Two pricing models dominate Google Ads management in South Africa, and the "cheaper-looking" one on paper isn't always cheaper once your spend grows.
The two models
- Flat monthly fee: typically R1,500–R10,000/mo, spend-tier banded, predictable regardless of how much you spend within the tier
- Percentage of spend: commonly 10–20%, scales directly with your ad budget, which means it scales with your success too, for better or worse
Where the maths actually flips
At low spend (say R10,000/mo), a 15% fee (R1,500) often beats a flat R3,000/mo management fee. At high spend (R100,000/mo), that same 15% fee is now R15,000, likely well above what a flat-fee agency would charge for managing the same account. There's a genuine crossover point, and it's worth calculating for your actual numbers rather than assuming either model is universally better.
The bundled-with-SEO trap
Some retainers bundle ads management inside an SEO package, with ad spend covered "up to" a stated threshold before the percentage kicks in. This is genuinely good value at moderate spend, and genuinely expensive if your spend grows past that ceiling without the terms being renegotiated. Always ask what happens above the threshold, in writing, before you sign.
What the fee should actually buy
Regardless of model: campaigns built around real search intent, disciplined negative-keyword hygiene (stopping wasted spend on searches that were never going to convert), and conversion tracking wired to actual leads, not just clicks. A management fee that doesn't include conversion tracking is pricing you on activity, not results.
The honest recommendation
Ask for both numbers, model your real spend against both, and pick based on your actual budget rather than which one sounds better in a sales call.
See how ads management is priced here, spend maths included →