Google Ads management in Canada is usually charged in one of two ways: a flat monthly fee, or a percentage of your ad spend. Either way, the fee is paid on top of the ad spend itself, which goes to Google. At ZimaPeak, management costs $750, $1,250 or $2,000 CAD a month depending on the plan. We recommend at least $500–$1,000 a month in ad spend so there's enough data to optimize.
This guide explains how agencies charge, what you get at each price point, how much to budget for the ads themselves, and the costs that often get left out of a quote. At the end there's a worked budget for a Toronto clinic spending $1,000 a month.
Management fee vs ad spend: two separate costs
Every Google Ads budget has two parts, and mixing them up is the most common source of confusion.
| Cost | Who gets paid | What it buys |
|---|---|---|
| Ad spend | The clicks on your ads. You set a daily budget, and Google charges you each time someone clicks (this is why it's called pay-per-click, or PPC) | |
| Management fee | Your agency or freelancer | The work: keyword research, campaign setup, ad copy, conversion tracking, weekly optimization and reporting |
Opening a Google Ads account is free; you pay Google only for clicks. Google treats your daily budget as an average: on a busy day it can spend up to twice your daily budget, but over a month it won't charge more than about 30.4 times your daily budget (Google Ads Help). So a $33/day budget works out to about $1,000 a month.
With us, the ad spend never passes through our hands: Google charges it to your own payment method in your own Google Ads account, and our management fee is a separate invoice.
The 3 ways agencies charge for Google Ads management
1. Flat monthly fee
You pay the same fee every month, whatever you spend on ads. This is how we price our Google Ads management plans.
- Pros: Predictable. The agency has no incentive to raise your ad spend to raise its own fee.
- Cons: At very small budgets, the fee can be large relative to the spend (see the worked example below).
2. Percentage of ad spend
The fee is a share of what you spend on ads each month, often with a minimum fee.
- Pros: Scales with the account. Common for large budgets.
- Cons: The agency earns more when you spend more, whether or not the extra spend brings in customers. Your costs are harder to predict.
3. Hybrid or performance-based
A base fee plus a percentage, or a fee tied to results (per lead or per sale).
- Pros: Ties some of the cost to results.
- Cons: "Leads" have to be defined carefully, or you pay for junk enquiries. It needs reliable conversion tracking, and the agency may avoid harder-to-win but more valuable searches.
Which is best? For most local businesses spending under a few thousand dollars a month, a flat fee is the simplest and easiest to compare. Whatever the model, ask what's included and what isn't. That's where quotes really differ.
What you get at each price point
These are our current plans, as listed on our Google Ads service page. Ad spend is billed separately.
| Starter | Growth | Premium | |
|---|---|---|---|
| Monthly fee | $750/mo | $1,250/mo | $2,000/mo |
| Best for | Small businesses testing Google Ads for the first time | Businesses ready to scale with several campaigns | Full-funnel management for aggressive growth |
| Campaigns | One campaign, up to 10 ad groups | Multiple campaigns + A/B testing | Full Google Ads strategy, ongoing testing and scaling |
| Setup work | Keyword research, ad copy, extensions and conversion tracking setup | Everything in Starter, plus landing page audits | Everything in Growth |
| Optimization | Monthly | Bi-weekly | Bi-weekly, plus ongoing testing and scaling |
| Reporting | Weekly performance reports | Weekly reports | Weekly reports, plus a monthly call and KPI review |
| Other channels | Search | Search | Includes YouTube and Display if needed |
Conversion tracking is set up on every plan, including Starter.
If you also need a website, social media and Meta ads, our All-in-One Growth Package covers Google Ads as part of one $1,499/month price, cancel anytime.
How much should you spend on Google Ads?
We recommend a minimum of $500–$1,000 a month in ad spend for most local businesses. Below that, there usually aren't enough clicks each month to tell which keywords and ads are working, so optimization becomes guesswork.
Where in that range (or above it) you should be depends on:
- Your industry. Clicks for high-value services (legal, cosmetic treatments, renovations) cost more than for low-ticket ones, because competitors can afford to pay more for each customer.
- Your location. A downtown Toronto clinic competes with more advertisers than a clinic in a smaller city.
- How many customers you want. Work backwards: the number of new customers you want, divided by how many enquiries turn into customers, times what each enquiry costs.
- Competition on your keywords. If several competitors bid on the same searches, you need a bigger budget to show up often enough.
Setup fees, contracts and hidden costs to watch for
Before signing with anyone, including us, ask these questions:
- Is there a setup fee? Some agencies charge a one-time fee to build the account. We don't: setup is included in all our plans.
- Is there a minimum contract? A long lock-in protects the agency, not you. Our plans are month to month, with no lock-in contract.
- Who owns the account? If you leave, you should keep your Google Ads account, its history and your conversion data. An account owned by the agency means starting from zero. With us, the Google Ads account is always yours, and you keep it and its data if you leave.
- Is conversion tracking included? Without tracking calls, forms and bookings, nobody can tell which ads bring customers. If it's not included, budget for it. With us, it's set up on every plan.
- What else costs extra? Landing pages, call-tracking software, ad creative and video production are often billed separately. With us, landing pages, call-tracking software and filmed video production are quoted separately if you need them; ad copy and standard ad creative are included in every plan.
- How often will you hear from them? Reporting frequency and whether you get calls, not just automated emails.
Agency vs freelancer vs DIY: cost comparison
| Option | What you pay | Best when | Watch out for |
|---|---|---|---|
| DIY | Ad spend only, plus your time | Budget is under about $500/month, or you want to learn first | Wasted spend on broad keywords and missing tracking. Our step-by-step setup guide covers the basics |
| Freelancer | Ad spend + a fee, usually lower than an agency | One channel, a simple account, and a freelancer with proven local results | One person's availability. No backup during holidays or sick days |
| Agency | Ad spend + a monthly fee (ours: $750–$2,000/mo) | You want a team, tracking, landing-page help and other channels (SEO, Meta, website) coordinated | Long contracts, junior staff on your account, and reports without business results |
If your total budget is under about $1,000 a month, a management fee of $750 may not make sense yet. In that case, start yourself with our beginner guide, set up conversion tracking, and revisit management once you know Google Ads works for your business.
Worked example: a Toronto clinic spending $1,000 a month
Here's how the numbers come together for a single-location clinic in Toronto with a $1,000/month ad budget.
| Starter plan | Growth plan | |
|---|---|---|
| Ad spend (paid to Google) | $1,000 | $1,000 |
| Management fee (paid to ZimaPeak) | $750 | $1,250 |
| Total monthly cost | $1,750 | $2,250 |
| Daily budget to set in Google Ads | About $33/day | About $33/day |
What the clinic gets for it: $1,000 of ad spend brings in roughly $1,000 ÷ CPL enquiries a month. CPL (cost per lead) is ad spend divided by the number of calls, forms or bookings.
Is it worth it? Compare the total monthly cost with what those enquiries are worth. If 1 in 3 enquiries books, and an average new client is worth $600 over their first year, then each enquiry is worth about $200. Those two figures are for illustration only; use your own booking rate and client value.
Which plan? At $1,000/month spend with one main service, Starter is usually enough. Growth makes sense once you run several services or locations and want bi-weekly optimization and landing-page audits included.
For a real example, see how we ran Google Ads alongside SEO for SRG Auto Glass.
FAQ
Is ad spend included in the management fee?
No. Ad spend is paid to Google and is separate from our management fee. On our Starter plan, for example, you'd pay $750/month for management plus whatever you set as your ad budget.
What's a normal percentage-of-spend fee?
Percentage fees usually come with a monthly minimum, so at small budgets they often cost about the same as a flat fee. We charge flat fees so our pay doesn't depend on how much you spend.
Is there a minimum contract?
No. Our Google Ads plans are month to month, with no lock-in contract and no setup fee. The Google Ads account stays in your name, so if you stop working with us, you keep the account, its history and your conversion data.
How much should a small business spend on Google Ads per month?
We recommend at least $500–$1,000 a month in ad spend for most local businesses, plus management if you hire help. Competitive industries and big cities usually need more. Work backwards from how many new customers you want and what each one is worth.
Can I start with a small budget and increase it later?
Yes, and it's often the smart way to start. Begin with enough budget to cover your most important service, prove that it brings customers, then add services or raise the budget on what works.
Next step
Want to know what Google Ads would cost for your business? Get a Google Ads quote for your budget. Tell us your services, location and budget, and we'll reply within one business day with a campaign plan and a fixed monthly price.
