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Online Advertising Costs: How Much Does It Cost to Advertise Online?

Last Updated: August 15, 2024
Online advertising costs $100 - $10,000 per month on average. How much you'll pay for online advertising depends on your chosen networks, ad types, your industry, your chosen agency or freelancer, and more. Keep reading to learn more about the cost of online advertising!
methodology:
  • 600 U.S.-based marketing professionals share how much their companies spend on online advertising.

An Inside Look at WebFX Online Advertising Pricing

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    🔎 Full-funnel ROI tracking
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    Our digital advertising specialists are ready to help you drive revenue with digital ads through proven strategies and cutting-edge expertise. 

    • Dedicated account manager and digital advertising team to plan, execute, and manage your ad campaigns
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Key Takeaways

  • 46% of businesses pay $100 – $10,000 per month on online advertising
  • 48% of businesses pay $1000 – $25,000 per year on social media advertising
  • 45% of businesses pay $100 – $10,000 per month on PPC advertising
  • 61% of businesses pay $0.11 – $0.50 per click on Google Ads
  • 24% of businesses pay $0.11 – $0.50 per click on Microsoft Ads

How much does it cost to advertise online?

So, how much does online advertising cost? Well, we interviewed 600 U.S.-based sales and marketing professionals to find out. And we’ve summarized what they shared below!

How much does online advertising cost?

Online advertising costs $100 – $10,000 per month on average in 2024 (46% of respondents). The cost of online ads can vary depending on several factors, like your chosen advertising platforms, ad types, industry, and whether you partner with an agency or freelancer.

Source Data

MONTHLY PPC COST % OF MARKETERS
Less than $100 4.17%
$100 – $5000 22.02%
$5001 – $10,000 22.62%
$10,001 – $50,000 14.88%
$50,001 – $100,000 8.93%
$100,001 – $250,000 8.33%
$250,001 – $500,000 6.55%
$500,001 – $750,000 4.76%
$750,001 – $1,000,000 3.57%
More than $1,000,000 4.17%
SOCIAL MEDIA COSTS PER YEAR % OF MARKETERS
Less than $1000 11.11%
$1000 – $5000 15.93%
$5001 – $10,000 15.19%
$10,001 – $25,000 17.04%
$25,001 – $50,000 12.22%
$50,001 – $100,000 10.74%
$100,001 – $250,000 10.00%
More than $250,000 7.78%

How much does PPC cost per month?

On average, pay-per-click (PPC) advertising costs $100 – $10,000 per month (45% of respondents). How much you’ll pay for PPC ads depends on your chosen network, like Google Ads or Microsoft Ads, your industry, and the size of your business.

Source Data

MONTHLY PPC COST % OF MARKETERS
Less than $100 4.17%
$100 – $5000 22.02%
$5001 – $10,000 22.62%
$10,001 – $50,000 14.88%
$50,001 – $100,000 8.93%
$100,001 – $250,000 8.33%
$250,001 – $500,000 6.55%
$500,001 – $750,000 4.76%
$750,001 – $1,000,000 3.57%
More than $1,000,000 4.17%

How much does social media advertising cost?

Social media advertising costs $1000 – $25,000 per year on average in 2024 (48% of respondents). Social media networks vary in their advertising costs, so your cost will depend on your chosen platforms and the types of ads you want to run.

Source Data

SOCIAL MEDIA COSTS PER YEAR % OF MARKETERS
Less than $1000 11.11%
$1000 – $5000 15.93%
$5001 – $10,000 15.19%
$10,001 – $25,000 17.04%
$25,001 – $50,000 12.22%
$50,001 – $100,000 10.74%
$100,001 – $250,000 10.00%
More than $250,000 7.78%

Data roundup: How much do businesses pay for online advertising?

What determines the cost of online advertising?

The cost of online advertising differs for every business. Here are some factors that influence how your unique online ad costs:

  • Your industry: Keywords for certain industries are more competitive than others, resulting in higher costs per click. For example, industries like consumer services and legal have some of the highest costs per click.
  • Your chosen ad networks: There are several ad networks out there you can use to run ads for your business, like Google Ads, Microsoft Ads, and social media networks like Facebook and Instagram. And they each carry varying advertising costs, so your investment depends on which and how many networks you choose to advertise on.
  • Your online advertising needs and goals: If your business depends on online ads for the majority of your revenue, you’ll invest more than a business who earns a smaller portion of their overall revenue through online advertising.
  • Your chosen agency or freelancer: Managing an online advertising strategy is time-consuming and hard work, so many businesses opt to hire an agency to help them. If you decide to go this route, your online ad investment will depend on your chosen agency’s or freelancer’s pricing.
  • Your online advertising tools: If you opt to do your online advertising in-house, you’ll probably need some tools to help you manage your strategy. Online advertising tools can help you monitor your results, create ad copy and landing pages, conduct keyword research, and more.

Data roundup: Which online advertising platforms do businesses use the most?

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Online advertising costs by channel

The advantage to online advertising is that your business has complete control over how much you spend. You decide what your budget is, and you can experiment to see which channels offer the highest returns for that budget.

There are many options to choose from, including:

1. Pay-per-click (PPC) advertising

Google, Bing, and other search engines allow you to create and run ads that show beside or above the regular search results for specific keywords. These ads operate on a pay-per-click (PPC) system, meaning that you pay every time someone clicks on your ad.

They also operate on a bidding system, meaning that in order for your ad to display, you have to be willing to pay more than your competitors for clicks. Depending on the level of competition within your industry, your online advertisement rate, called cost per click (CPC), can be anywhere from a few cents to a few hundred dollars.

That being said, the average CPC is $0.11 – $0.50 per click. The average business spends between $100 and $10,000 monthly on PPC.

 

2. Social media advertising

Social media platforms like Facebook, Twitter, LinkedIn, and Instagram allow you to create free accounts and engage with customers. This can be effective on its own, but the paid advertising options available on each can help you get even more out of your social media strategy.

On average, businesses spend $1000 – $25,000 per year on social media advertising.

Most social media platforms have online advertising models that work similarly to Google Ads by charging per click on your ads. Check out average CPCs by social media platform below:

  • Instagram: $0.01 – $0.25
  • Facebook: $0.26 – $0.50
  • LinkedIn: $2.00 – $3.00
  • Pinterest: $0.01 – $0.10
  • Twitter: $0.26 – $0.50

3. Search engine optimization (SEO)

SEO is the process of improving the pages on your website so that they rank higher in search engine results for relevant terms. The better optimized your site, the more interested visitors and potential customers you’ll attract.

Unless you have prior experience with SEO, a successful strategy requires hiring an experienced agencyThe cost is typically a monthly rate, and most often runs between $2500 – $7500 per month.

 

4. Email marketing

Although it’s one of the oldest forms of Internet marketing, email still has one of the highest ROIs of any online channel. However, the amount you invest in it depends on the platform you choose, as well as who creates the content for your emails.

Even if you choose to write and send the emails yourself, you’ll most likely need to use an email platform in order to reach all of your customers. Depending on how many subscribers you have, this can cost anywhere from $751 – $1000 per month.

However, you can also hire an Internet marketing agency to manage your email marketing for you. This service typically includes strategy development, content creation, and sending and tracking emails. Managed email marketing services may cost between $51 – $1000 per month.

5. Content marketing

If your company’s website has a regularly updated blog, you’re already engaging in content marketing to a certain extent. This strategy simply refers to the creation and promotion of original content, with the goal of informing readers and reaching new potential customers.

You can create content yourself to reduce your costs. However, working with a professional content marketing agency will save you time and may produce better results due to the expertise of the agency. Content marketing services include strategy development and planning, creating, distributing, tracking, and promoting content. For SMBs, content marketing services typically cost $5001 – $10,000 per month.

How do you choose the right online advertising channels?

So, how can you choose which channels are most effective for your business, and how much should you invest in each? Essentially, it all comes down to your target audience and budget.

For example, if you’re an ecommerce site, PPC ads for specific product names are typically a good option. But if you’re a B2B software provider, content marketing makes more sense.

No matter what kind of online marketing you choose and no matter what your budget is, it’s important to think strategically and always keep your potential customers in mind. Focus your marketing strategy on the places they look online, and you’ll see much better results in the long run.

For most businesses, a combination of multiple strategies will help you get the best return on your Internet advertising costs. A professional digital marketing agency can help you create the ideal strategy for your company.

Ready to start advertising online?

If you want to use the Internet to advertise your business, choosing and budgeting for the right channels can be challenging. WebFX can help.

We have years of experience creating successful multichannel approaches for our clients, and we’ll do the same for you.

Contact us online or at 888-601-5359 today to speak with a strategist about your business’s goals and which online advertising strategies will help you achieve them.

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FAQs about online advertising costs

Get answers to FAQs about online advertising costs now:

How much does online advertising cost?

Online advertising costs $100 – $10,000 per month on average. How much you’ll pay for online ads depends on your industry, chosen networks, your chosen agency or freelancer, and more.

How much does PPC advertising cost?

On average, PPC advertising costs $100 – $10,000 per month. How much you’ll pay for PPC ads depends on your chosen network, like Google Ads or Microsoft Ads, your industry, and the size of your business.

How much does social media advertising cost?

Social media advertising costs $1000 – $25,000 per year on average. Social media networks vary in their advertising costs, so your cost will depend on your chosen platforms and the types of ads you want to run.

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