Digital Marketing
How much does performance marketing cost?
Performance marketing cost is always two separate amounts: the ad spend that goes to platforms like Google, Meta, TikTok and Snapchat, and the fee for whoever plans and manages the ads. You decide the ad spend; the management fee depends on the pricing model.
ShoaibUpdated 3 min read
Part 1: what decides ad spend?
You set the budget, and the platforms' auctions decide what each result costs.
- Google: Google Ads Help says your actual cost per click is usually below your maximum bid, set by the auction. Your average daily budget can be spent unevenly, up to twice the daily amount on some days, but no more than 30.4 times it in a month
- Meta: Meta's help centre says you can be charged by impressions or clicks, and costs depend on your bid, audience, ad quality and timing
There's no fixed price list. For how to pick the amount, see how much to spend on digital marketing.
Part 2: how is management priced?
| Model | How it works | Watch out for |
|---|---|---|
| Monthly retainer | A fixed fee each month | Check what's included |
| Percentage of ad spend | Fee rises with your budget | Rewards spending more, not earning more |
| Performance-based | Fee tied to leads or sales | Needs clean tracking and a clear definition of a result |
| Hybrid | A smaller fixed fee plus a bonus | Agree the bonus rules in writing |
More on comparing quotes in how much it costs to hire a digital marketing agency.
What else should I budget for?
- Creative: new images and videos, because ads wear out
- Tracking: pixels and conversion tracking, so you can see cost per sale
- Landing pages: a page that turns clicks into enquiries
The point of performance marketing is that you judge cost per result, not total spend.
Want a clear plan for what your business needs to spend on digital marketing? See our growth consulting service.