Skip to content

Which pricing models do Google Ads agencies use?

maitiq · Published

Google Ads agencies bill their management through six basic forms: fixed price or retainer, a percentage of the media budget, an hourly or daily rate, a project price, performance-based remuneration and hybrids of these. These models only become comparable when you calculate them with the same scope of services and the same figures.

Why does the scope of services come before the price formula?

Because two fees of the same amount can cover completely different services. Before every price comparison, therefore, record: accounts, markets, languages, campaign types, tracking responsibility, search query review, budget control, creative work, reporting, review cadence, response rules and offboarding. What is not described remains unknown and does not count as free of charge.

The price formula answers how an invoice grows. The scope of services answers what you are paying for. Compare both before deciding. The broad cost structure and the available evidence on Swiss fees are covered by the guide to Google Ads agency costs; the following comparison deals with the models themselves.

Fixed price or monthly retainer

You pay a fixed amount per period for a defined scope.

Fee over the contract term (CHF) = monthly retainer (CHF/month) × contract months; an annual fee applies only if the contract months refer to the year under review.

A budget increase at Google does not change this calculation. The service description therefore carries all the weight: a weak contract mentions only “ongoing optimisation”, a good one names checks, cadence, results, response times and explicitly excluded work.

Percentage of the media budget

The fee grows with the budget paid to Google.

Fee (CHF/year) = eligible media budget (CHF/year) × rate (%)

The calculation base, exceptions, minimum fee, tiers, cap, credits and seasonal fluctuations all have to be defined. The link can make sense when budget and operational complexity really grow together – but a large account in a stable structure may need less work than a small, multilingual one with complex tracking. maitiq therefore quotes per account. The fee is not tied to the media budget – maitiq does not earn more when your advertising spend rises. The full reconciliation is in the guide to the percentage of ad spend.

Hourly or daily rate

You pay for documented working time.

Fee (CHF/period) = billable hours (h) × rate (CHF/h)

This suits consulting, training, migration and limited specialist work. For ongoing operations, prioritisation and a cost ceiling are needed. Clarify which roles are billed at which rate, how billable time is rounded, whether internal coordination counts and what happens when the cost ceiling is reached. Time makes effort visible but does not measure its value; automation must not be penalised for generating fewer hours. That is precisely why maitiq does not bill by the hour: AI-supported workflows take over the recurring account analysis daily by default, and the quotation applies per account for a defined scope of services.

Project price

A fixed price for a clearly defined outcome, such as account structure, a tracking rebuild or an agency handover.

Project costs (CHF) = sum of the agreed prices for the project services

Agree on inputs, deliverables, acceptance criteria, deadline, dependencies, change procedure, usage rights and subsequent maintenance. If the offer provides a tolerance for additional effort, record the cap and the approval rule explicitly. A “Google Ads Setup” without these points is not comparable.

Performance-based remuneration

The fee depends wholly or partly on an agreed metric.

Fee = base amount + contractually defined variable component

The contract must therefore define what “success” is, from which data source it is read and how cancellations, returns, offline revenue and corrections are handled. Important: the Conversions column in Google Ads depends on the chosen conversion settings. Google documents that conversion actions marked as secondary normally serve observation and do not appear in the Conversions column; a secondary action inside a custom goal that the campaign uses can, however, be used for bidding and reporting. Google also documents that counting is set per conversion action, after an ad interaction, to every conversion or only one, and that the attribution model – data-driven by default for most conversion actions, alternatively last click – determines how credit is distributed. Without a fixed configuration, the fee calculation base can change without the business result changing. The reporting and attribution guide provides the measurement definitions for this.

Hybrid model

A hybrid combines several components, for example:

Fee = base amount + media budget × rate + approved projects

Hybrids combine different pricing components but quickly become opaque. Ask for the total costs for at least three scenarios and transparent disclosure of each component.

How does the current Swiss sector survey classify these models?

The LSA/SWA Sector Indicator 2026 published on 7 January 2026 shows how frequently broad remuneration forms were reported. The online survey in October and November 2025 was answered by 145 advertisers in German- and French-speaking Switzerland. The published results report quotations at 46%, agile pricing at 31%, percentage fees at 18%, team hire at 8% and performance-based remuneration at 3%.

Published remuneration formFrequencyEditorial orientation in this six-model matrix
Quotation46%most likely a project price
agile pricing31%can combine time, project or hybrid components; without the contract formula it cannot be classified
percentage fee18%percentage of the media budget if the contract defines exactly this base
team hire8%most likely a fixed price/retainer for a defined team scope of services
performance-based remuneration3%performance-based remuneration

The mapping in the third column is editorial guidance, not a classification by the source. The frequencies are not added up and are not treated as exclusive market shares. The survey concerns the communications industry in general, not Google Ads, and publishes neither franc amounts nor the level of a percentage fee: “percentage fee 18%” means that this model was named with this frequency – not that the fee rate is 18%.

Other current sources do not close this price gap. The OFCOM (Federal Office of Communications, BAKOM) page of 8 December 2025 cites, for 2024, an expert estimate of CHF 1,220 to 1,494 million in search engine advertising revenue from Swiss advertisers’ spending – market size, not agency fees. digital M published its own offer on 7 July 2026: 15% of ad spend or at least CHF 800 per month; BRANDFUSION described model types on 12 March 2026 without its own rate and without a representative method. Both pages document only those providers’ own offers or claims. No representative current Google Ads fee range for Switzerland can be derived from them.

The six-model decision matrix

The matrix does not assess an agency. It shows which question follows structurally from which formula.

ModelFormula (unit)Agreed scope of servicesPredictability
Fixed priceretainer × months within the selected year (CHF/year)fully described scope of serviceshigh, as long as the scope of services remains stable
Percentagemedia budget × rate (CHF/year)must be specified separately; cannot be inferred from the price basisdepends on budget planning
Timehours per year × rate (CHF/year)must be specified separately; cannot be inferred from the price basisonly with a cost ceiling
Projectsum of the agreed project prices (CHF)must be specified separately; cannot be inferred from the price basishigh per project; ongoing operating costs have to be quantified separately
Performancebase amount + variable componentmust be specified separately; cannot be inferred from the price basislow without a cap
Hybridsum of the componentsmust be specified separately; cannot be inferred from the price basismedium, manageable with scenarios
maitiq (managed model)quotation per account (CHF/year), not tied to the media budgetcontractually agreed scope of services per account; the fee applies while that scope is unchangedhigh, independent of budget planning
ModelStructural incentiveReconciliation per billing periodMinimum governance
Fixed pricekeep effort within limitsevidence of services against the agreed scope of servicescadence, quality and escalation rules
Percentagescale the media budgetspend statement, credits, tiers, capindependent budget approval
Timebillable activitytimesheet by role and taskprioritisation and cost ceiling (tolerance limit)
Projectdeliver the agreed work for acceptanceacceptance record per deliverablechange and maintenance procedure
Performanceincrease the agreed metricdata source, configuration, correctionsfixed measurement definition, quality criterion, cap
Hybridseveral incentives at oncedisclosure of each component (sum of the parts)complete formula and scenarios
maitiq (managed model)cover the agreed scope of services on an ongoing basisproposals with the action, the rationale and the available supporting data (old/new value where such a comparison exists); the named Client Success Manager supports the recurring workdecisions and implementations are recorded; a configured limited autopilot may accept and apply eligible proposals within its authorised limits; some proposal types require a human decision; explicit approval to exclude specified keywords already authorises the associated guarded exclusion action; implementation is logged as a separate step

Scenario calculator: the same figures for all six models

The calculator runs one pass with a single set of inputs: hours per month, hourly rate, contract months per year (at most 12), monthly retainer, project fee (one-off), advertising budget per year, percentage in percentage points, base fee per month, annual amount subject to the performance fee and performance fee (%). Run it three times in turn – for your lower, central and higher assumptions – and record the six result values of each pass in the printable worksheet. Mixed model per year = base fee per month × contract months + hours per month × hourly rate × contract months + annual amount subject to the performance fee × performance fee as a percentage ÷ 100. This is one specified hybrid, not a calculator for every contract and not the CHF 61,000 hybrid example below. This is a manual worksheet: it has no automatic scenario columns; it records your three passes. All fields start blank; blank means unknown, and a zero has to be entered deliberately.

Compare pricing models with your own figures

All fields start blank. Each model calculates only when its inputs are present; zero is a valid value, blank means unknown.

Effort actually incurred at the provider. In the mixed model these hours are billed separately and are not included in the base fee; the hourly-only calculation uses the same entered workload.
Your own agreed rate; not a market benchmark.
Months with ongoing support, not calendar months.
Fixed amount per supported month.
Agreed price of the deliverables.
Direct advertising spend; not a fee.
For example 12 for 12%, not 0.12.
Fixed part of a success or mixed model.
Agreed annual amount to which the performance fee percentage is applied.
Percentage of the performance fee, for example 5 for 5%, not 0.05.
Annual figures of the six pricing models
ModelCalculationValue
Hourly basis per yearHours per month × hourly rate × contract monthsN/A – missing: Hours per month, Hourly rate, Contract months per year
Monthly retainer per yearMonthly retainer × contract monthsN/A – missing: Monthly retainer, Contract months per year
Project fee (one-off)Agreed price of the deliverables; not annualisedN/A – missing: Project fee
Percentage of the advertising budget per yearAdvertising budget per year × percentage / 100N/A – missing: Advertising budget per year, Percentage
Base fee plus performance fee per yearBase fee per month × contract months + annual amount subject to the performance fee × performance fee / 100N/A – missing: Base fee per month, Contract months per year, Annual amount subject to the performance fee, Performance fee
Mixed model per yearBase fee × contract months + hours × rate × contract months + calculated performance fee (annual amount subject to the performance fee × performance fee / 100)N/A – missing: Base fee per month, Contract months per year, Annual amount subject to the performance fee, Performance fee, Hours per month, Hourly rate

All rows refer to the same year; the project fee remains one-off. The calculation contains no Swiss fee range and no performance promise.

ModelLower scenario (manual)Central scenario (manual)Higher scenario (manual)
Hourly basis per year
Monthly retainer per year
Project fee (one-off)
Percentage of the advertising budget per year
Base fee plus performance fee per year
Mixed model per year

The manually calculated implied hourly rate serves as a common comparison measure: annual fee ÷ contractually guaranteed annual hours; both values have to be known for it. Write N/A if the annual fee or the guaranteed annual hours are unknown, or if the annual hours are zero; a known fee of zero with known positive annual hours remains zero. If you plan in annual hours, convert them for the calculator into hours per contract month: hours per month = annual hours ÷ contract months. That conversion requires known positive contract months; with unknown or zero months you do not divide by zero. The calculator allows an entered zero, but that does not make manual division by zero valid.

Illustrative calculation example. The following inputs are freely chosen and do not replace your own; they use illustrative alternative contract terms and are not a market price or an expectation. Enter your own offer terms into the three runs. With an assumed advertising budget of CHF 500,000 per year:

  • Fixed price: CHF 5,000/month × 12 = CHF 60,000/year
  • Percentage: CHF 500,000 × 12% = CHF 60,000/year
  • Time: 400 h × CHF 180/h = CHF 72,000/year, implied rate CHF 180/h
  • Hybrid (manual illustration with contract terms different from the calculator formula): CHF 3,000/month × 12 + CHF 500,000 × 5% = CHF 36,000 + CHF 25,000 = CHF 61,000/year
  • Project: CHF 12,000 + CHF 6,000 (two approved deliverables) = CHF 18,000 one-off
  • Performance: CHF 2,000/month × 12 + variable component = CHF 24,000/year + variable fee not yet known
  • maitiq comparison value for a comparable scope of management services and excluding advertising spend (owner statement by maitiq, illustrative example, no customer data and no independently observed customer result): CHF 60,000 ÷ 2 = CHF 30,000/year

The performance line is deliberately incomplete, for two different reasons. If the metric, the data source or the rate is missing, the performance fee cannot be calculated. If the contract sets no cap, that does not prevent the calculation: it leaves the maximum exposure unbounded, because the variable component is then not limited. The calculator has no cap field and does not enforce a cap.

Similar annual figures do not mean identical services. Only the scope grid shows whether tracking, search query control, budget management, creative work, reporting and handover are included. You can calculate the total annual costs including internal work in the total cost calculator. The tool does not crown a winner; as long as a critical field is empty, the comparison remains incomplete.

What maitiq offers in this comparison

maitiq enters the grid as a model of its own: a quotation per account, not as a percentage of the media budget.

Budget pacing, search-term review, target CPA adjustment and ad review run according to the configuration; every proposal describes the action, the rationale and the supporting data. The named Client Success Manager supports the recurring work. A configured limited autopilot may accept and apply eligible proposals within its authorised limits; some proposal types require a human decision, and decisions and implementations are recorded. Explicit approval to exclude specified keywords already authorises the associated guarded exclusion action. Implementation is logged as a separate step. The entry point is a read-only audit that assesses the account’s current state and the available evidence. The account alone cannot prove which checks another provider actually performs or at what cadence; that comparison needs the supplied offer or invoice and the available operational records.

Contract questions worksheet

Use the same fields for every offer and mark each answer as answered, unresolved or not applicable. Unanswered questions identify what still needs clarification; that is a result, not a formal error.

Contract fieldQuestionApplies toAnswer statusEvidence (clause)
Scope of servicesWhich accounts, markets, campaign types and tasks are included?all
Formula and periodWhich formula, unit and billing period apply?all
Calculation baseWhich costs count towards the base, which are excluded?Percentage, Hybrid
Minimum fee, tiers, capDo a minimum fee, tiers or a cap apply?Percentage, Performance, Hybrid
Cost ceiling and toleranceIs there a cost ceiling or a tolerance clause for additional effort, and how is it evidenced?Time, Project
Additional effortWho approves extra work in advance and at which rate?all
Definition of successWhich metric, conversion configuration, attribution and correction rule apply?Performance, Hybrid
Evidence per periodWhich evidence do you receive: hours, spend, acceptances, measurement data?all
ApprovalsWho may change budgets, bids, conversions and automation?all
TerminationWhich notice period, handover, data return and rights apply?all

How do you make the decision?

  1. Fix the comparable scope of services first; never compensate for missing responsibilities with a low price.
  2. Convert all formulas into the same annual and scenario values.
  3. Check which behaviour the formula rewards and which governance limits it.
  4. Document open assumptions and name a responsible person for each field.
  5. Only then decide commercially – the choice of model is a contract question, not a matter of taste.

FAQ

Which model makes sense for large accounts?

This depends on complexity and responsibility, not on the budget alone. A large budget in a stable structure can require less support than a small one with many markets.

How do I compare hybrid offers?

Have each component disclosed separately and calculate at least three scenarios with the same scope of services. In the calculator the “mixed model” row uses one fixed hybrid formula (base fee per month × contract months + hours per month × hourly rate × contract months + performance part); it does not represent every hybrid – the CHF 61,000 example in the list combines different terms.

Is performance pricing risk-free?

No. It shifts risk but does not remove it: data source, conversion configuration and attribution determine the assessment base and must be fixed before the contract begins. A specific advertising result is not guaranteed – not even by maitiq; the maitiq comparison value is therefore a management fee, not a performance component.

Which model is the most predictable?

On paper the fixed price – but only within a clear scope of services. A cap or a cost ceiling makes variable models predictable too. Predictability is a matter of contract design, not a model name.

Should a percentage model be ruled out?

No. It can fit if effort and budget demonstrably grow together and minimum fee, tiers, cap and budget approval are regulated transparently. maitiq itself forgoes this coupling: the fee is quoted per account – the factors are on the maitiq pricing page – and does not rise with the media budget.

Is there a customary Swiss rate?

The current sources reviewed name no representative Swiss Google Ads rate. LSA/SWA names the frequency of broad remuneration forms, not their level; OFCOM names the order of magnitude of the search engine advertising market, not agency prices. Provider pages evidence only their own statements. The data situation is documented in the guide to Google Ads agency costs.

Sources and how to read them

The sources of this comparison evidence different things: Google help pages explain the platform mechanics; the LSA/SWA survey shows how frequently broad remuneration forms were reported; the OFCOM/BAKOM page provides a market-size estimate; provider pages describe only their own offer. None of these sources evidences a representative Google Ads fee rate in Switzerland. Information about how maitiq works is available at maitiq.com.

To compare fees and services we also include your existing offer or your invoice; these details are not held in the Google Ads account.

Have maitiq review your specific case.