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What is the average ROI when working with a high-end reputable AdWords agency?
I’m looking into hiring an AdWords agency for the first time and after getting some estimates and doing some research on the agencies I’ve noticed I could hire a higher-end agency.
– Is it worth it?
– What is the average ROI when working with one of these agencies?
– Does the average ROI go up the more money I put in or is the average ROI more static than anything?
– What should iI be looking out for when looking into an agency I am interested in?
I’ve never worked with an AdWords agency before so sorry If I didn’t explain my question correctly.
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6 Replies
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After managing accounts for 8+ years I can tell you there is no such thing as “average ROI.”
The ROI will vary for each client based on their marketing strategy, conversion rates, margins, etc. I have a client where we average 300-400% ROAS each month and they are very happy and another client that expects 900%+/mo or I’m doing a bad job. You’ll need to know your own business metrics to determine what a realistic ROI is for you and what your ROI goals are for growth.
Usually, hiring a larger agency comes with a steeper monthly fee, but also a certain level of service including multi-channel management, asset and landing page development, and dedicated reps. If those aren’t things you need, there are some really great freelancers or smaller boutique agencies that probably will cost half the price each month and from my experience, do a better job when it comes to the actual execution and management of the PPC accounts.
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Everything u/collectivethink said I agree with. Unfortunately purchasing marketing/ad agencies is more complicated than investing and expecting a certain yearly return.
But some have better policies than others when it comes to getting a return. A few things you should be looking for:
* Do they have a robust A/B testing process? Who will be doing this? Ask if you can talk to them and run you through some success stories.
* How much monthly ad spend do they manage?
* Do they run ads for their own brand?
* What’s the background of the account manager or the person in charge of the ads. Ideally, I’d like to see a copywriting background mixed with some statistical ability.
* What is their process for determining ‘winning ads?’These will give you a good idea of how mature their ad program is. I would also recommend that whoever you hire, you only let me control a small portion of the budget your planning on spending. Not to see if they can get wins with the budget but just to gauge their process over a month or two. What does working with them look like, what do they report to you, what do they do initially to improve your ads get things squared away etc. Then once you’re satisfied you’re in good hands give them the rest of the budget.
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Figure out what their markup is. That’s what matters. Agencies charge between 10-50%, 25-30% being average.
And as others have stated: no such thing as average ROI. But if you’re not skilled, the chances that not you’re setting money on fire (or getting Googled by following AdWords suggestions and unnecessarily adding 15-60% additional to every click)… is small.
If you’re spending more than $2k/mo, start shopping agencies (of which there are thousands—most mediocre, many bad, some good).
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Higher end doesn’t always equal better. Don’t be fooled by sales pitch. Ask to see reporting with clients name blanked out or anything similar. I’ve worked in agencies where they managed half a million or more in spend per month and on top of the insane fees, the quality of work and campaign results were truly trash.
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As others have said, there is no average ROI as what’s great for one business might mean taking a loss for another.
Higher rates don’t necessarily mean better performance. Some agencies charge more because they are bigger and have more overhead to cover. Some agencies charge more because they specialize in a niche. Some agencies charge more because they are established and very good at what they do.
The ROI usually goes up as you spend more to a certain point and then goes down as you exceed what’s reasonable in terms of keyword/audience targeting.
As far as looking for an agency, look for somebody with experience and a good reputation. See if what they provide ticks all your boxes:
1. What platforms do you want to work with? Are they certified and do they specialize in those?
2. Who will you be working with, the person hands-on with your account (good) or some account rep (bad)?
3. What kind of tools do they use to improve efficiency?
4. Do they have experience in your industry?
5. What kind of reports will you be getting?
6. Most importantly, jump on a call and just learn about how they’ll work with you – is it a good fit?Fees vary a lot in this industry. It should be one of your considerations but not the most important one.
Feel free to check out what my agency offers for Google Ads here: [https://www.tenthousandfootview.com/solutions/google-ads/](https://www.tenthousandfootview.com/solutions/google-ads/)
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It depends more on your project, your budget, etc than the agency.
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