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How much does internet advertising cost?

Until recently, the word advertising was associated primarily with TV spots or street billboards. Today, effective promotion of activities takes place more and more online. There are many ways to advertise on the Internet – you can place your banners or spots on websites, promote content on social networks or pay for the presence of a link to your website at the very top of Google search results. How much does internet advertising cost?

Internet advertising – what is it all about?

The Internet is now basically a separate world that functions alongside the real world. Due to its vastness and diversity, it is more and more difficult to exist in it in a completely natural way. That is why Internet advertising is so important, as it allows many companies to mark their presence and gain customers. There are many ways to promote online, and it’s not an easy nut to crack – especially for newbies. Also, specialists in this area must constantly learn, because virtual space is changing very dynamically – what only yesterday was very effective, today can be counterproductive.

There are many advertising channels and methods used on the Internet. The most popular are:
– SEO,
– Google Ads campaigns: sponsored links, product campaigns,
– campaigns in social media (e.g. Facebook, Instagram),
– YouTube video campaigns,
– banner campaigns on Google Display Network,
re marketing,
– e-mail campaigns,
influencer marketing,
– publication of sponsored content,
word of mouth marketing.

Of course, this is not all! New promotion channels are also constantly being created – incl. thanks to new websites or applications being created.

Basics of Internet advertising – settlement models

Internet advertising costs should be considered based on the applicable billing models. There are also a few of these. Most often they are imposed by a specific system and service. When buying an advertisement, the client should assess (or consult it with specialists) which billing model will be the most profitable for him. The most popular forms are:
– CPC – cost per click (or PPC – pay per click) including payment for each click on the advertisement (banner, link, etc.);
– CPM (cost per mile) – settlement for every 1000 ad impressions (regardless of conversion), used most often in the case of image campaigns;
– CPV (cost per view) for payment for each display of an advertisement, used primarily on YouTube and similar websites; payment is valid only when the user watches at least 30 sec. Ads (or all, if shorter);
– CPL (cost per lead) – settlement for each user registration or obtaining contact;
– CPA (cost per action) – settlement for specific actions performed by the user on the website, eg “liking” a post;
– CPS (cost per sale) – settlement based on the number of sales transactions finalized through advertising; characterized by high commissions.

As you can see, there are many different ways to calculate ad bids. For this reason, the price lists of various promotional channels differ significantly, and comparing the profitability of specific campaigns can be difficult, especially for a layman.

What else does the cost of advertising on the Internet depend on?

The method of settlement or the place and time of publication is only the tip of the iceberg when it comes to the cost of online advertising. It is worth remembering that in most cases campaign prices are set individually. Much depends on the selected channels, but also on the target group or area of operation and, of course, the cost of acquiring a customer that a given company can afford. One nail american company might say you can get customers for $ 0.2 and another for $ 1, and in both cases it can be a successful and profitable campaign.

Of course, the necessary advertising expenses will also depend on whether you decide to act alone or choose experts. The second option is of course more expensive, but it is worth remembering that it usually translates into much larger and faster noticeable profits – acting “blindly”, without the necessary knowledge and experience, it is very difficult to allocate the advertising budget to allow for the achievement of the intended goals and getting the max out of a given channel.

Internet advertising – start with positioning

Online advertising often means only paid links, banners and videos, but its real foundation is positioning. It is through SEO activities (search engine optimization – content optimization for search engines) that the brand image is built, and at the same time the traffic on the website is increased, gaining new customers. Search engine optimization requires months or even years of consistency and implementation of carefully designed strategies. This is one of the reasons why it is often overlooked or regarded as the least effective form of advertising. In fact, quite the opposite is true – it is SEO that produces the most distinct and, above all, lasting results. However, you have to wait for the effects. Of course, keep in mind that SEO is not justified in all cases – if you operate in a competitive industry and you do not have the budget enough, you may just waste money – which is why it is so important to consult specialists who will assess which channel has the greatest make sense in terms of budget and industry.

You can carry out SEO activities on your own – there is no shortage of literature or courses on this subject. It is worth knowing, however, that the best results are achieved by professionally prepared and implemented plans. How much does it cost to work with an SEO agency? From several hundred dollars a month to even several or tens of thousands of dollars. As a rule, however, most companies’ SEO budgets are between $ 2,000 and $ 10,000.

Google Ads, the most popular form of advertising on the Internet

When talking about online advertising, many people mean Google Ads campaigns (formerly Google AdWords). This is the most obvious and at the same time quite complex form of promotion, which when properly applied can also be extremely effective. The most common is the so-called sponsored links – these are CPC text ads visible above the search results of specific terms (keywords) or in the lower parts of the page.

Prices for advertising in Google Ads are based on auctions. This means that individual companies that want to advertise on the same keyword determine how much they are willing to pay for a click on a sponsored link (maximum CPC bid). On this basis, the positions of links in the search results are determined. The cost of advertising is therefore inextricably linked to competition in a given industry and the advertising budgets of individual companies conducting similar activities. Google provides an approximate rate for placing a link at the top of the page, as well as the competitiveness of a given phrase. Specific? It happens that the CPC will be a few cents. Sometimes it is several dozen dollars. It all depends on the area where you want to promote yourself.

Diversifying the cost of your Ads ads is one of the reasons why running a profitable campaign is not easy. It is best to trust professionals in this matter who will distribute your budget in a way that allows you to obtain optimal results.

How much does online advertising cost – Google product campaigns

Google Ads also offers Product Listing Ads – PLA for online stores. In this case, a specific product and its price appear above the search results instead of a separate link to the page. The costs per click are then noticeably lower – on average they range from tens of cents to several dollars – although their amount also depends on the promoted products and competitiveness in this area. It is also worth remembering that product advertising is quite narrow, so promoting the entire assortment can cost you quite a lot. Therefore, it is recommended to start with individual categories in this regard.

Image advertising on Google Display Network

Google Display Network is a tool that allows you to reach new recipients with your message. Campaigns conducted within this network allow you to place banners, films or multimedia content on websites that meet the criteria specified by the ordering party. In this case, the cost per click is usually a few or several dozen cents. This type of advertising is considered less effective, but it works well, for example, in image and reach campaigns.

Remarketing – Another type of image ad

Remarketing is a more effective and at the same time more popular form of display advertising. It consists in displaying advertising content (usually banners) to people who have previously visited your website or, for example, have visited your store but have not made purchases. Such promotion allows you to remind potential customers about the offer that has already aroused their interest and often allows you to protect yourself from losing them to the competition. Remarketing campaigns are also billed based on clicks. CPC is on average a few dozen cents. Importantly, these types of ads are divided into two types:

static – the same banner for all recipients,
dynamic – banner content based on products or categories viewed by a given user.

As part of remarketing activities, you can also reach people with ads who, for example, watched videos from your YouTube channel or visited your website, and then searched for further information on Google. The type of activities carried out can therefore be adapted to very specific needs, which affects the profitability of this solution, as long as it is, of course, wisely implemented.

Ads on social media

Another popular channel for advertising is Facebook. The largest social network in the world offers many paid promotional solutions. The most common choice is promoting posts. Thanks to this, specific content can reach a much wider audience. The promotion of posts generates much greater reach and makes more people reach your Facebook profile, and often also your website. The cost of such ads can be calculated based on the number of impressions (on average a few dollars per 1000) or clicks on a link (on average from 1 to several dollars, not counting very competitive industries).

Facebook also allows you to set targeted ads for gaining new “fans” of a specific profile. In this case, you have to pay from several tens of cents to several dollars for each new liking of the page. Costs vary, among others depending on the target group established.

Similar advertising mechanisms are also offered by Instagram, which belongs to the Facebook empire, but the promotion is slightly cheaper there.

YouTube Ads

YouTube is a very popular advertising channel recently. The huge number of users who use the website every day is certainly noteworthy. This is the best place to post your video content – but remember that it doesn’t have to be long or complicated. Advertisers have the option of using a variety of video ad formats. The most popular are the so-called TrueView In Stream ads displayed before, after or during video playback. These are longer format clips that can be skipped by the user after 5 seconds. Payment is in CPV format, and only applies to impressions of at least 30 seconds of ad (or all of the ad, if longer). The cost in this case is on average a few cents per view.

The so-called Bumper Ads – short, several seconds long ads that cannot be missed. They are billed in the CPM format. Typically, the cost of 1,000 impressions ranges from a few to several dollars. However, there are many more possibilities for advertising on YouTube!

Advertising on the Internet – is it worth it?

As you can easily guess, the best results are achieved by Internet advertising carried out through multiple channels simultaneously with a well-thought-out positioning strategy. Activities can be carried out both on a small scale, which is most often used by local companies, and very widely. Their cost depends largely on the range, but also on the competitiveness in a given industry or target group. So how much does online advertising cost? It depends, of course. A small company can run effective operations for as little as several hundred dollars a month, while large stores or corporations often have advertising budgets of tens of thousands of dollars. Is it worth it? Without a doubt! However, remember that if you want to advertise effectively, it is worth trusting professionals.

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