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Questions About Sem Management Fees/rates


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4 replies to this topic

#1 CQMarketing

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Posted 17 February 2011 - 11:10 AM

Hi all, I'm with a major Fortune 1000 company and I'm looking to get a good feel for general PPC management rates to make sure we're not paying more than we should. We spend an average of $10K/month on PPC to a third party. The majority of the campaigns are Google PPC campaigns. What type of rates/fees would you say are fair or common? Right now our fee is based off of a percentage of adspend. Is this fairly common? If so, what's a reasonable percentage?

Thanks for your advice in advance!

#2 Jill

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Posted 17 February 2011 - 01:48 PM

It depends on how extensive your account and campaigns are, what they're doing for you, how many hours a week they spend, and all that. Are they continually adding negative keywords, and using all the new adwords tools and add-ons? That kind of thing is worth more than if they're just letting your account sit there.

#3 CQMarketing

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Posted 17 February 2011 - 02:31 PM

QUOTE(Jill @ Feb 17 2011, 11:48 AM) View Post
It depends on how extensive your account and campaigns are, what they're doing for you, how many hours a week they spend, and all that. Are they continually adding negative keywords, and using all the new adwords tools and add-ons? That kind of thing is worth more than if they're just letting your account sit there.

To my knowledge they are actively managing the account and adjust spends on a month-to-month basis. I haven't checked into their volume of negative keywords or how often that list is updated. I wouldn't say we're a high demand client, but we're also not the set it & forget it type either

I'm looking for more of a ballpark percentage to at least let me know that I'm within reason, or needing to renegotiate.

#4 Jill

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Posted 17 February 2011 - 05:27 PM

I think many companies who charge a percent of spend it's often 15%.

But I'm not sure that percent of spend is always the best way to go for the client. It encourages more spending, rather than less. As the client, you should want to spend less, not more. Well at least you want to spend less per conversion. If they keep getting your cost per conversion down, you can spend more and make more in the process.



#5 AccelerateMedia

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Posted 24 March 2011 - 01:45 PM

We charge based on a sliding rate. Management fees include active management of accounts as well as media creation. You can expect to pay 15-20% if you aren't doing much volume on actual spend, but the more you are spending the lower the rates.

We charge 10% > $50k/month
8.5% > $75k/month
7% > $100k/month

Those are on actual spend rates. If they are managing banner campaign and media fees for you on non-Google products, rates are generally 15-25%.




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