campaign, not always proportionally from the real contribution of the agency to the success of the campaign. Customer value: The Realtor Email List great thing about this pricing model is transparency – there will never be any doubts about spending forecasts, be it for PPC advertising or agency fees. This model does not requireadditional negotiations, the costs are known right away. You don’t need to worry if adding more campaigns will raise prices drastically. Because you know the extra budget and the percentage that comes with it. Facilitates launching test campaigns for which an additional budget is allocated.

Stability – you don’t have

Worry about any changes in cooperation or expenses without your knowledge. Universal for all types of clients, from small to large budgets. Commitment to a certain % of your campaign’s advertising budget also creates a more reliable relationship. With the agency because you don’t re-negotiate CMO Email List monthly fees based on campaign performance. Disadvantages of the percentage of budget model. A poor PPC agency may use this model as an opportunity to secure resources. Less efficiently or increase the fee at the cost of manipulating the campaign budget.