TL;DR
- Paid search has two costs: ad spend (paid to Google, Microsoft, or Meta) and the management fee (paid to whoever runs the campaigns). Any proposal that blends them is hiding something
- Management fees in 2026: Entry $1,000–$3,500/mo (Google Search only, $1K–$10K spend), Mid $3,500–$7,500/mo (multi-platform plus remarketing, $10K–$50K spend), Enterprise $7,500–$30,000+/mo (programmatic and attribution, $50K+ spend)
- Above about $5,000/mo in spend, fees shift to 10–20% of spend. Below 10% the account is under-resourced; above 25% the value is hard to justify
- The move from entry to mid is about remarketing and a dedicated manager; the move to enterprise is about attribution you can show a CFO
- 37SOLUTIONS manages paid search at $2,000, $4,000, and $12,000 a month, or 15% of spend above $5K — and you always own the ad accounts
A client of mine once paid an agency $3,000 a month for "Google Ads management" for two years. When we finally got into the account, the agency had built it in month one and touched it four times since. The invoices never separated what went to Google from what went to the agency, so nobody noticed that the management fee was 60% of the total.
That's the failure mode in paid search. It isn't bad campaigns — it's not knowing what you're paying for. This is the tier breakdown I use when a client hands me a PPC proposal, built from 2026 agency pricing data and from the accounts I've inherited.
There are two bills, and the management fee is the one you're choosing
Ad spend goes to the platform. You should pay Google, Microsoft, and Meta directly, on your own credit card, in accounts you own. If an agency wants to run spend through their account, decline — that's how businesses end up with no campaign history and no access when they leave.
The management fee is what you pay the people running the account. It takes one of four shapes:
| Model | Structure | Best for |
|---|---|---|
| Flat monthly retainer | Fixed fee regardless of spend | Predictable budgets; accounts under ~$5K/mo |
| Percentage of spend | 10–20% of monthly media budget | Accounts over $5K/mo |
| Hybrid | Base fee plus a smaller percentage | Most mid and enterprise engagements |
| Performance-based | Cost per lead or per qualified call | Service businesses with clear lead values |
Percentage-of-spend is the industry default over $5,000 a month. Rates compress to 8–12% above $50,000. Two warning signs: anything under 10% means the account can't be getting real attention, and anything over 25% is very hard to justify at any spend level. A pure percentage model also has an incentive problem — the agency earns more when you spend more, whether or not the extra spend works. A hybrid (base fee plus a percentage above a threshold) fixes that.
Paid search tiers are set by spend and channel count, not by your company size
| Entry | Mid | Enterprise | |
|---|---|---|---|
| Management fee (2026) | $1,000–$3,500/mo | $3,500–$7,500/mo | $7,500–$30,000+/mo |
| Typical ad spend | $1,000–$10,000/mo | $10,000–$50,000/mo | $50,000–$500,000+/mo |
| Channels | Google Search | Google, Microsoft, Meta, YouTube | Full omnichannel plus programmatic |
| Your contact | Shared specialist | Dedicated account manager | PPC director plus team |
| Setup fee | $500–$2,500 | $1,000–$5,000 | $5,000–$25,000 |
| Contract | Month-to-month or 3 months | 6–12 months | 12+ months |
Ranges from BA3's 2026 agency pricing survey, AMW's PPC management cost guide, and NEWMEDIA's 2026 breakdown. Setup fees are standard and legitimate — a clean account build with conversion tracking takes real hours — but they should be scoped in writing.
Entry tier buys one well-built Google Search account and someone watching it weekly
$1,000–$3,500 a month, or 15–20% of spend. For a business running Google Ads for the first time, or with a budget that doesn't justify more than one platform. The goal is an account that converts efficiently before anyone talks about scaling.
What a real entry package includes:
- Campaign build — one to three Google Search campaigns, ad groups by service, keyword research with match types and a negative-keyword list, two to three responsive search ads per ad group.
- Conversion tracking that actually works — form submissions, phone calls, purchases, wired into GA4. This is the deliverable most often skipped and the one that makes every later decision possible.
- Weekly bid and budget review — Smart Bidding set to Target CPA or Maximize Conversions, pacing adjustments, Quality Score monitoring, search-term review to expand the negatives.
- Call tracking — call extensions, call-only ads for mobile, a tracking number, and a definition of a qualified call (usually 30–60 seconds minimum).
- A landing-page review — does the page match the ad, where's the form, how fast does it load on a phone. Recommendations, not a build.
- A templated monthly report — impressions, clicks, CTR, CPC, conversions, cost per conversion — from a specialist who is not dedicated to your account.
Display, Microsoft, Meta, YouTube, and remarketing are all out of scope at this tier. That's appropriate: until Search is converting, adding channels just spreads a small budget thinner.
Where it stops working: spend is consistently above $5,000–$8,000 a month with positive returns, Search has captured every relevant keyword, and visitors who didn't convert are never seen again because nothing is remarketing to them.
Mid tier adds the channels, the remarketing, and the person who runs experiments
$3,500–$7,500 a month, or 12–18% of spend. For businesses with proven return from Search who are ready to expand. Two changes matter: a dedicated account manager, and remarketing.
Everything in entry, plus:
- A dedicated account manager — monthly strategy call, documented action plan, budget reallocation, seasonal adjustments, competitor ad monitoring. Like SEO, this is the biggest single cost in the jump between tiers, and it's the thing worth paying for.
- Multi-platform — Microsoft Advertising (typically 10–15% of Google's volume at lower CPCs, strong with older demographics), Meta for awareness and retargeting, YouTube for brand and remarketing, with budget allocated across them by cost-per-acquisition target.
- Remarketing — display remarketing to site visitors who didn't convert, Meta custom and lookalike audiences, dynamic product remarketing for e-commerce, sequential messaging from awareness through conversion. This is usually the highest-return addition at mid tier because it's spending on people who already showed intent.
- Advanced call handling — multi-platform call tracking, qualification rules by duration, geography, and time of day, call recording for the sales team.
- Landing-page work — dedicated page per campaign, A/B test recommendations, CRO-focused copy and CTA testing.
- Portfolio bidding — Target ROAS or Target CPA across campaign groups, dayparting, device modifiers.
- Custom reporting — channel-level attribution, cost per lead by campaign, Looker Studio dashboard, quarterly business review.
LinkedIn is an optional add-on here ($500–$1,500/mo extra) for B2B. Programmatic is not available at this tier.
Where it stops working: spend passes $50,000 a month across channels, nobody can say which touchpoints drive closed revenue, your CRM data isn't being used for targeting, or compliance (healthcare, finance, legal) needs protocols a generalist team doesn't have.
Enterprise tier is infrastructure: programmatic access, attribution, and compliance
$7,500–$30,000+ a month, or 8–15% of spend. A different service with different infrastructure. The capabilities that define it:
- A PPC director and channel specialists integrated with your marketing operations and CRM, measured on quarterly CPA, ROAS, and revenue targets, with direct platform-rep relationships at high spend.
- Programmatic and DSP access — real-time bidding on display, video, connected TV, and streaming audio, private marketplace deals with premium publishers, first-party audience segments built from CRM data.
- Multi-touch attribution — linear, time-decay, and position-based models, UTM and pixel audits across every touchpoint, closed-loop reporting into Salesforce or HubSpot so spend maps to pipeline and closed deals.
- First-party data at scale — Customer Match across Google, Meta, and Microsoft; lifetime-value segmentation for bidding; suppression lists so you stop paying to acquire existing customers.
- Enterprise call routing — IVR, pay-per-call affiliate networks, real-time call bid optimization.
- Compliance — HIPAA-compliant campaign handling, GDPR/CCPA consent management, SOC 2 data protocols.
- BI integration — executive dashboards in Tableau, Power BI, or Looker; blended ROAS; predictive budget allocation.
Most of the businesses I advise will never need this. The ones who do have a marketing department asking for it by name.
The feature matrix, side by side
| Feature | Entry | Mid | Enterprise |
|---|---|---|---|
| Google Search | Core | Expanded | Portfolio bidding |
| Microsoft Ads | — | Included | Included |
| Google Display | — | Remarketing | Prospecting plus remarketing |
| Meta and YouTube | — | Included | Included |
| — | Optional add-on | Included | |
| Programmatic / CTV | — | — | Included |
| Remarketing | — | Multi-platform | Dynamic plus programmatic |
| Call tracking | Basic | Multi-platform plus qualification | Enterprise routing plus affiliates |
| Landing-page testing | Recommendations | Recommendations plus coordination | Full execution |
| Attribution | — | Last-click plus UTM | Multi-touch plus CRM |
| Account contact | Shared | Dedicated | Director plus team |
| Reporting | Templated | Custom Looker Studio | BI integration |
| Compliance | — | Partial | HIPAA, GDPR, SOC 2 |
What a lead costs depends more on the channel than the tier
Two benchmarks worth knowing before you set a budget. First, 2026 cost per qualified lead by channel:
| Channel | Average cost per qualified lead | Best for |
|---|---|---|
| Google paid search | ~$312 | High-intent, ready to buy |
| ~$387 | B2B enterprise targeting | |
| Meta | $150–$250 | Awareness and remarketing |
| Google Local Services Ads | $20–$100 | Local service businesses |
| Programmatic display | $45–$120 | Volume and brand awareness |
Second, pay-per-call benchmarks by industry: home services $20–$80 per qualified call, insurance $50–$150, healthcare $75–$200, financial services $80–$250, legal $100–$300+. If you're a service business where the phone is the conversion, leading with pay-per-call is often a better frame than cost-per-click — it ties the spend straight to revenue.
One more 2026 reality: Performance Max, Smart Bidding, and AI-generated ad assets are the baseline now, not premium features. An agency pitching "we manage your campaigns manually" as a differentiator is behind. The value at mid and enterprise is oversight of the automation — setting the right targets, feeding it clean first-party data, and reading the signals correctly.
What 37SOLUTIONS charges, and what's different about it
We manage paid search at $2,000, $4,000, and $12,000 a month with a 3-month minimum; above roughly $5,000 a month in spend we switch to 15% of spend. Details are on the paid search page.
Three things are different from hiring an agency directly:
- You own the accounts. Google, Microsoft, and Meta bill you. We never touch the spend, and if we part ways you keep every campaign and every month of history.
- The website side is ours. Conversion tracking, landing pages, forms, call routing, page speed — the part that determines whether a click becomes a lead — is done in-house before the first dollar is spent, not recommended in a PDF.
- One contact. We choose and manage the campaign team for your budget. You never have to learn to speak agency.
Paid search is usually how we get leads moving for a client while SEO builds. Most clients run both the first year, then shift budget toward organic as rankings arrive.
Frequently Asked Questions
How much should I budget for ad spend versus management? At entry, plan for spend of $1,000–$10,000 a month with a management fee of $1,000–$3,500. If the fee would be more than half your total, you're either spending too little to justify management or paying too much for it. Below about $2,000 a month in spend, a well-built account you check yourself may be the better answer.
Is percentage-of-spend pricing fair? Over $5,000 a month, yes — 10–20% is the norm and it scales with the work. Under that, a flat fee is usually better for you. Ask for a hybrid (base plus a percentage above a threshold) so the agency isn't rewarded simply for spending more of your money.
Should the agency own the ad account? No. Always. Accounts in your name, on your card, with the agency added as a manager. Google's own guidance assumes the advertiser controls the account; any arrangement that doesn't is a lock-in.
What's a reasonable setup fee? $500–$2,500 at entry, $1,000–$5,000 at mid. It covers the campaign build, tracking, and an audit of anything that already exists. If there's no setup fee, ask what was skipped — usually it's the conversion tracking.
How fast does paid search produce leads? Days, once tracking is in place. That's the point of running it alongside SEO: paid search is the bridge while organic results take four to eight months to arrive.
Do I need Microsoft Ads? At mid tier, usually yes. It's 10–15% of Google's volume at lower cost per click, and the demographic skews older and more affluent — useful for professional services and B2B. At entry tier, no; get Google Search converting first.
When does pay-per-call make sense? When the phone is where your sales happen — home services, legal, healthcare, insurance. It's a performance model (you pay per qualified call) and it forces the whole campaign to be measured in revenue terms.
If you've got a PPC invoice you can't decode — or an agency that owns your ad account — send it over. First step is always separating what went to Google from what went to them.