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Lauren Richter

Lauren Richter Sales Manager

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What Is A Fair Management Fee For AdWords?

Management Fee of Adwords for Dealerships

When putting together my strategy for dealers, I am more often than not asked about management fee of Adwords.  Knowing our management fee, I tell the dealer and we proceed our discussion.  The bigger question that I like to ask them is what is an acceptable cost per lead for the services provided.  My question for dealers and vendors here9c05d75630aa39a18f8f261a699a4875.png?t=1 is, What do all of you feel is a fair mangement fee for dealers to pay, and isn't cost per lead or lead volume more important than a fee?

Further for discussion:

Should dealers spending more money with a provider pay less of a management fee?

Should dealers be overly concerned with a management fee if the OEM is providing the dollars for AdWords?

Automation vs Human:  Should a company with more humans managing unique campaigns receive a higher management fee than automated platforms?

Thanks! 

Taylan Yu
OEM's don't always provide dollars for AdWords. Kia Canada has a rule that you cannot spend more than 30% of your monthly budget towards Adwords Campaigns. I suspect that has become a problem for rural franchise dealers that only have a monthly advertising budget of $1500. Even if we double the budget to $3000 a month, we cannot exceed spending more than $900 on Adword Campaigns. Being only an hour away from a metropolis, you can also expect a higher bid for you clicks. I would have no problem paying a management fee if OEM put the bids on their dime.
Carl Maeda
The ideal metric to measure a campaign's success by would be cost per sale but not all dealers want to give you access to their sold data in the DMS or CRM. Cost per lead would be a good second. There is a reason why Google pretty much mandated the transparency on the Management Fees. Many paid search vendors have reports that don't make it easy to decipher the real metrics. They emphasize the big numbers like Impressions and Click Throughs. They either bury the cost per lead and conversion rate or leave the dealership to calculate this on their own. If the management fee is transparent, at least the dealer can figure out what goes to Adwords and what goes to the paid search vendor. Management fees can't be an apples to apples comparison in my opinion. You have to look at performance. A highly optimized campaign requires manual intervention. They have to write the ads and even create/tweak the landing pages. In short, to have actual people making decisions and managing the campaigns takes time and money and if the people are good, it will perform much better than an automated system.

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