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Ads Pricing
Posted by on June 1, 2020 at 5:28 pmI’m going to start running ads for clients (I already handle the organic side) and would love to hear about how you handle pricing. What’s the industry standard and what does it include? Any feedback is appreciated!
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1 Reply
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there are 3 main ways to charge for paid media:
commission, arbitrage, and project rate.
the one you use will depend on what kind of ads you are running and your relationship with client.
commission is where you are paid a percentage of the media spend. This typically starts at 20% and goes down as the media spend goes up aka volume discount. your commission as an individual would be different than an entire media team’s commission. this is now the more common payment structure.
arbitrage is where you guarantee a delivery (ie 1000 clicks) for a specified price and you keep the difference between how much they cost you and how much the client is buying them from you. this is less common than it used to be but still has its place.
project rate is when you agree on a flat rate (or hourly) for the work. this can be good to do when the media budget is low, fluctuating, or undefined (ie lets start spending $10/day and see how it goes).
all of the above includes, at a minimum, setting up the campaigns and ensuring the creative meets spec, regular optimization and reporting.
hope this helps!
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