Adverseo Marketing
What Is AdWords Spend vs. Management Fee?

Understanding AdWords Spend vs. Management Fee

💰 What is Ad Spend?

Your ad spend is the budget you pay directly to Google for your ads to appear on search results, YouTube, or other Google networks.

It’s used to “bid” on keywords — so your business shows up when someone searches phrases like "emergency AC repair" or "best water filtration system."

Example: You spend $1,000/month in ad spend — this entire amount goes to Google.

🛠️ What is a Management Fee?

A management fee is what you pay a marketing expert or agency (like Adverseo Marketing) to run and optimize your campaigns.

This includes keyword research, writing compelling ads, monitoring performance, testing variations, improving click-through rates, and ensuring leads turn into paying customers.

Example: You pay $500/month to your marketing team to manage and improve your Google Ads performance.

⚖️ Total Cost Breakdown

If you’re spending $1,000/month on ads and paying a $500/month management fee:

Total Investment: $1,500/month
• $1,000 goes to Google (ad spend)
• $500 goes to your marketing manager/agency (management fee)

A well-managed campaign often delivers better leads and higher ROI — making the management fee a smart investment.

AdWords Pricing Tiers

AdWords Pricing Tiers

Ad Spend Range
$0 – $500
Management Fee
$250 – $400 /mo
Ad Spend Range
$500 – $1,000
Management Fee
$300 – $500 /mo
Ad Spend Range
$1,000 – $2,000
Management Fee
$500 – $750 /mo
Ad Spend Range
$2,000 – $5,000
Management Fee
$750 – $1,250 /mo
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