When developing your online advertising strategy, you must take into account some fundamental aspects such as the budget and the average advertising costs in which you must invest.
There’s no question that growing your business through online advertising has never been easier.
However, with so many platforms and tools available at your fingertips, it’s also very easy to get lost in the costs of campaigns, ads, and general marketing.
Before you start marketing your business online, it’s a priority that you have an estimate of your average advertising costs.
Either because you are managing a limited start-up budget or because you have some extra money that you want to use as well.
Here we delve into this topic. Forward!
Average Advertising Costs – Google Ads
It may come as no surprise to you that Google is the world’s largest platform for online advertising, as Google is considered the most popular search engine.
When you work with Google in relation to online advertising campaigns, it gives you the opportunity to get your brand message in front of customers who are looking for businesses similar to yours; and they can see it both in the search engine and in Google maps.
Examples of how Google Ads is displayed on the search engine results page (SERP).
Small businesses use Google Ads to:
1) Generate more visits to websites.
2) Receive more phone calls.
3) Increase foot traffic to physical stores.
These companies include Google ads in their advertising strategy with the purpose of maximizing the online advertising budget. As a result, they can develop effective Google Ads campaigns with any budget.
Google Ads Pricing Model
First, let’s take a look at how the pricing model works before we get into explaining Google’s average advertising costs.
In Google Ads campaigns there are two different types that you can start with:
1) Search Ads
2) Ads from Google Display or the Display Network
Below is a brief explanation of the differences between ads on the search network and google display or display network.
When advertising campaigns are launched on the search network, the ads that are displayed use a pay-per-click (PPC) model, which means that each time a user clicks on your ad and visits the corresponding landing page you must pay for that advertising cost.
When users make search queries, Google will serve you relevant ad content. This action allows more qualified traffic to be directed to the advertiser’s website.
These ads are displayed on the search engine results page, specifically above the results.
However, display ads are visible on the Google display network on websites, and most of them are displayed as banners. On websites that have the right audience for your brand, these ads would be ideal for advertising.
Example of where display ads can appear on a local website.
For pricing with ads on the Google Display Network, you have 3 options:
1) CPC Price: If this is the option that you are going to choose, remember that you will only pay when a user clicks on your ad, this makes it the most convenient pricing option for advertising campaigns if you are looking to increase traffic to your website.
2) CPM Pricing (cost per thousand impressions): If you are looking for brand recognition this option could be ideal for your advertising campaign because it only requires you to pay for ad views based on 1000 visits.
3) CPA (cost per acquisition) price: If you want to drive sales, this would be the best option, since you will pay when your ad leads to a conversion.
Average advertising costs for Google PPC ads.
The ads that are displayed on the Google PPC search engine You’ll be charged on a cost-per-click basis, meaning you’ll be charged a small fee when a search engine user clicks on your ad.
The cost per click is calculated in the Google ad auction process. and it determines which ads and in what order are displayed when a user searches for a relevant keyword, as well as the CPC rate.
The maximum amount you’re willing to pay per click (maximum bid you’ve set) and your Quality Score determine both your ad position and your cost per click.
Quality scoring is a measure of how good your ads are on a scale of 1-10. This means that while your quality score is higher, so will your ranking in the SERP and obviously your cost per click will be lower.
There are several different factors that will somehow affect your average advertising costs for Google search ads.
For example, CPCs vary both from one geographic location to another and among industries.
You may experience a higher than average cost per click if you work in a more competitive industry or if there is more competition in your current location.
Since we mentioned this to you, we will estimate the average advertising costs on the Google Ads platform.
An advertisement on this platform costs between $1 and $2 per click and companies that use it as part of their advertising strategy spend an average of between $9,000 and $10,000 per month (annually between $100,000 and $120,000)..
But as we mentioned earlier you don’t have to start with this type of advertising budget, since you can create successful google ad campaigns with any budget as long as you have experience on the platform.
Average advertising costs for the Google Display Network (GDN)
Ads on the Google Display Network typically have lower click-through rates than ads displayed on the Google search engine.
However, this ad network can grow your business, if you take advantage of the targeting options and remarketing opportunities.
The return of the investment that you have made in advertising will increase while the percentage of clicks that you reach is higher.
The average cost per click of an ad on the Display Network is $0.58, but more or less it will depend on the industry in which your company is located.
Although in the display network the vast majority of industries have a relatively cheap cost per click, those experiencing a higher CPC of $1.66 per click are service industries, followed by real estate industries with a CPC rate of $0.88.
Average Advertising Costs: Facebook Ads
It should not come as a surprise to you that Facebook is an online advertising platform, as it is the most popular and widely used social network in the world.
Many small businesses have relied on Facebook ads to reach new audiences, improve conversions throughout the year, and drive website traffic, as these Facebook ads have proven to be not only affordable but also effective in helping to achieve the advertising goals of the brands.
Facebook provides you with different types of ads based on your online advertising goals.
Facebook is an excellent online advertising platform for small businesses because it allows your brand to:
-Obtain a greater reach of consumers who are most interested in your products or services.
-Sophisticated targeting options that, based on your demographic information, behaviors and interests, reach more relevant audiences.
This means that you will have more opportunities to attract qualified buyers if more traffic enters your website.
Facebook ads pricing model.
Before we start talking about the costs of Facebook ads, we will mention a little about the ad pricing structure for this platform.
The Google Ads pricing model is very similar to Facebook Ads.
When brands make their ad on Facebook, they establish a daily or weekly budget for their ad campaign, but at the end of said budget, the ads also stop.
The good thing is that when you use Facebook Ads you can have control over how you allocate your budget. Why? Because in addition to your daily budget, you can also set maximum bids for different campaigns and control how much you invest to get user actions such as subscribing to your email marketing list or downloading your app.
If you want to get better use of your ad spend, Facebook’s pricing model is one of the most beneficial because it helps you have more control over how your ad budget is used.
It can happen that the issue of pricing model and digital marketing costs are a bit overwhelming or confusing for those who are new to the issue of the ad platform.
The PPC model for Google search ads is not as easy as it seems, and that is one of the big reasons why small businesses prefer to have their advertising campaigns developed by advertising agencies.
The Facebook Ads Manager dashboard tells you the cost of each ad campaign.
Average advertising costs for Facebook ads
For Facebook ads, the average cost per click is $1.72 and the cost per 1000 impressions is $7.19.
Many small businesses estimate advertising costs per fan between $0.50 and $1. However, the suggested average budget will depend on factors such as the type of your industry, location and Niche, and the amount should be adjusted to your goals, such as:
– Application downloads.
– Visits to websites.
– Brand recognition, others.
Facebook CPCs are mostly low, even for almost all industries, they vary from $3.77, $3.08 and $2.93 respectively.
In fact, industries like finance and insurance, home improvement, and customer service that are more expensive have low average advertising costs.
Consequently, it is good news for small companies that are looking to reach their audience and at the same time generate a return of investment substantial.
Since the cost is generally low, you can run effective Facebook advertising campaigns, even when your advertising budget is limited.
The Facebook ad platform is an ideal option especially for those companies that are starting with a lower advertising budget and to control costs.
Do you remember that we mentioned it to you earlier? It is a simple tool for advertisers.
Average Advertising Costs – Instagram Ads
As part of a strategic plan to dominate the world of networks…
