Pricing models for pay-per-click (PPC) campaign management can take on many forms. Whether you’re a search engine marketing (SEM) agency providing PPC services, or an advertiser contracting for them, the right model will depend on the needs and goals of both parties.
Both the SEM agency and the client will win if the agency can provide quality PPC management services at a fair price, and if the goals of the agency and client are aligned and reflected in the pricing model and structure of the contract.
This report outlines two main categories of PPC management pricing models: cost-based pricing and performance-based pricing. In each category, we’ve outlined some typical examples, along with the advantages and disadvantages of the models for both SEM agencies and PPC advertisers.
Prepared by Kevin Newcomb, based on previously published columns from Search Engine Land.
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