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.
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.
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.