What a Google Ads agency actually does

A Google Ads agency is not an extension of your marketing team that places ads while you watch. It thinks in terms of funnels, target groups and margins. From the first keyword research sprint to the monthly performance review, it delivers everything from a single source.

The decisive difference to internal ad management: agencies usually manage dozens of accounts at the same time. They see patterns, mistakes and opportunities that remain hidden to a single advertiser. This network knowledge flows into every account they manage.

The most important Google Ads campaign types at a glance

Which campaign is best suited to your company depends on the objective, product and budget. The following table shows the most common types with typical suitability, sensible starting budget and realistic ROAS expectations:

Agency tip: Never start with Performance Max before search campaigns deliver at least 30 conversions per month. PMax needs signals – without them it burns budget in the display network without a measurable return.

What does a Google Ads agency cost?

The cost issue is complex because agencies use different pricing models. There are basically three common models: a monthly flat rate, a percentage of the managed advertising budget or a hybrid model of both.

Monthly flat rate

Small and medium-sized agencies often charge a flat rate of between €500 and €3,000 per month, depending on the scope of services. This model creates planning security on both sides. The disadvantage: if the budget increases, the agency’s performance does not automatically increase with it.

Percentage model

The most common model for larger budgets: The agency receives 10-20% of the monthly ad spend managed. So with a €10,000 ad budget, the client pays a €1,000-2,000 agency fee. There is a natural incentive to scale the budget – which is sometimes contrary to your interests if the ROAS is not right.

Hybrid model

Many agencies combine a basic flat rate (e.g. €800) with a performance share. This creates alignment: the agency only benefits more when you also benefit. This model is recommended for long-term partnerships with clear KPI targets.

Typical total costs at a glance

• Small budget (up to 2,000 €/month ad spend): Flat fee 500-800 € + advertising budget
• Medium budget (€ 2,000-10,000): 15 % of the budget, at least € 800
• Large budget (over €10,000): 10-12 % degressive scale + setup fee
• Setup fee (initial setup): 500-2,000 €, one-off

How to recognize a good Google Ads agency

The market is full of agencies that display Google Partner badges but have little behind them. The partner badge is only an entry indicator – the questions you ask in the initial interview and the answers you get are crucial.

Positive signals

• The agency asks about your margins, not just your budget
• She talks about CPA and ROAS targets before she talks about click numbers
• It shows you anonymized case studies from your industry
• Tracking is the first thing you check and set up
• Monthly calls with concrete recommendations for action, not just PDFs of figures

Warning signals

• Guaranteed click or conversion figures without knowledge of your market
• No questions about your target groups or competitors
• Reporting exclusively via Google’s own metrics without reference to turnover
• Long-term contracts with a minimum term of 12+ months for the first commitment

The collaboration: This is how a typical mandate works

A professional Google Ads agency works in clearly defined phases. Anyone who doesn’t do this is improvising at your expense.

Phase 1: Onboarding and audit (weeks 1-2)

Before a single ad is changed, the agency analyzes the existing account, the tracking architecture and the conversion data. If there is no account yet, a competitive and keyword research follows. The result is a prioritized roadmap.

Phase 2: Setup and launch (weeks 3-4)

Set up campaign architecture, write ad texts, configure ad extensions, define bidding strategies. Initial expenditure is deliberately kept low in order to collect clean data.

Phase 3: Optimization (ongoing)

Weekly checks for search terms, quality factors, bid changes and budget utilization. Monthly A/B tests on ad texts and landing pages. Quarterly strategy review with you as the client.

If you want to know how performance marketing affects ROAS and conversion rates, you can find more in-depth insights in our performance marketing and ROAS strategy for companies.

Google Ads agency vs. in-house: Which is right for you?

This question arises at the latest when the advertising budget reaches six figures. The answer depends on three factors: Budget, complexity and internal know-how.

• Agency makes sense: budget under €50,000/month, no internal PPC team, several campaign types simultaneously, seasonal fluctuations, rapid scaling required
• In-house makes sense: Highly repetitive campaigns with little variance, very high budget with scope for a dedicated team, strict data protection requirements that prohibit external account access
• Hybrid: in-house manager coordinates external specialists for Shopping, YouTube or Performance Max – the best solution for many medium-sized e-commerce businesses

In addition to Google Ads, it is worth taking a look at SEO and SEA in combination – organic visibility and paid advertising reinforce each other considerably.

If you are also considering social ads, our overview of Facebook Ads agencies will help you make a comparison. You should also assess agency prices realistically – our page on social media agency prices will give you some orientation. For a personal introduction, we recommend an initial meeting without obligation.

What does a Google Ads agency cost per month?

Depending on the model, the costs range from €500 (flat fee for small accounts) to several thousand euros for large budgets. Typically 10-20% of the managed advertising budget, but at least €800-1,000 per month. In addition, there is the actual advertising budget and possibly a one-off setup fee of €500-2,000.

How long does it take for Google Ads to produce results?

The first clicks come the day after the launch. It takes 4-8 weeks for statistically significant conversion data and the first optimization rounds. A stable, profitable ROAS is usually achieved after 3-6 months if tracking and account architecture have been set up correctly from the outset.

Do I keep access to my own Google Ads account?

Yes, absolutely. You should always have admin access to your own account – regardless of which agency you hire. Reputable agencies work via Google Ads Manager account access without taking over your account. Ask for this in writing in the contract.

What is the difference between Google Ads and SEO?

Google Ads provides immediate visibility for a fee. Every click costs money, but the ads appear immediately on page 1. SEO is an organic process that takes 6-18 months, but then brings permanent traffic without direct click costs. Both complement each other: Ads provide quick data for SEO decisions, SEO reduces the dependency on paid traffic in the long term.

Can a Google Ads agency also manage Shopping campaigns for my online store?

Yes, Shopping campaigns and Performance Max with product feed are core disciplines of modern Google Ads agencies. A cleanly structured Merchant Center feed with complete product data, prices and availability is a prerequisite. The agency usually also takes on feed optimization as part of its service.

More on this topic: Agency prices at a glance – Performance marketing – Google Display Ads – Meta Ads agency – Hire an advertising agency

What are bidding strategies?

Bidding strategies are a central element in online advertising campaigns, especially with Google Ads and other pay-per-click(PPC) platforms. They determine how much you are willing to pay for each click, impression or conversion. Depending on your goals and budget, you can choose between different bidding strategies to maximize the effectiveness of your campaigns.

Types of bidding strategies

3 Example of bidding strategies:

Cost per click (CPC)

With this bidding strategy, you pay a certain amount for every click on your ad. This strategy is well suited if you want to increase traffic to your website and are willing to pay for each visitor.

Tip: Quickly calculate the CPC? Use our free CPC calculator.

Cost per Mille (CPM)

Here you pay a fixed amount for a thousand impressions of your ad. This strategy is well suited if you want to increase the visibility of your brand and consider the number of impressions to be an important goal.

Quickly calculate the CPC? Use our free CPM calculator.

Cost per acquisition (CPA) / costs per lead (CPL)

This strategy is based on how much you are willing to pay for each conversion. For example, a conversion can be a purchase, a registration or a download. This strategy is particularly effective if you are targeting conversions directly and want to align your marketing spend with the value of each individual conversion.

Our tip for this too: calculate free of charge with our CPA calculator.

Choosing the right bidding strategy

Choosing the right bidding strategy depends on various factors, including your goals, your budget and the nature of your campaign. Before deciding on a bidding strategy, you should clearly define your goals and ensure that the strategy you choose best supports those goals. It is also important to regularly monitor the performance of your campaigns and make adjustments where necessary to achieve optimal performance.

Oh yes, and… Don’t forget A/B tests

In the world of digital marketing, it is crucial to use effective strategies to reduce advertising costs while maximizing conversions. A proven way to achieve this goal is the A/B test. Efficiently reduce advertising costs with:

• A/B tests

In this example, the landing page to which your new leads are sent via ads. Don’t forget, this must also be conversion-optimized.

What does advertising on Google cost?

The cost of a Google Ads ad that goes to 100,000 people can vary greatly and depends on several factors, including the level of competition in your industry, the bidding strategy you choose, the quality of your ad and the relevance of your keywords. Typically, Google Ads pays for ads either per click (CPC), per impression (CPM) or per conversion (CPA).

In general, the more profitable the industry, the higher the competition, the more expensive:

• Little competition: 1-4 Euro
• Medium competition: 5-9 Euro
• High competition: 10+ Euro

For a rough estimate: If we assume an average CPC of 10 euros, you would pay around 10,000 euros for 100,000 people to see your ad. However, this amount can vary depending on the factors mentioned.

• Advertising costs: 10,000 euros
• CPC: 10 Euro
• People reached: 100,000 euros

Costs money, brings advantages

5 advantages of Google Ads (and other PPC platforms):

1. Reach: Reach a large target group
2. Flexibility: Adjust your ads and budgets flexibly
3. Measurability: Track and analyze the success of your campaigns
4. Targeting accuracy: Targeted ads to relevant users
5. Fast results: Immediate visibility and potential customer contacts

Bidding strategies maximize your ROI

Bidding strategies play a crucial role in online marketing and can have a significant impact on the success of your campaigns. By choosing the right bidding strategy for your goals and budget and continuously monitoring and optimizing it, you can effectively achieve your marketing goals and maximize your ROI.