Google Ads & Social Ad Management Fees
KO charges a fee to manage paid online advertising. Why?
The justification for these fees, is the time and expense spent by the KO team to train and certify in the social and search channel training and certification programs. Additionally, the KO team has 10 plus years of lessons learned and experience in what to do, not to do and what is truly effective. Typically, KO’s ad management fee can SAVE more than their fees cost, over what a client will waist in trying to manage these ad programs themself. Furthermore, the ad performance will typically be double and sometimes quadruple what they were getting with self management.
Best Performing Ads Management
Note: Industry wide Paid Ad campaign performance is a 2.35% conversion rate. KO’s Ads conversion performance rate is from 5% to 10+%. See real life sample below.
KO’s Paid Ad Fee Structure:
We charge a 20% management fee for ad spend rates of up to $2,000 per month, *PER Ad Channel and a 10% fee for any spend above $2,000 per channel. Small, short term budget testing is OK, but normally minimum spend budget is $1,000/Mo.
Fee Example 1: Client spends $3,000 per month. Fee would be $500 ($400 for the first $2K and $100 for the additional $1K+).
Fee Example 2: Client spends:
$3,000 on Ads = $500 fee
$1,000 on FB = $200 fee
$4,000 on LinkedIn = $600 fee
$5,000 on Yelp = No fee. KO is a Certified Yelp Partner with added product offerings
Total fees: $1,300/Mo.
*KO will at times wave the ‘Per channel’ condition for short periods of experimental testing.
Best ROI Performance is what Really Matters:
About the numbers: A conversion is a click on an ad that leads to a purchase or contact (Conversion rate). Impressions, Cost Per Click (CPC) and Click Through Rate (CTR) are really just vanity stats and really don’t mean anything to an advance, professionally ran Ad campaign. The bottom line is Conversion Rate and Cost Per Conversion.
Real life case study:
This is a July 2018 report for a very competitive, consumer based service industry company in the San Francisco Bay Area.
- July’s ad spend was $6,822.77
- Divided by 133 leads = $51.29 per lead
These leads are considered fairly strong ones, because presumably the prospect has checked ratting scores, testimonials and learned about the company before the contact
- If the client has a 50% closing rate on these leads, their cost per closed lead is $102.59. This clients average job billing is from $5,000 to $12,000
- See actual report below (image)
Is Paid Online Ads Right For Your Company?
- Lower cost gross goods/items generally cost less per click and conversion. But there is a price point where it’s not cost effective to do search PPC for some low cost items. That said, lower cost social advertising may still be a viable option.
- Business with recurring fee structures can do very well, even if their initial cost per conversion is high. For example, a monthly service company may be willing to pay a higher cost to gain a new client, knowing that they normally keep that client and contract for long periods of time.