How Much Do SEM Services Cost in 2025?
Last Updated: June 4, 2025
SEM pricing can vary widely depending on factors like the size of your business, the competitiveness of your industry, your chosen agency or freelancer, and more. According to our research, most businesses spend $251 - $10,000 per month on SEM. Keep reading to uncover more about SEM costs from the 250+ businesses we surveyed!Original Data:
- We asked 250 marketers to share how much their companies spend on SEM. Keep reading to uncover their answers!
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What does SEM typically cost per month?
According to research from 250+ businesses, SEM typically costs $251–$10,000 per month on average, with 70% of businesses falling within this range depending on factors like business size, industry competitiveness, and chosen agency or freelancer. -
How do SEM pricing models differ?
The four main SEM pricing models include percent of ad revenue (paying based on results), percent of ad spend (paying 5–20% of monthly ad spend), flat rate management (fixed monthly fee), and capped management (either a flat rate or percentage, whichever is higher). -
What factors influence SEM costs?
Business size significantly impacts SEM investment—startups typically spend $2,500–$10,000 monthly, small businesses spend $50–$500, mid-sized businesses spend $301–$1,000, while large businesses and enterprises invest $1,001–$10,000 or more per month. -
How much marketing budget should go to SEM?
Most businesses allocate 6% to 25% of their overall marketing budget to SEM (77% of businesses), though the exact amount depends on unique business goals, needs, and available budget for driving website traffic and conversions. -
What's the difference between SEM and SEO?
SEM uses paid advertising strategies like PPC, social media ads, and geofencing to improve visibility, while SEO focuses on organic tactics like on-page optimization and content marketing to boost rankings in unpaid search results.
We surveyed over 250 businesses to find out how much they spend on search engine marketing. Here’s what they shared about their SEM pricing!
How much does SEM cost?
According to our research, SEM typically costs $251 – $10,000 per month on average (70% of businesses).
There are lots of different factors that can influence how much you’ll spend on search engine marketing, like the size of your business, your industry, whether you partner with an agency or freelancer, and more.
Source Data
| Monthly Cost | % of Businesses |
| Less than $50 | 2.20% |
| $50 – $300 | 6.59% |
| $301 – $500 | 15.38% |
| $501 – $1,000 | 14.29% |
| $1,001 – $2,500 | 16.48% |
| $2,501 – $5,000 | 19.78% |
| $5,001 – $10,000 | 12.09% |
| $10,001 – $15,000 | 2.20% |
| $15,001 – $20,000 | 2.20% |
| $20,001 – $25,000 | 1.10% |
| $25,001 – $50,000 | 1.10% |
| $50,001 – $100,000 | 2.20% |
| $100,000 – $250,000 | 1.10% |
| More than $250,000 | 3.30% |
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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!
SEM costs by business size
One of the biggest factors that influence your SEM investment is the size of your business. On average, larger businesses tend to invest more in SEM to compete with larger brands.
Get an overview of average SEM pricing broken down by business size in the table below!
| Business Size | Monthly Cost |
| Startup / Micro-Enterprise
(1 -10 Employees) |
$2,500 – $10,000 |
| Small Business
(11 – 50 Employees) |
$50 – $500 |
| Mid-Sized Business
(51 – 250 Employees) |
$301 – $1,000 |
| Large Business
(251 – 500 Employees) |
$1,001 – $10,000 |
| Enterprise
(500+ Employees) |
$1,001 – $10,000 |
4 SEM agency pricing models you need to know
As you research SEM pricing, you’ll come across several different pricing models, including these four:
1. Percent of ad revenue
With the percent of ad revenue pricing model, your business pays for results.
Instead of paying your agency a monthly flat fee, for example, you pay based on your ad strategy’s results. This SEM agency pricing model can seem attractive to many businesses, especially SMBs, but it does come with some drawbacks.
Learn more about the perks and downsides to the percent of ad revenue pricing model:
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Advantages of this SEM agency pricing model |
Disadvantages of this SEM agency pricing model |
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While the percent of ad revenue model generates immediate interest among businesses, it often delivers little value in the long-term. The lack of predictably that comes with this SEM pricing model makes it a risky choice for companies.
2. Percent of ad spend
With the percent of ad spend pricing model, your SEM pricing depends on your monthly ad spend.
This pricing model introduces some predictability because your company determines your ad spend. Depending on your ad spend, you may pay your agency five to 20% of it.
For example, if you invest $5000 and your agency takes 14% of that, you would pay them $700 each month.
Learn more about the advantages and disadvantages of this SEM pricing model:
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Advantages of this SEM agency pricing model |
Disadvantages of this SEM agency pricing model |
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From a cost perspective, this SEM agency pricing model offers several advantages to businesses like yours. You can budget for SEM costs each month, which can protect your advertising budget. Plus, you remove the motivation for agencies to go after low-value opportunities to deliver bare-minimum results.
Overall, the percent of ad spend model offers more advantages than disadvantages. You can predict your costs each month, as well as remove low-return strategies. Not to mention, your agency focuses on providing your business with the best results versus any results.
3. Flat rate management
With the flat rate management pricing model, you pay a flat monthly rate.
Like the percent of ad spend model, flat rate management offers predictability.
Your business can anticipate your SEM costs, which helps your team optimize your online advertising budget. Not to mention, in busy seasons, you know your SEM agency’s pricing won’t change, even if you increase your monthly ad spend.
Learn more about the upsides and downsides of flat rate management for SEM services:
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Advantages of this SEM agency pricing model |
Disadvantages of this SEM agency pricing model |
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If you’re looking for consistency, flat rate management may work well for your business. Although, while flat-rate pricing models offer convenience and predictability, it can impact service quality.
If you feature an elaborate campaign and strategy, for example, your agency may charge extra, which cancels any potential savings in the flat-rate fee offered initially.
4. Capped management based on percent of ad spend
With the capped management pricing model, you pay a flat-rate fee or a percentage of your ad spend.
As an example, an agency may require 14% of your ad spend or $500 per month.
How you pay depends on whichever amount is higher.
If your company spends $5000 each month on ads, you will pay by percentage, or $700 per month, because it’s higher than $500. In comparison, if you spend $2500 on ads each month, you would pay the monthly flat-rate fee of $500. That’s because $350 (or 14% of $2500) is less than $500 per month.
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Advantages of this SEM agency pricing model |
Disadvantages of this SEM agency pricing model |
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For many businesses, capped management pricing offers a compromise between other pricing models. But, unlike other SEM pricing models, it takes advantage of both flat rate management and percent of ad spend models, which offers your business options when it comes to SEM services.
How much should you spend on SEM?
So, you know typical SEM pricing, but how much should your business spend on SEM?
You control how much you spend on your ads and optimizations, so how much you want to spend will depend on your unique budget, needs, and goals. For example, if you have a goal to drive more website traffic from PPC ads, you may spend more on your SEM strategy.
According to our data, most businesses allocate 6% to 25% of their overall marketing budget to SEM (77% of businesses).
Soure Data
| % of Marketing Budget | % of Businesses |
| 1% – 5% | 2.76% |
| 6% – 10% | 24.31% |
| 11% – 15% | 23.76% |
| 16% – 20% | 17.13% |
| 21% – 25% | 11.60% |
| 26% – 30% | 6.63% |
| 31% – 40% | 7.18% |
| 41% – 50% | 1.10% |
| 51% – 60% | 2.21% |
| 61% – 70% | 2.21% |
| 71% – 85% | 0.00% |
| More than 85% | 1.10% |
Is SEM worth it?
Yes! In fact, 94% of businesses we surveyed said they were happy with the ROI they received from their SEM strategies.
With billions of people using search engines every day to find information, and products and services, online, SEM can help you ensure your business appears in crucial search results when users search for something related to your business.
Source Data
| ROI Satisfaction | % of Businesses |
| Yes | 93.92% |
| No | 6.08% |
SEO vs. SEM: What is the difference?
Search engine optimization (SEO) describes an umbrella of strategies for improving your visibility in search engine result pages (SERPs). This digital marketing tactic focuses on your organic (rather than paid) ranking or position in searches related to your industry, business, or products and services.
SEM refers to paid strategies for improving your visibility in the SERPs via paid ads. Previously, marketers used SEM to discuss organic and paid techniques. In recent years, however, SEM has become synonymous with paid-only tactics, versus paid and organic ones.
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An Inside Look at WebFX SEM Pricing
🔎 PPC and advertising audit Boost your visibility, generate leads, and drive conversions with WebFX’s custom SEM solutions tailored to your unique company’s needs, goals, and industry.
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Highlights
🖌️ Ad design
📝 Ad and custom content copywriting
🎨 SEO audit & website optimizations
💰 Bid management
Join the 1,450+ trusting WebFX to drive revenue through search engine marketing
Too many marketing providers take a copy-and-paste approach to SEM. That’s not our style.
How much does WebFX charge for SEM services?
If you’re thinking about investing in professional SEM services, WebFX offers cost-effective plans.
We also publish our SEM prices online, making it easy for you and your business to compare rates, plans, and agencies. If your company requires custom pricing, you can always connect with a WebFX strategist by contacting us online.
| Features | Aggressive | Market Leader | Enterprise |
|---|---|---|---|
| Monthly PPC spend with PPC networks | $0 - $12,000/month ad spend (paid to networks) | $12,001 - $50,000+/month ad spend (paid to networks) | $50,001+/monthly ad spend (paid to networks) |
| Keywords in campaign | Up to 2,000 | Up to 10,000 | Up to 10,000 |
| Google PPC Network | |||
| Bing PPC Networks | |||
| Google Text Ad Remarketing & Banner Remarketing (if banner ads are included, provided by the client, or creative banner design is paid for) | |||
| Google Display Network | |||
| Google In-Store Visit Reporting | |||
| Google customer match & audience match | |||
| Gmail Competitor Ads | |||
| RevenueCloudFX competitor intelligence | |||
| Initial campaign development & strategy | |||
| Advanced keyword research and selection | |||
| Industry analysis | |||
| Ad campaign copywriting | |||
| Ad copy performance testing | |||
| Ongoing keyword development and tweaking | ✓ | ||
| Dynamic keyword insertion into ads | |||
| Google analytics integration & goal tracking | |||
| Results analysis/reporting | |||
| Strategic bid management | |||
| PPC account settings monitoring (Ex. Geotargeting) | |||
| Campaigns will be managed through client's Google Ads account (client will retain Admin/owner access of all campaigns created) | |||
| Single account representative | |||
| Up to two personal consultations per month | |||
| Up to 100 web lead phone calls tracked per month (Included for all WebFX clients) | |||
| Up to 25 web lead phone calls transcribed per month (Included for all WebFX clients) | |||
| Monitoring clicks, conversions and click fraud activity | |||
| Setup and management of rule based bidding | |||
| International PPC campaign management (English only campaigns) | |||
| Setup of 1 Unbounce Landing Page template (optional) | |||
| Website conversion analysis reporting | |||
| Initial banner ad design for display & remarketing | Add $900 | 1 set included | 1 set included |
| Quarterly banner ad design for display & remarketing (a total of 4 banner ad sets a year) | Add $300 | Add $225 a month (since 1 set is included each year) | each year) Add $225 a month (since 1 set is included each year) |
| Website conversion analysis implementation | By Quote | By Quote | |
| Social Media PPC Advertising | By Quote | By Quote | By Quote |
| Landing page performance testing | By Quote | By Quote | |
| Monthly performance & analysis reporting | |||
| RevenueCloudFX Lead Tracking | |||
| Google Shopping Management | Included | Included | |
| International Campaigns (Non-English) - Each additional language monthly management cost: | $275 | $275 | $275 |
| Weekly Data Calls: Review campaign changes every 7 days | $400/month | $400/month | $400/month |
| Translation Services: | By Quote | By Quote | By Quote |
| One time setup | $750 + 1 Months Management Fee $1,250 minimum | $700 + 1 Months Management Fee $2,500 minimum | 1 Months Management Fee $7,500 minimum |
| Progressive monthly management cost: | $500 or 15%, whichever is higher | 12% of ad spend | 12% of ad spend |
Need more information? Call Us: 888-601-5359 | GET STARTED | GET STARTED | GET STARTED |
Budget over $50k/mo? Check out our enterprise campaign management offerings for campaigns from $50k-$2m/mo in ad spend.
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SEM pricing FAQs
Get answers to FAQs about SEM costs now:
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 utilize different channels and strategies to maximize it. While SEM uses paid tactics, like PPC, SEO focuses on organic ones, including on-page optimization and content marketing.
What do SEM services include?
If your company invests in SEM services, most plans will include the following:
- Setting up your advertising accounts, like Google Ads or Microsoft Advertising
- Researching your targeting options, from keywords to behavior
- Developing your ad creatives, from images to copy
- Creating your ad campaigns and ad groups
- Managing your bids
- Testing your ad performance
- Providing monthly reporting
- Additional services, such as on-page SEO services, off-page SEO services, and PPC services
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:
- Setting up Google Analytics
- Auditing SEO strategy
- Researching keywords to target
- Analyzing competitor SEO strategies
- Optimizing on-site SEO factors
- Developing fresh content
- Conducting content outreach
- Monitoring keyword rankings
- Providing monthly reports
Again, before you sign with an agency, ask what their services include.
Why use SEM services?
Investing in SEM services provide your business with several advantages, including:
- Earning your website immediate online presence in search results
- Getting your site at the top of search results and in prime locations on websites
- Increasing your brand awareness, online revenue, and lead generation
- Optimizing your advertising budget by using cost-effective strategies
- 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.