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Agencies are increasingly charging clients for paid search services based on a percentage of spend, according to recent research from WordStream.

The report was based on data from a 2019 survey of 100+ agencies that provide paid search services for clients.

Half of the agencies polled said they charge a flat fee/retainer for paid search services; that's unchanged from 2018.

Some 34% said they charge for paid search services based on a percentage of spend, up from 25% in 2018.

Among agencies that charge for paid search services based on a percentage of spend, some 36% charge 10-15% and 33% charge 15-20%.

Nearly two-thirds (65%) of the agencies polled said they charge a setup fee for new clients.

Among agencies that charge a setup fee, some 58% said they charge less than $1,000.

About the research: The report was based on data from a survey conducted in 2019 among 100+ agencies that provide paid search services for clients.

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ABOUT THE AUTHOR

image of Ayaz Nanji

Ayaz Nanji is a digital strategist and a co-founder of ICW Media, a marketing agency specializing in content and social media services for tech firms. He is also a research writer for MarketingProfs. He has worked for Google/YouTube, the Travel Channel, AOL, and the New York Times.

LinkedIn: Ayaz Nanji

Twitter: @ayaznanji