PPC campaign pricing can vary widely depending on factors such as the advertising platform used (e.g., Google Ads, Facebook Ads), the competitiveness of the industry, target audience demographics, campaign objectives, and desired outcomes. Here's an example of how agencies typically set prices for PPC campaigns:

1. Initial Consultation: We start with an initial consultation with the client to understand their business, goals, target audience, and budget. This helps in determining the scope and complexity of the PPC campaign.

2. Keyword Research: We conduct keyword research to identify relevant keywords and phrases that potential customers might use to find the client's products or services. This research helps in estimating the competitiveness of keywords and the potential cost-per-click (CPC) for each keyword.

3. Campaign Strategy: Based on the consultation and keyword research, our team develops a tailored PPC campaign strategy. This includes defining campaign objectives (e.g., lead generation, sales, brand awareness), target audience segmentation, ad copy creation, budget allocation, and bidding strategies.

4. Budget Allocation: We work with the client to determine an appropriate budget for the PPC campaign. This budget is allocated across different ad platforms, campaigns, ad groups, and keywords based on their performance and expected ROI.

5. Management Fee: We typically charge a management fee for PPC services, which covers ongoing campaign optimization, monitoring, performance analysis, A/B testing, bid adjustments, ad scheduling, and reporting.

6. Performance Metrics: We track key performance metrics such as click-through rate (CTR), conversion rate, cost per conversion, return on ad spend (ROAS), and overall campaign performance. This data is used to optimize the campaign continuously and ensure that the client's objectives are being met efficiently.

7. Adjustments and Optimization: As the campaign progresses, we make adjustments and optimizations based on real-time data and insights. This may involve refining ad copy, adjusting bids, targeting specific audience segments, testing new keywords, and improving landing pages for better conversion rates.

Example Scenario: Let's consider an agency working with a client in the e-commerce industry who wants to launch a PPC campaign to promote their new product line. The agency conducts keyword research and estimates that the average CPC for relevant keywords is $2. Based on the client's budget of $2,000 per month for the PPC campaign and the estimated CPC, the agency can estimate that the client's ads may receive approximately 1,000 clicks per month ($2,000 budget / $2 CPC).

The agency then structures the campaign, sets up ad groups, creates compelling ad copy, and implements bidding strategies to maximize ROI. They charge a management fee of 15% of the client's monthly budget for ongoing campaign management, optimization, and reporting.

In this example, the agency sets prices for the PPC campaign based on factors such as keyword competitiveness, estimated CPC, client budget, management fee, and campaign objectives.