Google Ads Agency: Services, Costs and How to Choose

What is a Google Ads agency?

Google Ads is Google's advertising system. It places ads in Google Search, in Google Shopping, on YouTube and on partner websites in the Display Network. The technical term for ads in search engines is SEA, short for search engine advertising. You will also still hear the old name, Google AdWords, which was in use until 2018.

A Google Ads agency is a service provider that plans and manages these campaigns for other businesses. Some agencies focus only on SEA. Others offer Google Ads alongside SEO, web design or social media. Beyond agencies, there are freelancers, and there are companies that run their campaigns with their own staff.

SEA and SEO share the same goal, which is visibility in search, yet they work separately. With ads, you pay per click or per impression. The organic results below them cannot be bought. Google puts it this way: "Advertising on Google has no impact on your organic or natural ranking in the search results." To see how an SEO agency's work differs, read our article What does an SEO agency do?

What does a Google Ads agency do?

Managing Google Ads consists of an initial setup followed by ongoing optimisation. How much work this involves depends on your budget, the number of campaigns and your industry.

Analysis and strategy

First, the agency clarifies your goals, target audience, region and budget. Do you want phone calls, contact enquiries, online sales or visits to your shop? The answer shows which campaign types fit: search ads for people with a specific need, Shopping ads for online shops, and video or display for reach. Performance Max is a campaign type in which Google automatically spreads your ads across several channels. A good strategy defines which campaign serves which goal and how success will be measured.

Keywords and ad copy

For search ads, the agency researches keywords, meaning the search terms that should trigger your ad. Negative keywords matter just as much. They stop your ad from appearing for unsuitable searches that would cost you money. The agency then writes ad copy that matches the search and names a clear next step.

Account structure and campaign setup

A tidy account separates campaigns by goal, region or product group. Inside each campaign sit ad groups with closely related keywords. This structure determines how well you can steer and analyse the account later. The agency also sets up bid strategies, daily budgets, ad schedules and locations.

Setting up conversion tracking

Without measurement, you cannot tell whether your ads bring in customers. Google defines a conversion as an action that is valuable to your business. On your website, Google Ads can measure actions such as purchases or sign-ups. It can also track app installs, calls from ads or from your website, and offline sales that you upload afterwards. The agency sets up this measurement and, if you wish, links the account to Google Analytics.

Ongoing optimisation

After setup, the real management work begins. The agency reviews search terms, adds negative keywords, tests new ad copy, adjusts bids and budgets and pauses weak campaigns. This work also covers the landing page. Even an excellent ad loses enquiries if the page loads slowly or offers no clear way to get in touch.

Reporting

Regular reports show clicks, impressions, costs, conversions and cost per conversion. A good report explains the figures and sets out the next steps. Google advises advertisers to review every month what they are investing and what results they get in return.

How much does a Google Ads agency cost?

Google Ads involves two kinds of costs. Your advertising budget goes to Google and pays for the clicks. The agency's fee comes on top. Google states in its third-party policy: "Third-party partners will often charge a fee in addition to the cost of your advertising." Google also recommends that you know the total cost of your advertising, including the partner's fees. How click prices themselves come about is explained in our article Google Ads cost.

Common pricing models

We do not have reliable, current average prices for Google Ads agencies in Germany. The models themselves are widespread and easy to compare:

• Fixed monthly fee: you pay a set amount for management, regardless of your ad budget.
• Percentage of ad spend: the fee rises with your advertising spend. There is often a minimum amount as well.
• Hourly rate: billing is based on time spent. This suits consulting, audits or individual tasks.
• Setup fee: many agencies charge a one-off amount at the start for analysis, account setup and tracking.
• Performance-based models: part of the fee depends on leads or revenue. A precise definition in the contract matters here.

Each model has pros and cons. With a percentage fee, the agency earns more when you spend more. A flat fee is easy to plan for, yet it tells you little about the effort involved. So ask which services the fee covers and how many hours per month are planned for your account.

Put the agreement in writing

Google recommends getting an official written copy of your agreement. It should cover the fee, the services, the term and the notice period. Also clarify whether your ad budget goes straight from your payment method to Google or runs through the agency. If the agency handles billing, you should still be able to see the actual costs at Google at any time.

What do Google Partner and Premier Partner mean?

Many agencies advertise with a "Google Partner" or "Google Premier Partner" badge. The programme is called Google Partners. According to Google Ads Help (as of October 2026), to qualify as a Partner, an agency must meet requirements in three areas:

• Performance: the managed accounts must reach an optimisation score of at least 70 per cent. Google calculates this score as an estimate of how well an account is set up.
• Spend: the managed accounts must run at least 10,000 US dollars in ad spend over 90 days.
• Certifications: at least half of the account strategists must be certified. In addition, every product area with at least 500 US dollars in spend over 90 days needs at least one certification.

Google checks these requirements daily. Premier Partners are companies that meet all Partner requirements and rank among the top three per cent of participating companies in their country. This status is awarded once a year.

What does this mean for you? The badge shows that an agency manages a certain volume, employs trained staff and applies Google's recommendations. It does not prove that the agency knows your industry or will reach your goals. You can check the badge on the agency's website with one click. According to Google, it leads to the company's profile at Google. An image without this link is not enough as proof.

Warning signs with Google Ads agencies

Google's third-party policy lists several points that help you spot dubious offers. Practical experience adds a few more.

• Promises of fixed positions: according to Google, nobody can secure a specific ad position in the search results. Agencies that promise this misrepresent how Google Ads works.
• Lack of transparency: Google writes: "You have the right to know the number of clicks, impressions, and the total cost of your Google ads." An agency that withholds these figures breaks this principle.
• "Ads will improve your ranking": according to Google, advertising has no effect on organic results. A promise like this shows a lack of basic knowledge.
• No account of your own: if your ads run in the agency's shared account, you may lose the history when you switch.
• People claiming to work for Google: if someone calls and says they are from Google, Google advises asking for their name and an email address ending in @google.com. A Gmail address proves no connection to Google.
• Long contracts without goals: minimum terms of many months with no agreed metrics are a risk for you.

Why you need your own Google Ads account

In its third-party policy, Google requires the agency to set up a separate account for you: "The third party agency must set up a separate Ads account for you." This keeps your data apart from the agency's other clients.

Our advice goes one step further. Make sure you have administrator access to your account yourself and that the payment method is in your company's name. The agency then links to your account through its manager account or receives its own user access. When the cooperation ends, you remove that access and keep your campaigns, data and learning history.

Google Ads offers several access levels:

• Admin: full access, can manage users and change links to manager accounts or Google Analytics.
• Standard: can edit campaigns and billing details, yet cannot manage users.
• Read only: can view campaigns and reports, without making changes.
• Billing: handles payment details without editing campaigns.
• Email only: receives notifications and reports.

For day-to-day work, standard access is usually enough for an agency. Read-only access will do for a simple review. Google also recommends that you stay informed and involved. So take a look at the account yourself now and then, even if the agency does the work.

Run Google Ads yourself or hire an agency?

Google Ads is built so that businesses can get started without an agency. Creating an account, setting a budget and launching a first search campaign takes little time. Ongoing maintenance is the harder part. If you set up a campaign once and then leave it running, you often end up paying for unsuitable search terms.

Doing it yourself fits if …

• you advertise a manageable offer in one region,
• your budget is small and a fee would take up a large share of it,
• you find time every week to review search terms and results,
• you are willing to learn the basics of Google Ads.

An agency is the better fit if …

• you run an online shop with many products and Shopping campaigns,
• you advertise in several countries, languages or locations,
• your budget is high enough that mistakes quickly become expensive,
• you lack the time or know-how in-house, especially for tracking.

A middle way is a one-off audit of your existing account, after which you apply the recommendations yourself. An agency that builds the account and then trains you can also make sense. According to Google, learning the basics does not take much time, even if a partner handles the work. With that knowledge, you make better decisions.

One partner at a time

If you want to compare several agencies, Google suggests testing them one after another. That way, it stays clear which result comes from which partner.

Questions for the first meeting

A first meeting quickly shows whether an agency suits you. These questions help you compare:

• Will you set up a separate account in my name, and will I get administrator access?
• How high is your fee, and which services does it include?
• Does the ad budget go directly to Google or through you?
• Which goals do you suggest, and which metrics will we use to measure success?
• How do you set up conversion tracking, and who checks that it counts correctly?
• How often will I get reports, and will they show clicks, impressions and costs?
• Do you have experience with my industry and my region?
• Who exactly will manage my account, and how can I reach that person?
• How long is the minimum term, and how can I cancel?
• What happens to the account and the data if we end the cooperation?

If an agency shows little interest in your business, your margins and your customers, keep looking. To run a good campaign, it needs to know what a new customer is worth to you.

How does the cooperation work?

• First meeting and proposal: clarify goals, budget, region and access to any existing account.
• Audit: for an existing account, the agency reviews structure, search terms, tracking and landing pages. Read-only access is enough for this.
• Setup: install or repair tracking, reorganise campaigns, write ads.
• Learning phase: during the first weeks, the account collects data. Firm judgements about success are difficult in this period.
• Optimisation and reporting: regular adjustments plus a meeting where you discuss the figures and next steps.

If problems arise, Google advises you to look for a solution with the partner first. Should an agency breach the third-party policy, you can report it to Google through a complaint form.

How to measure success

Clicks alone say little. What counts is how many enquiries or sales your ads generate and what they cost. For that, you need properly configured conversion tracking. Decide which actions count: a purchase, a completed form, a phone call. Conversions differ in value. A newsletter sign-up brings less than a booked appointment.

These metrics are useful for most businesses:

• Cost per conversion: what does one enquiry or sale cost you?
• Conversion rate: what share of clicks leads to a conversion?
• ROAS: return on ad spend, meaning revenue relative to advertising costs. For online shops, this is often the most important figure.
• Share of unsuitable search terms: how much budget flows into searches that do not match your offer?

Compare the values over several months and include the agency fee in your calculation. Only then can you see whether the advertising pays off. Also run spot checks to see whether the reported conversions match your own figures, such as orders in your shop or enquiries in your inbox.

Common mistakes in self-managed accounts

If you start Google Ads without an agency, you will often trip over the same points. This list helps with your own review before you spend money on external management:

• No conversions set up: without tracking, you can only steer by clicks, which may never turn into enquiries.
• Keywords that are too broad: general terms trigger ads for many searches that have nothing to do with your offer.
• No negative keywords: terms such as "free", "job" or "tutorial" rarely fit a sales offer.
• Wrong networks: check in the settings where your search campaign is shown. The Display Network and search partners bring different visitors than Google Search.
• Home page as the destination: if every ad leads to your home page, visitors have to search first. A matching subpage for the offer usually works better.
• Too many campaigns on a small budget: when little money is spread across many campaigns, none of them collects enough data.

If you can fix these points with a bit of learning, it is worth trying on your own. Should your cost per enquiry stay too high afterwards, an audit by specialists is the next step.

Summary

A Google Ads agency handles strategy, account setup, tracking and ongoing optimisation. Its fee comes on top of your ad budget. Look for your own account with administrator access, open reporting on clicks, impressions and costs, and a written agreement. The Partner badge shows experience with the system, yet it is no substitute for checking the agency against your goals. You can often run small campaigns with a clear offer yourself. More can be found on our topic page PPC Management.

Sources: Google Ads policies, "Third-party policy" (support.google.com/adspolicy/answer/9457109); Google Ads Help, "Advertising and organic search results" (support.google.com/adwords/answer/6227161); Google Ads Help, "Google Partners: requirements" (support.google.com/google-ads/answer/9702452); Google Ads Help, "Access levels in your Google Ads account" (support.google.com/google-ads/answer/9978556); Google Ads Help, "Conversion tracking" (support.google.com/google-ads/answer/1722022); Google Ads Help, "Google AdWords is now Google Ads" (support.google.com/google-ads/answer/9028765).