Paid Media

How to compare Google Ads management costs: a worked example

Compare in-house, agency and hybrid Google Ads costs with a worked example and free worksheet. Separate ad spend, staff time and fees before choosing.

Arturs Rubins · 2026-10-12 · 6 min read

A fair Google Ads management cost comparison adds the same work to each option. Compare in-house, agency and hybrid management over the same period, separate ad spend from operating costs, and include the internal work that remains after hiring an agency. The cheapest management model is not automatically the most profitable.

CPCInsider co-founder Arturs Rubins previously worked at Google and advised major European advertisers. This guide turns the financial part of the in-house versus agency decision into an exercise you can complete with your own figures.

1. Fix the scope and period first

Write down campaigns, countries, languages, landing pages, tracking, creative work, reporting and sales feedback. Compare each option against this same list. Ask suppliers to identify included work, extra work and your responsibilities in writing. Do not compare a campaign-only quote with an internal team delivering the whole customer journey.

Use one currency and a consistent tax basis. Choose a period that covers setup and your sales cycle. Six months below is an illustration, not a required contract length. Separate cash outlay from allocated staff time: existing salary may not increase when you use an employee, but the time still has an opportunity cost.

2. Fill the cost worksheet

Download the free comparison worksheet CSV. Enter confirmed figures, not market guesses. A blank is unknown; enter zero only when a cost is genuinely absent. Use Excel or Google Sheets to calculate totals from your completed inputs.

Monthly operating cost = management + internal coordination + other delivery + tools + setup ÷ months. Do not add an agency-included licence twice or count the same employee hours in two rows. Keep media spend in a separate row. Google's transparency requirements cover disclosure of management fees and separation of Google advertising costs from supplier fees.

3. Work through an exact example

These figures are invented to demonstrate arithmetic. They are not CPCInsider prices, salary benchmarks or expected results. All amounts are EUR on the same tax basis; the horizon is six months.

The setup row is an input, not an additional monthly expense: only its monthly allocation enters the operating total. Here the hybrid model saves EUR 100 per month before performance differences. This does not establish which model will generate more customers.

4. Compare outcomes without inventing an uplift

Record accepted enquiries, won customers and contribution before marketing cost. Use consistent definitions and allow for the sales-cycle lag. Total acquisition cost per won customer = attributable media and operating cost ÷ attributable won customers. If attribution or customer count is unavailable, mark the result unavailable rather than dividing by contacts or assuming zero cost.

As a separate hypothetical threshold, an option costing EUR 300 more per month needs three additional customers at EUR 100 contribution each to cover that difference, assuming other costs remain equal. This is break-even arithmetic, not a forecast. Compare actual cohorts before treating a lower fee as a better result.

5. Make the responsibility and exit checks

Keep a business-controlled administrator and grant the supplier appropriate access instead of sharing passwords. Check Google's account access levels. Agree who fixes tracking, approves spend and owns the landing page, and document how account history and reporting remain accessible when the arrangement ends.

Save a dated decision record: selected model, confirmed scope, unresolved costs, named owners and review date. Use the agency handover checklist if you are changing providers.

Choose the setup your business can operate

Get a free growth review. Bring your current responsibilities and cost worksheet. We will discuss gaps between campaign management, measurement and sales follow-up, and provide three priorities. Explore our paid media service for implementation support.