Along with so many devices and strategies available at rising your small business with the online advertisement, the cost has never been simpler. That being told, you yet require to analyze when expanding your online advertising policy. The vastly crucial factor is the fund.
Whether you’re working on a bootstrap budget or missing a bit of money, it’s good to know the average advertising cost before you start marketing your business online. Below, we’ve put together a quick guide to all the costs you need to consider when developing your online advertising strategies. How much does it cost to advertise?
Average ad cost spend: Advertising with Google Ads
Given Google’s position as the most popular search engine, it may come as no surprise that Google Ads is the world’s largest online advertising platform.
When you run an online advertising campaign with Google, customers searching for a business like yours will have the opportunity to put their brand message on both the search engine and Google Maps.
Google Ads Prices Model
Before we dive into the average advertising costs of Google ads, let’s first look at how the pricing model works. There are two different types of Google advertising campaigns you can start – Search and Display Networks:
These ads use pay-per-click (model) ads when you launch ad campaigns on the Search Network. This means that every time a user clicks on your ad and visits the relevant landing page.
With ads on the Google Display Network, you have three main options for pricing:
- CPC Price – If you select this option, you pay only when the user clicks on your ad. This pricing option is ideal for advertising campaigns aimed at increasing website traffic.
- CPM pricing – CPM, or cost-per-thousand-impressions, is a pricing option that requires you to pay for ad views on a thousand views. This can be ideal for a brand awareness advertising campaign.
- CPA Pricing – You need to pay for the cost-per-acquisition cost when your ad leads to conversion. If your ultimate goal is to drive sales, this may be the best option for you.
Average advertising costs for Google PPC ads
Google PPC ads, which are displayed on search engines, are charged on a rate-by-basis basis. This means that you are charged a small fee each time a search engine clicks on your ad.
Cost-per-click pricing is calculated by Google’s advertising auction. How Google decides which ads to show when a user searches for related keywords. The auction CPC also determines the order in which ads are shown.
Your ad position and your cost per click are determined by both the maximum bid you set (the amount you’re willing to pay for each click) and your Quality Score.
There are several different factors that affect the average advertising spend for your Google search ads. CPCs vary from one geographical location to another. They also vary across industries.
If you work in a more competitive industry or have more competition in your current position,you may experience a higher cost per click.
That being said, the average cost of advertising on the Google Ads Platform is between $ 1.00 and $ 2.00 per click. On average, small online businesses that use Google ads as part of their online advertising strategy spend between $ 9,000 and $ 10,000 a month (or $ 100,000 to $120,000 per year).
Average Advertising Costs for Google Display Network (GDN)
Ads on the Google Display Network have lower click-through rates than ads appear on the Google search engine. However, there are appeal targeting options and remarketing opportunities that allow you to leverage this ad network to grow your business. The higher the click-through rate you can get, the higher the return on your advertising investment.
The average cost per click for advertising on the Display Network is $ 0.58. Again, depending on the industry your business is in, the average advertising cost for small business may be minimal.
Although most industries have cheaper costs per click on the Display Network, businesses in the employment services industry have a higher CPC of $ 1.66 per click. Below that the real estate industry has a $ 0.88 CPC rate.
Average Advertising Costs: How Much Does Advertising Cost?
Facebook is the most popular and widely used social network in the world. So it is not surprising that Facebook is also a popular online advertising platform.
Facebook Ads have proven to be both affordable and effective in helping brands to reach their advertising goals. Many small businesses rely on Facebook ads to reach new audiences, increase website traffic and improve conversions throughout the year.
The Facebook Ad Manager dashboard tells you the cost of each ad campaign.
Average Advertising Costs for Facebook Ads
Most recently, the average cost per click for a Facebook ad is $ 1.72. The average CPM or cost per 1000 impressions is $ 7.19.
Although the average recommended budget depends on a variety of factors, including your industry, niche, and location. Many small businesses plan to spend 50 0.50 to $ 1.00 per fan. This should be adjusted depending on your goals (brand recognition, app downloads, website visits, etc.).
Like Facebook Ads, Instagram Ads provide you with different formats based on your advertising goals.
The best thing about Instagram ads is that they aren’t as disruptive as other types of online advertising. Instagram creates a seamless ad experience by placing ad content alongside a user’s feed.
This means your ad content can look like organic content with the same compelling visuals and video that users expect from their favorite Instagram accounts. This makes Instagram advertising a great addition to your overall Instagram marketing strategy.
Instagram Ads Pricing Model
Instagram advertising is part of the Facebook Advertising platform. By the way, the Instagram pricing model is similar to Facebook ads. This is very convenient for brands that plan to launch campaigns on both Facebook and Instagram. To manage both types of social media advertising campaigns, all you need to do is familiarize yourself with one of the ad platforms and access one dashboard!
Average advertising spend for Instagram
A while ago, the average advertising cost of Instagram was lower than Facebook ads. In fact, CPM for Instagram ads would have been half the cost of CPM for Facebook ads. When Instagram first allowed advertisers to launch ad campaigns on social media platforms, the average CPM was between $ 5 and $ 6.50.
Get expert help with online advertising
Now that you know the average advertising cost of the three largest advertising platforms used by small businesses, you can begin to plan your own advertising strategy. Remember, the numbers above are only an approximation.
Actual advertising costs will depend on your industry, location, advertising goals, and other factors that all affect the cost of these online advertising platforms.
Another thing to keep in mind is that you can test different options and adjust your strategies to reduce your CPCs and reduce your time spend.
While optimizing an online advertising campaign is an important part of the test, developing and implementing such online advertising can be difficult for those who do not have the experience. If you do not have in-house expertise in Google advertising, Facebook, or Instagram advertising platforms, it may be time to speak to an expert.
You want to make sure you’re attracting the right kind of traffic because your business is spending money on every user click. Hiring a digital marketing agency that specializes in online advertising fee and digital advertising costs can help ensure that you are getting the most out of your advertising budget.