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Do you know businesses that outsourced their PPC management to a white label agency saw an average increase in revenue of 29%?
If you want to add up more revenue then make sure you partner with a white label Google ads agency in India as it guarantees you more earnings.
The reason being digital marketing services in India are not just affordable but are known to deliver the best results in comparison to other country’s companies.
Now, know how a white label ads management service can help you to increase your revenue:
Let’s say you are a small business. You are currently managing your own Google Ads campaigns and you are seeing an average of 100 leads per month. You are converting 10% of your leads into customers, so you are generating 10 sales per month.
You decide to partner with a white label ads management service. The agency is able to improve your campaign performance and increase your lead generation to 150 leads per month. You are still converting 10% of your leads into customers, so you are now generating 15 sales per month.
This represents a 50% increase in revenue for your business. And, that’s how it works!
We hope this excites you. If yes, then let’s deep dive into the world of white label ad services.
Importance of Google Ads in Digital Marketing
To comprehend the importance of partnering with a White Label Google Ads Agency in India, it’s vital to first recognize the importance of Google Ads in digital marketing.
Google Ads is Google’s advertising platform. It enables businesses to create and display ads on Google’s vast network, which includes search results, YouTube, and various partner websites. Here’s why Google Ads is crucial in digital advertising:
Extensive Reach: Google is the most widely used search engine globally, with over 5.6 billion searches made daily.
Targeted Advertising: Google Ads allows for precise audience targeting based on keywords, demographics, location, and more.
Immediate Results: Businesses can reach their target audience quickly and generate leads or sales.
Measurable ROI: The performance of Google Ads campaigns is highly measurable, allowing for data-driven optimization.
The growth of online advertising as a whole is staggering, with businesses increasingly allocating their advertising budgets to digital channels.
According to eMarketer, digital ad spending worldwide is expected to reach $727.4 billion by 2024. This demonstrates the growing importance of online advertising and the need for effective Google Ads campaigns.
What Are White Label Google Ads Agencies?
Now that we understand the role of Google Ads in digital marketing, let’s explore the concept of white label google ads agencies.
White label ad agencies are specialized firms that offer Google ads management services to businesses but under the client’s brand.
In other words, they act as an extension of your team, handling the intricacies of Google Ads while you take credit for the results.
These agencies offer a range of services, including keyword research, ad creation, campaign optimization, and performance monitoring.
White label agencies operate within the digital marketing ecosystem by serving as silent partners, allowing businesses to focus on their core competencies. They offer a valuable bridge between businesses and the complex world of online advertising.
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How They Operate
Consider a scenario where a digital marketing agency in India partners with a White Label Google Ads Agency.
The digital marketing agency has clients seeking Google Ads services. Instead of building an in-house Google Ads team, they collaborate with the White Label Agency.
The White label ad agency, in this case, would set up and manage Google Ads campaigns on behalf of the digital marketing agency’s clients.
They would create ad copies, select relevant keywords, set budget allocations, and continually optimize the campaigns for the best results.
The client businesses, in turn, see the ads run smoothly, unaware that an external agency is behind the scenes.
This seamless collaboration allows businesses to offer comprehensive services without the overhead of maintaining a dedicated Google Ads team.
Growth of White Label Google Ads Agencies
White label Google Ads agencies have experienced significant growth in recent years, and this expansion is reflected in their market share and industry trends.
According to a report by Statista, the market size of the digital advertising industry in India is projected to reach 299 billion Indian Rupees in 2024, up from 149 billion in 2020.
This substantial growth underscores the increasing reliance on digital advertising in the country.
Key Trends
In the world of search advertising, it’s essential to stay on top of the latest trends and changes. The key trends can provide valuable insights and help you navigate the search ads landscape more effectively.
Click-through Rate (CTR) Trend
One of the significant trends we’ve observed is the increase in Click-through Rates (CTR) year over year (YoY) in 21 out of 23 industries. This means that more users are clicking on ads within these industries, a positive sign for advertisers.
While the Business Services and Industrial and Commercial industries did see decreases in CTR, the drops were not as significant as the increases experienced in other sectors. This data shows that users are engaging more with ads in most industries, making it a favorable environment for advertisers.
Cost Per Click (CPC) Trend
When it comes to the cost per click (CPC), the trends are a bit more varied. CPC increased YoY in 14 industries, indicating that it’s becoming more expensive to acquire clicks. However, it decreased in 8 industries, and it remained unchanged for just one: Apparel, Fashion, and Jewelry.
The fact that 61% of industries saw an increase in CPC suggests that, in general, it’s getting more costly to advertise via search ads. This data shows that CPC has been on the rise throughout 2022.
Conversion Rate (CVR) Trend
Another critical metric is the Conversion Rate (CVR), and here we see a shift in the trends. CVR decreased YoY for most industries, with a significant drop in some cases. In fact, all but two industries experienced a downturn in their conversion rates, which were Beauty and Personal Care, as well as Education and Instruction.
This means that 91% of industries saw an increase in Cost per Lead (CPL) as well as a decrease in the conversion rate. This change could indicate that it’s taking more effort to convert clicks into actual sales or leads for most advertisers.
Cost Per Lead (CPL) Trend
The Cost per Lead (CPL) is a critical factor in any advertising campaign. Here, CPL increased YoY for all industries except two: Automotive Sales and Beauty and Personal Care. This means that 91% of industries experienced an increase in how much it costs to acquire a lead through search ads.
However, there’s a glimmer of hope in the data. Our latest updates for 2023 show that these YoY increases have slowed, which could be a positive sign for advertisers looking to manage their budgets more effectively.
In summary, the search ads landscape is evolving, and it’s not without its challenges. Costs are rising in terms of both CPC and CPL, and conversion rates are generally decreasing.
However, these trends don’t necessarily spell doom for advertisers. Navigating the search ads landscape might feel more challenging, but with the right strategies and execution, it can also be much more rewarding. Advertisers who adapt to these changes and focus on optimizing their campaigns are likely to find success in this evolving landscape.
How Much Budget is Required to Hire a White Label Google Ads Agency?
The budget required to hire a white label Google Ads agency in India can vary depending on the specific services and scope of your advertising campaigns. Here are approximate budget ranges based on the services you might need:
Basic Google Ads Management: For small-scale campaigns with limited keywords and ad groups, you might need a budget ranging from $200 to $300 per month.
Medium-Scale Campaigns: If you have more extensive campaigns with a moderate number of keywords and ad groups, the budget could range from $300 to $700 per month.
Large-Scale Campaigns: For comprehensive, high-impact campaigns with a significant number of keywords and ad groups, you might require a budget of $1000 or more per month.
E-commerce or High-Competition Industries: Industries with high competition, such as e-commerce, may require higher budgets, ranging from $1500 to $3000 or more per month.
Custom or Advanced Services: If you need specialized services like remarketing, video advertising, or display ads, the budget may vary based on your specific goals and needs.
Apart from the above figures, most ad agencies charge a setup fee and a maintenance fee. The setup fee typically ranges from INR $100 to $300, depending on the agency and the scope of work involved. The maintenance fee is usually a percentage of your monthly ad spend, typically between 10% and 20%.
However, some agencies may not charge a setup fee, especially if you are signing up for a long-term contract. Others may offer a discounted setup fee if you commit to a certain amount of ad spend each month.
It is important to note that the setup fee and maintenance fee are not the only costs associated with hiring a white label Google Ads agency. You will also need to pay for your ad spend, which can vary depending on your industry and your goals.
Note: These are approximate budget ranges and can vary based on factors like geographic targeting, industry competition, and the goals of your campaigns. It’s essential to discuss your requirements with your respective ads agency to get a more accurate budget estimate tailored to your business.
How to Calculate Cost Per Lead (CPL)?
Calculating Cost Per Lead (CPL) is a fundamental step in calculating the effectiveness of a marketing campaign. It helps you understand how efficiently you’re acquiring new leads based on the resources you invest. Here’s how you can calculate CPL:
✅CPL Formula:
Total Marketing Spend / Total New Leads = Cost Per Lead (CPL)
Let’s break down the formula with the following example:
Suppose you’ve invested $1,000 in a marketing campaign that involved cold calling a list of 1,000 contacts. Out of those 1,000 contacts, only 10 individuals converted into leads.
To calculate the CPL:
CPL = Total Marketing Spend / Total New Leads
CPL = $1,000 / 10 = $100
So, in this case, your Cost Per Lead (CPL) is $100. This means that, on average, it costs you $100 to generate one lead from this particular campaign.
The beauty of this formula is its versatility. You can apply it to evaluate the performance of any marketing campaign, whether it’s conducted on social media platforms like LinkedIn or Facebook, or through paid advertising services like Google Ads.
What is the Average Cost Per Lead in Search Ads?
The Average Cost Per Lead (CPL) in Search Ads can vary by industry and location, but here are some insights for 2023:
Average CPL in 2023: In 2023, the average cost per lead for Google Ads is approximately $40.74. This figure represents the cost incurred for generating a single lead through Google Ads.
Industry Variations: The CPL can significantly differ by industry. For instance, some industries may have a higher CPL due to the competitive nature of keywords and target audiences. In one example, the average CPC for a particular industry in 2023 was $9.21, indicating a higher cost for acquiring leads in that specific sector.
Location Impact: The cost per lead can also be influenced by the geographical location of the target audience. Competitive markets in densely populated areas may lead to higher CPL.
Consider the Customer's Lifetime Value:
What Should an Ideal Cost Per Lead?
Determining what constitutes a good Cost Per Lead (CPL) is important for calculating the efficiency of your lead generation efforts. A good CPL is typically one that aligns with your overall business goals and profitability.
Here’s how you can gauge a good CPL:
- CPL in Relation to Gross Profit
A common rule of thumb is to ensure that your CPL is less than your gross profit per sale. In other words, a good CPL should not eat up your entire profit margin. If your average sale results in a gross profit of $5,000, you’d want your CPL to be less than that amount. The lower the lead cost, the better, as it ensures a healthy profit margin.
In specific industries like Software as a Service (SaaS) and Business-to-Business (B2B), it’s also valuable to assess the CPL in the context of your customer’s lifetime value or average deal size. If your clients, on average, spend $3,000 on your products or services, and your gross profit is 50% ($1,500), this becomes your threshold.
- Conversion Rate Matters
Additionally, the rate at which your sales team converts leads into paying customers plays a vital role. If, for instance, your sales team converts one in 10 leads (a 10% conversion rate), this figure should factor into your CPL assessment.
Here is an Example
To illustrate, if your gross profit per sale is $1,500, and your sales team converts one in 10 leads, a good CPL would be below $150. This ensures that your lead generation efforts remain cost-effective, allowing you to maintain a healthy profit margin while achieving your business objectives.
Why Choose Softtrix?
Softtrix, an exceptional player in the world of white label advertising agencies, stands out for several compelling reasons. Their commitment to excellence, innovative approaches, and unwavering dedication to client success set them apart.
Before knowing reasons to hire us check out this video and learn how we helped our clients boost their revenue:
Now, know some quick reasons to understand why you need to partner with us:
Affordable: Unlike other white label ad agencies we charge a competitive and affordable price that simply translates into more profit.
Exceptional Results: We have in-house PPC experts with more than 15 years of experience. Their expertise guarantees 100% success on all types of PPC projects.
Results-Driven: Our primary focus is on delivering results that impact your bottom line. We aim to ensure that every campaign we manage contributes to the growth of your business.
Global Reach: With a worldwide clientele, we have a global perspective that enables us to adapt strategies to various markets and industries effectively.
Conclusion
Hiring a white label ad agency definitely helps you skyrocket your growth. We have shared multiple reasons along with statistics and company recommendations that you can partner with. Meanwhile, if you still don’t know how to make your first move then feel free to talk with us.
Frequently Asked Questions
A White Label Google Ads Agency is a specialized agency that provides resellable Google Ads services to other agencies or businesses under their own brand name. It allows them to offer Google Ads management without having to build an in-house team.
Such ads agencies use data-driven strategies, expertise, and industry benchmarks to optimize ad campaigns. They focus on improving ROI by maximizing ad performance and reducing wasted ad spend.
These agencies often employ budget allocation strategies that are tailored to the specific needs of their clients. They aim to make the most of the available budget to generate results.
White Label Google Ads Agencies may showcase case studies with data-driven results from past campaigns. These can serve as examples of how they’ve helped clients achieve their advertising goals.
Outsourcing to a White Label Agency provides access to specialized expertise, cost savings, and scalability, whereas in-house management requires building and maintaining a dedicated team.
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