

Performance Marketing
2026-10-03 · 9 min read
Sapun Lamichhane
Founder & CEO of Arcetis
Every Google Ads budget has two parts. The management fee pays the person or agency running your campaigns, strategy, tracking, and optimization. The ad spend is the money that goes directly to Google for clicks and impressions, and it does not go to your agency at all.
A lot of business owners hear "NPR 25,000 a month for Google Ads" and assume that covers both the work and the clicks. It usually does not, and clarifying this upfront avoids an awkward conversation later when the actual Google bill arrives separately.
This confusion also shows up in reverse, some business owners assume a higher ad spend automatically means a higher management fee, which is not always true either. A well-run campaign at a modest budget can take nearly as much setup and monitoring time as a larger one, since the foundational work, tracking, keyword research, ad copy, is similar regardless of scale.
“Your Google Ads management fee and your ad spend are two different bills, and confusing them is why most first-time budgets end up too small to prove anything.”
A small local business running basic search campaigns on a modest budget typically pays NPR 15,000 to 25,000 a month in management fees. A growing business running multiple campaigns with proper conversion tracking set up usually sits around NPR 25,000 to 50,000 a month.
Once ad spend scales up and the account needs more active optimization, testing, and reporting, management fees commonly move to a percentage of ad spend, often in the range of ten to fifteen percent for larger budgets, rather than a flat fee.
These figures generally assume a single campaign type, typically search ads. Adding display, shopping, or YouTube campaigns on top usually increases the management fee, since each campaign type needs its own setup, creative considerations, and ongoing optimization rather than being a simple extension of an existing search campaign.
Cost per click varies a lot by industry. Local service keywords might run roughly NPR 20 to 80 per click, while competitive categories like finance or real estate can run considerably higher. These are rough ranges, not guarantees, since Google's auction changes by location, time, and competition on any given day.
To actually learn anything from a campaign, meaning get enough clicks and conversions to make real decisions, most small businesses need at least NPR 20,000 to 30,000 a month in ad spend alone. Below that, the data is often too thin to tell you whether something is working or just noise.
Seasonal demand also shifts costs, competition and cost per click for many categories rises around festival seasons like Dashain and Tihar when more businesses are bidding for the same searches, so budgets planned around an average month may need adjusting during peak periods.
At a very low management fee, there is rarely enough time budgeted for proper conversion tracking setup, audience testing, or regular negative keyword cleanup. The result is often wasted ad spend on searches that were never going to convert, which costs you far more than the management fee saved.
A campaign with no conversion tracking cannot actually be optimized, it can only be guessed at, no matter how skilled the person running it is.
Negative keywords, search terms you actively exclude from triggering your ads, are one of the most overlooked parts of account management. Without regular review, a local repair business can end up paying for clicks from people searching for jobs, free tutorials, or entirely unrelated services that happen to share a keyword.
At larger budgets, the discipline required changes substantially, portfolio bidding strategies, more rigorous A/B testing, and server-side tracking become standard practice rather than optional extras. Arcetis manages over $200,000 in Google ad spend across client accounts, and the operational rigor needed at that scale, proper attribution, careful budget pacing, audience segmentation, is simply different from running a single small local campaign.
That does not mean small businesses need that level of complexity on day one, but it is worth knowing what "properly managed at scale" actually looks like so you can judge whether your own campaigns are being run with real discipline.
At this scale, reporting also changes meaningfully, dashboards get built to show return on ad spend by campaign and audience segment rather than just overall click counts, which is a different and more useful level of detail than most small accounts ever need, but it shows what disciplined management looks like at the upper end.
Work backward from your numbers: decide what a new customer or conversion is actually worth to your business, then figure out how many clicks or impressions it realistically takes to get one, based on early data rather than guesses.
Plan to spend at least NPR 30,000 to 50,000 a month for two to three months before judging whether Google Ads works for your business. Shorter test periods or smaller budgets rarely generate enough data to draw a fair conclusion either way.
It also helps to separate your test budget from money you cannot afford to lose on a learning exercise. Early campaigns, even well-run ones, often spend some amount discovering what does not work before converging on what does, and treating that as tuition rather than a failure keeps expectations realistic.
Realistically, at least NPR 20,000 to 30,000 a month in ad spend, run for two to three months, gives you enough data to judge performance. Smaller or shorter tests often produce misleading results in either direction.
Because the agency fee and your ad spend are separate. The fee pays for the work of managing your campaigns, the ad spend is paid directly to Google for the actual clicks and impressions, and for most accounts the ad spend ends up being the larger of the two numbers.
Yes, for a simple local campaign with a modest budget, Google's own interface is usable without deep expertise. As budgets grow or the account needs conversion tracking, audience testing, and ongoing optimization, the time investment and risk of wasted spend usually makes professional management worth the fee.