How much do PPC agencies charge?
Several factors influence the amount a PPC agency charges. According to 2025 data from WebFX, 83% of businesses spending between £1000 and £100,000 per month on pay-per-click advertising ended up paying between 5% and 10% of their budget as agency management fees.
This article breaks down everything you need to know about the different ways PPC agencies price themselves.
Table of Contents:
PPC Agency pricing models
When it comes to PPC agencies, you’ll find a range of pricing models, each offering its level of flexibility. Below are the different ways these fees can be structured.
Hourly Rates
This is the most common approach PPC agencies use. Before any work begins, the PPC agency and the client agree on a fixed-fee retainer that may or may not include a specified number of agreed-upon fixed hours each month. All work done falls within the scope of this retainer, and its terms only fluctuate when upon a secondary agreement. Below are a few levels of retainers and their estimated rates:
Small PPC Spend: £300–£800/mo
Mid-PPC Spend: £800–£2,000/mo
Large PPC Spend: £2,000–£5,000+/mo
Pros: It’s easier to budget for your marketing spend on retainers, and agencies generally focus on long-term results as they have a more concrete commitment from you. Many agencies are usually flexible when it comes to retainers, especially if you are willing to commit to longer-term contracts. Statista revealed that, on a retainer, a PPC agency could cost, on average, £1,040.9 per month in management fees, which is far less when broken down into hourly rates.
Cons: Agencies receive a fixed amount regardless of whether their workload decreases. If there is downtime in your advertising, you will still be required to pay the full agency fee. Many agencies require you to commit to longer-term contracts when it comes to retainers.
Percentage of Ad Spend
The PPC agency charges a fixed rate of 10–20% of your total ad budget. For example, £10,000 in ad spend at 15% = £1,500 in management fees. This means your agency’s fees fall and rise with your ad spend.
Pros: With the percentage of ad spend model, your PPC agency costs align directly with your marketing budget. This transparent approach enables you to easily track your media spend and calculate your expenses, providing a clear understanding of where your money is being spent.
Cons: This can become a costly model if you are spending large budgets on your PPC campaigns. As your spending grows, the cost advantage will shift significantly in favour of the PPC agency, as management hours increase at a much lower rate than spending.
Performance-Based/Commission
An additional payment is made to the agency when they achieve or exceed the agreed-upon performance targets, such as a certain number of leads or a specific return on ad spend. This model is rare for agencies to offer, but some agencies may propose it under the right conditions. You only pay the agency based on the results they deliver (e.g. cost per acquisition, lead volume, or revenue share). For instance, £50 per qualified lead or 5% of sales revenue driven by ads.
Pros: The performance-based/commission model keeps PPC agencies highly accountable for their activities on your account. You only pay the PPC agency when you have made a tangible return on your investment, providing a sense of security and confidence in the agency’s performance.
Cons: Most agencies will not agree to this if you have a long offline sales funnel. Offline pipelines that take a significant amount of time to mature and involve multiple touchpoints before a sale is complete give agencies little to no control. Agencies will, in most cases, still expect you to carry the media spend, even when they don’t qualify for their commissions. Most agencies will also require a minimum retainer fee as part of this agreement, serving as a means of protection against potential labour costs they incur.
Hybrid Models
Some agencies, like ADdictive Digital, are flexible with their fee structures. Every client is unique and requires a fee model tailored to their business objectives. That is why ADdictive adds more value to your business with a comfortable fee structure. You can visit our PPC Agency page for information on how we manage PPC accounts, or look at the examples below of the hybrid cost structures we offer our clients.
Flexible Retainer Model
A minimum monthly retainer to cover the hours we have to spend on your account or a percentage of your media spend, whichever is bigger. The client carries media spend.
Capped Retainer Model
A minimum monthly retainer to cover the hours we have to spend on your account or a percentage of your media spend, whichever is bigger. We cap the retainer, meaning that if our clients exceed a particular spend, we won’t increase our retainer any further.
Fixed Retainer with Performance Bonus
We charge our clients a minimum retainer for the hours we spend on their accounts. The client then carries the media spend, and ADdictive Digital receives certain bonus payments for reaching the agreed-upon KPIs.
If you’d like to obtain a quote for PPC management with ADdictive Digital, we’d be happy to help you find a fee structure that suits your budget and business objectives. Schedule a discovery call with us.
Influences on PPC Agency Pricing
Despite your requirements remaining the same, you will often find that different agencies still quote wildly different prices. When you boil it down, the single most significant factors that will materially shift what they charge are the following:
PPC agency location
The location of the agency you approach will likely be one of the biggest influences on the fee they quote you. Agencies located in larger cities tend to incur higher expenses, such as office rental and staffing costs, which are inevitably passed on to their clients.
In England, there is also a notable difference in the price of PPC agencies between the North and the South. For example, a PPC agency in Manchester will cost you, on average, £950 per month in management fees, compared to £ 1,200 per month if you choose one near London. If you’re looking in Wales, you will find agencies generally charge around £830 per month. Northern Ireland will cost, on average, £830 per month, and in Scotland, except for major cities such as Glasgow and Edinburgh, the cost will be around £880.
Please note that these prices are estimates and may vary depending on the specific services, the agency’s reputation, and its level of experience. Take a look at the map below to get an idea of prices for PPC agencies in the United Kingdom broken down by region.
The average PPC agency monthly retainer by region, UK
Greater London – £1,200
South East, England – £1,090
East of England – £1,000
South West, England – £890
Midlands, England – £940
North West England – £950
Yorkshire and the Humber – £880
North East, England – £950
Scotland – £880
Wales – £830
Northern Ireland – £830
PPC agency's team size
PPC Agencies with larger teams tend to be more expensive. Especially if they have people in more specialised roles, such as PPC strategists and dedicated conversion rate optimisation specialists, these large agencies can offer you more bells and whistles for their larger container. Still, it’s essential to determine if the additional cost will significantly improve the final return on investment you can expect.
Note: Be cautious of agencies with large teams that still offer cheap retainers. PPC agencies like these likely have a model of winning your business and assigning it to junior staff with limited experience. Yes, some of these agencies claim to have more senior staff overseeing performance, but in reality, their input tends to be very thinly spread.
Technology Stack & Cost of Tools
PPC agencies invest in various tools and technologies that make their lives easier or add value to their clients in terms of reporting and campaign optimisation. DesignRush has an article on 12 great tools agencies use if you’d like examples. Some PPC agencies utilise tools for client accounts and pass this cost on by charging higher retainers. The increased cost is not necessarily a good or bad thing, as it entirely depends on the value addition it brings. It is always essential to determine the value these tools will add to your business before signing contracts for additional costs. Always ask if you could get a discounted retainer by excluding tools you don’t feel add value.
Account Load & Client Roster
PPC agencies with more clients may be reluctant to negotiate on their pricing, as their agency strategy is to maximise the return on their remaining capacity. Smaller agencies with fewer clients are more likely to offer you better fees, as they may still be growing and looking to add clients to their roster for showcasing. PPC Agencies with impressive client rosters, such as BMW and Nike, will also utilise this to position themselves as a premium agency, which means higher fees for their clients, simply due to the prestige factor.
Although PPC agencies with more impressive client rosters should receive the credit they deserve, it’s essential to keep in mind that this doesn’t necessarily make them a good fit for every business. If you are a small or medium-sized company competing for your PPC agency’s time against legacy brands, you may get neglected when agency resources are stretched thin.
Agency Reputation and Track Record
PPC agencies with a well-established reputation and track record may be in higher demand. It’s for this reason that they might increase their fees to focus on premium clients. When a PPC agency has a solid reputation and a good track record, that is a factor that might be worth the additional fees.
Do keep in mind, however, that figures agencies boast about could easily be inflated or omit information that wouldn’t be apparent to those less educated in PPC advertising. Agencies might also use their historical good performance to justify sub-par performance in the future. Many PPC agencies fall into the trap of blaming clients for bad performance by weaponising their past success as evidence.
Usually included in PPC agency fees
PPC agencies vary in the services they offer as core offerings, but here are a few key elements that should generally be included in most PPC management fees.
Account audit, strategic planning and onboarding
When you sign up with any PPC agency, they should take responsibility for reviewing all historical PPC activity you can provide access to. They should also provide you with a well-thought-out PPC strategy that includes market and competitor research, as well as keyword research. The PPC agency should also take care of creating or restructuring an ads account for you, setting up tracking and reporting, and helping you set up a funding source.
Note: When researching and setting up your account, it’s not unreasonable for an agency to request input on industry knowledge and development resources for implementing tracking. Ensure you have a clear understanding of the agency’s requirements before signing any agreement.
Ad Copywriting & Creative Updates
PPC agencies, such as ADdictive Digital, typically include copywriting services, as well as some landing page development. Writing ad copy is not something a client should undertake on their own unless experienced with PPC ads. That, however, does not mean that agencies should not solicit input and obtain sign-off from clients on the copy they write.
When it comes to creatives, some agencies would either offer this in-house or through partner agencies, sometimes at an additional fee. Some PPC agencies will include this in their fees if you agree to run Google display ads.
Copy and creatives still need to be agreed on before any contract signing, and it’s essential to quantify this in the agreement. Ensure you understand the monthly copy and creative allocation for your business, as well as the number of rounds of amendments permitted during the design process.
Bid Management & Budget Allocation
If you sign up with a PPC agency for a full-service management agreement, your agency should do the day-to-day management of your accounts and be responsible for budget and bid management. Additionally, ensure that your PPC agency clearly explains its financial liability policy to you so you understand who is responsible for any negligent spending on your accounts.
Basic Landing-Page Review
All PPC agencies should provide you with a basic review of the landing pages you send traffic to. Their feedback should include suggestions for improving copy, imagery, layout, and overall user experience. PPC agencies are generally not responsible for any heavy design or website development work unless otherwise agreed.
Monthly Reporting & Strategy Calls
All PPC agencies should be willing to provide you with regular, reasonable reporting and strategic calls. Discuss how much reporting you are going to require from your agency before signing the agreement. Also, ensure that the agency’s reporting style aligns with your business and includes all the metrics and KPIs you have agreed upon.
If you want more information on what PPC agencies do, read our What is PPC Management article here.
Common Add-Ons & Extras for PPC Agencies
Landing-Page Design/Development: Full page creation or split-testing; often billed at £500–£1,500 per page or £1,000–£3,000+/mo for ongoing CRO.
Advanced Analytics & Attribution: Cross-device tracking, multi-touch attribution modelling; typically an extra £500–£2,000/mo.
Social PPC (Facebook, LinkedIn, Twitter, TikTok): Each channel typically has its setup, creative, and reporting fees (£500–£1,500 per month per channel).
Creative Production: Video editing, rich media ad creation, bespoke imagery; often quoted per asset (£150–£1,000/asset).
Bid-Automation Technologies: Licensing fees for third-party tools, which can be £100–£2,000/mo.
Tip: When reviewing quotes, ask agencies to itemise deliverables. A lower-cost proposal may omit critical services—be sure you compare apples to apples.
How to Compare & Negotiate PPC Agency Proposals
We recommend getting quotes from at least three different agencies when starting your search. When looking for a PPC agency to work with, consider all the above aspects and gather as much information as you can about your prospective agencies. Then, use the following tactics to figure out the best agency for your business:
Benchmark Against Industry Averages
Refer to the fee ranges in this article and your ad spend to gauge fairness. For small businesses (<£5K/mo spend), aim for 10–15% of spend or £500–£1,500/mo retainer. For larger businesses, consider negotiating a more customised retainer agreement.
Ask the Right Questions
How many new ads will I get per month? How often do you build landing pages? What’s the reporting cadence? Who’s my point of contact? What tools will you be using? Are there extra licences? How do you handle bid automation?
Negotiate Scope vs. Fee
If the retainer fee seems high, identify which services you can deprioritise (e.g., reduced tool use). Alternatively, ask for a performance bonus in place of a portion of the flat fee—e.g. “£1,500/mo plus £50 for each qualified lead above 50.”
Lock-in Trial Periods & Exit Clauses
Consider a three-month trial to test performance, and ensure a 30 to 60-day notice clause is in place in case you need to pivot or cancel the agreement.
Leverage Multi-Channel Discounts
Agencies often give 10–20% off if you bundle social and search PPC under one management fee.
Value Over Cost
The cheapest and most expensive agencies may underdeliver. Focus on past performance, case studies, and cultural fit. A slightly higher retainer that delivers a better return on investment (ROI ) could be a smarter long-term investment. Avoid high retainers with numerous unnecessary add-ons.
Conclusion
PPC-agency pricing isn’t one-size-fits-all. By understanding the core models (hourly, retainer, percentage, performance), typical fee bands by budget sizes, the factors that drive costs, exactly what’s included vs. extra, and savvy negotiation tactics, you can confidently budget and choose the partner that will maximise your ad spend efficiency and growth. To obtain a quote from ADdictive, you can schedule a strategy call with us to discuss your specific needs. Alternatively, visit our PPC agency page for more information on our PPC services.
Derick Turner, Founder of ADdictive Digital
About the Author
After a decade in digital marketing, I’ve observed that many agencies fall short simply because they lack sufficient understanding of their clients’ businesses.
At ADdictive, we take a different approach. We invest the time needed to understand your business, your objectives, and the unique challenges you face, so we can help you navigate them effectively and achieve lasting results.
Derick Turner, Founder of ADdictive Digital
