How Much Does it Cost to Advertise Online?

by Neil Kokemuller; Updated September 26, 2017
Digital marketing diagram structure

Online advertising encompasses a variety of methods and tools that vary in pricing. A small-business owner likely can't afford the $450,000 bill Digiday said you faced in February 2013 to take over the Yahoo! home page for a day. However, you could set up pay-per-click plans with Google or Facebook or buy banner ads on smaller websites that fit your budget.

PPC Costs

Pay-per-click means you pay a certain amount each time a prospect clicks on your text ad. You set a bid amount and a daily budget with the online ad provider. Per-click rates range from less than a $1 to $10 or more, as of publication. By setting a daily budget, though, you control total click costs.

Banner Ads

To place a banner ad on a website, you typically pay a cost-per-thousand rate. This rate, expressed as CPM, is an amount you pay for every 1,000 ad impressions. Typical CPMs range from less than $1 up to $3 to $5, as of publication. Thus, you would pay around $100 to $500 per month for a site that generates around 100,000 monthly impressions. Higher traffic sites cost more, but you normally get more clicks on your ads.

About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

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