How Much Does Search Engine Marketing (SEM) Cost — and Why?

When people search for your business, you want them to find you. SEO helps, but paid SEM (search engine marketing) gives an extra boost.

How much does SEM cost? At Zoe Marketing & Communications, our average SEM client spends $4,050/month — though costs can reach $10,000+ depending on industry and goals.

Your marketing dollars matter. Whether you work with an agency or DIY, understanding what goes into SEM costs is essential.

4 essential considerations for SEM costs

1. The time commitment of SEM

SEM primarily happens through Google Ads, where businesses bid on keywords to appear in search results. Managing a campaign for an agency looks like this:

• 5-15 hours for initial setup: including keyword research, campaign structure, creating ads and landing pages, etc.
• 5-10 hours per week for maintenance: monitoring performance, tweaking keywords and adjusting the budget.

DIY SEM takes about 15 hours/week. For many business owners, that’s too much.

“Most anyone can do SEM, but not everyone can do it well,” says Alexia Bourkoulas, Zoe’s CEO. “Clients usually come to us after they’ve spent too much money without the results they wanted.”

2. Management fees for SEM services

Agencies charge a management fee for handling SEM, typically 15%-50% of your ad spend. At Zoe, our fee is 35%.

If you spend $3,000 on Google Ads, a 35% management fee adds $1,050 — totaling $4,050/month.

Fees vary based on agency reputation, service level and campaign complexity.

Many agencies combine SEM with other marketing tactics (like social or display ads) for better results.

When hiring an agency, always ask about management fees and what’s included.

3. Optimizing your campaigns

• Keyword research: SEM campaigns typically include 50+ keywords, balancing search volume, competition, and relevance. Tools like Semrush and Google Keyword Planner help refine selections.
• A/B testing: Testing different ad versions can increase conversions 25%-300%.
• Landing page optimization: The page your ad leads to is as important as the ad itself.
• Strategic bid adjustments: Constantly refining bids, CPC (cost-per-click), and performance metrics.

4. Balancing cost and results

Zoe’s $4,050/month average includes both ad spend and management fees. Agencies work to balance cost with effectiveness by:

• Setting realistic budgets: Some industries (insurance, law) require higher budgets due to competition. If your industry is crowded, you’ll need to spend more to stand out.
• Optimizing cost-per-click (CPC): CPC averages $2.69 for search ads and $0.63 for display ads.
• Regularly adjusting strategies: SEM isn’t set-it-and-forget-it. Agencies continuously tweak campaigns for better performance.

How to decide your next SEM marketing moves

SEM is a powerful tool for driving targeted traffic to your site, but success takes time and expertise. Costs vary by industry, competition and strategy.

With management fees of 15%-50% and multichannel marketing options, SEM typically costs thousands per month.

Need expert insight? Talk to Zoe Marketing & Communications. We’ll help you determine the best SEM strategy for your goals and budget.

Still researching? Check out:

• How a Zoe client needs analysis determines your SEM needs and costs
• How to create good working relationship with your marketing agency