The two costs
Where your Google Ads money goes
Ad spend is paid straight to Google every time someone clicks your ad. You set the budget and can change it any time.
The management fee pays for the people building, testing and improving your campaigns. This is where quotes differ most, and where it pays to read the fine print.
When comparing agencies, always ask for both numbers separately. A low fee on a badly run account usually costs more overall than a fair fee on a well-run one.
Agency fee models
How Google Ads agencies charge, compared
Four common ways agencies price management, and what to watch for with each.
| Model | How it works | Upside | Watch out for |
|---|---|---|---|
| Percentage of ad spend | Usually 10–20% of what you spend with Google | Simple to understand | The agency earns more when you spend more, whether or not results improve |
| Flat monthly feeHow we charge | A fixed amount for an agreed scope | Predictable, and the focus stays on cost per lead | Check exactly what's included in the scope |
| Hourly | Billed for time spent in the account | Fine for small one-off jobs | Hard to budget, and rewards slow work |
| Performance-based | Paid per lead or a share of sales | Feels low risk | Lead quality can suffer, and definitions of a “lead” cause disputes |
Setting a budget
How to work out your Google Ads budget
Start from the number of enquiries you want, not from a round number. This simple sum gets you a sensible starting point.
Worked example with illustrative numbers. Your real cost per lead depends on your industry and how well the account is run. We estimate it for you before you spend anything.
Cost per click
What makes a Google Ads click cost more
You don't pay a set price per click. It's an auction, and these five things decide how much you pay to win it.
Competition in your industry
Legal, finance, health and trades are among the most expensive searches in Melbourne because each customer is worth a lot.
Quality Score
Google rewards relevant ads and good landing pages with cheaper clicks. A well-built account pays less for the same position.
Keyword match types
Broad match can spend fast on searches you never intended. Tighter targeting keeps budget on buyers.
Location and schedule
Targeting all of Melbourne around the clock costs more than targeting your service area during the hours you can answer the phone.
Conversion tracking
Without accurate tracking, Google's bidding optimises for the wrong thing and you pay for clicks that never become customers.
Before you sign
Hidden Google Ads costs to check in any quote
Set-up fees
Ask whether account set-up is a separate charge, and what it includes.
Lock-in contracts
Six or twelve-month terms make it expensive to leave if results don't come.
Who owns the account
If the agency owns the account, you can lose years of data when you leave.
Landing page charges
Some quotes look cheap until landing pages are billed separately.
Paid reporting
Reporting should be part of management, not an add-on.
Our flat fee
What's included in our Google Ads management
- Account audit and restructure
- Keyword research and negative keyword lists
- Ad copy writing and testing
- Conversion tracking set-up and checks
- Bid and budget management
- Search, Shopping and Performance Max
- Monthly report on leads and cost per lead
- A real person to talk to
FAQ