How Much Do SEM Services Cost in 2023?

What determines SEM pricing?

Your agency’s pricing model isn’t the only factor that determines what you pay for SEM. Several other elements influence SEM pricing. While you can control some, others rely on external factors. Either way, you want to know about them before you sign with an agency.

Ad strategy

Your industry, as well as advertising goals, all shape your ad strategy.

If your company operates in a competitive sector, then you need an agency and strategy that can compete. Otherwise, your business will invest thousands of dollars in ad campaigns that fall flat and fail to generate any return on investment (ROI).

That’s why your business can’t ignore this SEM pricing factor.

Instead, you need to consider it when researching and vetting agencies. A seasoned agency with experience in your industry can help your business develop, launch, and manage campaigns that beat competitors, drive clicks, and generate results, from new leads to high-value sales.

Ad spend

Ad spend is another undeniable influence on search engine marketing pricing.

It’s the basis for some SEM pricing models too. Even agencies that don’t use ad spend to determine service pricing will ask about your expected ad spend. That’s because your ad spend influences the type of strategy an agency can build for you.

Your ad spend can also impact which SEM companies will work with you. If you set a low ad spend, for example, you may find that agencies with the experience you want will turn down the chance to develop and manage your campaign.

If your company ever encounters this situation, rethink your ad spend because it’s probably too low.

Trusted and reputable SEM agencies, like WebFX, want to help your business accomplish your advertising goals. An ultra-low budget, however, can make that impossible. That’s why these agencies will decline the opportunity to partner with your company.

If your business ever encounters this situation, consider asking the agency what ad spend they would recommend. With their reputation in the industry, you can count on them to provide an accurate, unbiased recommendation.

Agency experience

The experience of your agency will also determine what you pay for SEM.

Like all services, from landscaping to paid advertising, experience comes with additional cost. You pay for that expertise, which can help you develop better bid strategies, copy, and landing pages. All these improvements contribute to increased ad performance and returns.

While partnering with an agency with more expertise can cost more, it often provides a smoother experience. You can trust the SEM company to develop a competitive strategy, follow industry best practices, and deliver quality customer support.

No matter how much your business invests in SEM, you want to make the most of your budget.

Hiring a low-cost agency may save money upfront, but it often costs you later. From working with a difficult-to-reach account manager to coping with hidden fees, an inexperienced and cheap SEM company can cause massive headaches for your team and business.

That’s why, if outsourcing your SEM management, you need to make agency experience a priority.

Campaign size

The size of your ad campaign also shapes your SEM pricing.

In most cases, your agency will oversee the size of your campaign. They will determine, based on your goals, how many campaigns to run and how many ad groups occupy each campaign. If your company has preferences for how many campaigns you want, you will impact what your agency can do.

For example, if your business sets a $5000 monthly ad spend and requests 10 campaigns, that restricts where your agency can spend your budget. They will need to fund each campaign and its ad groups, which can limit the performance of campaigns with higher costs.

While it’s helpful for your company to provide input, it’s also beneficial to take advantage of your agency’s expertise. With their experience, combined with your goals, they can recommend and develop campaigns that offer the most value and ROI.

Agency pricing model

Your SEM agency’s pricing model will also influence your SEM costs.

If your agency uses the percent of ad revenue pricing model, for instance, your monthly ad costs could vary widely. In comparison, choosing a flat-rate management agency offers your company predictable monthly pricing for SEM.

When it comes to pricing models, your business will need to review each one and determine which models work for you. For the best results, think about the upfront and long-term value of each model for your company.

With these SEM pricing factors, your business can build an accurate budget and ad spend for your advertising efforts. You can also use these features when it comes to finding, researching, and hiring an SEM company.

Want some help selecting an SEM company? View our picks for the top SEM companies here!

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Over 90% of WebFX clients continue partnering with us into year 2 of their campaign.

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FAQs about SEM pricing

Got more questions about SEM pricing? Get answers with our FAQ!

What is SEM?

SEM, also known as search engine marketing, describes online paid advertising strategies for promoting your business, products, or services. A few examples of these strategies include social media advertising, geofencing advertising, and PPC advertising.

What is SEO?

SEO, also known as search engine optimization, encompasses online strategies for improving your visibility in organic search results on search engines like Google and Bing. As a part of SEO, you optimize your website for on-page and off-page factors that influence your rankings in search results.

What is the difference between SEM and SEO?

SEO and SEM focus on your online visibility but use different channels and strategies to maximize it. While SEM uses paid tactics, like PPC, SEO focuses on organic ones, like on-page optimization or content marketing.

What do SEM services include?

If your company invests in SEM services, most plans will include the following:

1. Setting up your advertising accounts, like Google Ads or Microsoft Advertising
2. Researching your targeting options, from keywords to behavior
3. Developing your ad creatives, from images to copy
4. Creating your ad campaigns and ad groups
5. Managing your bids
6. Testing your ad performance
7. Providing monthly reporting

Before you partner with an SEM agency, ask what their services include.

What do SEO services include?

If your company uses SEO services, you can expect plans to include:

1. Setting up Google Analytics
2. Auditing SEO strategy
3. Researching keywords to target
4. Analyzing competitor SEO strategies
5. Optimizing on-site SEO factors
6. Developing fresh content
7. Conducting content outreach
8. Monitoring keyword rankings
9. Providing monthly reports

Again, before you sign with an agency, ask what their services include.

How much does SEM cost?

SMBs invest $9000 to $10,000 per month on SEM services. This price range includes not only management fees but also ad spend budgets. Large companies, like those at the enterprise level, will often spend more to advertise online.

How much does SEO cost?

Companies spend an average of $1500 to $5000 per month on SEO. Businesses looking for consulting, rather than ongoing SEO service, can expect to pay $80 to $200 per hour. In comparison, a one-time SEO project costs $5000 to $30,000.

Why use SEO services?

Using SEO services offer several benefits, including:

1. Increasing your visibility in search results, which helps you reach additional consumers
2. Improving your online sales and lead numbers
3. Boosting your presence in local search results to drive foot traffic
4. Building your competitiveness in a tough online market

Professional SEO services also help your company adapt to user habits. More than 90% of online experiences begin with a search engine, which makes SEO critical. If your company doesn’t appear in search results, you ruin your chances of getting noticed by shoppers and business buyers.

Why use SEM services?

Investing in SEM services provide your business with several advantages, including:

1. Earning your website immediate online presence in search results
2. Getting your site at the top of search results and in prime locations on websites
3. Increasing your brand awareness, online revenue, and lead generation
4. Optimizing your advertising budget by using cost-effective strategies
5. Improving your paid advertising ROI

The fact that companies earn an average ROI of $2 for every $1 spent also makes SEM services valuable. Whether you want to attract new or existing customers, you can do it with a targeted SEM campaign and an experienced search engine marketing company.