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PPC Agencies

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A PPC agency buys attention on auction-based platforms: search ads, shopping listings, display placements and paid social. You pay per click or per thousand impressions, the agency decides what to bid on and what the ad says, and the whole thing can be turned off in an afternoon. That immediacy is why it is usually the first channel a US business tries and the one where money disappears fastest.

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Two things decide whether the engagement is safe. The first is account ownership: the ad account, the conversion history and the audiences are assets, and an account created under an agency's own billing profile is an asset you do not hold. The second is policy compliance. Google's advertising policies cover prohibited content, prohibited practices such as misrepresentation and data misuse, restricted categories and editorial standards, and breaches lead to disapproved ads or a suspended account, with repeat violations treated under a strike system.

Fees are usually a percentage of media spend, a flat monthly fee, or a hybrid. Each creates a different incentive, and the right one depends on whether your constraint is budget or attention.

Search, shopping, display and paid social

  • Search ads: bought against what people type, the highest intent and usually the highest cost per click.
  • Shopping and product listings: driven by feed quality as much as by bids, so feed work is real work.
  • Display and video: cheap impressions, weak intent, useful mainly for retargeting and awareness.
  • Paid social: bought against audiences rather than queries, so creative carries more of the result.
  • Local campaigns: tied to business profiles, service radius and call tracking.
  • Retargeting: the cheapest conversions in most accounts and the easiest to over-credit in reporting.

Ad platform policies, disapprovals and suspensions

Ad platforms run their own rulebooks on top of federal law. Google organises its advertising policies into prohibited content, prohibited practices, restricted content and features, and editorial and technical requirements. Misrepresentation covers ads or landing pages that exclude relevant product information or mislead about a business, and enforcement runs from disapproving individual ads to suspending the account, with appeals available at each step.

Restricted categories matter for whole sectors of US small business. Healthcare, financial services, alcohol, gambling and political advertising are each allowed only under conditions, sometimes only with platform certification. Before signing with an agency in a restricted category, ask whether they have run accounts in it and what certification the account will need. A suspension in a regulated vertical can take weeks to resolve and there is no arbitration you can escalate to.

Who owns the ad account, the data and the conversion history

An ad account accumulates value: conversion history that feeds automated bidding, audience lists, historical quality signals and a record of what failed. Rebuilding from scratch costs weeks of learning-phase spend. That makes ownership the most consequential clause in a PPC contract and the one most often left out.

Create the accounts yourself under your own billing, then grant the agency access through their manager account. Keep administrator rights on the analytics property and on the tag container. Ask for the audiences and conversion definitions to be documented. If an agency insists on running you inside their own account, ask exactly what you will be given on exit and get the answer in the agreement rather than in an email.

How a paid account is built and managed

  • Tracking first: conversions defined, tested and agreed before any budget is committed.
  • Structure: campaigns split so that budget can be steered by product line, margin or geography.
  • Creative and landing pages, including whether the page can carry the claims the ad makes.
  • A launch budget deliberately smaller than the target, to buy data before scale.
  • Weekly optimisation: search terms, negatives, bids, budgets and creative tests.
  • Monthly reporting that separates media spend from fee and reports cost per acquired customer.

Management fee models and the incentives they create

  • Percentage of spend: simple, but rewards spending more rather than spending well.
  • Flat monthly fee: predictable, and neutral about budget, but can under-serve a growing account.
  • Hybrid base plus percentage above a threshold, which is a fair compromise for scaling accounts.
  • Performance fees on qualified leads, which need an agreed definition of qualified before they work.
  • Setup or build fees charged once, which should buy you documentation as well as campaigns.
  • Minimum terms: reasonable for a build, unreasonable for ongoing management after a poor quarter.

Where paid budgets get wasted

  • Broad match with a thin negative keyword list, paying for queries unrelated to what you sell.
  • Conversion tracking that counts form views, page loads or every phone click as a sale.
  • Automated bidding pointed at a conversion that is not worth money.
  • Ads sending traffic to a home page instead of a page about the thing advertised.
  • Brand search spend reported as growth when the customer was already looking for you.
  • Geography and schedule left at defaults, funding clicks from places you do not serve.

Agency, in-house buyer or platform automation

Platform automation now handles much of the bidding that agencies once charged for, which changes what you should be paying for. The remaining value is in account structure, creative, feed quality, landing pages, offer testing and the discipline to read search term reports. Ask a prospective agency what they do that automation does not, and listen for a specific answer.

Bringing media buying in-house makes sense once spend is large enough that the percentage fee exceeds a salary, and where the product needs constant creative refresh. The usual halfway house is an in-house owner of the account with an outside specialist on quarterly review. Whichever route, the account and its history stay with the business.

PPC Agencies: frequently asked questions

Should the ad account be in my name or the agency's?

Yours. Create the account and billing profile under your business, then add the agency as a user or link their manager account. The conversion history and audiences that accumulate are worth real money, and an account you do not own cannot be taken with you. Make the answer part of the contract, not a conversation at the end.

Why was my ad disapproved?

Ad platforms publish their policies in categories covering prohibited content, prohibited practices, restricted content and editorial or technical standards. Disapprovals most often come from claims on the landing page, restricted category rules, or technical problems with the destination. Disapprovals and suspensions can be appealed, and repeated breaches are treated more seriously than one-off errors.

Is a percentage of spend a fair fee?

It is common and easy to administer, but it pays more when you spend more, which is not always what you want. A flat fee or a base plus a share above a threshold removes that tension. What matters more than the model is that the fee is invoiced separately from media so you can see the true cost of a customer.

How much budget do I need to start?

Enough to gather data on the queries you care about before the month ends, which depends entirely on click costs in your category. A useful test is to ask the agency to estimate clicks and conversions at the proposed budget and write down the assumptions. If the estimate cannot produce a meaningful number of conversions a month, the budget is too small to learn from.

What should I check in a PPC report?

Media spend and fee shown separately, cost per acquired customer rather than cost per click, brand and non-brand search reported apart, the search terms that consumed budget, and what was changed during the month. Ask how conversions are counted and over what attribution window, because two reports on the same account can differ enormously on that alone.

Sources

  1. Google Ads — Advertising policies overview
  2. FTC — .com Disclosures: How to Make Effective Disclosures in Digital Advertising
  3. FTC — Advertising FAQ's: A Guide for Small Business

Written by the LokalMatch editorial team. Last reviewed September 22, 2026. How we write and check our guides

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What affects the fees PPC agencies charge

Fees depend on the work involved and how the professional bills. We only publish fee ranges when they’re backed by real LokalMatch data or reliable sources. Until then, here’s what usually changes the fee:

  • Scope and complexity of the work
  • How the firm bills: hourly, per project or on a monthly retainer
  • Experience of the team
  • Timeline and how urgent the work is
  • Ongoing support after the work is delivered

How to compare PPC agencies before you hire

  • Ask for examples of similar work for clients like you.
  • Read reviews and ask for references you can contact.
  • Make sure the scope, deliverables and timeline are written down before work starts.
  • Ask who will do the work: an in-house team, freelancers or subcontractors.
  • Compare two or three proposals before you decide.

Questions to ask PPC agencies before you hire

  • Have you done work like this before, and can I see examples?
  • Who will work on this, and who is my main contact?
  • How do you charge: hourly, per project or monthly?
  • What is included, and what costs extra?
  • How long is the contract, and how can either side end it?
  • How will you report on progress?
  • Who owns the work, files and accounts you set up for me?

Licences and registration

This kind of work is often limited to licensed or registered professionals, and the rules depend on where you are. Ask which body they’re registered with, and check their status on that body’s public register before you hire.

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