PPC Management : The Secret Truth
Read this and finally know The Truth About PPC: Why you should NOT hire a PPC Management company.
Are you looking for PPC management company? Well you’ve come to the right place, sort of… Keep reading and I will explain. My name is Rob, you can see my full profile description on the Marketing Coaches page. Over the years I have done both SEO and Pay Per Click. Also knows as Search Engine Marketing. Abbreviated PPC or SEM. However, my main role is as a senior pay per click strategist. I have worked with numerous national PPC Management companies. I’ve worked on 100’s of campaigns as you can see some on my LinkedIn profile. Feel free to send me a connection request on Linked In.
As a contractor/subcontractor you can see some of the clients I have contracted or subcontracted with. This can be seen on our past work page. Additionally, there are many campaigns that I have worked on that I can’t disclose. Specialists are often forced into signing PPC Management confidentiality agreements to get work. Signing these agreements does not mean the agency won’t share your campaign insights with another similar agency client. Or even a competitor or your replacement. These are for agencies to protect their clients from following if the specialists leaves. This is what most high-level companies I have worked with do. These agreements make the ppc strategist promise that they will never pursue the business of the client. Or even call and tell them the truth about how the agency is wasting marketing money.
It’s not all bad. Typically, when strategists work for an agency, the pay and perks are decent. I have started anywhere from $40-$70 thousand dollars a year for permanent full-time or $40/hr for part-time work. I usually make anywhere from $25-$40 dollars an hour plus sometimes promises of bonuses.
But let’s think about these numbers a bit. A typical PPC Management Company charges from 15%-20% of your ad management budget. This is often not set for a set amount of management hours. For instance, if your budget is $10,000 a month, which is actually fairly small in the PPC world, you would be paying a company most likely $1,500-$2,000 a month to manage your companies PPC campaigns.
Now consider this. Billing hours are typically billed out anywhere from $75 to $500 dollars an hour. If we divide using a mid-level of my hourly rate of $250/hr and then use the low-end of a standard 15%-20% agency fee at $1,500 per month, the math here is $1,500/$250, you have just paid for 6 hours of my time, or about 12 minutes a day. That is $4.17 a minute my company is making on my time and your dime. It does worse. I was once hired as an independent subcontractor for an agency, and the agency that hired me had client of another bigger boutique agency who was doing high-end marketing for multiple a Real Estate agents and developers.
So, using the high-end numbers now. A salesman presents, and a client signs a contract at $2000 a month for the same $10,000 monthly budget. Now the rate is $500/hr, you get two hours less of time for a grand total of 3 hours of PPC Strategist time per month! That is 6 minutes a day to manage your $10,000 a month budget! PPC Management Agency specialists are good, but not that good! Well, maybe I am. 😉
Remember, I make anywhere from $25 to $35 dollars an hour when working for agencies. Let’s continue the math here. Using the low-end figures again, my hourly rate of $25/hr. Six hours multiplied by $25 is a whole $150 a month pre-tax. That is what I get in my pocket every month of the fee you pay your pay-per-click management company. As an independent 1099 contractor I need to take out 1/3 for taxes and equipment. I am left with $100 and only take home 6.7% of what you are being charged for PPC Management, and I’m doing ALL the actual PPC Management work!
Where is the other 90% of your PPC Management money going? The PPC agency fee is going to the office in an area downtown with flashy overpriced office space. The search management fee is going to the CEO/Owner, CMO or Marketing Director. The PPC sales commission is going to the sales guy. The PPC Agency fee is going to account manager. The scariest part though, is The PPC Agency fee applies to everyone on the conference calls.
Everyone on these calls are billable at different rates per hour. Then they say, “we will look into it and call you back”. Then in a still billable meeting, they then email and the specialist. The specialist provides the professional opinion. The account manager then filters out the bad and tell you only the positives avoiding the hard truths.
Sometimes in bigger agencies, there is also the search marketing manager or content manager who publicly blogs his(?) knowledge and spends very little if any time analyzing your account or again emails a specialist and asks them to write an article. They depend on us, the true PPC Management professionals for just about everything that is delivered in digital form.
Their job is mainly as a figurehead and a sales assistant to the higher level executives chasing new SMB and enterprise accounts. After everyone else has their PPC Management cut, last is me, the people like me who analyse your campaign given the time available from various analytic reports. We look at which traffic is most valuable to your business given the metrics we have available. As co-working specialists we also keep up on search marketing trends, go to lunch together and talk about actual PPC strategies. After-all just we are marketing nerds in the end.
Search Marketing bosses are usually great at spamming out endless streams of new campaigns and keywords to have the appearance of doing an excellent job month to month in building out campaigns. To you, the client you see lots of new campaigns, ad groups, ads, and keywords. But that is all wrong! Less time should be spent producing 1000’s of more keywords, ad groups, ads, and campaigns, and more time should be spent watching how the account is actually performing at the ad group level, constantly tweaking ad groups to fit your desired business needs and reacting to your competition.
Then there is this. A 9-5 agency analyzes your data midday through the 24/hr budget day. Nearly all agencies analyze data from the day before and make changes 8-12 hours after the fact. These new changes aren’t accurate for that day’s bid market. Changes go into effect only at the time of uploading. Uploading, which is often near the middle of the following day!
The net effect of this is that the statistics aren’t isolated by day-to-day reports! Had those same adjustments been made at or as close to after midnight as possible they would. Other PPC specialists may know this, yet they go on and on making changes mid-day. Most 9-5 PPC specialists base their 6-12 minute daily PPC Management bid, keyword, and ad change decisions on half day skewed data. This is due to typical business hours, but they are not the best hours. To make it worse, many make changes only Monday-Friday and ignore the weekends.
So let’s say you were to pay me directly at $1,500 dollars a month to manage at $10,000 dollar monthly campaign. I am going to spend way more than 6 hours on your campaign and PPC accounts. I may spend 10x times as much time managing your account as an agency would. Most importantly, I will check in every day, even Saturday and Sundays.
The best way to do this is download your analytic data just after midnight. Then, making bid changes to your account shortly after midnight, when competitor adjustments haven’t yet been made. This is when data from the previous full day before is first available. This data is not skewed by competitor early morning bid and click adjustments. Then again in the morning, I will make smaller daily changes if necessary. It is my personal guarantee that I will do a superior job managing your PPC Management budgets as measured directly by PPC and analytic reports.
There is absolutely no benefit of hiring agency instead of a specialist directly. Preferably me! I’m working from a home office, I am nearly always available for a Skype callback, also email, instant messenger, or by a phone. I guarantee phenomenal work on your pay-per-click management budget superior to any agency that you have hired previously for the same cost.
I will make you look good to your superiors in reports based on results! Patiently I will explain to you all the work I do whenever you need to and ask. This will be the first opportunity you have had to really make pay-per-click work for you and your company.
I have three billing models for $10,000 a month budgets and higher.
Just in case you still want to pay an extra 90% for the same quality work. Following is a list of some of the Best PPC companies as listed on *TopPPCs.com.
360i, Adaptivity Pro, AdCurb, AdRoll.com, AdVenture Media Group, AIMG, Alchemy Web Marketing, Analytics Ninja, AWG Remarketing, Inc., Azatiko Online Marketing, BeyondROI, Bizo, Inc., Boost CTR, Bruce Clay, CAPPTURE, Chango Inc., Clickthrough Marketing, CreativeMind Search Marketing, Customer Magnetism, DaBrian Marketing Group, LLC, Datapop, Distilled, Donlen Corporation, D’Avant-Garde Media, E-Power Marketing, E.B.B. Interactive, Ecom Enterprises, eCreations, Efficient Frontier, Exclusive Concepts, FutureNow, Hanapin Marketing, Higher Visibility, iCrossing, iMajestic Performance Based SEO, iProspect, Jellyfish, JellyFish Media, Jenesys Group, KeyRelevance, KMA Remarketing, logical Position, Magnetic Search Retargeting,
Morpheus Media, Netmark, Netmining, Netvantage Marketing, New Jupiter Media, Ocean Media, LLC, OrganicApex LLC, Pacific54, Pathways Digital, Pepper Gang, Pepperjam, Perfect Audience, Perfect Search Media, Perfect Web Service, Portent, PPC Expert, PPC for Small Biz, PPC Professionals, Precis E-business Systems, Razorfish, RedFly Marketing, ReTargeter, SEER Interactive, SeeWhy, SEMRise Groups, SEO Pledge, SEO.com, Shift Marketing, Shimmer Digital Media, LLC, Site Pro Specialties, SmartSearch Marketing, Spring Metrics, SSD Fair Marketing, STEELHOUSE INC., Streamline Results, Sweet Spot Marketing, The DG Group, The PPC Auditors, TrafficZoom, Wake Fly, WebBizIdeas, WebitMD, Webrageous Studios, WhyteSpyder, WiderFunnel Marketing Optimization, WordStream, Working Research, Inc
All these PPC management companies are where you will drastically overspend your marketing dollars. However, ROI/Cost aside, I do believe they will most likely do an excellent job.
But who is doing an excellent job? Not the flashy office location & space, so I suggest you research these companies, look on LinkedIn for the actual PPC Management specialists they employ, and hire them directly for your company at half the proposed monthly management fee.
Let your PPC specialists be overjoyed receiving a drastic increase in pay! This PPC specialist will provide an excellent ROI for years to come.
WARNING he/she is probably years ahead of your current left brain Marketing Director and/or right-brained IT Director when it comes to general online marketing ROI strategy. This could be a problem. Good Search Marketers need to be nearly equally right/left brained to do both the technical side of PPC optimization and advanced excel or analytical side, as well as also strong with the creative side for writing ads creatively thinking through user search intent.
Have this new hire answer directly to you. You don’t want to create unnecessary politics and bad will between your CMO, Marketing Director, Director of IT, or web engineers because the specialist repeatedly demonstrates superior online PPC management related ROI strategy when given the chance to prove results.
Others may hinder their progress as well. Marketing managers by suppressing technical reports or twisting them to put more focus away from online to take credit for themselves. Website designers don’t want to create new landing pages, or banners causing them more work when they often already have plenty to do. IT by refusing to give access to the online marketer for tracking purposes or in implementing some new awesome tracking technology, or refusing to assist them altogether with goals such as decreasing server load times and page responsiveness. They Confuse the situation citing technicalities that managers don’t often understand enough to adequately make the decisions on and then defer to the IT team because “they must know best”.
These are all reasons to consider hiring a PPC Management company or specialist outside of your organization that funnel strategies through you and your position of power within the company. It is not a easy choice. Consider all the scenarios on this page, then make your budgetary decision wisely.
Of course, I do suggest you hire me and let me be your personal PPC Management Specialist! I want your business!
Again, my name is Rob of The SEO PPC Pro’s. I own this website, this is how I get my contract work my personal email is [email protected], I concentrate on PPC Management for my clients. I want to grow a PPC agency like those above on the list. However, I promise to keep my rate with my early customers. Applies even if I someday get the chance to get a flashy downtown office.
For now, I will charge half the price! Half the management fee of any quote! Any past search management invoice you provide! Half the management fee that comes from a major PPC marketing company.
*Although TopPPCs.com provide what I consider valid assessments of the top PPC Management companies on TopPPCs.com, I suspect these companies in some way pay to be listed there, another place some of that mysterious 90% goes. Again, this is speculation, but they do not evaluate smaller companies who do not pay them.